1. Copyright 2009 John Wiley & Sons, Inc. Chapter 10 Monitoring and Information Systems

2. 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

3. 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

4. Designing the Monitoring System 1. Identify key factors to be controlled – Performance – Cost – Time 2. Information to be collected must be identified

5. Designing the Monitoring System Continued Want to avoid collecting necessary data because it is hard to get Do not want to collect too much data The next step is to design a reporting system that gets the data to the proper people in a timely and understandable manner

6. 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?

7. Much Data Involves 1. Frequency counts 2. Raw numbers 3. Subjective numeric ratings 4. Indicators 5. Verbal measures

8. 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

9. Information Needs and Reporting Continued Reports should address each level Not at same depth for every level – Lower levels need detailed information – Senior levels need overview reports

10. The Reporting Process Reports must contain relevant data Must be issued frequently Should be available in time for control

11. 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

12. Meetings Reports do not have to be written They can be delivered verbally in meetings Projects have too many meetings The trick is to keep them to as few as possible

13. Meeting Rules Avoid regular status report meetings Start and end on time Have an agenda and stick to it Publish the agenda early Take minutes

14. Common Reporting Problems Too much detail Poor 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

15. Earned Value Analysis Earned value is an estimate of the percentage of work completed thus far This can be a difficult for a project Why is that the case?

16. The Earned Value Calculations 50-50 rule 0-100 percent rule Critical input use rule The proportionality rule

17. The Earned Value Chart Figure 10-6

18. Variances and Indices Variances and indices can help analyze a project Will look at some of the more common ones

19. Cost Variance (CV) CV = EV – AC Negative variance indicates a cost overrun Magnitude depends on the costs

20. Schedule Variance (SV) SV = EV – PV Negative variance indicates you are behind schedule Measured using costs

21. Time Variance (TV) TV = ST – AT Negative variance indicates you are behind schedule

22. Indices

23. “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

24. 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