2. Introduction
After scheduling , project will start and then
attention must be focused on progress.
Progress needs monitoring
What is happening
Comparison of actual achievement against the schedule
Revision of plans and schedules (wherever necessary)
2
Prof. Kanchana Devi
3. Creating Framework
Prof. Kanchana Devi
3
Exercising control over a project and ensuring
that targets are met is a matter of regular
monitoring.
Finding out what is happening and comparing
it with targets
Re-planning also sometimes required
5. Responsibility
Prof. Kanchana Devi
5
The overall responsibility
Ensuring satisfactory progress on a project
It is the role of “Steering Committee”, project
management board or Project Board.
8. Assessing Progress
Prof. Kanchana Devi
8
Information should be collected routinely
Information should be objective and tangible
Whether or not a particular report has been delivered
Sometimes the assessment depends on
estimates of proportion of current activity that
has been completed
9. Setting Checkpoints
Prof. Kanchana Devi
9
Necessary to set a series of check points in
the initial activity plan.
Checkpoints may be:
Regular(Monthly)
Tied to specific events (production of report)
10. Collecting the Data
Prof. Kanchana Devi
10
Rule: Manager will breakdown the long
activities into more controllable tasks of one or
two weeks.
It is necessary to gather information about
partially completed activities, forecasts of how
much work is left to be completed.
12. Risk Reporting
Prof. Kanchana Devi
12
One way to overcome the objections of partial
completion report is to avoid asking for
completion dates. (instead ask for likelihood of meeting the
target)
Called “Traffic Light Method”.
13. Consists of following steps
Prof. Kanchana Devi
13
Identify the key elements for assessment in a piece of
work
Break these key elements into constituent element
Assess each of the second level element on the scale
Green for target,
Amber for ‘not on target but recoverable’
Red for ‘not on target and recoverable only with
difficulty’
Review second level assessment to arrive at first level
Review first level assessment to produce an overall
assessment
16. Cost Monitoring
Prof. Kanchana Devi
16
Expenditure monitoring is an important
component of project control
A project might be on time but only because
more money has been spent on activities than
originally budgeted
19. Earned Value
Prof. Kanchana Devi
19
Analysis is based on assigning a ‘value’ to each
task or work package based on expenditure
forecasts.
The assigned value is the original budgeted cost
for the item and is known as the ‘baseline budget’
or ‘budgeted cost of work scheduled’(BCWS)
The total value credited to a project at any point is
known as the ‘earned value’ or ‘budgeted cost of
the work performed’(BCWP)
20. Actual Cost
Prof. Kanchana Devi
20
By recording the “Earned Value”, the actual
cost of each task can be collected as “Actual
Cost” or ACWP-Actual Cost of Work
Performed.
There are three types of Variance:
Schedule Variance(SV)
Time Variance(TV)
Cost Variance(CV)
21. Schedule Variance(SV)
Prof. Kanchana Devi
21
The Schedule Variance is measured in
cost terms as EV-PV
It indicates the degree to which the value
of the completed work differs from the
planned work.
22. Example:
Prof. Kanchana Devi
22
A work with a PV of $40,000 should have
been completed by now. In fact, some of that
work has not been done so that the EV is only
$35,000. Calculate SV.
SV=EV-PV
35000-40000= - 5000
A negative SV means the project is behind
schedule
23. Time Variance (TV)
Prof. Kanchana Devi
23
Difference between the time when the
achievement of the current earned value was
planned to occur and the time now.
Eg:
The current EV should have been achieved in the
early part of month 9 and as the time now is end
of month 11, the TV is about -1.75 months from
graph.
24. Cost Variance (CV)
Prof. Kanchana Devi
24
This is calculated as EV-AC.
It indicates the difference between the earned
value or budgeted cost and the actual cost of the
completed work.
Let Actual Cost for previous example is $ 55,000
CV=35000-55000
= -20000
A negative CV means that the project is over cost
25. Prioritizing Monitoring
Prof. Kanchana Devi
25
List of priorities
Critical Path Activities
Activities with no free float
Activities with less than a specified float
High Risk Activities
Activities using critical resources