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Chapter 10 examines the information requirements of a project and the need for monitoring critical activities. Included in this chapter is a description of some common project management information systems (PMIS).
Chapter 10 Monitoring and Information Systems Copyright 2015 John Wiley & Sons, Inc Terms Monitoring Collecting, recording, and reporting information concerning any and all aspects of project performance Controlling Uses the data supplied by monitoring to bring actual performance into compliance with the plan Evaluation Judgments regarding the quality and effectiveness of project performance 102 The Planning–Monitoring–Controlling Cycle We mainly want to monitor: – – – Time (schedule) Cost (budget) Scope (project performance) Closedloop system – Revised plans and schedules following corrective actions 103 Project Authorization and Expenditure Control System Information Flow 104 Designing the Monitoring System Identify key factors to be controlled – – – Scope Cost Time Information to be collected must be identified 105 Designing the Monitoring System Continued Do not want to avoid collecting necessary data because it is hard to get Do not want to collect too much data The next step is to design a reporting system that gets the data to the proper people in a timely and understandable manner 106 Five Telltale Signs of Project Trouble Muddy waters Mysterious stakeholders Unconstrained constraints Suspicious status reports Discord and drama 107 Data Collection Once we know the data we want, we need to decide how to collect it Should the data be collected after some event? Should it be collected on a regular basis? Are there any special forms needed for data collection? 108 Forms of Data Frequency counts Raw numbers Subjective numeric ratings Indicators Verbal measures 109 Information Needs and Reporting Everyone should be tied into the reporting system Reports should address each level Not at same depth and frequency for every level – – Lowerlevel needs detailed information Senior management levels need overview reports Report frequency is typically high at low levels and less frequent at higher levels 1010 Rules to Aid in Estimating Percent Completion 5050 rule 0100 percent rule Critical input use rule Proportionality rule 1019 The Earned Value Chart 1020 Variances Variances can help analyze a project A negative variance is bad Cost and schedule variances are calculated as the earned value minus some other measure Will look at some of the more common ones 1021 Cost Variance (CV) CV = EV – AC Negative variance indicates a cost overrun Magnitude depends on the costs 1022 Schedule Variance (SV) SV = EV – PV Negative variance indicates you are behind schedule Measured using costs 1023 Time Variance (TV) TV = ST – AT Negative variance indicates you are behind schedule 1024 Indices Cost Performance Index CPI = EV/AC Schedule Performance Index SPI = EV/PV Time Performance Index TPI = ST/AT Cost Schedule Index CSI = EV2/(AC)(PV) 1025 “To complete” and “At Completion” Project manager reviewing what is complete and what remains Final cost and final completion date are moving targets The project manager compiles these into a to complete forecast Actual + forecast = final date and cost at completion 1026 ETC and EAC ETC = (BAC + EV)/CPI EAC = ETC + AC where, ETC = Estimated cost to complete BAC = Budget at completion EV = Earned value CPI = Cost performance index EAC = Estimated cost at completion AC = Amount expended to date (actual cost) 1027 Milestone Reporting Reports that are created when a project reaches a major milestone They are designed to keep everyone up todate on project status For executives and clients, these may be the only reports they receive 1028 Burnup and Burndown Charts Especially popular with agile development For monitoring and communicating overall project progress. Scope is on the vertical axis Time is on the horizontal axis 1029 Burnup and Burndown Charts Burndown charts: – The remaining work to be completed it included Burnup charts: – Include two plotted lines Amount of work completed to date Total amount of work to be completed 1030 Computerized PMIS (Project Management Information Systems) Real projects are often large – – Hundreds of tasks Thousands of work units Reporting is clearly a job for the computer Project management information systems were one of the earlier applications Initially focus was on scheduling Now it includes, earned values, variances, and more 1031 PMIS Errors Managing the PMIS Computer paralysis PMIS verification Information overload Project isolation Computer dependence PMIS misdirection 1032 PMIS Desirable Attributes Friendliness Graphics Schedules Charts Calendars Migration Budgets Consolidation Reports Access 1033 ... One way is by using an aggregate performance measure called earned value 1017 The Earned Value Chart and Calculations Actual against baseline ignores the amount of work accomplished Earned value incorporates work ... Variances can help analyze a project A negative variance is bad Cost and schedule variances are calculated as the earned value minus some other measure Will look at some of the more common ones 1021 Cost Variance (CV)... Final cost and final completion date are moving targets The project manager compiles these into a to complete forecast Actual + forecast = final date and cost at completion 1026 ETC and EAC ETC = (BAC + EV)/CPI EAC = ETC + AC