Project Management
CHAPTER 10: MONITORING
AND INFORMATION
SYSTEM
THE TOPIC OF THE
PRESENTATION
1. The Planning-Monitoring-Controlling Cycle
- Designing the Monitoring System
- How to Collect Data
2. Information Needs and Reporting
- The Reporting Process
- Report Types
- Meetings
- Common Reporting Problems
3. Earned Value Analysis
- The Earned Value Chart and Calculations
- Example: Updating a Project's Earned Value
- MSP Variance and Earned Value Reports
- Milestone Reporting
4. Computerized PMIS (Project Management Information
Systems)
- PMIS
- Choosing Software
THE PLANNING-
MONITORING-
CONTROLLING CYCLE
THE PLANNING-MONITORING-
CONTROLLING CYCLE
Planning-Monitoring-Controlling effort often
minimized to spend time on “real work”.
The planning-Monitoring-controlling cycle is
continuously in process until the project is
completed.
The key things to be planned, monitored, and
controlled are:
Time (Scheduled)
Cost ( Budget)
Scope ( Job performance)
DESIGNING THE
MONITORING
SYSTEM
The first step in setting up any monitoring
system is to identify the key factors to be
controlled.
The project manager must define precisely
which specific characteristics of
performance, cost, and time should be
controlled.
Exact boundaries must then be
established, within which control should be
maintained.
The best source of items to be monitored is
the project action plan.
The monitoring system is a direct
connection between planning and control.
DESIGN THE
MONITORING
SYSTEM
It is common to focus monitoring activities on
data that are easily gathered-rather than
important.
Monitoring should concentrate primarily on
measuring various facets of output rather than
intensity of activity.
The measurement of project performance usually
poses the most difficult data gathering problem.
Performance criteria, standards, and data
collection procedures must be established for
each of the factors to be measured.
Information to be collected may consist of
accounting data, operating data, engineering test
data, customer reactions, specification changes
and the like.
HOW TO COLLECT DATA
It is necessary to define precisely • Frequency counts
what pieces of information should • Raw numbers
be gathered and when a large • Subjective numeric ratings
proportion of all data collected take • Indicators
one of the following forms. • Verbal measures
HOW TO COLLECT DATA
Frequency counts is a simple tally of the Raw numbers are dates, dollars, hours, physical
occurrence of an event. This type of measure is amounts of resources used, and specifications are
often used for "complaints," "number of times a usually reported in this way. These numbers are
project report is late," "days without an reported in a wide variety of ways, but often as direct
accident," "bugs in a computer program," and comparisons with an expected or standard number.
similar items. The data are usually easy to collect Also, "vari-ances" are commonly reported either as the
and are often reported as events per unit time or difference between actual and standard or as the ratio
events as a percent of a standard number. Even of actual to standard. Differences or ratios can also be
with such simple counts, data may be difficult to plotted as a time series to show changes in system
collect. Items such as "errors" or "complaints" performance. When collecting raw project data, it is
often go unreported by individuals or groups not important to make sure that all data are collected
particularlyeager to advertise malperformance. from sources that operate on the same time intervals
and with the same rules for data collection.
HOW TO COLLECT DATA
Subjective numeric ratings These numbers are Indicators When the PM cannot measure some aspect
subjective estimates, usually of a quality, made of system performance directly, it may be possible to
by knowledgeable individuals or groups. They find an indirect measure or indicator. The speed with
can be reported in most of the same ways that which change orders are processed and changes are
objective raw numbers are, but care should be incorporated into the project is often a good measure
taken to make sure that the numbers are not of team efficiency. Response to change may also be an
manipulated in ways only suitable for indicator of the quality of communications on the
quantitative measures. Ordinal rankings of project team. Of course this measure may vary with
performance are included in this category. the complexity of the change. Therefore, when using
indicators to measure performance, the PM must
make sure that the link between the indicator and the
desired performance measure is as direct as possible
and is not affected by (or is corrected for) other
variables..
