copyright 2009 john wiley & sons, inc. chapter 10 monitoring and information systems
TRANSCRIPT
Copyright 2009 John Wiley & Sons, Inc.
Chapter 10
Monitoring and Information Systems
Introduction
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 into compliance with the plan
Evaluation - Judgments regarding the quality and effectiveness of project performance
Planning–Monitoring–Controlling Cycle
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
Designing the Monitoring System
1. Identify key factors to be controlled– Performance– Cost– Time
2. Information to be collected must be identified
Designing the Monitoring System Continued
Want to avoid collecting necessary data because it is hard to get
Do not want to collect too much dataThe next step is to design a reporting
system that gets the data to the proper people in a timely and understandable manner
Data Collection
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?
Much Data Involves
1. Frequency counts
2. Raw numbers
3. Subjective numeric ratings
4. Indicators
5. Verbal measures
Information Needs and Reporting
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
Information Needs and Reporting Continued
Reports should address each levelNot at same depth for every level
– Lower levels need detailed information– Senior levels need overview reports
The Reporting Process
Reports must contain relevant dataMust be issued frequentlyShould be available in time for control
Report Types
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
Meetings
Reports do not have to be writtenThey can be delivered verbally in meetingsProjects have too many meetingsThe trick is to keep them to as few as
possible
Meeting Rules
Avoid regular status report meetingsStart and end on timeHave an agenda and stick to itPublish the agenda earlyTake minutes
Common Reporting Problems
Too much detailPoor 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
Earned Value Analysis
Earned value is an estimate of the percentage of work completed thus far
This can be a difficult for a projectWhy is that the case?
The Earned Value Calculations
50-50 rule0-100 percent ruleCritical input use ruleThe proportionality rule
The Earned Value Chart
Figure 10-6
Variances and Indices
Variances and indices can help analyze a project
Will look at some of the more common ones
Cost Variance (CV)
CV = EV – AC
Negative variance indicates a cost overrun
Magnitude depends on the costs
Schedule Variance (SV)
SV = EV – PV
Negative variance indicates you are behind schedule
Measured using costs
Time Variance (TV)
TV = ST – AT
Negative variance indicates you are behind schedule
Indices
PVAC
EV
PV
EV
AC
EVSPI
2
CPICSI
Index Schedule-CostPV
EVSPI
Index ePerformanc ScheduleAC
EVCPI
Index ePerformancCost
“To complete” and “At Completion”
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
Milestone Reporting
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