Monitoring and Control

1. SPM-UNIT III
RISK MANAGEMENT
MONITORING & CONTROL
Prof. Kanchana Devi

2. Introduction
 After scheduling , project will start and then
attention must be focused on progress.
 Progress needs monitoring
 What is happening
 Comparison of actual achievement against the schedule
 Revision of plans and schedules (wherever necessary)
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Prof. Kanchana Devi

3. Creating Framework
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 Exercising control over a project and ensuring
that targets are met is a matter of regular
monitoring.
 Finding out what is happening and comparing
it with targets
 Re-planning also sometimes required

4. Project control cycle
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5. Responsibility
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 The overall responsibility
 Ensuring satisfactory progress on a project
 It is the role of “Steering Committee”, project
management board or Project Board.

6. Project Reporting Structure
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7. Reporting
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 Reporting may be
 Oral/Written
 Formal/Informal
 Regular/Ad-hoc

8. Assessing Progress
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 Information should be collected routinely
 Information should be objective and tangible
 Whether or not a particular report has been delivered
 Sometimes the assessment depends on
estimates of proportion of current activity that
has been completed

9. Setting Checkpoints
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 Necessary to set a series of check points in
the initial activity plan.
 Checkpoints may be:
 Regular(Monthly)
 Tied to specific events (production of report)

10. Collecting the Data
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 Rule: Manager will breakdown the long
activities into more controllable tasks of one or
two weeks.
 It is necessary to gather information about
partially completed activities, forecasts of how
much work is left to be completed.

11. Example of partial completion reporting
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12. Risk Reporting
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 One way to overcome the objections of partial
completion report is to avoid asking for
completion dates. (instead ask for likelihood of meeting the
target)
 Called “Traffic Light Method”.

13. Consists of following steps
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 Identify the key elements for assessment in a piece of
work
 Break these key elements into constituent element
 Assess each of the second level element on the scale
 Green for target,
 Amber for ‘not on target but recoverable’
 Red for ‘not on target and recoverable only with
difficulty’
 Review second level assessment to arrive at first level
 Review first level assessment to produce an overall
assessment

14. Example
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15. Visualizing Progress
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 Gantt Chart
 Slip Chart
 Ball Chart
 Timeline Chart

16. Cost Monitoring
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 Expenditure monitoring is an important
component of project control
 A project might be on time but only because
more money has been spent on activities than
originally budgeted

17. Tracking cumulative expenditure
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18. Cumulative Expenditure Chart
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19. Earned Value
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 Analysis is based on assigning a ‘value’ to each
task or work package based on expenditure
forecasts.
 The assigned value is the original budgeted cost
for the item and is known as the ‘baseline budget’
or ‘budgeted cost of work scheduled’(BCWS)
 The total value credited to a project at any point is
known as the ‘earned value’ or ‘budgeted cost of
the work performed’(BCWP)

20. Actual Cost
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 By recording the “Earned Value”, the actual
cost of each task can be collected as “Actual
Cost” or ACWP-Actual Cost of Work
Performed.
 There are three types of Variance:
 Schedule Variance(SV)
 Time Variance(TV)
 Cost Variance(CV)

21. Schedule Variance(SV)
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 The Schedule Variance is measured in
cost terms as EV-PV
 It indicates the degree to which the value
of the completed work differs from the
planned work.

22. Example:
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 A work with a PV of $40,000 should have
been completed by now. In fact, some of that
work has not been done so that the EV is only
$35,000. Calculate SV.
 SV=EV-PV
 35000-40000= - 5000
 A negative SV means the project is behind
schedule

23. Time Variance (TV)
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 Difference between the time when the
achievement of the current earned value was
planned to occur and the time now.
 Eg:
 The current EV should have been achieved in the
early part of month 9 and as the time now is end
of month 11, the TV is about -1.75 months from
graph.

24. Cost Variance (CV)
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 This is calculated as EV-AC.
 It indicates the difference between the earned
value or budgeted cost and the actual cost of the
completed work.
 Let Actual Cost for previous example is $ 55,000
 CV=35000-55000
 = -20000
 A negative CV means that the project is over cost

25. Prioritizing Monitoring
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 List of priorities
 Critical Path Activities
 Activities with no free float
 Activities with less than a specified float
 High Risk Activities
 Activities using critical resources