Dr.

Maha Syed
PROJECT MONITORING & CONTROL LECTURE 2
LECTURE OVERVIEW

✓ Recap of Lecture 1
✓ Defining key concepts:
✓ Project performance
✓ Indicators
✓ Metrics
✓ Tools for monitoring and control
✓ Examples from real projects
✓ Practice questions and activities
 QUICK RECAP OF LECTURE 1
•What is Project Monitoring?
(Tracking progress)
•What is Project Control?
(Corrective actions)
•Why are these concepts critical to project success?

Activity:
•Ask students to recall one example of monitoring and controlling
they learned from the last lecture.
UNDERSTANDING PROJECT PERFORMANCE
•Project performance refers to how well a project is progressing
in terms of cost, time, scope, and quality.
•Performance is tracked to ensure the project stays aligned with
its goals and objectives.
•Key performance questions:
•Are we on time?
•Are we within budget?
•Are we meeting the project’s objectives and quality
standards?
 FACTORS AFFECTING PROJECT PERFORMANCE
External Factors: Internal Factors:
•Market conditions •Team capabilities and resource
•Regulatory changes allocation
•Supply chain disruptions •Scope management
•Project complexity

Both internal and external factors can shift a project’s

trajectory.
KEY STEPS FOR MONITORING AND CONTROLLING
PROJECT PROGRESS
tools
DIFFERENT PERSPECTIVES
1. The Stakeholder's Lens:
- Project Metrics: Stakeholders are keenly interested in project metrics.
These include key performance indicators (KPIs), such as cost
variance, schedule variance, and earned value.
- Regular Reporting: Stakeholders expect regular updates. Project
managers must communicate progress, risks, and deviations transparently.
- Dashboard Views: Visual dashboards with charts and graphs provide an at-
a-glance view of project health.
DIFFERENT PERSPECTIVES
Why It Matters: Stakeholders invest time, resources, and expectations into a
project. They want to know if their investment is yielding results.
- Key Metrics:
- Schedule Adherence: Are we meeting milestones and deadlines? Delays can
impact stakeholder confidence.
- Budget Performance: Is the project within budget? Overruns can strain
relationships.
- Quality Metrics: Are deliverables meeting quality standards? Poor quality
affects stakeholder satisfaction.
- Example: Imagine a non-profit launching an education program. Stakeholders
(donors, educators, parents) expect timely curriculum development, within budget,
and with high-quality materials.
DIFFERENT PERSPECTIVES
2. The Project Manager's Viewpoint:
- Baseline vs. Actual: Project managers compare actual progress against the
baseline plan. Deviations trigger corrective actions.
- Critical Path Analysis: Identifying the critical path helps focus efforts on tasks that
directly impact project duration.
- Earned Value Management (EVM): EVM integrates cost, schedule, and scope
performance. It answers questions like, "Are we getting value for money spent?"
- Change Control: Managing changes effectively prevents scope creep and ensures
alignment with project goals.
- Example: A non-profit building a community center tracks EVA. If the actual cost is
lower than planned, it's a positive variance. PMs investigate why.
DIFFERENT PERSPECTIVES
3. Team Member's Perspective:
- Task-Level Tracking: Team members monitor their individual tasks. Tools like Gantt
charts or Kanban boards help visualize progress.
- Collaboration: Regular team meetings foster collaboration. Discussing roadblocks
and sharing best practices keeps everyone aligned.
- Risk Awareness: Team members should be aware of potential risks and actively
report issues.
- Example: A non-profit organizing a fundraising event uses a task board. Volunteers
move sticky notes representing tasks across columns as they progress.
MONITOR & CONTROL CYCLE
 Notes and
Activity Description Inputs Outputs Owner
Resources
The Project Manager is
responsible for ensuring that
decisions that need to be
made are made before they
impact the project and that
the decisions are placed in the
repository of record for future
reference. This is especially
Maintaining a
important for projects that Discussion Project decision decision tracking
Manage and
have a long duration or high from tracking log log is an optional
track Project Manager activity. A sample
turnover as this mitigates the project
decisions decision log is
likelihood of rehashing team Decision available.
decisions that were made
early in the project. When a
decision is recorded the
following information is
recommended: Date of
decision, description of trigger
and final decision made by the
 Notes and
Activity Description Inputs Outputs Owner
Resources
Project The project charter defines Project Project change Project Manager A sample change
change the project change change and Project request
management management process that will request Sponsor form and log are
be used to manage significant form and available.
changes to the project scope, log
budget, or schedule. During
the monitoring and controlling
phase, this process must be
executed.
Manage and The Project Manager is Project Updated action Project Manager A sample action
track action responsible for ensuring that action items list and items tracking
items tasks too small to appear in items completed task workbook is
the project schedule are available.
recorded and completed.
 Notes and
Activity Description Inputs Outputs Owner
Resources

