Project Monitoring

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Monitoring and Information Systems

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Planning-Monitoring-Controlling Cycle

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Implications of poor planning
1. Loss of Customer Confidence.Example: Computer store botched up supply of 5 computers to
a Kansas City and hence was not invited to bid for the next 20 requirements
2. Cost Overruns.: Project Managers usually with fair amount of experience do not bother to
monitor projects “ Since they have been doing similar projects all their lives” .. This results
into cost overruns.
3. Project Managers take one strategy fits all approach: One successful planning and control
method may not be successful for another project

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Planning-Monitoring-Controlling Cycle

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Designing Monitoring System

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Designing Monitoring System

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Designing Monitoring System

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5 Tell Tale Signs of Project Trouble
1. Muddy Waters: Project plan is starting point. If it is too long, confusing in its goal, scope,
deliverables and process.
2. Mysterious Stakeholder: Full and detailed list of stakeholders is key to avoiding late
problems. PM should be aware who the stakeholder is , what is his role in the organisation, is
he a project supporter or detractor or a fence sitter.
3. Unconstrained Constraints: Knowing how much delay is there in schedule of the project and
where the delays and cost overruns can be made up. Establish tolerance limits on each task,
and intervene when they are exceeded.
4. Suspicious Status Reports: Status reports that are unclear, inconsistent, late, or lack specific
measures are a red flag for coming trouble.
5. Discord and Drama: Unhappy team members can cause major trouble in the project, though
hard to detect early on.PM needs to be a coach and mentor for the team by establishing
trust and respect within the team and an open and honest feedback environment.

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Information Needs and Reporting
Process

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Information Needs and Reporting
Process

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Information Needs and Reporting
Process

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Information Needs and Reporting
Process

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Report Types

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Report Types

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Report Types

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Dave Barry’s 25 things you learn in 50
years of living.

If you had to identify, in one word, the reason why

the human race has not and never will achieve its full
potential, that word would be

MEETINGS

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Meetings

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Meetings

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Common Reporting Problems

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Earned Value Chart

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Earned Value Chart

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Percentage Completion
50-50 percent rule:50% task is estimated to be completed when the Task is begun and 50%
when work is complete
0-100 percent rule:No Credit till work is 100% complete
Critical Input use rule:This rule assigns task progress according to the amount of a critical input
that has been used. Obviously, the rule is more accurate if the task uses this input in direct
proportion to the true progress being made.
Proportionality Rule: This commonly used rule is also based on proportionalities, but uses time
(or cost) as the critical input. It thus divides actual task time-to-date by the scheduled time for
the task [or actual task cost-to-date by total budgeted task cost] to calculate percent complete

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Earned Value Chart
EAC: Estimated( Actual) Cost at Completion
BAC: Baseline Budget cost at Completion

Two primary guidelines:

(1)A negative variance is “bad,”
(2)The cost and schedule variances are calculated
as the EV minus some other measure.

EV-AC= Cost Variance CV( Overrun is negative)

EV-PV = Scheduled variance ( SV, behind is negative)
ST-AT = Time Variance ( Delay is Negative)

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Earned Value Chart
COST PERFORMANCE INDEX ( CPI ) = EV/AC
SCHEDULE PERFORMANCE INDEX (SPI) = EV/PV
TIME PERFORMANCE INDEX TPI = ST/AT
VALUES LESS THAN 1 are BAD

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Example
Operations on a work package expected to cost $1500 and was scheduled to be completed
today.
We have spent $1350 and have only 2/3rd work completed
Calculate:
1. COST VARIANCE
2. SCHEDULE VARIANCE
3. CPI = EV/AC
4. SPI = EV/PV

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Answer

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Cost Schedule Index

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Six Arrangements of EV, AC, PV

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Six Arrangements of EV, AC, PV…Contd

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ETC( Estimated Cost to Completion)
ETC( Estimate Cost to complete) = ( BAC-EV)/CPI
= ( 1500 – ( 1500*2/3))/0.74
= $676

EAC( Estimated Acutal Cost) = ETC + AC( Actual Cost to date)

= $676 + $1350
= $2,026

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