IAE – UJM Part 6 – Project monitoring and controlling, and closing

Project Management Fundamentals

Preparation to project management profession

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 1
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Project Management Fundamentals

Preparation to project management profession

Project monitoring and controlling

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 2
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Monitor and control project work

• Track, review and report the overall progress to meet the performance
objectives
• Compare actual project performance against plans
• Assess performance periodically to identify any required actions
• Provide forecast to update cost and schedule information
• Monitor implementation of approved actions
• Work performance information results from compiling work performance data
and comparing with the plan (indicators)
• Earned value management
• Trend analysis
• Risk management, etc.
• Work performance reports results from combining work performance
information
K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 3
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Perform integrated change control

• Review, approve and manage change requests to deliverables and plans
• Conducted from project start through completion
• Configuration management
• Identify item
• Record and report
• Verification and audit

• Alternative analysis, cost-benefit analysis

• Voting, multi-criteria decision making
• Approved change requests

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 4
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Validate and control scope

• Verify and formally accept the deliverables after being reviewed through
quality control processes
• Use scope baseline, requirements documentation and quality reports
• Inspection of verified deliverables (examine, validate, etc.)
• Monitor the status of the project and product scope and manage changes to
scope baseline
• Avoid scope creep which is the uncontrolled expansion to product or project scope
• Uses scope baseline, configuration management documents

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 5
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control schedule
• Monitor project status to update schedule and manage changes
• Schedule changes are approved through integrated change control process
• Current status, schedule reserves, managing changes
• In agile approaches controlling schedule involves
• Conducting retrospectives (reviews to record lessons learned)
• Prioritizing remaining work (backlog)
• Rate at which deliverables are produced
• Performance reviews allows to measure, compare and analyze schedule
performance
• Trend analysis focuses on variances in planned versus actual dates and
durations
• What-if scenario analysis
K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 6
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control schedule
• Earned value analysis using schedule variance (SV) and schedule performance
index (SPI) measuring schedule efficiency

• Iteration burndown
chart to track
remaining work in
the iteration
backlog

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 7
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Quiz 10
1. Senior management is complaining that they are not able to easily
determine that status of ongoing projects in the organization.
Which of the following types of reports would help provide
summary information to senior management ?
A. Detailed cost estimates
B. Project management plans
C. Bar charts
D. Milestone reports
2. Rearranging resources so that a constant number of resources is
used each month is called
A. Crashing
B. Floating
C. Leveling
D. Fast tracking

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 8
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control costs – earned value management

• Monitor project status to update costs and manage changes
• Budget changes are approved through integrated change control process
• Monitoring costs without considering the value of accomplished work is “useless”
• Earned Value Analysis (EVA) compares the actual performance to the
baseline
• Planned value (PV) is the authorized budget assigned to scheduled work
• Budget at completion (BAC) is the total planned value for the project
• Performance measurement baseline (PMB) is the total PV
• Earned value measures the performed work in terms of budget authorized
• Actual cost is the realized cost incurred for the work performed during a specific time

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 9
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control costs – earned value management

• Variance analysis as technique
for EVM, cost variance (CV),
variance at completion (VAC),
cost performance index (CPI)
measuring efficiency of
budgeted resources

• Trend analysis based on

planned value, earned value
and actual cost

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 10
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control costs – earned value management

• Forecasting the estimates at completion (EAC) which could be different from
the budget at completion (BAC) to adjust the budget
• EAC forecast for ETC at the budgeted rate

• EAC forecast for ETC work performed a the present CPI

• EAC forecast for ETC work considering both SPI and CPI

• Reserve analysis is used to monitor the status of contingency and management

reserves to adjust them

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 11
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control costs – earned value management

• To-complete performance index (TCPI) is the cost performance required
to be achieved with the remaining resources to meet a specific goal

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 12
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control costs – earned value management

