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
















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