The various forums and

communication mechanisms
identified in the
communication plan continue
to be performed as the project
Project communication
progresses. As the project
Execute and log (optional) Project Manager
moves into new phases, Project
revise and
additional types of communication
communicati Resulting project Communications
communication activities may plan
on plan communication plan Lead
become necessary and
changes
activities previously done may
need to evolve or be
eliminated as participants
change or the project focus
shifts
 Activity Description Inputs Outputs Owner Notes and Resources
Execute and Keep the project schedule Task status Updated project Project Discuss and communicate
revise project updated by obtaining status Issues schedule Manager any changes to the project
schedule on project tasks and updating Approved schedule with the team. If
those tasks in the project change the changes result in
schedule. The project requests delay, or new risks to the
schedule should be monitored Decisions project, notify the project
and updated regularly. sponsor and stakeholders
as early as possible.

Monitor and An initial list of risks and Project Implemented Project A risk register and issue
manage risks management approaches are charter contingency Manager log templates are
and issues identified in the project (risks plan available. Use the Risk
charter. The project manager section) Toolkit to assist in
must monitor the risk list, identifying new risks and
identify any that have become managing risks.
issues, and implement the
contingency plan identified in
the project charter.
WHAT ARE KEY CONCEPTS IN PROJECT
MONITORING AND CONTROL?
✓ Performance Indicators: Metrics used to measure
project success (schedule, budget, scope).
✓ Variance Analysis: Difference between actual
performance and planned performance.
✓ Risk Management: Identifying potential deviations
and managing responses.
✓ Corrective Actions: Steps taken when project
performance strays from the plan.
DEFINING
KPIS’
WHAT ARE KEY PERFORMANCE INDICATORS?
KPIs are measurable values that indicate how effectively a project is
achieving its objectives.
Used to track performance across various aspects of a project
like time, cost, quality, and resources.
Different projects have different KPIs based on their goals and
objectives.
Real-Life Example:
In construction projects, KPIs like Cost Performance Index (CPI) and
Schedule Performance Index (SPI) are used to measure budget
adherence and schedule progress.
 KPI EXAMPLES
1. Time-Based KPIs
Schedule Performance Index (SPI) Measures
how well a project is adhering to its schedule.
Milestone Achievement: Measures the number
of milestones completed on time.
Practical Application:
In software development, meeting deadlines for
key deliverables like beta versions or user
testing is a critical KPI.
 KPI EXAMPLES
2. Cost-Based KPIs
Cost Performance Index (CPI): Measures the
financial efficiency of the project.
Budget Variance (BV): Measures the difference
between planned and actual spending
Practical Application:
In the London Olympics 2012, cost overruns
were monitored through KPIs like CPI to ensure
the project stayed within budget.
 KPI EXAMPLES
3. Quality & Risk Based KPIs
Defect Rate: Measures the number of defects
found in deliverables.
 Example: A car manufacturing project may have a
defect rate target of less than 2% for production.

Risk Mitigation: Measures how effectively

identified risks are mitigated over time.
Practical Application:
In pharmaceutical projects, tracking the defect
rate is essential to meet FDA compliance
standards.
 KPI EXAMPLES
4. Customer Satisfaction and Stakeholder
Engagement KPIs
Customer Satisfaction: Measures how satisfied the
customer is with the project outcome.
• Example: Post-project surveys can measure satisfaction
on a scale from 1-10.
•Stakeholder Engagement: Measures how well the
project team is keeping stakeholders informed and
involved.
Real-Life Example:
•In the Dubai Metro Project, frequent stakeholder
meetings were crucial to managing expectations and
reducing conflicts.
MONEYBALL (2011) - THE USE OF
KPIS IN DECISION-MAKING
KEY LEARNING POINTS FROM THE SCENE:
Data-Driven Decision Making:
•The scene illustrates how the team uses advanced statistics (a form of KPIs) to make
player selections, bypassing traditional subjective assessments.

