Project Monitoring and Control
Project Monitoring and Control
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Monitoring – collecting, recording, and
reporting information concerning project
performance that project manger and others
wish to know
Controlling – uses data from monitor activity
to bring actual performance to planned
performance
Project Monitoring and Control
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Why do we monitor?
What do we monitor?
When to we monitor?
How do we monitor?
Why do we monitor?
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Simply because we know that things
don’t always go according to plan (no
matter how much we prepare)
To detect and react appropriately to
deviations and changes to plans
What do we monitor?
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Time
Money
Resources
Material Usage
Tasks
Quality/Technical
Performance
Progress
Costs
Job starts
Job completion
Engineering / Design
changes
Variation order (VO)
When do we monitor?
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End of the project
Continuously
As soon as possible
At task completion
How do we monitor
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Through meetings with clients, parties involved in
project (Contractor, supplier, etc.)
For schedule – Update CPM, PERT Charts, Update
Gantt Charts
Using Earned Value Analysis
Calculate Critical Ratios
Reports
Tests and inspections
PMIS (Project Management Info Sys) Updating
Project Control
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Control – process and activities needed to
correct deviations from plan
Control the triple constraints
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time (schedule)
cost (budget, expenses, etc)
performance
Project Control Cycle
Establish operational schedule
Measure and report progress
Compare actual with planned
Determine effect on completion
Plan/implement corrective action
Update operational schedule
Integrated Project Control
Integration management is the key to overall
project success:
 Coordinate the people, the plan and work
required to complete the project
 Focus on the big picture of the project
 Make strategic decisions during critical
times
 Communicate key project information to
senior management
Internal & External Project
Control
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Both Internal & external control systems are
used to monitor & regulate project activities.
Internal Control : refers to the contractor's
systems and procedures for monitoring work
and taking corrective action.
External Control : refers to the additional
procedures & standards imposed by the
client, including taking over project
coordination and administrative functions.
External Control
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Frequent reports on overall project
performance.
Reports on schedules, cost and technical
performance.
Inspections of work by client’s programme
managers
Inspection of books & records of the
contractor.
Strict terms on allowable project costs,
pricing policies, and so on.
Techniques for monitoring and
control
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Earned Value Analysis
Critical Ratio
Earned Value Analysis
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A way of measuring overall performance (not
individual task) is using an aggregate performance
measure - Earned Value
Earned value of work performed (value completed)
for those tasks in progress found by multiplying the
estimated present physical completion of work for
each task by the planned cost for those tasks. The
result is amount that should be spent on the task so
far. This can be compared with actual amount spent.
Earned Value Analysis
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Earned value concept – combines cost reporting &
aggregate performance reporting into one
comprehensive chart
Earned value chart – basis for evaluating cost and
performance to date
Earned Value Analysis
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Baseline cost to completion – referred to as
budget at completion (BAC)
Actual cost to date – referred to as estimated cost
at completion (EAC)
Identify several variances according to two
guidelines
Earned Value Analysis - Variances
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Cost (spending) variance (CV) – difference between
budgeted cost of work performed (earned value) (BCWP)
and actual cost of that work (ACWP)
CV = BCWP – ACWP (negative value - cost overrun)
Schedule variance (SV) – difference between earned
value (BCWP) and cost of work we scheduled to perform
to date (BCWS)
SV = BCWP – BCWS (negative value - behind schedule)
Time variance (TV) –difference between time
scheduled for work performed (STWP) and actual time to
perform it (ATWP)
TV = STWP – ATWP (negative value - delay)
Earned Value Index ( Ratios) - Formula
Cost Performance Index (CPI) = BCWP/ACWP
Schedule Performance Index (SPI) = BCWP/BCWS
Time Performance Index (TPI) = STWP/ATWP
Interpretation of Indexes
TABLE 13.3
Earned Value Chart – basis for evaluating
cost & performance to date
Critical ratio
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Sometimes, especially large projects, it may
be worthwhile calculating a set of critical
ratios for all project activities
The critical ratio is
actual progress
x budgeted cost
scheduled progress
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actual cost
If ratio is 1 everything is probably on target
The further away form 1 the ratio is, the more we
may need to investigate
Critical ratio example
Calculate the critical ratios for the following activities and
indicate which are probably on target and need to be
investigated.
Activity
Actual
progress
Scheduled
Progress
Budgeted
Cost
Actual
cost
A
4 days
4 days
60
40
B
3 days
2 days
50
50
C
2 days
3 days
30
20
D
1 day
1 day
20
30
E
2 days
4 days
25
25
Critical
ratio (CR)
TYPES OF PROJECT RISK
People
Political
Technical
Time
Financial
TOOLS FOR RISK MANAGEMENT
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Expert opinion
Simulation
Historical Analysis
Risk Analysis
Contracting Strategy
Insurance, bonding
Management attention