HOW TO COLLECT DATA
Verbal measures Measures for such performance After data collection has been completed,
characteristics as "quality of team member reports on project progress should be generated.
cooperation," "morale of team members," or These include project status reports, time/cost
"quality of interaction with the client" frequently reports, and variance reports, among others.
take the form of verbal characterizations. As long Causes and effects should be identified and
as the set of characterizations is limited and the trends noted. Plans, charts, and tables should be
meanings of the individual terms consistently updated on a timely basis. Where known,
understood by all, these data serve their “comparables” should be reported, as should
purposes reasonably well. statistical distributions of previous data if
available. Both help the PM (and others) to
interpret the data being monitored.
INFORMATION NEEDS
AND REPORTING
THE REPORTING
PROCESS
Identification of project milestones
depends on who is interested. For
senior management, may be only a few
milestones, even in large projects. For
the PM there may be many crit points
in the project schedule at which major
decisions must be made, large changes
in the ource base must be initiated, or
key technical results achieved. The
milestones relevant to lower levels
relate to finer detail and occur with
higher frequency.
THE REPORTING
PROCESS
THERE ARE MANY BENEFITS OF DETAILED,
TIMELY REPORTS DELIVERED TO THE
PROPER PEOPLE. AMONG OF THESE ARE:
The nature of the monitoring •Mutual understanding of the goals of the project Awareness of the
reports should be consistent with progress of parallel activities and of the problems associated with
coordination among activities
the logic of the planning in getting,
and scheduling systems. The •More realistic planning for the needs of all groups and individuals working
on the project Understanding the relationships of individual tasks to one
primary purpose is, of course, to another and to the overall project.
ensure achieve of the project plan
•Early warning signals of potential problerns and delays in the project
through control. There is linle Minimizing the confusion associated with change by reducing delays in
communicat ing the change
reason to burden operating
members the project team with • Faster management action in response to unacceptable or inappropriate
work.
extensive reports on matters that
are not subject to control at least • Higher visibility to top management, including attention directed to the
immediate needs of the project
not by them
• Keeping the client and other interested outside parties up to date on
project status, particularly regarding project costs, milestones, and
deliverables
REPORT TYPES
For the purposes of project
management, we can consider three
distinct types of reports:
The routine, exception, und special
analysis. The routine reports are those
issued on a regular basis; but, as we
noted above, regular does not
necessarily refer to the calendar. For
senior management, the reports will
usually be periodic, but for the PM and
lower-level project personnel,
milestones may be used to trigger
routine reports.
REPORT TYPES
Exception reports are useful in two cases. First, they are directly oriented to
project management decision making and should be distributed to the
team members who will have prime responsibility for decisions or who have
a clear “need to know.” Second, they may be issued when a decision is
made on an exception basis and it is desirable to inform other managers
as well as to document the decision—in other words, as part of a sensible
procedure for protectingg oneself.
Special analysis reports are used to disseminate the results of special
studies conducted as part of the project or as a response to special
problems that arise during the project. Usually they cover matters that may
be of interest to other PMs, or make use of analytic methods that might be
helpful on other projects.
MEETINGS
A planned occasion when people come together,
either in person or online , to discuss something.
(Cambridge Dictionary)
This provides a valuable forum for a range of
different functions, helping people to share ideas,
make decisions, and build team relationships.
All three types of reports (hard-copy, e-mail, or by
Internet) are delivered in face-to-face meetings,
and in telephone conference calls. Indeed, senior
managers usually insist on face-to-face meetings
for staying informed about project progress, and
these meetings may touch on almost any subject
relevant to the project.
RULES IN IMPLEMENTING AN
EFFICIENT AND SUCCESSFUL
PROJECT MEETING:
1. Use meetings for making group
decisions or getting input for important
problems.
•Avoid “show-and-tell” meetings,
sometimes called “status and review
meetings.”
•Only when there is a clear need, such
as informing senior management of the
project’s status, and it is difficult for team
members to “get together” on their own,
are status and review meetings
appropriate.
RULES IN IMPLEMENTING AN
EFFICIENT AND SUCCESSFUL
PROJECT MEETING:
2. Have preset starting and stopping
times as well as a written agenda.
•Stick with both
•Do not penalize those who show
up on time by making them wait for
those who are tardy.
3. Be prepared
•Make sure that you (and others) do
your home work prior to the meeting.
