Project

Managemen
t UNIT 4
 Project Monitoring and
Control– collecting, recording, and
Monitoring
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
Why do we
monitor? What do
we monitor? When
to we monitor?
How do we
monitor?
 Why do we
monitor?
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?

Men Spac
(human e
resources) Time
Machin Task
es s
Material Quality/
s Technical
Money Performance
 What do we

Inputs
monitor? Outputs
• Time  Progress
• Money  Costs
• Resources
 Job starts
• Material Usage
 Job completion
• Tasks
• Quality/  Engineering /
Technical Design
Performance changes
 Variation order
(VO)
 When do we
 monitor?
End of the project
 Continuously
 Regularly
 Logically
 While there is still time to react
 As soon as possible
 At task completion
 At pre-planned decision points
(milestones)
 Where do we
monitor?
At head office?
At the site
office? On the
spot?
Depends on
situation and
the ‘whats’
 How do we
Through monitor
meetings with clients, parties
involved in
project (Contractor, supplier,etc.)
For schedule – Update CPA, PERT Charts,
Update
Gantt Charts
Using Earned Value
Analysis Calculate
Critical Ratios
Milestones
Reports
Tests and inspections
Delivery or staggered
Meetings – Some monitoring
issues
What problems do you have and what is
being done
to correct them?
What problems do you anticipate in the
future? Do you need any resources you do
not yet have? Do you need information
you do not have yet?
Do you know anything that will give you
schedule
difficulties?
Any possibility your task will finish
early/late?
Will your task be completed under/over/on
 Project Control Cycle

PLAN
Specifications
ACTION Project
Correct Schedule
deviatio Project budget
MONITOR
ns from Resource plan
Record status
plan Vendor Report
contracts progress
RE-PLAN
COMPARE Report cost
as
necessar Actual status
against plan
y
-Schedule
-Cost
 Project
Control
Control – process and activities
needed to correct deviations from
plan
Control the triple constraints
time (schedule)
cost (budget, expenses, etc)
performance (specifications, testing
results, etc.)
Techniques for monitoring
and control
Earned Value
Analysis Critical
Ratio
 Earned Value
Analysis overall performance
A way of measuring
(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 percent 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
Refer to earned value chart – basis for
evaluating cost and performance to date
If total value of the work accomplished is in
balance with the planned (baseline) cost, and
actual cost then top mgmt has no particular
need for a detailed analysis of individual tasks
Earned value concept – combines cost
reporting & aggregate performance
reporting into one comprehensive chart
 Earned Value
Analysis
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
1. A negative variance is ‘bad’
2. Cost and schedule variances are
calculated as earned
value minus some other measure
Earned Value Chart – basis for
evaluating cost &
performance to date
Earned Value Analysis -
Variances
4 types of variances;
Cost (spending) variance (CV) – difference
between budgeted cost of work performed
(earned value) (BCWP) and actual cost of
that work (ACWP)
Schedule variance (SV) – difference
between earned value (BCWP) and cost of
work we scheduled to perform to date (BCWS)
Time variance (TV) –difference between
time scheduled for work performed (STWP)
and actual time to perform it (ATWP)
Possible to have one of indicators
to be favorable while the other
unfavorable
Might be ahead of schedule and
behind costs
Six possibilities (see figure next
slide)
6 Possibilities Earned Value
Analysis
 Critical ratio
Sometimes, especially large projects,
it may be worthwhile calculating a set
of critical ratios for all project
activities
Theactual
critical ratio xis budgeted
progress
scheduled cost actual
progress
If ratio is 1 everythingcost
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 Schedule Budgete Actu Critical
progres d d Cost al ratio
s Progress cost (CR)
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
 INTRODUCTION TO PROJECT
MANAGEMENT
 A PMIS is typically a computer-
INFORMATION SYSTEM
driven system to aid a project
manager in the development of the
project.
 A PMIS can calculate schedules,
costs, expectations, and likely
results.
 The goal of a PMIS is to automate,
organize, and provide control of the
project management processes
ELEMENTS OF A TYPICAL
 A typical PMIS software system has:
PMIS
 WBS creation tools
Calendaring features
 Scheduling abilities
 Work authorization tools
 EVM controls
 Quality control charts, PERT charts, Gantt
charts, and other charting features
 Calculations for the critical path, EVM, target
dates based on the project schedule, and more
 Resource tracking and leveling
 Reporting functionality
PROJECT MANAGEMENT
INFORMATION
SYSTEM
 Project Management Information System (PMIS)
are system tools and techniques used in project
management to deliver information
 Project managers use the techniques and tools
to collect, combine and distribute information
through electronic and manual means.
 Project Management Information System
(PMIS) is used by upper and lower
management to communicate with each other.
PROJECT MANAGEMENT
INFORMATION
SYSTEM
 It is an automated system to quickly create,

