Chapter 7IntroductionTHE PLAN-MONITOR-CONTROL CYCLEPlan-Monitor-Control CycleFigure 7-1 Project Authorization and Expenditure Control System Information FlowDesigning the Monitoring SystemDATA COLLECTION AND REPORTINGFormats of DataData AnalysisFigure 7-2 Number of Bugs per Unit of Test TimeFigure 7-3 Percent of Specified Performance Met During Successive Repeated TrialsFigure 7-4 Ratio of Actual Material Cost to Estimated Material CostReportingReport TypesMeeting GuidelinesMeeting Guidelines continuedVirtual Reports, Meetings, and Project ManagementEARNED VALUEEarned ValueConventions Used to Estimate Progress on TasksVariancesAdditional Items of InterestPROJECT CONTROLBackgroundPurposes of ControlDESIGNING THE CONTROL SYSTEMSlide 27Primary Mechanisms by Which PM Exerts ControlComponents of a Control SystemTypes of Control SystemsFigure 7-7 Sample Project Milestone Status ReportTools for ControlFigure 7-8 Trend ProjectionFigure 7-9 Critical Ratios with Control LimitsFigure 7-10 Cost Control ChartSCOPE CREEP AND CHANGE CONTROLScope CreepPurpose of Change Control SystemPurpose of Change Control System continuedRules for Controlling Scope CreepCopyrightMEM 612 Project ManagementChapter 7Monitoring and Controlling the ProjectMEM 612 Project ManagementIntroduction•Monitoring and Control are opposite sides of selection and planning–bases for selection dictate what to monitor–plans identify elements to control•Monitoring is collection, recording, and reporting of information•Con trol uses monitored information to align actual performance with the planMEM 612 Project ManagementTHE PLAN-MONITOR-CONTROL CYCLEMEM 612 Project ManagementPlan-Monitor-Control Cycle•Closed loop process•Planning-monitoring-controlling effort often minimized to spend time on “the real work”MEM 612 Project ManagementFigure 7-1 Project Authorization and Expenditure Control System Information FlowMEM 612 Project ManagementDesigning the Monitoring System•Identify special characteristics of performance, cost, and time that need to be controlled–performance characteristics should be set for each level of detail in the project•Real-time data should be collected and compared against plans–mechanisms to collect this data must be designed•Avoid tendency to focus on easily collected dataMEM 612 Project ManagementDATA COLLECTION AND REPORTINGMEM 612 Project ManagementFormats of Data•Frequency Counts•Raw Numbers•Subjective Numeric Ratings•Indicators and Surrogates•Verbal CharacterizationsMEM 612 Project ManagementData Analysis•Aggregation Techniques•Fitting Statistical Distributions•Curve Fitting•Quality Management TechniquesMEM 612 Project ManagementFigure 7-2 Number of Bugs per Unit of Test TimeMEM 612 Project ManagementFigure 7-3 Percent of Specified Performance Met During Successive Repeated TrialsMEM 612 Project ManagementFigure 7-4 Ratio of Actual Material Cost to Estimated Material CostMEM 612 Project ManagementReporting•Reports–Project Status Reports–Time/Cost Reports–Variance Reports•Not all stakeholders need to receive same information•Avoid periodic reports•Impact of Electronic Media•Relationship between project’s information system and overall organization’s information systemMEM 612 Project ManagementReport Types•Routine•Exception•Special AnalysisMEM 612 Project ManagementMeeting Guidelines•Meetings should be help primarily for group decision making–avoid weekly progress report meetings•Distribute written agenda in advance of meetingMEM 612 Project ManagementMeeting Guidelines continued•Ensure everyone is properly prepared for meeting•Chair of meeting should take minutes–avoid attributing remarks to individuals in the minutes•Avoid excessive formality•If meeting is held to address specific crisis, restrict meeting to this issue aloneMEM 612 Project ManagementVirtual Reports, Meetings, and Project Management•Use of the Internet•Use of Software Programs•Virtual Project TeamsMEM 612 Project ManagementEARNED VALUEMEM 612 Project ManagementEarned Value•Percent of task’s budget actually spent not good indicator of percent completion tasksalloncompletiti % task cost budgetedtaskMEM 612 Project ManagementConventions Used to Estimate Progress on Tasks•50-50–50% complete when task started and other 50% added when task finished•100%–100% complete when finished and zero percent before that•Ratio of Cost Expended to Cost BudgetedMEM 612 Project ManagementVariances•Cost/Spending VarianceEV - AC•Schedule VarianceEV - PV•CPIEV/AC•SPIEV/PVMEM 612 Project ManagementAdditional Items of Interest•Estimated (Remaining Cost) to CompletionETC = (BAC - EV)/CPI•(Total Cost) Estimated at CompletionEAC = ETC + ACMEM 612 Project ManagementPROJECT CONTROLMEM 612 Project ManagementBackground•Acts which seek to reduce differences between plan and actuality•Difficult Task–human behavior involved–problems rarely clear cutMEM 612 Project ManagementPurposes of Control•Stewardship of Organizational Assets–physical asset control–human resources–financial control•Regulation of Results Through the Alteration of ActivitiesMEM 612 Project ManagementDESIGNING THE CONTROL SYSTEMMEM 612 Project ManagementBackground•Purpose is to correct errors, not punish the guilty•Investments in control subject to diminishing returns•Must consider impact on creativity and innovation•Be careful not emphasize short-run results at the expense of long-run objectives•Dangers of across the board cutsMEM 612 Project ManagementPrimary Mechanisms by Which PM Exerts Control•Process Reviews•Personnel Assignments•Resource AllocationsMEM 612 Project ManagementComponents of a Control System•Sensor•Standard•Comparator•Decision Maker•EffectorMEM 612 Project ManagementTypes of Control Systems•Go/No-Go Controls–predetermined standard must be met for permission to be granted to continue•Post-Control–done after project completed–purpose is to allow future projects to learn from past project experienceMEM 612 Project ManagementFigure 7-7 Sample Project Milestone Status ReportMEM 612 Project ManagementTools for Control•Variance Analysis•Trend Projections•Earned Value Analysis•Critical Ratiocost actualcost budgetedprogress scheduledprogress actualMEM 612 Project ManagementFigure 7-8 Trend ProjectionMEM 612 Project ManagementFigure 7-9 Critical Ratios with Control LimitsMEM 612 Project ManagementFigure 7-10