RULES IN IMPLEMENTING AN
EFFICIENT AND SUCCESSFUL
PROJECT MEETING:
4. If you chair the meeting, take your own
minutes.
•Reality (and the minutes become reality as
soon as the meeting is over) is too important to
be left to the most junior person present
•Distribute the minutes as soon as possible
after the meeting
5. Avoid attributing remarks or viewpoints to
individuals in the minutes. Also, do not report
votes on controversial matters.
•Attribution makes people quite wary about
what they say in meetings and damps creativity
as well as controversy.
RULES IN IMPLEMENTING AN
EFFICIENT AND SUCCESSFUL
PROJECT MEETING:
6. Avoid overly formal rules of procedure.
•A project meeting is not a
parliament, though courtesy is always in
order.
7. If a serious problem or crisis arises,
call a meeting for the purpose of dealing
with that issue only.
•The stopping time for such meetings
may be “When the problem has been
solved.”
•Some types of meetings should
never be held at all.
THREE COMMON
REPORTING PROBLEMS:
1. There is usually too much detail, both in the reports themselves
and in the input being solicited from workers.
EFFECTS SUGGESTED SOLUTION
The unnecessary detail (or too frequent
-Tailor the level of detail in project reports to the needs of the intended audience.
reporting) usually results in the reports
-Use summaries, visuals, and executive summaries to highlight key points and
not being read.
provide context for the information presented.
Also, it prevents project team members
from finding the information they need.
-Prioritize clarity and simplicity in project reports by using straightforward
This often results in careless preparation language, avoiding technical jargon, and organizing information in a logical
of the data, thereby casting doubt on the manner.
validity of reports based on such data. -Encourage feedback from stakeholders to ensure that project reports meet their
informational needs and preferences
-Streamline the content of project reports to focus on key metrics, milestones, and
The preparation and inclusion of critical issues.
unnecessary detail are costly. -Prioritize information that is relevant to project objectives, risks, and decision-
making processes
THREE COMMON
REPORTING PROBLEMS:
2. Poor interface between the project information system and the parent firm’s information system
EFFECTS SUGGESTED SOLUTION
-Establishing a standardized framework for data collection, storage, and
reporting across both systems can help ensure comparability (such as
The data are rarely comparable.
aligning terminology, formats, and coding structures to facilitate seamless
integration and analysis of information).
-Foster collaboration and communication between project managers and
The interaction between the PM accountants to bridge the gap between the project and the parent
and the organization’s accountants organization.
is often strained. -Encourage regular meetings and open dialogue to address issues, share
insights, and align expectations regarding financial reporting and analysis.
THREE COMMON
REPORTING PROBLEMS:
3. Poor correspondence between the planning and the monitoring systems.
EFFECTS SUGGESTED SOLUTION
Firm’s existing information system is used for monitoring
without modifications specifically designed for project
management.
-For example, an existing cost tracking system oriented to shop
operations would be inappropriate for a project with major
activities in the area of research and development. As a result,
Fit standard information into a reporting and
this can lead to gaps in monitoring and control processes.
tracking system that is appropriate for the project.).
-Effective project control relies on the ability to monitor
information directly related to the project's plans.
-If there is a poor correspondence between the planning and
monitoring systems, it undermines the effectiveness of project
management and control processes.
EARNED VALUE
ANALYSIS
THE EARNED VALUE CHART AND
CALCULATION
Earned Value Analysis:
A standard method of measuring
a project's progress at any given
point in time, forecasting its
completion date and final cost,
and analyzing variances in the
schedule and budget as the
project proceeds.
THE EARNED VALUE CHART AND
CALCULATION
Estimating Percent Completion:
1. The 50-50 Rule
2. The 0-100 Percent Rule
3. Critical Input Use Rule
4. The Proportionality Rule
THE EARNED VALUE CHART AND
CALCULATION
1. The 50-50 Rule:
• Fifty percent completion is assumed
when the task is begun, and the
remaining 50 percent when the work
is complete.
• The most popular rule
THE EARNED VALUE CHART AND
CALCULATION
2. The 0-100 Percent Rule:
•This rule allows no credit for work
until the task is complete.