manage, and streamline the project

management processes.

 In the develop portion of the project, the PMIS

can be used to help the project management
team create the schedule, estimates, and risk
assessments, and to gather feedback from
stakeholders.
PROJECT MANAGEMENT
INFORMATION
SYSTEM
 The PMIS also includes a configuration management
system.
 Configuration management is an approach for
tracking all approved changes, versions of project
plans, blueprints, software numbering, and
sequencing.
 A configuration management system aims to
manage all of the following:
⚫ Functional and physical characteristics of the
project
deliverables
⚫Control, track, and manage any changes to the
project deliverables
⚫ Track any changes within the project
⚫ Allow the project management team to audit the project
deliverables to confirm conformance to defined criteria for
acceptance
PROJECT MANAGEMENT
INFORMATION
SYSTEM
 Project Management Information System (PMIS) help
plan, execute and close project management
goals.
 During the planning process, project managers use
PMIS for budget framework such as estimating costs.
The Project Management Information System is also
used to create a specific schedule and define the
scope baseline
 At the execution of the project management goals, the
project management team collects information into one
database. The PMIS is used to compare
the baseline with the actual accomplishment of
each activity, manage materials, collect financial data,
and keep a record for reporting purposes.
 During the close of the project, the Project
Management Information System is used to
review the goals to check if the tasks were
accomplished. Then, it is used to create a
final report of the project close.

 To conclude, the project management

information system (PMIS) is used to plan
schedules, budget and execute work to be
accomplished in project management.
 Project
Management Information System is
a tool used to document and store the
project
management plan, subsidiary plans and
other documents / work products
relevant for the project.

 It could be manual or automated and should

support the change control procedures
defined in the project.
PROJECT MANAGEMENT
INFORMATION SYSTEM -
IMPORTANCE
 The monitoring and control system of a project needs
the support of a suitable Project Management
Information System (PMIS). Usually, the use of a PMIS for
all information about a project and regularly updating
this information based on the actual status: helps in
successful monitoring and control.
 A comprehensive PMIS would cover the complete life-
cycle of a project and would provide the necessary
support for decision making.
 One important purpose of this information system is to
receive the actual data about the status of a project at
pre-determined intervals, process this information to
evaluate the impact of these outcomes and project these
impacts in terms of an expected date of completion and
an expected cost of completion. These processed
information are then made available to the Project
manager and his team who would then use this to decide
the necessary corrective actions and execute them.

