4/13/2017 ProjectMonitoringandControltechniquestocontrolbudget,statusandplanning

ProjectManagementmonitoringandcontroltechniques
Monitoringandcontroltechniquescanbesplitintothreeareas:projectplan(/prince2/prince2glossaryPperformance.html#projectplan)monitoring,
projectbudgetmonitoring,monitoringthroughregularstatusand/orstagereportingandmonitoringcarriedatdifferentlevelsbytheprojectteam
(/definitions/projectteam.html).Thisguidegivesanoverviewofeachareaanddescribeskeyprojectmonitoringtechniques.

MonitoringandcontroltechniquesaredefinedintheProjectInitiationDocument(PID)(/projectmanagement/pid.html).ReadanoverviewofthePID
(/projectmanagement/pid.html),guidanceoncompletionofthemonitoringsectionofthePID(/projectmanagement/pid.html#monitoringevaluation).

Projectplanmonitoring
ProjectMilestones(/projectmanagement/projectmilestones.html)
Monitoringtheprojectmilestones(/projectmanagement/projectmilestones.html)involvesIdentifyingtheCriticalPathactivities(/msproject/Critical
Pathanalysis.html)andothermajorstagesordecisionpointsontheprojectandmeasuringprogressagainstthem.Milestonescanbemonitoredusing
atable,featuresonaGanttchart(/planproject/ganttcharts.html)orbyproducingamilestoneslipchart.Figure1isGanttchartviewinMSProject
showingtheprojectmilestones(/projectmanagement/projectmilestones.html).

Figure1
Figure2isanexampleofamilestone(/prince2/prince2glossaryLOlessonlog.html#milestone)slipchart.

Figure2Milestone(/prince2/prince2glossaryLOlessonlog.html#milestone)slipchart

ProjectTolerances(/projectmanagement/projecttolerance.html)
Monitoringofthescheduleagainstpresetlimitsortolerances(/projectmanagement/projecttolerance.html)enablesthelevelofcorrectiveactiontobe
appropriatetotheextentofthedeviationfromtheplan.Italsoprovidesatriggertoescalateslippagetothenextlevelofauthoritywithintheproject
team(/definitions/projectteam.html).Tolerances(/projectmanagement/projecttolerance.html)canalsobesetforcost,scopeandquality.

ParetoAnalysis
ABCorParetoanalysisisbasedontheworkofa19thcenturyeconomist,VilfredoPareto.Paretonoticedthatininventorycontrol20%ofstockswere
responsiblefor80%oftotalinventorycosts.These20%arecalledClassAitems.Soinaprojectwecanfindthe20%ofactivitiesathatare
responsiblefor80%ofthelabourcostsorthe20%ofmaterialsresponsiblefor80%ofthematerialcostsandadjustmonitoringtoconcentrateon
theseareas.Ifwethenlookatwherethe20%fallontheprojectscriticalpathwecanmonitorthoseanditemsandactivitiesthatrelatetobothcostand
time(Baguley1999,p.110).

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4/13/2017 ProjectMonitoringandControltechniquestocontrolbudget,statusandplanning

Projectbudgetmonitoringandcontrol
Scurve
TheScurveshowstrendsinandthedifferencebetweenthebudget,actualandpredictedspend.Figure3showsanScurvegraphforaprojecttofilm
5hoursoffootagewith5daysfilmingand1dayforediting.

Figure3Scurvegraph
Thegraphshowsthatonday3theactualspendislowerthanplannedanditlooksliketheprojectwillcomeinunderbudget.However,whattheS
curvedoesnotshowisthecausesofthedifference.

EarnedValueAnalysis(EVA)
EarnedValueAnalysisattemptstobridgethegapbyansweringthequestionlookingattheprojectprogressarewegettingvalueformoney?Earned
valueusesthefollowingequations:

Description EVAFormulas Result EVAAbbrievations

PlannedValue(PV)orBudgetCostofWork
CostVariance CV=EV(BCWP)AV Positivevalueisgood.Negativevalue
Scheduled(BCWS)
(ACWP) unfavourable.
ActualValue(AV)orActualCostofWork
ScheduleVariance SV=EV(BCWP)PV Valuebelow1.0=belowparperformance.
Planned(ACWP)
(BCWS) Valueabove1.0=aboveparperformance
Thefurtherawaytheratioisfrom1.0themore
EarnedValue(EV)orBudgetCostofWork
urgentneedtoinvestigate.
Performed(BCWP)EV=unitsofworkdonex
CostPerformance CPI=BCWP/ACWP (AsforSV).Thefurtherawaytheratioisfrom1.0 budgetedunitcost
Indicator themoreurgentneedtoinvestigate.
Budgetatcompletion(BAC)
Schedule SPI=BCWP/BCWS (AsforSV).Thefurtherawaytheratioisfrom1.0
Performance themoreurgentneedtoinvestigate.
OriginalDuration(OD)
Indicator

EstimatedCostat EAC=BAC/CPI
Completion

EstimatedTimeat ETC=OD/SPI
Completion

Figure4

Figure5showstheEVAfora6dayfilmingproject.
6daysneededtofilm.1hourperdayplus1dayediting.

