Post on 22-Dec-2015
description
1
Introduction:
Mumtaz Construction Company is a renowned name in construction services. They are involved
in many construction projects in Rawalpindi and Islamabad. Currently, a housing society is being
developed by the company near New Islamabad Airport named “Mumtaz City.”
Recently, the company has been awarded a project to build a shopping mall in Islamabad. It will
be consisted of a basement plus four stories. The mall will be consisted of fifty shops and offices
to be rented out. It will take five years to be developed. The estimated cost for construction is
estimated to be hundred million rupees.
MEC aspects of the Project:
The difficulties faced by company in managing various projects are mainly involved the
distribution of workload and personnel among running projects. Projects take place along with
the operational work, so its organizational culture needs to be well-structured and monitored
to have a deep effect on how the projects work. Moreover, there is almost a traditional way
going on for managing the projects, and the structure is split into its various functions
depending upon the routine activities and milestones. Therefore, Project managers are
responsible to keep in track the progress of the project and keep monitoring the project growth
and must report to management for all activities and operations.
The performance of the project needs to be continuously monitored and evaluated in terms of
achieving goals and objectives of the projects.
1
The scope needs to be validated by formal acceptance of project deliverables by all
stakeholders once the deliverables are completed.
The key benefit of this process is that it brings objectivity to the acceptance process and
increases the chance of final product, service or result acceptance by monitoring and evaluating
each deliverable. Process of monitoring the status of the project and product scope and
managing changes to the scope baseline is the major aspect of MEC. It will help in ensuring all
requested changes and recommended corrective or preventive actions will be processed
through the “Perform Integrated Change Control” process.
Monitoring, evaluation and control will provide regular feedback on project performance and
show any need for corrections. Some more aspects of MEC will be:
Early identification of problems and their possible solutions
Achievement evaluation of project objectives
Promoting the participation, ownership and accountability and stakeholders views
intake
Documents updating for lessons learned from the current project for future use
Identification of indicators to provide evidence that actual work performed is in line
with the planned outputs
Identification of the most appropriate methods for collecting and analyzing information
Different stakeholders will have different requirements from this project. The design of
monitoring, evaluation and control process will depend on who needs to know what, and why.
Each group will have specific use for monitoring and evaluation information:
1
Project Manager needs to know if the work done is as per the planned baselines in
terms of scope, cost, quality and schedule. If any deviation from the planned progress is
indicated, measures should be taken place to keep project as per planned objectives.
Financers need to know how the money was spent and what was achieved in the project
in order to be accountable.
Top authority and managers need to know what is going well and what is going badly by
comparing results with the baselines, so they can take measures to improve and control
deviations. They also need to be able to learn from the experience in order to develop
their own capacity and the quality of similar future projects.
Project users and beneficiaries also need information from monitoring and evaluation in
order to hold the manager to account and to have more control over decisions that
affect the project outcomes.
Control Scope:
The project manager will monitor the scope baseline and find out if there is any deviation
against the baseline. It will perform the following:
1. Measuring the actual scope against the scope baseline
2. Taking corrective actions to manage scope
3. Weekly progress meetings would be conducted to review the progress of scope
4. Completed work packages would be randomly selected and verified against the scope
baseline
1
5. All of completed deliverables would be verified against the scope baseline. If any
deviation of deliverables from scope baseline is indicated, corrective actions would be
taken place
6. All of completed deliverables would be presented for acceptance by client
7. If any change in scope baseline is required, change request would be raised through
integrated change control
The following tools and techniques would be used to manage scope:
Group decision making techniques
Expert Opinion
Control Schedule:
1. Schedule data that would be gathered for progress reporting is actual start, percent
complete, remaining duration and actual finish where applicable.
2. Actual schedule data will be recorded on daily basis.
3. Progress review meetings will be held on weekly basis.
4. Scheduling method for this project is critical path method.
5. Gantt chart and network diagram will jointly be used as schedule model.
6. In weekly progress review meetings, following will be the agenda:
a. EVM report
b. Issue log review
c. Change log review
7. Microsoft Project Professional will be used as scheduling software.
1
8. EVM methodology will be used for schedule variance analysis and forecasting.
9. Estimation for remaining durations and forecasts will be done through Program
Evaluation and Review Technique.
10. Forecasting related to critical and near critical path activities will be done through
Monte Carlo simulation.
11. For Monte Carlo simulation the results with 90% probability will be selected.
12. Fast tracking would be done for schedule compression.
13. Resources will be optimized using both resource leveling and resource smoothing
techniques.
14. Maximum threshold for the schedule performance index would be 0.85.
Reports:
The following reports would be discussed in weekly meetings:
1. EVM Report:
a. Graphical view of AC, EV and PV curves
b. Earned value
c. Planned value
d. Schedule variance
e. Schedule performance index
f. Schedule variance at completion
g. Estimate to complete
1
2. Issue Log Review:
a. List of issues
b. Corresponding dates
c. Issue Initiator
d. Issue owner
e. Issue status
f. Action taken
3. Change Log:
a. Change request ID
b. Change request summary
c. Status
d. Corresponding dates
e. Impact area of change request
Control Cost:
1. Cost will be estimated and controlled at fourth level of work break down structure of
the project.