Optimization Through KPIs:

•The characters explain how focusing on specific metrics (in this case, on-base
percentage) can provide a clearer picture of a player's contribution to team success, which
mirrors how KPIs are used in projects to ensure performance is on track.

Challenges of Implementing KPIs:

•The scene also demonstrates the challenges of changing a long-standing system that
resists innovation—much like project teams might struggle with adopting new KPIs or
measurement techniques.
DANGERS OF %AGE COMPLETE AS A
PERFORMANCE METRICS
EARNED VALUE MANAGEMENT EVM
EARNED VALUE MANAGEMENT (EVM)

•Definition: EVM is a project management technique for measuring project

performance and progress.
•Key Components:
• Planned Value (PV)
• Earned Value (EV)
• Actual Cost (AC)
 EARNED VALUE (EV), PLANNED VALUE (PV), AND
ACTUAL COST (AC)
•These metrics help assess project performance in terms of time, cost, and progress.

•They allow project managers to measure whether the project is on track, ahead, or behind
schedule and whether it's under or over budget.
EARNED VALUE (EV), PLANNED VALUE (PV), AND
ACTUAL COST (AC)

•Planned Value (PV): The budgeted cost for work scheduled to be

completed at a specific point in time.
•Earned Value (EV): The budgeted cost for work that has actually been
completed.
•Actual Cost (AC): The actual cost incurred for the work performed.
COMPARING PV, EV & AC
COMPARING PV, EV & AC
 RELATIONSHIP BETWEEN EV, PV, AND AC

•Planned Value (PV) is the budgeted cost for the work that was
scheduled to be done by this time.

•Earned Value (EV) tells you how much work has actually been
completed (in terms of the budgeted cost).

•Actual Cost (AC) shows the real costs spent to complete that work.
REAL-LIFE EXAMPLE USING EV, PV, AND AC

•Example:
• Project Scenario: A software development project with a total budget of
$100,000 is scheduled to be 40% complete by Month 3.
• PV (Planned Value): $40,000 (40% of total budget).
• EV (Earned Value): $30,000 (only 30% of the work is actually done).
• AC (Actual Cost): $35,000 (the actual amount spent to achieve 30%
completion).
•Conclusion:
• The project is behind schedule (PV > EV) and over budget (AC > EV).
USING EVM TO MAKE DECISIONS

• Schedule Variance (SV) = EV – PV (Shows if the project is ahead or

behind schedule).
• Cost Variance (CV) = EV – AC (Shows if the project is under or over
budget).
•Example:
• SV = $30,000 - $40,000 = -$10,000 (behind schedule).
• CV = $30,000 - $35,000 = -$5,000 (over budget).
PRACTICE QUESTIONS

•Question 1: If a project has an EV of $25,000, a PV of $30,000,

and an AC of $28,000, is the project behind schedule? Is it over or
under budget?
•Question 2: Calculate the Cost Variance (CV) and Schedule
Variance (SV) for the project where EV = $50,000, PV =
$60,000, and AC = $55,000.
OVERVIEW OF PROJECT MANAGEMENT METRICS
Project management metrics are crucial tools for assessing and optimizing project
performance. They provide quantifiable measures to evaluate various aspects of a
project’s progress, efficiency, and quality.
In this overview of project management metrics, we’ll explore key steps for
selecting and utilizing metrics effectively to ensure successful project outcomes.
DEFINITION OF PROJECT MANAGEMENT METRICS