PROJECT MANAGEMENT
INFORMATION SYSTEM –
 IMPORTANCE CONTD…
PMISs have capabilities that assist project
managers in planning, budgeting, and resource
allocation.
 Many PMISs additionally perform assorted analyses
such as variance, performance, and forecasting
for any level of the WBS and project organization.
 A good PMIS enables facile control of changes to
system configuration and project plans as well. These
PMISs allow for quick review and easy periodic
updating; they filter and reduce data to provide
information on summary, exception, or “what if”
bases.
 With an effective PMIS the project manager does not
have to wait for days or comb through reams of data
to identify problems and determine project status.
PROJECT MANAGEMENT
INFORMATION SYSTEM-
OBJECTIVES.
 Record and report relevant information and the status
of various components of the project in such a manner
as to bring the most critical activities directly to the
attention of concerned managers at appropriate level.
 Highlight deviations from the plan, if any, in respect of
every component of the project and also to indicate the
effects of such, deviations on the overall status and
completion of the project as a whole.
 Form the basis of updating of project schedule
wherever
necessary.
PROJECT MANAGEMENT
INFORMATION SYSTEM-
 Identify OBJECTIVES.
and report on critical areas which are
relevant to different levels of management
and to highlight the corrective action that
needs to be taken.
 Sift the information and report on an
exception basis. In other words, emphasis is
focused on those activities that are not going
according the plan.
 Provide a basis for the evaluation of the
performance of the functions of various
managers and departments by regular
comparisons with budgets/plans/schedules.
TYPICAL FEATURES OF A
PMISof analytical
 The following are a list of the kinds

capabilities, outputs, and other features offered by

various PMI systems
 Scheduling and Network Planning
⚫ Virtually all project software systems do project
scheduling using a network-based procedure.
These systems compute early and late
schedule times, slack times, and the critical
path
 Resource Management
⚫ Most project systems also perform resource
loading, leveling, allocation, or multiple
functions, although the analytical sophistication
and quality of reports vary between systems.
TYPICAL OUTPUTS OF A PMIS
CONTD..
 Budgeting.
⚫ In many project systems it is possible to associate cost
information with each activity, usually by treating costs as
resources. The ability of a system to handle cost
information and generate budgets is a significant variable
in the system’s usability for both planning and control.
 Cost Control and Performance Analysis
⚫ Here is where project system capabilities differ the most.
The most sophisticated PMIS software “roll up” results and
allow aggregation, analysis, and reporting at all levels of
the WBS. They also permit modification and updating of
existing plans through input of actual start and finish
dates and costs. The most comprehensive PMISs integrate
network, budget, and resource information and allow the
project manager to ask “what if” questions under various
scenarios while the project is underway. They allow the
system user to access, cross-reference, and report
information from multiple sites or databases linked via the
Internet or an intranet.
TYPICAL OUTPUTS OF A PMIS
CONTD..
 Reporting, Graphics, and Communication.

⚫ This is an important consideration because it affects

the speed with which PMIS outputs are
communicated and the accuracy of their
interpretation. Many systems provide only tabular
reports or crude schedules; others generate
networks and resource histograms; still others offer
a variety of graphics including pie charts and line
graphs. The main features to consider are the
number, quality, and type of available reports and
graphics
TYPICAL OUTPUTS OF A PMIS
CONTD..
 Interface, Flexibility, and Ease of Use.
⚫ Many larger PMISs allow data from different projects
to be pooled so multi project analysis can be
performed. Some systems are compatible with and
can tie into existing databases such as payroll,
purchasing, inventory, MRP, ERP, cost-accounting, or
other PMISs.

⚫ The capability of a PMIS to interface with other

software from which existing data files have been
created is an important selection criterion. Many
firms have had to spend considerable time and money
developing interfaces to link a commercial PM
package with existing data and other PMI systems.
Most small, inexpensive systems are stand-alone and
have limited interface ability
⚫ Flexibility
⚫ Systems also vary widely in flexibility. Many systems
are limited and perform a narrow set of functions
which cannot be modified.
⚫Others allow the user to develop new applications
or alter existing ones depending on needs.
⚫ Among the potential additional applications and
reports sometimes available are change control,
configuration management, responsibility matrixes,
expenditure reports, cost and technical performance
reports, and technical performance summaries.
⚫ Many software systems utilize Internet technology
and protocols that enable easy access through a
browser to a wide variety of management applications
and databases.
 Ease of Use.
 How easy is it to learn and operate the system? Systems
vary greatly in the style of system documentation,
thoroughness and clarity of tutorials, ease of information
input, clarity of on-screen presentation and report format,
helpfulness of error messages, and the training and
operating support offered by the developer.
 BENEFITS OF COMPUTER-
 TheBASED
benefits of computer PMISs over manual
PMISare speed, capacity, efficiency, economy,
systems
accuracy, and ability to handle complexity.
 The major benefit is speed. Once data have been
collected and entered, practically any
manipulation can be done more rapidly by
computers.
 To create or revise printed plans, schedules, and
budgets takes days or weeks with a manual
system, but seconds or minutes with computers.
 This is especially true of Internet and intranet