•Highly conservative rule
THE EARNED VALUE CHART AND
CALCULATION
3. Critical Input Use Rule:
•This rule assigns task progress
according to the amount of a
critical input that has been used.
The rule is more accurate if the task
uses this input in direct proportion
to the true progress being made.
THE EARNED VALUE CHART AND
CALCULATION
4. The Proportionality Rule:
•This commonly used rule is also
based on proportionalities, but
uses time (or cost) as the critical
input.
•If desirable, this rule can be
subdivided according to the sub
activities within the task.
EXAMPLE: UPDATING A PROJECT'S
EARNED VALUE
- Table 10.1 presents the
basic project
information, and
updated information
as of day 7 in the
project.
- The planned AON
diagram is shown in
Figure 10.8, where path
a-c-e is the critical
path, with project
completion expected
at day 10.
EXAMPLE: UPDATING A PROJECT'S
EARNED VALUE
The baseline budget
(PV) using the 50–50
rule is calculated in
Figure 10.9 and
graphed in Figure 10.11
where the BAC is listed
as $2,500. The project’s
status and earned
value (EV) as of day 7
are shown in Figure
10.10.
MSP VARIANCE AND EARNED VALUE
REPORTS
As Figure 10-12 shows an earned
value budget for the Career Day
project. It includes all the
budget, actual, and earned
value figures for each work
package in the project, as well
as projections at completion.
The budget was generated as a
standard report from MSP.
(Similar reports are available
through most other PC project
management software
packages.) Note that the project
is reported on at the work
package level
MSP VARIANCE AND EARNED VALUE
REPORTS
Completed Work Packages:
The first two tasks,
Contact Organizations
and Banquet and
Refreshments, have
been successfully
completed.
For these completed
tasks, the following
relationships hold:
Budget at
Completion (BAC)
equals Earned Value
(EV).
Task Symbol in Gantt chart
Forecast at
Completion (FAC)
equals Actual Cost
(AC).
MSP VARIANCE AND EARNED VALUE
REPORTS
Partially Finished Work
Packages:
•Publicity and Promotion
is currently underway.
•The first four work
packages under Publicity
and Promotion are
completed.
•Advertise in college
paper is 50 percent
complete.
•Organize posters is 45
percent complete.
Not Yet Started Work Packages:
•Class announcements under Publicity and Promotion has not yet been initiated.
•The task (Facilities) is also pending.
MSP VARIANCE AND EARNED VALUE
REPORTS
Note that no variances are calculated for tasks
that are incomplete. See the lines “Advertise in
college paper” and “Organize posters,” for
example. The work packages that have not
been completed, however, tell a different story.
Advertise in college paper is 50 percent Calculations:
complete, and Organize posters is 45 percent
complete. (The percent complete data are For the task “Advertise in college For the task “Organize posters”:
from another report.) Class announcements •PV: $588.00
paper”:
has not yet been started. Note that for Advertise
•PV: $165.00 •EV: $325.25
in the college paper, the EV is 50 percent of the
PV, which is to say that $82.50 is 50 percent of
•EV: $82.50 •AC: $234.00
the BAC and FAC. Similarly for Organize posters, •AC: $65.00 •Sch. Variance: ($253.30)
with $335.25 being 45 percent of BAC and FAC •Sch. Variance: ($82.50) (behind (behind schedule) (EV – PV)
($335.25/.45 = $745.00). schedule) (EV – PV) Cost Variance: $101.25 (under
•Cost Variance: $17.50 (under budget) (EV – AC)
budget) (EV – AC) •BAC: $745.00
•BAC: $165.00 •FAC: $745.00 (325.25/45%)
•FAC: $165.00 (82.50/50%) •Variance: 0 (BAC – FAC)
•Variance: 0 (BAC – FAC)
•Schedule Variance Percentage:
•Schedule Variance Percentage: 50%
45% (EV – PV / PV × 100
(EV – PV / PV × 100)
MILESTONE
REPORTING
•It is the process of tracking and
reporting the progress of your project.
The reports provide an overview of the
project's progress, allowing stakeholders
to be informed about the project status.
•These reports show project status at a
specific time. They serve to keep all
parties up to date on what has been
accomplished. If accomplishments are
inadequate or late, these reports serve
as starting points for remedial planning.