The metrics of project management are the numbers to demonstrate various

project performance indicators such as completeness, progress, quality, and
efficiency as it may be.
The provided metrics are used by the project managers and stakeholders to keep
track of whether the projects are moving in the right direction according to their
objectives, schedules, budgets, and quality standards.
Analyzing project management metrics makes it possible for stakeholders to spot
areas for improvement, make decisions based on reliable data and act backwards
when necessary to guarantee meeting project targets.
IMPORTANCE OF PROJECT MANAGEMENT METRICS IN
MEASURING PROJECT SUCCESS
1. Early Detection of Issues: Participating in the monitoring of metrics helps in
finding such issues and coming up with alternate plans earlier in the project
lifecycle. Early warning in turn allows a timely response that will ensure controls
and countermeasures getting on with quickly and staging crises.
2. Performance Improvement: Metric analysis will enable project managers to
know which processes can be optimized, resources allocated properly, and
efficiencies ganged. This finally causes the growth of the project performance
3. Alignment with Strategic Goals: The metrics allow monitoring of whether or not
the projects have a goal that matches the overall organization’s objectives and
priorities. Through a series of project performance indicators, the management
board can determine if the project is adding value to the organization by
checking to see if it is moving in the direction of achieving the set goals.
IMPORTANCE OF PROJECT MANAGEMENT METRICS IN
MEASURING PROJECT SUCCESS
4. Risk Management: A risk can be addressed with metrics, enabling a project
manager to realize the problem and take measures to avoid it. Project managers
can keep track of risk levels associated with risk exposure, impact, and mitigation
execution and thereby remediate it before its project success suffers.
5. Benchmarking and Comparison: Metrics can be used because they benchmark
and aid comparisons with other benchmarks or other projects of the same kind.
This enables stakeholders to compare key performance indicators (KPIs) with
their industry peer norms or benchmarking. The result is a rich setup of context
in which to weigh success.
TYPES OF PROJECT MANAGEMENT METRICS
1. Schedule Metrics

❖ Schedule Performance Index (SPI): Considers actual progress

compared to the planned progress.
❖Schedule Variance (SV): It determines the set schedule difference.
❖Planned Value (PV): Allocation of the approved budget to a
designated task for flight operations.
❖Actual Duration: To complete specific project tasks, rates can be
considered, like the time needed to fulfil a task or finish a milestone.
TYPES OF PROJECT MANAGEMENT METRICS
Cost Metrics
•Cost Performance Index (CPI): Corresponds the earned value to
the real expense.
•Cost Variance (CV): It helps in assessing the de-variation from the
budget.
•Earned Value (EV): We assigned value to the monetary
expression of completed work.
•Budget at Completion (BAC): The total budget of all
merchandising and promotion at the end of this project.
TYPES OF PROJECT MANAGEMENT METRICS
Quality Metrics
•Defect Density: The number of defects that occur can be
measured per unit of the work or product.
•Customer Satisfaction Scores: Receiving feedback from clients on
the rank quality of services.
•First Pass Yield: The percentage of the tasks accomplished in
compliance with the standards and their first-time accuracy.
TYPES OF PROJECT MANAGEMENT METRICS
Resource Metrics
•Resource Utilization Rate: This metric provides for measurement
of those time frames when resources carry out project work.
•Resource Availability: Compute staff minimum workload
indicators that will be expressed in terms of hours or FTE.
•Resource Allocation: Contrasts the spending allocation decided at
the planning stage with the resources used in actuality.
TYPES OF PROJECT MANAGEMENT METRICS
Risk Metrics
•Risk Exposure: Measures the risk’s frequency by forecasting the
chances of their occurrence.
•Risk Severity: Enlist the seriousness of those, risks based on the
area they’ve got to fall into the identified group of risks.
•Risk Response Effectiveness: Monitors the success rate of risk
control and response approaches.
TYPES OF PROJECT MANAGEMENT METRICS
Stakeholder Metrics
•Stakeholder Satisfaction: It measures the satisfaction degree of
the project stakeholders.
•Stakeholder Engagement: Keeps the level of interaction and
collaboration with stakeholders all around during the project life
span.
•Stakeholder Influence: Analyzes the importance and the
consequences that stakeholders have in project decisions and
outcomes.
TYPES OF PROJECT MANAGEMENT METRICS
Productivity Metrics
•Work Breakdown Structure (WBS) Completion Rate: It monitors
where the activities are in the sequential WBS.
•Task Efficiency: This metric therefore measures the value of the
time spent on the quantity of work.
•Cycle Time: The duration in which a particular work takes one to
start from the point of initiation until its termination or delivery.
TYPES OF PROJECT MANAGEMENT METRICS
Communication Metrics
•Communication Effectiveness: Measures whether all
communications are clear enough, frequent enough, and relevant
or not.
•Response Time: This measures how much time can be taken to
answer the questions or problems that relate to the projects.
•Meeting Attendance: Tracks the attendance level and the amount
of involvement of the project team for each meeting.
SCHEDULE PERFORMANCE INDEX (SPI)

