Project Management Information System What?? Objective: –Record & report relevant information and status of various components of project –Highlight the deviation from plan –Identify & report on critical areas which are relevant to different levels of management –Provide basis for evaluation of performance of functions of managers & department by regular comparisons

Cost Control System Effectiveness of cost control system depends on: –Realistic estimation of cast at initial stages –Adequate provision of contingencies –Effective cost reporting –Timely identification & implementation of effective cost control system

Project monitoring & reporting Measuring the actual performance Reporting the performance Project Monitoring reports Monthly status reports Delay report Progress Report

Management Report Actual performance Deviation Reports Reasons Solution / Alternative for correction

Contracting has 3 phases 1. Contract Planning – Specifying work packages – Timely availability – Choosing best supplier – Obligations of both parties

2. Contract Negotiation Prices Use of safety & protection Clause Loss due to delay

3. Contract Administration Problem may arise due to: Extra work – more resource Less work – less resource Change in specification Non compliance of specification Thus contract admin is required – includes mechanism to solve these problems like Review at regular intervals Periodic payments

Human Resources Concept of DRIVER D – Directing individuals & teams R – Reinforcing commitment and excitement I – Informing everyone on the project V – Vitalizing teamwork E – Empowering at all levels R – Risk taking & creative Feed Forward Project Control v/s Feedback system

Financial Aspects Variance analysis approach to cost control –Traditional Approach to control or monitor costs –Involves ascertaining, variations between actual and budgeted costs –Lesser variation more controlled project cost –Limitation – not gives an idea about the value of work done Performance Analysis approach

Budgeted cost of work scheduled (BCWS) Sum of budgets for all work scheduled to be done (including in process work) plus an appropriate portion of the budget for overheads for relevant time period Budgeted Cost of work performed (BCWP) Sum of budgets for work packages (including in process work) plus an appropriate portion of the overheads for relevant budget for relevant time period. Also called as earned value

Actual cost of work performed (ACWP) Sum of direct cost actually incurred and indirect cost applied in accomplishing the work performed in given time

Cost variance (CV) = BCWP – ACWP Adverse (negative) CV indicates cost over runs, hence if CV exceeds threshold level prescribed by management, it should be analyzed to identify possible causes CVP (Cost variance percentage) = CV / BCWP Schedule Variance (SV) = BCWP – BCWS SV measures schedule progress of project in monetary units rather than time units Negative SV indicates slippages (behind schedule) SVP = SV / BCWS

Cost performance Index (CPI) Ratio of BCWP to ACWP Value less than 1, indicates cost over run Value greater than 1, indicates cost under run CPI = BCWP / ACWP Schedule Performance Indicator (SPI) SPI = BCWP / BCWS Value less than 1, indicates slippages Value greater than 1, indicates project is progressing ahead of schedule