COMPUTERIZED PMIS
(PROJECT MANAGEMENT
INFORMATION SYSTEMS)
WHAT IS PMIS?
A PMIS is a computerized system that serves as the
backbone of project management, empowering
project managers to centralize data storage, track
progress, and analyze information.
Project management software is used to plan,
organize, and allocate resources for managing
projects.
HOW DOES IT
WORK?
Your PMIS functions differently based on the project
phase. It aligns with the project manager's needs
and helps complete the specific project phase
requirements.
BENEFITS OF HAVING
PROJECT MANAGEMENT
SOFTWARE
Project management software includes a wide
variety of tools that serve different people for different
purposes.
1. Improved planning and scheduling
2. Better collaboration
3. Remote working
4. Effective task delegation
5. Easier file access and sharing
6. Easier integration of new members
7. Effective risk mitigation
8. Budget management
9. Enhanced productivity
MOST COMMON
ERRORS IN USING PMIS
4. Project isolation. The PMIS reports replace
useful and frequent communication
1.Computer paralysis. Excessive computer between the project manager and top
involvement with computer activity management, or even between the PM and
replacing project management; loss of the project team.
touch with the project and its realities.
5. Computer dependence. PM or top
2. PMIS verifi cation. PMIS reports may mask management wait for the computer reports/
real project problems, be massaged to look results to react to problems rather than
good, or simply verify that real problems being proactive and avoiding problems in
exist, yet are not acted upon. the first place.
3. Information overload. Too many reports, 6. PMIS misdirection. Due to the unequal
too detailed, or the distribution of reports, coverage of the PMIS, certain project
charts, tables, data, and general information subareas are overmanaged and other areas
from the PMIS to too many people receive inadequate attention; symptoms of
overwhelms managers and effectively hides problems are monitored and managed
problems. (budget overruns, schedule slippages),
rather than the problems themselves.
CHOOSING A
SOFTWARE
Friendliness. For the novice user, this
includes clear and logical manuals, help
screens, tutorials, a menu-driven structure,
easy editing, and so on.
Schedules. Gantt charts are mandatory, as
well as automatic recalculation with updates
of times, costs, and resources. Plots of
earliest start, scheduled start, slack/float,
latest finish, planned finish, and actual finish
times are desirable.
Calendars. Either a job shop and/or calendar
dates are necessary, plus the ability to
indicate working days, nonworking days, and
holidays for each resource used.
CHOOSING A SOFTWARE
Budgets. The ability to include a budget for Charts. Charts for responsibility and
planning, monitoring, and control. Especially histograms for resources were deemed
desirable is the ability to interface this with a particu-larly useful.
spreadsheet program.
Migration. The ability to transfer data to and
Reports. Individualizing report formats is
from spreadsheets, word processors,
most desirable. Again, having the ability to
database programs, graphics programs, and
interface the reports with a word processing
desired add-on programs.
package is highly desirable
Graphics. The ability to see the schedule and Consolidation. The ability to aggregate
interactions is especially important. For multiple projects into a single database for
Gantt charts, the software should be able to determination of total resource usage and
show the technical dependencies between detection of resource conflicts.
work units or tasks.
A GENERAL PMIS SELECTION PROCESS
ROUGHLY BASED ON LEVINE’S
EXCELLENT WORK (1987) IS AS
FOLLOWS:
1. Establish a comprehensive set of selection 4. Limit the candidate packages to three and
criteria, considering capabilities in project obtain demos of each, evaluating the vendors at
planning, resource management, the same time in terms of interest, software
tracking/monitoring, report generation, maintenance, and support.
earned value/variance analysis, risk
management. 5. Evaluate each package with a standard project
typical of your current and projected future needs.
2. Set priorities for the criteria, separating Make note of any weaknesses or strengths that
“must have” items from “nice to have” items are particularly relevant to your situation.
and “not
needed” items. 6. Negotiate on price, particularly if you are
making a volume purchase or contemplating a
3. Conduct a preliminary evaluation of the site
software packages relative to the criteria license. Include descriptions of vendor support,
using vendor-supplied data, product training, and product maintenance in the
reviews, and software surveys. contract.
THANK YOU