Definition:
•SPI is a key performance indicator used in project management to measure the efficiency of
time utilized in a project.
•It is part of the Earned Value Management (EVM) framework.
Formula:
•SPI = Earned Value (EV) / Planned Value (PV)
Interpretation:
•SPI > 1: Ahead of schedule
•SPI = 1: On schedule
•SPI < 1: Behind schedule
COMPONENTS OF SPI CALCULATION

Earned Value (EV):

•The value of the work actually completed at a given point in time.
Planned Value (PV):
•The expected value of the work planned to be completed at the same point in time.
Example:
•If you planned to complete $100,000 worth of work by a certain date but only
completed $80,000, then EV = $80,000, PV = $100,000.
SPI Calculation:
•SPI = 80,000 / 100,000 = 0.8 (which means you're behind schedule).
COMPONENTS OF SPI CALCULATION

Earned Value (EV):

• The value of the work actually completed at a given point in time.

Planned Value (PV):

• The expected value of the work planned to be completed at the same point in time.

Example:

• If you planned to complete $100,000 worth of work by a certain date but only completed $80,000, then EV = $80,000, PV = $100,000.

SPI Calculation:

• SPI = 80,000 / 100,000 = 0.8 (which means you're behind schedule).

PRACTICAL APPLICATIONS OF SPI

Project Monitoring and Control:

SPI helps determine if a project is on schedule and identifies areas for corrective action.
Resource Allocation:
If ahead of schedule, resources can be moved to other tasks.
Progress Reporting:
SPI is used in project reports to communicate progress to stakeholders.
Forecasting Performance:
SPI trends can help predict future scheduling issues or successes.
 SCHEDULE PERFORMANCE INDEX EXAMPLE
Suppose you are managing a construction project to build a house, and you have a list
of tasks along with their planned durations and costs. Here's a simplified breakdown:
Task: Foundation
Planned Duration: 10 days Actual Duration: 10 days
Planned Cost: $10,000 Actual Cost: $9,000

Task: Framing
Planned Duration: 15 days Actual Duration: 18 days
Planned Cost: $15,000 Actual Cost: $17,000

Task: Roofing
Planned Duration: 7 days Actual Duration: 5 days
Planned Cost: $7,000 Actual Cost: $6,000

Now, let's say you're at a certain point in the project, and you've assessed the progress:
SCHEDULE PERFORMANCE INDEX EXAMPLE
Now, we'll use these values to calculate the SPI for each task:
For the Foundation task: 1.Foundation:
EV = Actual Cost = $9,000 SPI = EV / PV = $9,000 / $10,000 = 0.9
PV = Planned Cost = $10,000 2.Framing:
For the Framing task: SPI = EV / PV = $17,000 / $15,000 = 1.13
EV = Actual Cost = $17,000 3.Roofing:
PV = Planned Cost = $15,000 SPI = EV / PV = $6,000 / $7,000 = 0.86
For the Roofing task:
EV = Actual Cost = $6,000
PV = Planned Cost = $7,000
SCHEDULE PERFORMANCE INDEX EXAMPLE
Interpreting the SPI values:
•The Foundation task is behind schedule (SPI < 1).
•The Framing task is ahead of schedule (SPI > 1).
•The Roofing task is behind schedule (SPI < 1).
This example demonstrates how to calculate the Schedule
Performance Index (SPI) for individual tasks within a
project and interpret the results to assess schedule
performance.
 PRACTICE
Question 1:
A project has an EV of $300,000 and a PV of $350,000. What is the
SPI? Is the project ahead or behind schedule?
Question 2:
Your team planned to complete $120,000 worth of work but only
completed $100,000. Calculate the SPI and interpret.
Question 3:
Explain how SPI can help in forecasting future project performance.
Question 4:
What would you recommend for a project with SPI = 1.2?
GROUP ACTIVITY
WHAT METRICS SHOULD YOU TRACK TO ENSURE
PROJECT CONTROL SUCCESS?
1 Scope metrics
Scope metrics measure the extent and completeness of the project's deliverables
and requirements, helping to assess whether the project is meeting the
expectations and needs of the stakeholders and users. Common scope metrics
include a scope baseline, which is an approved version of the project scope
statement, work breakdown structure (WBS), and WBS dictionary used as a
reference point for scope management. Additionally, scope creep is an unplanned
and uncontrolled change or addition to the project scope that occurs after the
scope baseline is established. Requirements traceability matrix (RTM) is a document
that links project requirements to deliverables and test cases, ensuring all
requirements are met and verified. Lastly, requirements volatility is a percentage of
change in project requirements over time, indicating the stability and clarity of the
project scope.
WHAT METRICS SHOULD YOU TRACK TO ENSURE
PROJECT CONTROL SUCCESS?

