Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott...
-
Upload
marjory-fitzgerald -
Category
Documents
-
view
223 -
download
1
Transcript of Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott...
![Page 1: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/1.jpg)
Chapter 7: Monitoring and Controlling the Project
1
Project Management in Practice
Prepared by
Scott M. Shafer
Wake Forest University
Mantel, Meredith, Shafer, and Sutton
John Wiley and Sons, Inc.
![Page 2: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/2.jpg)
Chapter 7: Monitoring and Controlling the Project
2
Chapter 7
Monitoring and Controlling the Project
![Page 3: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/3.jpg)
Chapter 7: Monitoring and Controlling the Project
3
Introduction
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
Control uses monitored information to align actual performance with the plan
![Page 4: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/4.jpg)
Chapter 7: Monitoring and Controlling the Project
4
THE PLAN-MONITOR-CONTROL CYCLE
![Page 5: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/5.jpg)
Chapter 7: Monitoring and Controlling the Project
5
Plan-Monitor-Control Cycle
Closed loop process Planning-monitoring-controlling effort
often minimized to spend time on “the real work”
![Page 6: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/6.jpg)
Chapter 7: Monitoring and Controlling the Project
6
Figure 7-1 Project Authorization and Expenditure Control System Information Flow
![Page 7: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/7.jpg)
Chapter 7: Monitoring and Controlling the Project
7
Designing 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 data
![Page 8: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/8.jpg)
Chapter 7: Monitoring and Controlling the Project
8
DATA COLLECTION AND REPORTING
![Page 9: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/9.jpg)
Chapter 7: Monitoring and Controlling the Project
9
Formats of Data
Frequency Counts Raw Numbers Subjective Numeric Ratings Indicators and Surrogates Verbal Characterizations
![Page 10: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/10.jpg)
Chapter 7: Monitoring and Controlling the Project
10
Data Analysis
Aggregation Techniques Fitting Statistical Distributions Curve Fitting Quality Management Techniques
![Page 11: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/11.jpg)
Chapter 7: Monitoring and Controlling the Project
11
Figure 7-2 Number of Bugs per Unit of Test Time
![Page 12: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/12.jpg)
Chapter 7: Monitoring and Controlling the Project
12
Figure 7-3 Percent of Specified Performance Met During Successive Repeated Trials
![Page 13: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/13.jpg)
Chapter 7: Monitoring and Controlling the Project
13
Figure 7-4 Ratio of Actual Material Cost to Estimated Material Cost
![Page 14: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/14.jpg)
Chapter 7: Monitoring and Controlling the Project
14
Reporting 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 system
![Page 15: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/15.jpg)
Chapter 7: Monitoring and Controlling the Project
15
Report Types
Routine Exception Special Analysis
![Page 16: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/16.jpg)
Chapter 7: Monitoring and Controlling the Project
16
Meeting Guidelines
Meetings should be help primarily for group decision making– avoid weekly progress report meetings
Distribute written agenda in advance of meeting
![Page 17: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/17.jpg)
Chapter 7: Monitoring and Controlling the Project
17
Meeting 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 alone
![Page 18: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/18.jpg)
Chapter 7: Monitoring and Controlling the Project
18
Virtual Reports, Meetings, and Project Management Use of the Internet Use of Software Programs Virtual Project Teams
![Page 19: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/19.jpg)
Chapter 7: Monitoring and Controlling the Project
19
EARNED VALUE
![Page 20: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/20.jpg)
Chapter 7: Monitoring and Controlling the Project
20
Earned Value
Percent of task’s budget actually spent not good indicator of percent completion
tasksall
oncompletiti % task cost budgetedtask
![Page 21: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/21.jpg)
Chapter 7: Monitoring and Controlling the Project
21
Conventions 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 Budgeted
![Page 22: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/22.jpg)
Chapter 7: Monitoring and Controlling the Project
22
Variances
Cost/Spending VarianceBCWP - ACWP
Schedule VarianceBCWP - BCWS
CPIBCWP/ACWP
SPIBCWP/BCWS
![Page 23: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/23.jpg)
Chapter 7: Monitoring and Controlling the Project
23
Figure 7-5 Earned Value Chart
![Page 24: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/24.jpg)
Chapter 7: Monitoring and Controlling the Project
24
Figure 7-6(a) Positive Schedule Variance, Negative Spending Variance
![Page 25: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/25.jpg)
Chapter 7: Monitoring and Controlling the Project
25
Figure 7-6(b) Negative Schedule Variance, Negative Spending Variance
![Page 26: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/26.jpg)
