Project Management Lecture 8 Project Monitoring and Control

Lecture 8- Project monitoring and control Project control  It is process on ensuring that a project is on track to meet its goals in terms of scope, time, cost and quality and other variables.  It involves measuring performance, comparing it against the project plan, and making necessary adjustments to correct deviations.  The goal of project controls to ensure successful project completion within the predefined constraints.  Project control ensures that projects are delivered in time, within budget and to the required quality. Project control process 1. Setting a baseline plan o Provides us with the elements for measuring performance o Is derived from the cost and duration information found in the work breakdown structure database and time-sequence data from the network and resource scheduling decisions. 2. Measuring progress and performance 3. Comparing plan against actual 4. Taking action Control mechanisms 4 types of control mechanisms 1. Directing: issuing orders on what to do 2. Rules and procedures: Rules guide how projects are executed. Most organizations have control manuals which enable them to control resources. 3. Goal oriented: setting targets and goals for employees. The expectations will serve as guiding tool for employees. 4. Culture and norms: These mechanisms use values and norms to guide decision making. Employees are expected to behave according to the culture. Information access and control  The need for an effective information management system which ensures that correct information is available to relevant users when needed.  The system ensure speed in terms of access, relevance and reliability  Information is accessed through meetings and written reports  Reports follows specific templates, and they are largely formal  Meetings enable members to contribute towards project success. Control variables  Are factors that are monitored, controlled or managed to ensure the project stays on track to achieve its objectives.  These variables can be used to measure progress, performance, and the effectiveness of project execution.  Common control variables include scope, cost, risk, benefits, time and quality.  Time can be found using a Gantt chart. Earned value management (EVM)  A technique that integrates scope, time and cost data to assess performance and progress.  It provides quantitative data to help project managers determine whether a project is on track, within budget and on schedule.  Is based on the S-curve Critical terms in EVM  Planned cost or value (PC/PV): The authorized budget assigned to scheduled work. It is the value of the work planned to be completed by a specific time.  Actual costs (AC): The total cost incurred for the actual work completed. Also known as actual cost of work performed.  Earned value (EV): The measure of work performed, expressed in terms of the budget authorized for that work. Calculated as % of work completed multiply by planned budget.   Cost variance (CV): performance metric measuring the difference between EV and AC. Formula: CV=EV-AC. Positive CV indicates the project is under budget; negative CV means it´s over budget. Budget variance (BV): performance metric measuring the difference between PC/PV and AC. Formula: BV=PC or PV-AC. Positive BV means the project has used less money than budgeted. A      negative BV mean that the project has used more money than budgeted. Schedule variance (SV): performance metric measuring difference between EV and PC/PV. Formula: EV-PC or PV. Positive SV indicates the project is ahead of schedule; negative SV means it´s behind schedule. Cost performance index (CPI): it is a measure of cost efficiency and project productivity. Formula: EV/AC. A CPI greater than 1 indicate the project is cost-efficient, while aCPI less than 1 indicates inefficiency. Schedule performance index(SPI): a measure of schedule efficiency. Formula: EV/PC. An SPI greater than 1 indicates the project is ahead of schedule, while an SPI less than 1 indicates a delay. Estimated cost at completion (ECAC): the forecasted cost of the project at completion based on current performance. Formula: AC+ (BAC-EV)/CPI) Estimated time at completion (ETAC): forecast amount of time required to complete the project. Formula: Planned duration/SPI.