project management systems.

 Computer-based PMISs store large amounts of
information that is easily accessed, prioritized,
and summarized.
 BENEFITS OF COMPUTER-
BASED

PMIS
Manual systems for large projects are tedious to
maintain, difficult to access, and provoke people to try to
work around them or avoid them. They require the efforts
of numerous support personnel to maintain and use their
outputs for analysis.
 In contrast, computer-based PMISs can perform much of
this analysis, reduce the requirement for clerical
personnel, and relieve managers and support personnel
from having to do computations. This frees them to use
analysis results for making decisions.
 The speed, capacity, and efficiency of computers afford
still another benefit: economy. In most cases, computers
offer a significant cost advantage over manual systems
for storing and processing information. Assuming input
data are correct, computers produce fewer computational
errors and reduce the cost of correcting mistakes.
 BENEFITS OF COMPUTER-
BASED
 computer-based PMISs are much better at
PMIS
handling and integrating complex data
relationships.
 Large projects with thousands of work tasks,
hundreds of organizations, and tens of thousands
of workers cannot be managed efficiently without
computers.
 For managing large projects, a computer-based
PMIS is a virtual necessity, but even in small
projects it simply makes the work easier to
manage.
 Simpler PMISs have limited capability, but they
usually are good at what they can do, and they
can be of tremendous benefit. Also, once
mastered, it is easy to upgrade to more
sophisticated systems.
 EXAMPLES OF COMPUTER-
BASEDProject (MS Project)
 Microsoft

PMIS Project (MS Project) dominates project

⚫ Microsoft
management software systems.
⚫ This software system carries its own database and is
compatible with SQL Server or Oracle databases.
⚫ Although it requires installation on every user’s
computer, it is fully compatible with Microsoft Office
so team members can easily save to the database
documents created in any Office application.
⚫ In addition, because it has the same toolbars
as MS Office applications, most users become
quickly familiarized with it.
⚫ MS Project provides the ability to publish to the
Internet or the company intranet.
⚫ There are no limits to the number of tasks or
projects
the software can handle.
 EXAMPLES OF COMPUTER-
BASED
 Project Scheduler
PMISScheduler works with an SQL
 Project

database and is MS Office compatible.

 Information from multiple projects or

subprojects can be merged or consolidated

to reveal company wide resource utilization.
 The report writer enables a wide range of

standard and customized reports, which can

be output in HTML format.
 Data can be located on shared disk drives

and accessed only by users with the

appropriate password.
 Meetin
gs
Meetings provoke strong emotions for many
professionals.
When used with skill, meetings are a way to share
information, solve problems, make decisions and build
relationships. When they’re run poorly, they burn up
precious time and create frustration. Given how many
meetings project managers attend, there’s a great ROI
to thinking ahead to plan your meetings.
Successful project managers have extraordinary
meeting skills. To enhance your meeting skills, learn
how to navigate these five critical types of project
meetings. Once you master these fundamentals, you
can move on to more complex meeting types.
 Project Auditing

