Chapter 7. Monitoring and Controlling the Project. Achievement against the Planning
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1 Chapter 7 Monitoring and Controlling the Project Achievement against the Planning
2 Introduction Monitoring and Control are opposite sides of selection and planning bases for selection dictate what to monitor plans identify elements to control Monitoring is collection, recording, and reporting of information to the project manager and other relevant stakeholders Control uses monitored information to align actual performance with the plan An effective M&C system is required to create an information system for informed timely decisions
3
4 7.1 THE PLAN-MONITOR- CONTROL CYCLE
5 Plan-Monitor-Control Cycle Closed loop process Planning-monitoring-controlling effort often minimized to spend time on the real work
6 Figure 7-1 Project Authorization and Expenditure Control System Information Flow A U T H O R I Z T I O N F L O W I N F O R M A T I O N F L O W
7 Designing the Monitoring System Identify special characteristics of performance, cost, and time that need to be controlled performance characteristics should be set for each level of detail in the project Real-time data should be collected and compared against plans mechanisms to collect this data must be designed Avoid tendency to focus on easily collected data rather than those that are important for control purposes
8 7.2 DATA COLLECTION AND REPORTING
9 Formats of Data Collected Frequency Counts count of events per time period, per quantity Raw Numbers actual amounts are used Subjective Numeric Ratings subjective estimates of some quality offered Indicators and Surrogates Non-direct measure of a variable (alternative) Verbal Characterizations eg. team spirit or client supplier cooperation
10 Data Analysis Aggregation Techniques eg. averaging Fitting Statistical Distributions functions to the data to ascertain relationships, effects, and trends Curve Fitting curves are fit to the data for estimation Quality Management Techniques Statistical
11 Figure 7-2 Number of Bugs per Unit of Test Time Curve Fitting Goals
12 Figure 7-3 Percent of Specified Performance Met During Successive Repeated Trials Curve Fitting
13 Figure 7-4 Ratio of Actual Material Cost to Estimated Material Cost Differentiation between plan (1.0) and actual cost
14 Reporting Reports Project Status Reports Time/Cost Reports Variance Reports Not all stakeholders need to receive same information (clients vs. management) Avoid periodic reports (week or months) Impact of Electronic Media (overload of reporting that is just as dangerous as underreporting) Relationship between project s information system and overall organization s information system (report vs. organization)
15 Report Types Routine based on milestone, scope changes, problems Exception intended for unexpected situations in which affected stakeholder need to be made aware of a change, and the change itself needs to be documented Special Analysis eg. studies of new materials, capabilities of new software and impact of new government regulations
16 Meeting Guidelines Meetings should be help primarily for group decision making avoid weekly progress report meetings Distribute written agenda in advance of meeting
17 Meeting Guidelines continued Ensure everyone is properly prepared for meeting Chair of meeting should take minutes avoid attributing remarks to individuals in the minutes Avoid excessive formality If meeting is held to address specific crisis, restrict meeting to this issue alone
18 Virtual Reports, Meetings, and Project Management Use of the Internet Use of Software Programs Virtual Project Teams
19 7.4 PROJECT CONTROL Taking action when reality deviates from plan
20 Background Acts which seek to reduce differences between plan and actuality Bring performance, schedule and cost back in line with plan Difficult Task human behavior (emotion) involved problems rarely clear cut, no 100% solutions
21 Purposes of Control Stewardship of Organizational Assets 1. physical asset control 2. human resources 3. financial control Regulation of Results Through the Alteration of Activities Objectives achieved within plan
22 7.5 DESIGNING THE CONTROL SYSTEM
23 Background Purpose is to correct errors, not punish the guilty Investments in control subject to diminishing returns Must consider impact on creativity and innovation Be careful not emphasize short-run results at the expense of long-run objectives Dangers of across the board cuts
24 Primary Mechanisms by Which Process Reviews PM Exerts Control Analysis of the process of reaching the project objectives rather than on the results Personnel Assignments based on past project productivity Resource Allocations allocated to the more productive or important tasks
25 Components of a Control System Sensor: measures the output required Standard: baseline Comparator: mechanism to compare output with standard Decision Maker: decide to fix or not Effector: decide process to fix Eg. product: Yardstick standard is 36 inches
26 Types of Control Systems Go/No-Go Controls (Common) predetermined standard must be met for permission to be granted to continue Post-Control done after project completed purpose is to allow future projects to learn from past project experience
27 Figure 7-7 Sample Project Milestone Status Report
28 Figure 7-8 Trend Projection
29 Tools for Control Variance Analysis Trend Projections Earned Value Analysis Critical Ratio actual progress scheduled progress budgeted cost actual cost
30 Figure 7-9 Critical Ratios with Control Limits
31 Figure 7-10 Cost Control Chart
32 7.6 SCOPE CREEP AND CHANGE CONTROL
33 Scope Creep Coping with changes frequently cited by PMs as the single most important problem Common Reasons for Change Requests Client Availability of new technologies and materials
34 Purpose of Change Control System Review all requested changes Identify impact of change Evaluate advantages and disadvantages of requested change Install process so that individual with authority may accept or reject changes
35 Purpose of Change Control System continued Communicate change to concerned parties Ensure changes implemented properly Prepare reports that summarize changes made to date and their impact
36 Rules for Controlling Scope Creep Include in contract change control system Require all changes be introduced by a change order Require approval in writing by the client s agent and senior management Consult with PM prior to preparation of change order Amend master plan to reflect changes
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