1. Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith, Shafer, and Sutton John Wiley and Sons, Inc.

2. Chapter 7: Monitoring and Controlling the Project 2 Chapter 7 Monitoring and Controlling the Project

3. Chapter 7: Monitoring and Controlling the Project 3 Introduction 4 Monitoring and Control are opposite sides of selection and planning –bases for selection dictate what to monitor –plans identify elements to control 4 Monitoring is collection, recording, and reporting of information 4 Control uses monitored information to align actual performance with the plan

4. Chapter 7: Monitoring and Controlling the Project 4 THE PLAN-MONITOR- CONTROL CYCLE

5. Chapter 7: Monitoring and Controlling the Project 5 Plan-Monitor-Control Cycle 4 Closed loop process 4 Planning-monitoring-controlling effort often minimized to spend time on “the real work”

6. Chapter 7: Monitoring and Controlling the Project 6 Figure 7-1 Project Authorization and Expenditure Control System Information Flow

7. Chapter 7: Monitoring and Controlling the Project 7 Designing the Monitoring System 4 Identify special characteristics of performance, cost, and time that need to be controlled –performance characteristics should be set for each level of detail in the project 4 Real-time data should be collected and compared against plans –mechanisms to collect this data must be designed 4 Avoid tendency to focus on easily collected data

8. Chapter 7: Monitoring and Controlling the Project 8 DATA COLLECTION AND REPORTING

9. Chapter 7: Monitoring and Controlling the Project 9 Formats of Data 4 Frequency Counts 4 Raw Numbers 4 Subjective Numeric Ratings 4 Indicators and Surrogates 4 Verbal Characterizations

10. Chapter 7: Monitoring and Controlling the Project 10 Data Analysis 4 Aggregation Techniques 4 Fitting Statistical Distributions 4 Curve Fitting 4 Quality Management Techniques

11. Chapter 7: Monitoring and Controlling the Project 11 Figure 7-2 Number of Bugs per Unit of Test Time

12. Chapter 7: Monitoring and Controlling the Project 12 Figure 7-3 Percent of Specified Performance Met During Successive Repeated Trials

13. Chapter 7: Monitoring and Controlling the Project 13 Figure 7-4 Ratio of Actual Material Cost to Estimated Material Cost

14. Chapter 7: Monitoring and Controlling the Project 14 Reporting 4 Reports –Project Status Reports –Time/Cost Reports –Variance Reports 4 Not all stakeholders need to receive same information 4 Avoid periodic reports 4 Impact of Electronic Media 4 Relationship between project’s information system and overall organization’s information system

15. Chapter 7: Monitoring and Controlling the Project 15 Report Types 4 Routine 4 Exception 4 Special Analysis

16. Chapter 7: Monitoring and Controlling the Project 16 Meeting Guidelines 4 Meetings should be help primarily for group decision making –avoid weekly progress report meetings 4 Distribute written agenda in advance of meeting

17. Chapter 7: Monitoring and Controlling the Project 17 Meeting Guidelines continued 4 Ensure everyone is properly prepared for meeting 4 Chair of meeting should take minutes –avoid attributing remarks to individuals in the minutes 4 Avoid excessive formality 4 If meeting is held to address specific crisis, restrict meeting to this issue alone

18. Chapter 7: Monitoring and Controlling the Project 18 Virtual Reports, Meetings, and Project Management 4 Use of the Internet 4 Use of Software Programs 4 Virtual Project Teams

19. Chapter 7: Monitoring and Controlling the Project 19 EARNED VALUE

20. Chapter 7: Monitoring and Controlling the Project 20 Earned Value 4 Percent of task’s budget actually spent not good indicator of percent completion

21. Chapter 7: Monitoring and Controlling the Project 21 Conventions Used to Estimate Progress on Tasks 4 50-50 –50% complete when task started and other 50% added when task finished 4 100% –100% complete when finished and zero percent before that 4 Ratio of Cost Expended to Cost Budgeted

22. Chapter 7: Monitoring and Controlling the Project 22 Variances 4 Cost/Spending Variance BCWP - ACWP 4 Schedule Variance BCWP - BCWS 4 CPI BCWP/ACWP 4 SPI BCWP/BCWS