1 2 3 4 5 6

PV(BCWS) 8000 8000 8000 8000 8000 8000

cumulative 8000 16000 24000 32000 40000 48000

%complete 90 85 50 30

AV(ACWP) 7500 8000 4000 4000 6000 8000

cumulative 7500 15500 19500 23500 29500 37500

EV(BCWP) 7200 6800 4000 2400

cumulative 7200 14000 18000 20400

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4/13/2017 ProjectMonitoringandControltechniquestocontrolbudget,statusandplanning

SV 800 1200 4000 5600

CV 300 1200 0 1600

CPI 0.96 0.85 1.00 0.60

SPI 0.9 0.85 0.5 0.3

EAC 8333.33 9411.76 8000.00 13333.33

ETC 1.04 1.18 1.00 1.67

Figure5
TheEVAanalysisshowsthatalthoughactualspendislessthanplannedtheprojectisbehindscheduleandlikelytocostconsiderablymorethan
planned.TheSPIshowsthatperformanceinthelasttwodaysseemstohavetakenamajordownturn,whichwillresultinhighercostsandtheETC
indicatesthatcompletionwillbedelayedbyatleastoneday.Theprojectmanagerwouldwanttoinvestigatewhatishappeningatthefilminglocations.
Arethefilmcrewgettingthefootagetheyneed?Hastherebeenenoughpreparation?Howistimebeingspent?

ProjectStatusand/orstagereporting
Projectteamreports
Reportingbytheprojectteam(/definitions/projectteam.html)includingthesuppliersandthespecialistteamswilloftengiveagoodindicationofany
problemareas,providedreportsgivequalitydataandthereisacultureofopennessandhonestyaboutprojectprogress.Reportscanbeformaland
informalfromphonecallsandchatsintheofficetowrittenreports.TheProjectManagershouldwatchforreportsthatgivenomeasuredindicationof
progressorgivefavourableimpressionswithoutanybackup.Forexample:reportsofweare80%completecouldindicatethattheteamhashita
problematic20%oftheprojectthatwilltakeup80%oftheschedule(seeParetoAnalysisabove).

DownloadafreeHighlightReport(/projecttemplates/projectmanagementtemplates.html)designedfor'ataglance'reportingtosenior
management/programmeboards.DownloadaPrince2HighlightReporttemplate(/projecttemplates/prince2highlightreport.html).

ProjectTrends
RisksandissuesseealsoRiskManagementGuidelines(/risk/riskmanagement.html)
Bymonitoringthelevelofprojectriskandthesuccessofanyriskmitigationtheprojectmanagercanpickuponproblematicareasinadvance.If
mitigatingactionsarentbeingtakenitmayindicateproblemswithintheprojectteam(/definitions/projectteam.html)e.g.projectteam
(/definitions/projectteam.html)arenotsufficientlyempoweredtotakeactionortheriskisnotseenasimportant.

DownloadafreeRiskLogtemplate(/projecttemplates/projectmanagementtemplates.html).DownloadaPrince2RiskLogtemplate(/project
templates/prince2riskregister.html).DownloadaPrince2IssueRegistertemplate(/projecttemplates/prince2issueregister.html).

Changecontrol
Bymonitoringthelevelofprojectchangetheprojectmanagercanpickuponissuesthatmayaffectthebusinesscaseand/orthecriticalsuccess
factors.Significantchangesoralargenumberorrequestsforchangemayindicatecreepingscopeperhapstheprojectwasnotsufficientlydefinedor
theprojectstakeholders(/projectstakeholders.html)areattemptingtoaddorchangeprojectobjectives.Itcanalsoindicateproblemswithintheproject
team(/definitions/projectteam.html)intermsofdecisionmakingorleadership.Forexample,onprintpublishingprojectssignificantrequestsfor
changestoamanuscriptat1stproofstageoftenindicatedthelackofastrongenoughEditororthattoomanypeoplewereinvolvedinthequality
reviews.

Monitoringbytheprojectteam(/definitions/projectteam.html)
Monitoringatalllevelsintheprojectteam(/definitions/projectteam.html)enableeffectivedecisionmakingbycapturingdetailedtasklevelprogressas
wellasbroaderpicturehighleveltrends.Forexample:theteammanagerscanmonitorprogresswithintheirteamonaparticularproductorelementof
aproductthismonitoringwillbelowlevel,butenablecarefulcheckingofprogressagainsttheCriticalPath(/msproject/CriticalPathanalysis.html).
TheProjectBoardwillmonitortheenvironmentoutsidetheprojectandbringtothenoticeoftheprojectmanageranychangesthataffecttheproject
(OGC,2002,p.219).

ProjectMonitoringandControlreferences
Baguley,P.(1999).Projectmanagement.NTC/ContemporaryPub.Latestedition:[(TeachYourselfProjectManagement)][Author:PhilBaguley][Aug
2008](https://www.amazon.co.uk/gp/product/B00LXN9RO8/ref=as_li_tl?
ie=UTF8&camp=1634&creative=19450&creativeASIN=B00LXN9RO8&linkCode=as2&tag=stakeholderma21&linkId=HVNFTWGV2X4CYIGG)

OfficeofGovernmentCommerce,(2002).ManagingSuccessfulProjectswithPRINCE2
(https://www.amazon.co.uk/gp/product/B017MYUL0U/ref=as_li_tl?
ie=UTF8&camp=1634&creative=19450&creativeASIN=B017MYUL0U&linkCode=as2&tag=stakeholderma21).[S.l.]:OGC.Latestedition:Managing

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4/13/2017 ProjectMonitoringandControltechniquestocontrolbudget,statusandplanning
SuccessfulProjectswithPRINCE2:2009Edition(https://www.amazon.co.uk/gp/product/0113310595/ref=as_li_tl?
ie=UTF8&camp=1634&creative=19450&creativeASIN=0113310595&linkCode=as2&tag=stakeholderma21&linkId=M22VZRYRBHUAWL4B)

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