2. For cost variance analysis and forecasting following tools and techniques will be used:
a. Earned value management
b. Variance analysis
c. Reserve analysis
1
d. Trend analysis
3. Cost will be estimated with parametric approach.
4. Actual cost data will be monitored on daily basis.
5. Cost performance review meetings will be held weekly.
6. In weekly cost performance review meetings, following cost performance reports will be
discussed:
a. EVM Report
b. Variance analysis report
c. Reserve analysis report
d. Issue log review
e. Change log review
Reports:
Following reports would be discussed during weekly meetings:
1. EVM Report:
a. Graphical view of AC, PV and EV curves
b. Earned value
c. Planned value
d. Actual cost
e. Cost variance
f. Variance at completion
g. Estimate to complete
h. Estimate at completion
1
i. To complete performance index (BAC)
j. To complete performance index (EAC)
2. Variance analysis report:
a. Material usage variance
b. Material rate variance
c. Labor wage rate variance
d. Labor efficiency report
3. Reserve Analysis Report:
a. Reserve allocation at activity level
b. Amount of reserve consumed at activity level
c. Amount of reserve added back to management reserve
d. Amount of reserve needed from management reserve
4. Issue Log Review:
a. List of issues
b. Corresponding dates
c. Issue Initiator
d. Issue owner
e. Issue status
f. Action taken
5. Change Log:
a. Change request id
b. Change request summary
1
c. Status
d. Corresponding dates
e. Impact area of change request
Control Quality:
1. In order to avoid the cost and time of re-work, extensive inspections will be conducted
at the time of completion of every work package to verify the deliverable of that
particular work package.
2. All the raw materials received at project site will be inspected by quality team at the
time of receipt.
3. In case of non-conformance found in any inspection, the material would be returned to
supplier.
4. In weekly progress review meetings, quality team will provide the results of their
inspections.
5. Based on the information provided by quality team, decisions would be made to attain
the minimum quality standards.
The following tools and techniques would be used for quality management:
Benchmarks acceptable within the industry
Cause and effect diagram for any issue in quality to indicate its root cause and taking
corrective actions
Control Charts would be used to ensure the project is with in control limits
1
Pareto Charts using cumulative frequencies including both line and bar graphs to
represent the project data
Check sheets for collecting and analyzing the data
Quality Control Process Flow Chart:
Control Risks:
The development of risk management performance metrics is essential to risk monitoring,
evaluation and control success. The establishment of a management indicator system that
provides accurate, timely, and relevant risk information in a clear, easily understood manner is
key to risk management. The team would identify specific indicators to be monitored and
information to be collected, compiled, and reported.
1
Risk team would identify the risks prior to start of project and during the execution phase.
Qualitative analysis for all of the identified risks would be performed. The probability of
occurring each identified risk would be given an impact weightage and then is multiplied with
its probability of occurrence. All the risks with low and medium risk scores would be kept in
watch list and their qualitative analysis would be done on monthly basis. The risks with high risk
scores attained in qualitative analysis would be further analyzed in quantitative analysis. Based
on the results in qualitative and quantitative analysis, contingency reserves would be
maintained for risks.
Following tools and techniques would be used for risk management:
1. Probability and Impact Matrix
2. Brainstorming
3. Risk Breakdown Structure
4. Delphi Technique
5. Expert Judgment
Following would be the objectives to monitor, evaluate and control risks:
1. Systematically tracking of the identified risks
2. Identification of any new risks
3. Effectively manage the contingency reserve
4. Capture lessons learned for future risk assessment and allocation efforts
1
Reports:
A risk register will be maintained and continuously updated during the execution of projects.
Any new risk identified will be included in risk register and any risk that has been closed will be
also updated. For newly identified risks, appropriate amounts would be recommended for
approval from management in lieu of contingency reserves. Those risks that are likely to occur
with high and medium risk scores will be discussed in weekly review meetings.
Conclusion:
This continuous monitoring and evaluating process will give the project team and stakeholders
a valuable knowledge about the Project Health, and will highlight areas that require special
attention and may need changes. With this proactive approach project manager will anticipate
to the most common problems, avoiding budget overrun and delays.
It will be important to consolidate the information of the knowledge areas that will require
special attention i.e., Scope, Time, Costs, Quality, Risks, Communications and Stakeholders.
Instant view of the project status will result in anticipation to issues and decisions based on
relevant information. The overall process of MEC will be of great significance to the project in
terms of:
As a result of an effective monitoring, evaluation and controlling of all the important
aspects of the project, the delays in schedule and budget overruns can be avoided
Productivity would be enhanced by minimizing the necessary time to generate
reports and gathering information from different sources.
1
A well informed and motivated team would result in better coordination of all
project work that will result in successful completion of project.
Efficiency parameters to define improved contractual agreements.
By using MEC practices, all the measured and analyzed processes would be
improved.