23. Chapter 7: Monitoring and Controlling the Project 23 Figure 7-5 Earned Value Chart

24. Chapter 7: Monitoring and Controlling the Project 24 Figure 7-6(a) Positive Schedule Variance, Negative Spending Variance

25. Chapter 7: Monitoring and Controlling the Project 25 Figure 7-6(b) Negative Schedule Variance, Negative Spending Variance

26. Chapter 7: Monitoring and Controlling the Project 26 Figure 7-6(c) Negative Schedule Variance, Positive Spending Variance

27. Chapter 7: Monitoring and Controlling the Project 27 Additional Items of Interest 4 Estimated (Remaining Cost) to Completion ETC = (BAC - BCWP)/CPI 4 (Total Cost) Estimated at Completion EAC = ETC + ACWP

28. Chapter 7: Monitoring and Controlling the Project 28 PROJECT CONTROL

29. Chapter 7: Monitoring and Controlling the Project 29 Background 4 Acts which seek to reduce differences between plan and actuality 4 Difficult Task –human behavior involved –problems rarely clear cut

30. Chapter 7: Monitoring and Controlling the Project 30 Purposed of Control 4 Stewardship of Organizational Assets –physical asset control –human resources –financial control 4 Regulation of Results Through the Alteration of Activities

31. Chapter 7: Monitoring and Controlling the Project 31 DESIGNING THE CONTROL SYSTEM

32. Chapter 7: Monitoring and Controlling the Project 32 Background 4 Purpose is to correct errors, not punish the guilty 4 Investments in control subject to diminishing returns 4 Must consider impact on creativity and innovation 4 Be careful not emphasize short-run results at the expense of long-run objectives 4 Dangers of across the board cuts

33. Chapter 7: Monitoring and Controlling the Project 33 Primary Mechanisms by Which PM Exerts Control 4 Process Reviews 4 Personnel Assignments 4 Resource Allocations

34. Chapter 7: Monitoring and Controlling the Project 34 Components of a Control System 4 Sensor 4 Standard 4 Comparator 4 Decision Maker 4 Effector

35. Chapter 7: Monitoring and Controlling the Project 35 Types of Control Systems 4 Go/No-Go Controls –predetermined standard must be met for permission to be granted to continue 4 Post-Control –done after project completed –purpose is to allow future projects to learn from past project experience

36. Chapter 7: Monitoring and Controlling the Project 36 Figure 7-7 Sample Project Milestone Status Report

37. Chapter 7: Monitoring and Controlling the Project 37 Tools for Control 4 Variance Analysis 4 Trend Projections 4 Earned Value Analysis 4 Critical Ratio

38. Chapter 7: Monitoring and Controlling the Project 38 Figure 7-8 Trend Projection

39. Chapter 7: Monitoring and Controlling the Project 39 Figure 7-9 Critical Ratios with Control Limits

40. Chapter 7: Monitoring and Controlling the Project 40 Figure 7-10 Cost Control Chart

41. Chapter 7: Monitoring and Controlling the Project 41 SCOPE CREEP AND CHANGE CONTROL

42. Chapter 7: Monitoring and Controlling the Project 42 Scope Creep 4 Coping with changes frequently cited by PMs as the single most important problem 4 Common Reasons for Change Requests –Client –Availability of new technologies and materials

43. Chapter 7: Monitoring and Controlling the Project 43 Purpose of Change Control System 4 Review all requested changes 4 Identify impact of change 4 Evaluate advantages and disadvantages of requested change 4 Install process so that individual with authority may accept or reject changes

44. Chapter 7: Monitoring and Controlling the Project 44 Purpose of Change Control System continued 4 Communicate change to concerned parties 4 Ensure changes implemented properly 4 Prepare reports that summarize changes made to date and their impact

45. Chapter 7: Monitoring and Controlling the Project 45 Rules for Controlling Scope Creep 4 Include in contract change control system 4 Require all changes be introduced by a change order 4 Require approval in writing by the client’s agent and senior management 4 Consult with PM prior to preparation of change order 4 Amend master plan to reflect changes

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