Monitoring and Controlling

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Monitoring and Controlling

• Dr. Dale Masel
• ISE 536
• February 21, 2004

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Monitoring and Controlling

• Monitoring
• Collecting information
• Recording information
• Reporting information
• Controlling
• Uses monitored information
• Compare performance with plan
• Used in Performing Project
• Monitoring ? Determined by selection
• Controlling ? Determined by plan

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Plan-Monitor-Control Cycle

• Closed loop process
• Effort required to
• Plan-Monitor-Control

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Project Authorization and Expenditure Control
System Information Flow
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Monitoring System Design

• Identify special characteristics to be controlled
• Need performance characteristics for each level
  of detail
• Real-time data
• Need mechanism to collect data
• Compare to plan
• Dont choose data because its easy to collect

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Data from Monitoring

• Formats
• Frequency Counts
• Raw Numbers
• Numeric Ratings
• Indicators and Surrogates
• Verbal Characterizations
• Analysis
• Aggregation Techniques
• Fitting Statistical Distributions
• Curve Fitting
• Quality Management Techniques

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Examples
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Reporting

• Reports
• Project Status Reports
• Time/Cost Reports
• Variance Reports
• Report Types
• Routine
• Exception
• Special Analysis
• Guidelines
• Not all stakeholders need same information
• Avoid periodic reports
• Utilize relationship between information systems
  of project and organization

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Meeting Guidelines

• Purpose
• Primarily for group decision making
• Avoid weekly progress meetings
• Distribute written agenda before meeting
• Ensure everyone is properly prepared for meeting
• Chair of meeting should take minutes
• Avoid excessive formality
• If meeting to address crisis, restrict meeting to
  that issue

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Virtual Project Management

• Use of the Internet
• Use of Software Programs
• Virtual Project Teams

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Earned Value

• Percent of budget for task that has actually been
  spent

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Conventions to Estimate Task Progress

• 50-50
• 100
• Amount spent vs. amount budgeted

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Measures of Budget Performance

• BCWP Budgeted Cost of Work Performed
• ACWP Actual Cost of Work Performed
• BCWS Budgeted Cost of Work Scheduled
• BAC Budget at Completion
• ETC Estimated Remaining Cost to Completion
• EAC Total Cost Estimated at Completion

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Variances Indexes

• Cost/Spending Variance
• Schedule Variance
• Cost Performance Index
• Schedule Performance Index

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Earned Value Chart
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Variance Examples
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Control

• Take actions to reduce differences between plan
  and actuality
• Difficult Task
• Human behavior involved
• Problems rarely clear cut
• Purpose
• Manage organizations assets
• Manage Results
• Achieve by modifying activities

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Control System Design

• Goal
• Correct errors
• Not to punish the guilty
• Dont emphasize short-run results at expense of
  long-run objectives
• Investments in control show diminishing returns
• Dont restrict creativity and innovation
• Across-the-board cuts dangerous

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Types of Control

• Control Mechanisms
• Process Reviews
• Personnel Assignments
• Resource Allocations
• Control System Components
• Sensor
• Standard
• Comparator
• Decision Maker
• Effector

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Types of Control Systems

• Go/No-Go Controls
• Meet predetermined standard for permission to
  continue
• Post-Control
• After project completed
• Allows future projects to learn from past
  experiences

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Tools for Control

• Variance Analysis
• Trend Projections
• Earned Value Analysis
• Critical Ratio

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Trend Projection
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Control Limits on Critical Ratios
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Scope Creep

• Change in Project Direction
• Common Reasons for Change Requests
• Client
• Availability of new technologies
• Availability of new materials

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Change Control System

• Review requested changes
• Identify impact of change
• Evaluate advantages and disadvantages
• Individual with authority to accept or reject
  changes
• Purpose
• Communicate change to concerned parties
• Ensure changes implemented properly
• Prepare report to summarize changes and impact

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Controlling Scope Creep

• Include change control system in contract
• Require all changes be introduced by change order
• Require approval in writing by client and senior
  management
• Consult with PM prior to preparation of change
  order
• Amend master plan to reflect changes

27
Evaluation and Termination

• Dr. Dale Masel
• ISE 536
• February 21, 2004

28
Evaluation

• Progress and performance relative to the project
  plan
• Initial or revised plan
• Goals set during project selection
• Evaluate at crucial points
• Improve execution of project
• Criteria
• Original selection criteria
• Success to date
• Business success
• Future potential
• Contribute to organization goals
• Contribute to team member objectives

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Measurement

• Performance against
• Planned budgets
• Planned schedules
• Straightforward
• Earned value analysis more complicated

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Audit Process

• Timing depends on purpose
• Three Levels
• General audit
• Detailed audit
• Technical audit
• Steps
• Familiarize audit team with requirements of
  project
• Audit project on-site
• Write up audit report
• Distribute report

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Behavior Aspects

• Audit team needs free access to everyone involved
  with project
• Team members rarely trust auditors
• Auditors must understand politics of project team
• Information must be confirmed
• Team should be aware of audit
• No judgmental comments

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The Audit Report

• Introduction
• Description of project and its goals
• Current Status
• Comparison of work completed and planned
• Future Project Status
• Conclusions regarding project progress
• Recommendations for changes
• Critical Management Issues
• Issues senior management should monitor
• Risk Analysis
• Potential for project failure and monetary loss
• Final Comments
• Caveats, assumptions, limitations

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When to Terminate Project

• Sunk Cost Approach
• Whether organization is willing to invest the
  time and cost required to complete the project
• Degree to which project qualifies against a set
  of factors associated with success or failure
• Degree to which the project has met its goals

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Project Termination

• Project Extinction
• Project activity suddenly stops
• Either successfully completed or high expectation
  for failure
• Termination-By-Addition
• Becomes formal part of organization
• Termination-By-Integration
• Becomes standard part of operating systems
• Termination-By-Starvation
• Project in name only no resources

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The Termination Process

• Decision made by broad-based committee of senior
  managers
• Termination process should be specified in
  project plan
• Termination manager

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Project Final Report

• Project Performance
• What was achieved
• Reasons for resulting performance
• Administrative Performance
• How well administrative practices worked
• Organizational Structure
• Identify lessons for future projects
• Project Management Techniques
• Recommendations for improvements in future
  projects