018
Project Management
Spring 2007
Lecture 14
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN,
PLANNING
Organization
Estimation
Planning
CLOSEOUT
DEVELOPMENT CLOSEOUT
OPERATIONS
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Organization
Estimation
Planning
CLOSEOUT
DEVELOPMENT CLOSEOUT
OPERATIONS
s
i
h
e
r
T
Monitoring & Control
u
t
c
Changes & Claims
e
L
Quality & Reviews
Finally, the project begins!!!
Performance Metrics
PART 1
Links between Project Monitoring
and
its Preceding or Succeeding Phases
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Organization
Estimation
Planning
DEVELOPMENT
CLOSEOUT
OPERATIONS
Products:
Cash flow diagram indicating Project cash inflows and outflows and when they are expected to occur
NPV or B/C ratio each year of the analysis period
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Organization
Estimation
Planning
DEVELOPMENT
CLOSEOUT
OPERATIONS
Products:
Cash flow diagram indicating Project cash inflows and outflows and when they are expected to occur
NPV or B/C ratio each year of the analysis period
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Organization
Estimation
Planning
DEVELOPMENT
CLOSEOUT
OPERATIONS
Products:
Time-based or Work-based Schedules for Utilization of Funds, Labor, Equipment, Materials
Time- Schedule for each Activity or Task
Project Costs for each Activity
Expected quality levels for each activity
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Organization
Estimation
Planning
DEVELOPMENT
CLOSEOUT
OPERATIONS
Products:
Time-based or Work-based Schedules for Utilization of Funds, Labor, Equipment, Materials
Time- Schedule for each Activity or Task
Project Costs for each Activity
Expected quality levels for each activity
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Organization
Estimation
Planning
DEVELOPMENT
CLOSEOUT
OPERATIONS
Products:
Time-based or Work-based Schedules for Utilization of Funds, Labor, Equipment, Materials
Time- Schedule for each Activity or Task
Project Costs for each Activity
Expected quality levels for each activity
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Organization
Estimation
Planning
DEVELOPMENT
CLOSEOUT
OPERATIONS
Products:
Time-based or Work-based Schedules for Utilization of Funds, Labor, Equipment, Materials
Time- Schedule for each Activity or Task
Project Costs for each Activity
Expected quality levels for each activity
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Organization
Estimation
Planning
DEVELOPMENT
CLOSEOUT
OPERATIONS
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
DEVELOPMENT
Organization Monitoring
Estimation
Changes & Claims
Planning
Quality & Reviews
CLOSEOUT
OPERATIONS
Control
Goal of Project Monitoring: To detect, at any time of the project, the following:
Bring project performance (budget, time, quality) back in line with plans
Sometimes, revise plans to bring them in line with performance!!!
Project Monitoring
FEASIBILITY
Finance
Evaluation
DESIGN
PLANNING
Detect
DEVELOPMENT
deviations
Organization Monitoring
Estimation
Changes & Claims
Planning
Quality & Reviews
CLOSEOUT
Control
Correct
Deviations
OPERATIONS
Monitoring
1. Measurement
2. Performance Analysis)
Control
1. Actions
2. Revised Plans, Cash Flows, Schedules, etc.
Correct
Deviations
Challenge
Coping with end-date-driven schedules
Coping with resource limitations
Communicating effectively among task groups
Gaining commitment from team members
Establishing measurable milestones
Coping with changes
Working out project plan agreement with team
Gaining commitment from management
Dealing with conflict
Managing vendors and subcontractors
Other challenges
Frequency
85%
83%
80%
74%
70%
60%
57%
45%
42%
38%
35%
PART 2
Key Components
of
Effective Monitoring
reporting performance
Involvement of responsible and knowledgeable people in the reporting scheme
Project Reviews (walkthroughs & inspections)
Project Audits
PART 3
Measurement of Project Progress:
The basics of cost and schedule tracking
Monitored
(Progress)
Time1
dS
dM
Time Delay
Costs
cS
cM
Cost Overrun
Work Done2
wS
wM
Quality3
qS
qM
dM ds
Accomplishment Shortfalls
Quality Shortfalls
Here, Time Performance is for specific activities only, not for entire project, unless the entire
project has been completed.
Here Work Performance can be expressed in terms of input (man-hours, equipment-hours,
material quantities used, etc.) or output (area or volume installed/constructed, etc.), or a
combination of these.
Quality Performance can be expressed in terms of the number or laboratory tests and site
measurements that indicated project compliance to materials and workmanship specification,
respectively.
cM cs
cM cs
qM qs
Monitored
(Progress)
Time
dS
dM
Costs
cS
cM
Work Done
wS
wM
Quality
qS
qM
Time Delay
Cost Overrun
Accomplishment
Shortfalls
Quality Shortfalls
dM ds
100
ds
cM c s
cs
100
wM ws
ws
100
qM qs
100
qs
20 18
2.22%
18
Scheduled
(Plan)
Monitored
(Progress)
Time
18 months
20 months
Time Delay
Costs
$1.1 million
$1.24 million
Cost Overrun
Quality
Only 1,329 of
the tests
100
1.24 1.1
12.73%
1.1
100
Quality
Shortfalls
1329 1345
1.19%
1345
100
Some Terminology
Deviation in cost/expenditure
Deviation in time
Monitored
(Progress)
Time
dS
dM
Costs
cS
cM
Work Done
aS
aM
Quality
qS
qM
Quite detailed
Somewhat detailed
Increasing Granularity
Decreasing Granularity
Monitored
(Progress)
Time
dS
dM
Costs
cS
cM
Work Done
aS
aM
Quality
qS
qM
Program
(schedule)
Progress
(actual)
Progress
(actual)
Seems poor
Program
(schedule)
Seems great
But:
Seemingly good progress could be
because lots of unscheduled work has been done
because lots of low-weight work has been done
thus misleading
ACWP
BCWP
A clearer picture
Work
Schedule
(WS)
Work
Performed
(WP)
BCWS
BCWP
ACWS
ACWP
Therefore
Example
At any time of the project, we can determine the following:
WBS
Structures
Footings
Procurement
Shipping
Construction
Columns
Procurement
Shipping
Construction
WS
60%
13%
100%
100%
100%
47%
65%
45%
30%
BV
BCWS
660,000
148,200
106,400
15,200
26,600
511,800
400,400
32,310
79,090
WP
56%
14%
104%
104%
104%
42%
49%
49%
49%
AV
ACWP
700,000
162,209
118,500
16,059
27,650
537,791
345,600
43,200
148,991
EV
BCWP
621,297
154,050
110,600
15,800
27,650
467,247
302,400
35,247
129,600
BV-A
-40,000
-14,00
-12,1
-859
-1,05
-25,99
54,8
-10,8
-69,9
PART 4
Performance Metrics
1.Performance metrics based on Earned Value Analysis (EVA)
2. Other performance indices
Example:
TIME VARIANCE
BCWS
ACWPt
BCWSt
BCWPt
COST VARIANCE
SCHEDULE VARIANCE
ACWP
BCWP
t-p
tmax
Time
Schedule OK
Manhours spent
Actual progress points
# placed orders at T
# orders to be placed at T
Quantity of material on site at T
x 100 %
x 100 %
Quantity on site at T
Actual progress points