The document discusses project monitoring and control, including defining key metrics to track, how and when to collect data, generating reports, and calculating variances to evaluate project performance. It provides examples of common metrics like cost, time, and quality as well as examples of variance calculations to analyze project status. The goal of monitoring and reporting is to identify issues early and keep stakeholders informed so corrective actions can be taken to ensure projects stay on budget and schedule.

2.  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 in
accordance with the plan
 Evaluation - Judgments regarding the quality
and effectiveness of project performance

3.  Must decide what is important enough to
monitor
 We mainly want to monitor:
◦ Project performance
◦ Budget
◦ Time
 Must be operationalized
◦ Some may be monitored continuously
◦ Others may be checked only at milestones

4. 1. Identify key factors to be controlled
◦ Performance
◦ Cost
◦ Time
2. Information to be collected must be identified.
This may consist of accounting data, operating
data, customer reactions, specification changes,
and the like.

5.  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

6.  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 any special forms needed for data
collection?

7. 1. Frequency counts
2. Raw numbers
3. Indicators
4. Verbal measures

8. • A simple tally of the occurrence of an event.
For example
• Complaints
• number of times a project report is late
• days without an accident
• bugs in a computer program

9.  These numbers are reported as direct
comparisons with an expected or standard
number.
 “variances” are commonly reported either
as the difference between actual and
standard or as the ratio of actual to
standard

10.  The speed with which change orders are
processed and changes are incorporated into
the project is often a good measure of team
efficiency.
 Response to change may also be an indicator
of the quality of communications on the
project team.

11.  Measures for such performance
characteristics as “quality of team member
cooperation,” “morale of team members,” or
“quality of interaction with the client”
frequently take the form of verbal
characterizations.

12.  After data collection has been completed,
reports on project progress should be
generated.
 These include project status reports,
time/cost reports, and variance
reports,among others.
 Causes and effects should be identified
and trends noted.
 Plans, charts, and tables should be
updated on a timely basis.
 Where known, “comparables” should be
reported, as should statistical
distributions of previous data if available.
 Both help the PM (and others) to interpret
the data being monitored.

13.  Project reports need to correspond to the
schedule
 As work packages are finished, reports on
those packages are no longer needed
 New work packages generate the need for
new reports
 Thus, the nature of project reports changes
over time

14.  Reports should address each level
 Not at same depth for every level
◦ Lower levels need detailed information
◦ Senior levels need overview reports

15.  Reports must contain relevant data
 Must be issued frequently
 Should be available in time for control

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

17. • Mutual understanding of the goals of the
project
• Awareness of the progress of parallel
activities and of the problems associated with
coordination among activities
• More realistic planning for the needs of all
groups and individuals working on the project
• Understanding the relationships of individual
tasks to one another and to the overall project

18. • Early warning signals of potential problems
and delays in the project
• Minimizing the confusion associated with
change by reducing delays in communicating
the change
• Faster management action in response to
unacceptable or inappropriate work
• Higher visibility to top management,
including attention directed to the immediate
needs of the project
• Keeping the client and other interested
outside parties up to date on project status,
particularly regarding project costs,
milestones, and deliverables.

19.  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

20.  Avoid regular status report meetings
 Start and end on time
 Have an agenda and stick to it
 Publish the agenda early
 Take minutes

21.  Too much detail
 Poor interface between the data/procedures
of the project and the information system of
the parent company
 Poor connections between the planning
process and the monitoring process

22.  One way of measuring overall
performance is by using an aggregate
performance measure called earned value
 Earned value is an estimate of the
percentage of work completed thus far

23. • 50-50 rule: Fifty percent completion is
assumed when the task is begun, and the
remaining 50 percent when the work is
complete.
• 0-100 percent rule: This rule allows no credit
for work until the task is complete
• Critical input use rule: This rule assigns task
progress according to the amount of a critical
input that has been used
• The proportionality rule: This commonly used
rule is also based on proportionalities, but
uses time (or cost) as the critical input

24.  Variances and indices can help analyze a
project
 Will look at some of the more common ones

25. • the cost (or sometimes the spending)
variance (CV) is the difference between the
amount of money we budgeted for the work
that has been performed to date
• CV = EV – AC
• Negative variance indicates a cost overrun

26. • The schedule variance (SV) is the difference
between the EV and the cost of the work we
scheduled to be performed to date, or the
planned value (PV).
• SV = EV – PV
• Negative variance indicates you are behind
schedule

27. • The time variance is the difference in the time
scheduled for the work that has been
performed (ST) and the actual time used to
perform it (AT).
• TV = ST – AT
• Negative variance indicates you are behind
schedule

28.    
   PVAC
EV
PV
EV
AC
EV
SPI
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
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2
CPICSI
IndexSchedule-Cost
PV
EV
SPI
IndexePerformancSchedule
AC
EV
CPI
IndexePerformancCost
(TPI) = ST/AT.

29. • Assume that operations on a work package
were expected to cost $1,500 to complete
the package. They were originally
scheduled to have been finished today. At
this point, however, we have actually
expended $1,350, and we estimate that we
have completed two-thirds of the work.
What are the cost and schedule variances?
CV=EV-AC = 1500*2/3 – 1350=-350
SV= EV-PV= 1500*2/3 – 1500=-500
CPI=EV/AC
SPI= EV/PV

30.  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

31.  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

32.  1. Find the schedule and cost variances for a project
that has an actual cost at month 22 of $540,000, a
scheduled cost of $523,000, and an earned value of
$535,000.
 2. A sales project at month 5 had an actual cost of
$34,000, a planned cost of $42,000, and a value
completed of $39,000. Find the cost and schedule
variances and the CPI and SPI.
 3. A software development project at day 70 exhibits an
actual cost of $78,000 and a scheduled cost of $84,000.
The software manager estimates a value completed of
$81,000. What are the cost and schedule variances and
CSI? Estimate the time variance.
 4. A project to develop a county park has an actual cost
in month 17 of $350,000, a planned cost of $475,000,
and a value completed of $300,000. Find the cost and
schedule variances and the three indexes.
 5. A consulting project has an actual cost in month 10 of