Summary

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 13
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Quiz 11
1. EAC is a periodic evaluation of 5. The team attitude toward the project is very positive. The value of the
A. The cost of work completed work completed today is € 60 million. The stage gate board are
B. The value of work completed wondering when the product can start returning value to the
C. The anticipated total cost at project completion organization. The project is budgeted to cost € 77 million. The value of
D. What it will cost to finish the project work planned to be done to this point is € 78,9 million? What does the
2. If EV =350, AC=400, PV=325 what is the cost variance ? SPI tell about this project ?
A. 350
B. -75 SPI=EV/PV = 60/78,9 = 0,76
C. 400
D. -50 A. You are over budget
3. Analogous estimating B. You are ahead of schedule
A. Uses bottom-up estimating techniques C. You are progressing at 76 percent of the rate originally planned
B. Is used most frequently during project executing D. You are progressing at 24 percent of the rate originally planned
C. Uses top-down estimating techniques
D. Calculates estimates using actual detailed historical costs
4. All the following are outputs of cost estimating except
A. An understanding of cost risk in the work that has been
estimated
B. Prevention of inappropriate changes from being included in
the cost baseline
C. An initiation of the range of possible costs for the project
D. Documentation of any assumptions made during costs
estimation

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 14
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control quality
• Monitor and record results of executing quality management activities in
order to assess performance (customer expectations, correctness, etc.)
• Checklists, check sheets/tally sheets (structured way of controlling)
• Statistical sampling (choose part of a population for inspection)
• Surveys and questionnaires (gather data about customer satisfaction, etc.)
• Quality management graphical tools (scatter diagrams, RCA, etc.)

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 15
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Quiz 12
4. Quality is
A. Meeting and exceeding customer expectations
B. Adding extras to make the customer happy
C. The degree to which the project meets requirements
D. Conformance to management objectives
5. A control chart helps the project manager
A. Focus on the critical issues to improve quality
B. Focus on stimulating thinking
C. Analyze the cause of quality problem
D. Determine if a process is functioning within established
metrics
6. Testing the entire population would
A. Take too long
B. Provide more information than wanted
C. Be mutually exclusive
D. Show many defects

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 16
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Monitor risks
• Monitor the implementation of agreed-upon risk response plans, track
identified risks and analyze new risks
• Implemented risk responses effectiveness
• Overall risk exposure changes
• New risks have arisen
• Risk management approach is still appropriate
• Contingency reserves require modification
• Technical performance analysis (comparing technical accomplishment to
the schedule of planned activities)

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 17
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control procurements
• Manage procurement relationships, contract performance and make
changes and corrections
• Collect data and establish measurement procurement indicators
• Refine procurement plans and schedules
• Monitor invoice payment
• Claims administration (contested changes, may solved through alternative dispute
resolution (ADR))
• Inspection, reviewing deliverables and/or the work
• Audits
• Close procurements
• Generate change requests, etc.

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 18
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Control resources and monitor communication

and stakeholders engagement
• Ensure that physical resources are available as planned
• Monitor resource expenditures, resource use and release, etc.
• Deal with resource shortages/surplus, etc.
• Performance reviews, problem solving, information system
• Ensure information needs of the project and stakeholders are met
• Check issue log, lessons learned register, project communication
• Project management information system
• Stakeholder engagement matrix
• Monitor stakeholder relationships and tailor strategies for engaging
stakeholders
• Feedback (ensure information is received and understood)
• Active listening, cultural and political awareness, networking

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 19
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Project Management Fundamentals

Preparation to project management profession

Project or phase closing

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 20
IAE – UJM Part 6 – Project monitoring and controlling, and closing

Close project or phase

• Formally complete or close a project, phase or contract
• Deliverables are up-to-date and issues are resolved
• Deliverable acceptance by the customer
• Costs are charged to the project and closing accounts
• Reassigning personnel and reallocating facilities
• Final report elaboration
• Formally complete contractual agreement
• Formal acceptance of seller work
• Finalize open claims and archiving information
• Identify lessons learned and archive information
• Transfer project outcome to next phase or to operations
• Stakeholders satisfaction measurement

K. Medini, EMSE Copyrights © All rights reserved without the express authorization of the author 21