1. © Gunnar Wettergren1 IV1021 Lecture 6 – Monitoring and terminating Gunnar Wettergren gunnarw@dsv.su.se

2. © Gunnar Wettergren2 Agenda Monitoring the project Controlling the project Evaluating/Terminating the project

3. © Gunnar Wettergren3 Monitoring and controlling the project

4. © Gunnar Wettergren4 Definitions and relationships Monitoring and Control are opposite sides of selection and planning bases for selection dictate what to monitor plans identify elements to control Monitoring is collection, recording, and reporting of information Control uses monitored information to align actual performance with the plan

5. © Gunnar Wettergren5 What, why and when What: The central parts for any PM to monitor are time, cost, and performance Why: A PM’s main focus is to get a project completed on time, within budget, and delivering what the customer wants When: Design control system before project start and monitor throughout the project lifecycle

6. © Gunnar Wettergren6 Monitor and control vs. Real work One could make a case for that the more you monitor and control the less real work you perform However, without these processes in place how can you keep track of the project The Planning-monitoring-control (PMC) process is central to a PM’s tasks

7. © Gunnar Wettergren7 The PMC process Planning Monitoring Control

8. © Gunnar Wettergren8 How to do it? How do we create this process What must be considered How to use it

9. © Gunnar Wettergren9 Designing the monitoring system

10. © Gunnar Wettergren10 Starting point What do we need to monitor? Performance Activities and project progression Time Critical path Estimations Milestones Cost Total project cost Activity costs

11. © Gunnar Wettergren11 Monitoring system creation Start with the project action plan Define measurements for cost, performance, and time Important to remember that you must include all levels of activities Furthermore, mechanisms for collecting the data must also be in place Avoid tendency to focus on easily collected data

12. © Gunnar Wettergren12 Continued.. The monitoring system should also include Change tracking/control Documentation processes Telephone logs Code storage ….

13. © Gunnar Wettergren13 Example of measurements Performance Activity completion (Subjective reports) Code errors Number of bugs Number of changes Cost Different ratios Budgeted cost / Actual cost > 1 Time Project member reporting (Important what increments you use)

14. © Gunnar Wettergren14 Collecting data and reporting

15. © Gunnar Wettergren15 Types of data Frequency counts Raw numbers Subjective numeric ratings Indicators and surrogates Verbal characterizations

16. © Gunnar Wettergren16 From where do we get the data Among many Economy systems Project members Change management systems MS Project/Project server

17. © Gunnar Wettergren17 Analyzing data Frequently some sort of post-processing must be done in order to understand the collected data Budget breakdowns Mathematical analysis Etc.

18. © Gunnar Wettergren18 Example of data analysis Core concepts of project management. Mantel et al, 2004

19. © Gunnar Wettergren19 Reporting Reports Project Status Reports Time/Cost Reports Variance Reports Not all stakeholders need to receive same information Avoid periodic reports All involved need to know their status

20. © Gunnar Wettergren20 Report types Routine Exception Special Analysis

21. © Gunnar Wettergren21 Controlling the project

22. © Gunnar Wettergren22 Background The purpose of project control is to reduce the difference between the plan and reality Very difficult task Humans are involved Hard to identify the problem source We must make sure we don’t remedy the symptom

23. © Gunnar Wettergren23 Purpose We are not trying to punish the ”guilty” but to remedy problems Two main purposes Management of organizational assets (Physical, human, and financial) Obtaining the wanted result

24. © Gunnar Wettergren24 Designing a control system Again primary purpose is to correct errors Control systems must be cost effective Cost of control system Benefit

25. © Gunnar Wettergren25 PM mechanisms used for control Process reviews Evaluating and controlling the method of work Personnel assignment Identify top performers Be careful, you do not want to create an elite group Resource allocation Reassign resources between tasks

26. © Gunnar Wettergren26 The control system itself IP Input Process Output O Control object Control system Effector I P o I P o Comparator Sensor Adapted from Schoderbek et al. 1990, p.111

27. © Gunnar Wettergren27 Project evaluation

28. © Gunnar Wettergren28 We must perform Project evaluation Project audit

29. © Gunnar Wettergren29 Project evaluation How did we do? The project evaluation appraises the progress and performance relative to the plan Should not be done only after project completion Purpose is to improve the process of carrying out projects

30. © Gunnar Wettergren30 Evaluation criteria Original criteria for selecting and funding project Success to date Business/Direct Success Future Potential Contribution to Organization’s Goals Contribution to Team Member Objectives

31. © Gunnar Wettergren31 Project audit process Timing depends on purpose Three Levels general audit detailed audit technical audit

32. © Gunnar Wettergren32 The audit report Introduction Current status Future project status Critical management issues Risk analysis / management Final comments

33. © Gunnar Wettergren33 Project termination

34. © Gunnar Wettergren34 When to terminate Sunk cost approach Goal fulfillment Comparison to set failure/success factors

35. © Gunnar Wettergren35 Termination types Project Extinction Termination-By-Addition Termination-By-Integration Termination-By-Starvation

36. © Gunnar Wettergren36 Termination process Core concepts of project management. Mantel et al, 2004

37. © Gunnar Wettergren37 Project final report Main purpose is to facilitate organizational learning Evaluate what worked and what did not Should include: Project performance Adminstrative performance Organizational structure Project teamwork Project management techniques

38. © Gunnar Wettergren38 Summary / Questions lecture 6