Chapter 7: Monitoring and Controlling the Project
26
Figure 7-6(c) Negative Schedule Variance, Positive Spending Variance
![Page 27: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/27.jpg)
Chapter 7: Monitoring and Controlling the Project
27
Additional Items of Interest
Estimated (Remaining Cost) to CompletionETC = (BAC - BCWP)/CPI
(Total Cost) Estimated at CompletionEAC = ETC + ACWP
![Page 28: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/28.jpg)
Chapter 7: Monitoring and Controlling the Project
28
PROJECT CONTROL
![Page 29: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/29.jpg)
Chapter 7: Monitoring and Controlling the Project
29
Background
Acts which seek to reduce differences between plan and actuality
Difficult Task– human behavior involved– problems rarely clear cut
![Page 30: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/30.jpg)
Chapter 7: Monitoring and Controlling the Project
30
Purposed of Control
Stewardship of Organizational Assets– physical asset control– human resources– financial control
Regulation of Results Through the Alteration of Activities
![Page 31: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/31.jpg)
Chapter 7: Monitoring and Controlling the Project
31
DESIGNING THE CONTROL SYSTEM
![Page 32: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/32.jpg)
Chapter 7: Monitoring and Controlling the Project
32
Background 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 cuts
![Page 33: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/33.jpg)
Chapter 7: Monitoring and Controlling the Project
33
Primary Mechanisms by Which PM Exerts Control Process Reviews Personnel Assignments Resource Allocations
![Page 34: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/34.jpg)
Chapter 7: Monitoring and Controlling the Project
34
Components of a Control System
Sensor Standard Comparator Decision Maker Effector
![Page 35: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/35.jpg)
Chapter 7: Monitoring and Controlling the Project
35
Types 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 experience
![Page 36: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/36.jpg)
Chapter 7: Monitoring and Controlling the Project
36
Figure 7-7 Sample Project Milestone Status Report
![Page 37: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/37.jpg)
Chapter 7: Monitoring and Controlling the Project
37
Tools for Control
Variance Analysis Trend Projections Earned Value Analysis Critical Ratio
cost actual
cost budgeted
progress scheduled
progress actual
![Page 38: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/38.jpg)
Chapter 7: Monitoring and Controlling the Project
38
Figure 7-8 Trend Projection
![Page 39: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/39.jpg)
Chapter 7: Monitoring and Controlling the Project
39
Figure 7-9 Critical Ratios with Control Limits
![Page 40: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/40.jpg)
Chapter 7: Monitoring and Controlling the Project
40
Figure 7-10 Cost Control Chart
![Page 41: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/41.jpg)
Chapter 7: Monitoring and Controlling the Project
41
SCOPE CREEP AND CHANGE CONTROL
![Page 42: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/42.jpg)
Chapter 7: Monitoring and Controlling the Project
42
Scope Creep
Coping with changes frequently cited by PMs as the single most important problem
Common Reasons for Change Requests– Client– Availability of new technologies and materials
![Page 43: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/43.jpg)
Chapter 7: Monitoring and Controlling the Project
43
Purpose of Change Control System Review all requested changes Identify impact of change Evaluate advantages and disadvantages of
requested change Install process so that individual with
authority may accept or reject changes
![Page 44: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/44.jpg)
Chapter 7: Monitoring and Controlling the Project
44
Purpose of Change Control System continued Communicate change to concerned parties Ensure changes implemented properly Prepare reports that summarize changes
made to date and their impact
![Page 45: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/45.jpg)
Chapter 7: Monitoring and Controlling the Project
45
Rules for Controlling Scope Creep Include in contract change control system Require all changes be introduced by a
change order Require approval in writing by the client’s
agent and senior management Consult with PM prior to preparation of
change order Amend master plan to reflect changes
![Page 46: Chapter 7: Monitoring and Controlling the Project 1 Project Management in Practice Prepared by Scott M. Shafer Wake Forest University Mantel, Meredith,](https://reader033.fdocuments.us/reader033/viewer/2022050909/5697bff01a28abf838cba8a3/html5/thumbnails/46.jpg)
Chapter 7: Monitoring and Controlling the Project
46
CopyrightCopyright John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that named in Section 117 of the United States Copyright Act without the express written consent of the copyright owner is unlawful. Requests for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. Adopters of the textbook are granted permission to make back-up copies for their own use only, to make copies for distribution to students of the course the textbook is used in, and to modify this material to best suit their instructional needs. Under no circumstances can copies be made for resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.