A major vehicle for evaluation is the

project audit, a more or less formal
inquiry into any aspect of the project
A project audit is highly flexible and may
focus on
whatever matters senior management
desires
The evaluation of a project must have
credibility in the eyes of the management
group for whom it is performed and also in the
eyes of the project team on whom it is
performed
Purposes of Evaluation - Goals of
Project Audit
Four independent dimensions of success:
The most straightforward dimension is the
project’s efficiency in meeting both the
budget and schedule Another dimension, and
the most complex, is that of
customer impact/satisfaction
A third dimension, again somewhat
straightforward and expected, is
business/direct success
The last dimension, somewhat more difficult and
nebulous to ascertain, is future potential
Purposes of Evaluation - Goals of
Project Audit
Another primary purpose of evaluation is
to help translate the achievement of the
project’s goals into a contribution to the
parent organization’s goals
To do this, all facets of the project are
studied in order to identify and
understand the
project’s strengths and weaknesses
The result is a set of
recommendations that can help both
ongoing and future projects
Evaluation– Benefits of Project
Audit
A successful project evaluation via
audit can help an organization:
Identify problems earlier
Clarify performance, cost, and time
relationships Improve project performance
Locate opportunities for future
technological advances
Evaluate the quality of project
management
Reduce costs
Purposes of Evaluation – Need for
Project Audit
Organizational Benefits
Speed the achievement of results
Identify mistakes, remedy them, and avoid
them in the future
Provide information to the client
Reconfirm the organization’s interest
in, and commitment to, the project
Purposes of Evaluation – Other
Project Audit Outcomes

Ancillary goals
Identify organizational strengths and
weaknesses in project-related personnel,
management, and decision-making
techniques and systems
Identify risk factors in the firm’s use of
projects
Improve the way projects contribute to
the professional growth of project team
members
Identify project personnel who have high
potential for managerial leadership
 Project Audit

The project audit is a thorough

examination of the management
of a project, its methodology
and procedures, its records, its
properties, its budgets and
expenditures and its degree of
completion
The formal report may be
presented in various formats,
but should, at a minimum contain
comments on some specific points
 Project Audit
Six parts of a project audit:
1. Current status of the project
2. Future status
3. Status of crucial tasks
4. Risk assessment
5. Information pertinent to other projects
6. Limitations of the audit
It is far broader in scope than a
financial audit and may deal with
the project as a whole or any
component or set of components of
the project
 Audit Depth
Time and money are two of the
most common limits on depth of
investigation and level of detail
presented in the audit report
Accumulation, storage, and
maintenance of auditable data are
important cost elements
Two often overlooked costs are the
self protective activity of team
members during an audit, and the
potential for project morale to suffer
as a result of a negative audit
 Audit Depth
There are three distinct and easily
recognized levels of project auditing:
General audit - normally most constrained
by time and resources and is usually a brief
review of the project touching lightly on the
six parts of an audit
Detailed audit - usually conducted when a
follow-
up to the general audit is required
Technical audit - generally carried out by a
qualified technician under the direct guidance
of the project auditor
 Audit Timing
The first audits are usually done
early in the project’s life
Early audits are often focused on the
technical issues in order to make
sure that key technical problems have
been solved
Audits done later in the life cycle
of a project are of less immediate
value to the project, but are more
valuable to the parent organization
 Audit Timing
As the project develops, technical risks
are
less likely to be matters of concern
Conformity to the schedule and budget
become the primary interests
Management issues are major matters of
interest for audits made late in the
project’s life Postproject audits are often
a legal necessity
because the client specified such an audit
in the contract
 Risk Event Graph
Risk Cost