2 Schedule metrics
Schedule metrics measure the progress and timeliness of the project activities and
milestones, helping to evaluate whether the project is meeting its deadlines and
delivering the expected results. The schedule baseline is an approved version of the
project schedule that serves as a reference point for schedule management.
Schedule variance (SV) is the difference between the actual progress and the
planned progress of the project, measured in time units or percentage. Schedule
performance index (SPI) is the ratio of the actual progress to the planned progress
of the project, showing how efficiently time resources are being used. Lastly, critical
path is a sequence of activities that determines the shortest possible duration of
the project, highlighting dependencies and constraints of the project schedule.
WHAT METRICS SHOULD YOU TRACK TO ENSURE
PROJECT CONTROL SUCCESS?

3 Cost metrics
Cost metrics measure the budget and expenditure of the project resources, helping
to determine whether the project is within the approved budget and delivering the
expected value. Common cost metrics include a cost baseline, which is the
approved version of the project budget used as a reference point for cost
management; cost variance (CV), which is the difference between the actual cost
and the planned cost of the project; cost performance index (CPI), which is the ratio
of earned value to actual cost, indicating how efficiently resources are being used;
and return on investment (ROI), which is the ratio of net profit to total cost, showing
how much value the project is generating.
WHAT METRICS SHOULD YOU TRACK TO ENSURE
PROJECT CONTROL SUCCESS?

4 Quality metrics
Quality metrics measure the quality and reliability of the project deliverables and
processes, helping to ensure that the project meets the standards and specifications
of stakeholders and users. Quality baseline serves as a reference point for quality
management, while defect density indicates the quality of the project deliverables
by measuring the number of defects or errors per unit of measurement. Defect rate
measures the percentage of defects or errors found during testing or inspection,
while customer satisfaction gauges the degree to which project deliverables and
outcomes meet or exceed expectations and needs. All of these metrics are essential
for assessing the quality of a project.
WHAT METRICS SHOULD YOU TRACK TO ENSURE
PROJECT CONTROL SUCCESS?
5 Risk metrics
Risk metrics are essential for measuring the uncertainty and potential impact of
project events and conditions. They help you identify, analyze, and manage risks and
opportunities. Common risk metrics include a risk register which documents
identified risks, their causes, effects, probabilities, impacts, and responses; risk
exposure which is the product of probability and impact; Risk Priority Number (RPN)
which ranks risks based on their exposure, severity, and detectability; and risk
response effectiveness which measures how well the risk responses have reduced
or eliminated the risk exposure. By tracking these metrics, you can ensure project
control success by keeping the project aligned with objectives, scope, schedule,
budget, quality, and risk parameters. Additionally, this allows you to communicate
project performance to stakeholders and team members while also resolving any
issues or deviations that may arise during execution.
Reading and Assignment for Next Week
•Reading:

PMBOK Guide, Chapter 11: Risk Management.

Lecture 2 Handout 1 & 2

•Assignment:

Write a 1-page reflection on how EVM could have been

applied in a project you've worked on.

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THANKYOU