High

Chances of risks Cost to fix

occurring risk event

Low
Project life cycle
 Preparation and Use of
Audit Report
The information should be arranged so
as to facilitate the comparison of
predicted versus actual results
Significant deviations of actual from
predicted results should be
highlighted and explained in a set of
footnotes or comments
Negative comments about individuals
or groups associated with the project
should be avoided
 Project
Auditor/Evaluator
Responsibilities
First and foremost, the auditor should
“tell the truth”
The auditor must approach the audit
in an
objective and ethical manner
Must assume responsibility for what is
included and excluded from
consideration in the report
The auditor/evaluator must
maintain political and technical
independence during the audit
 Project
Auditor/Evaluator
Responsibilities
Steps to carry out an audit:
Assemble a small team of experienced
experts
Familiarize the team with the requirements
of the project
Audit the project on site
After the completion, debrief the project’s
management
 Project
Auditor/Evaluator
Responsibilities
Steps to carry out an audit
(cont.): Produce a written report
according to a prespecified format
Distribute the report to the project
manager and project team for their
response Follow up to see if the
recommendations
have been implemented
 The Project Audit Life
Like the project itself, the audit has a life
Cycle
cycle composed of an orderly
progression of well- defined events:
Project audit initiation
Project baseline definition
Establishing an audit
database Preliminary
analysis of the project Audit
report preparation
Project audit termination
Essentials of an Audit/
Evaluation
For an audit/evaluation to be conducted
with skill and precision, and to be
generally accepted by senior
management, the client and the project
team, several conditions must be met:
The audit team must be properly selected
All records and files must be accessible
Free contact with project members
must be preserved
 Audit/Evaluation
Team
The choice of the audit/evaluation
team is critical to the success of the
entire process
The size of the team will generally be
a function of the size and complexity
of the project
For a small project, one person can
often handle all the tasks of an audit,
but for a large project, the team may
require representatives from several
areas
 The Audit/Evaluation
Team
Typical areas that may furnish audit
team members are:
The project itself
The accounting/controlling department
Technical specialty
areas The customer
The marketing department
Purchasing/asset
management Human
resources
Legal/contract
 Audit/Evaluation
Team
The main role of the audit/evaluation
team is to conduct a thorough and
complete examination of the project or
some prespecified aspect of the project
The team must determine which
items should be brought to
management’s attention
The team is responsible for
constructive observations and
advice based on the training and
experience of its members
 Access to Information
In order for the audit/evaluation team to
be effective, it must have free access to
all information relevant to the project
Most of the information needed will
come from the project team’s records
or from various departments such as
accounting, personnel, and purchasing
Some of the most valuable
information comes from documents
that predate the project
 Access to Information
Examples of documents that
predate the project:
Customer Requirements (i.e. RFP
Process)
Minutes of project selection meetings
Minutes of senior management
committees that decided to pursue a specific
area of technical interest
Priorities must be set to ensure that
important analyses are undertaken
before those of lesser importance
 Access to Project Team
and Others
Several rules that should be followed
when contacting project team and other
stakeholders
Avoid misunderstandings
between the audit/evaluation team
and project team members
Project team always be made aware
of in- progress audit
Avoid Critical Comments
Constructive suggestions where
appropriate
 Access to Project Team
and Others
At times, information may be given to
audit evaluation team members in
confidence
Discreet attempts should be made to
confirm such information through non-
confidential sources
If it cannot be confirmed, it should
not be
used
The auditor/evaluator must protect the
sources of confidential information
 Measurement
Measurement is an integral part
of the audit/evaluation process
Performance against planned budget and
schedule usually poses no major
measurement problems
Measuring the actual expenditure
against the planned budget is harder
and depends
on an in-depth understanding of the
procedures used by the accounting
department
 Measureme
ntdetermine what revenues
Big Challenge:
should be assigned to a project
All cost/revenue allocation decisions
must be made when the various projects
are initiated
The battles are fought “up front” and the
equity of cost/revenue allocations ceases
to be so serious an issue
As long as allocations are made by a
formula, major conflict is avoided-or at
least, mitigated
 Auditor/Evaluator
Above all else, the auditor/evaluator
needs “permission to enter the
system”
If the auditor maintains a calm,
relaxed attitude, the project team
generally begins to extend limited
trust
The first step is to allow the auditor
qualified access to information
about the project
 Auditor/Evaluator
Deal professionally with information
gathered, neither ignoring nor stressing
the project’s shortcomings
Recognize and reinforce aspects of
project’s strengths
Trust is earned during an audit even
with negative findings
Trust-building is a slow and delicate
process that is easily lost
End of Unit
4