Week 9 Flashcards
What does monitoring mean?
Monitoring is the process of checking that as a project progresses it will actually turn our the way in which it was planned. The process is:
- Determine the appropriate control measures.
- Observe, measure and collect control data.
- Compare control data with planned data.
What is “Controlling”?
Controlling is the processes that are undertaken in bringing the project back to the way it was originally intended.
Control should be on root impact factors, not just the more general (consequent) performance parameters.
What should be monitored during a project?
- Cost*
- Schedule*
- Function
- Resources
*Most important and most likely to change. These two are inherently linked. Increase in duration of project will cause and increase in overhead costs and potential income will decline (Crossrail).
“Function” is a control area which should be monitored during a project. How is it measured?
Function, whether defined via quality or specification or scope, is of particular concern to the client.
It is monitored continuously. The exact methods will vary considerably from project to project and will come in many forms.
- Materials (if used) testing - measures the input.
- Clerks of works / inspectors - measures physical output / quality.
“Resource” is a control area which should be monitored during a project. How is it measured?
As a project progresses, daily records of resource usage should be kept.
- These are sometime known as Daily Returns.
The project manager is then able to compare with the planned resource schedules.
Give some examples of sources of change on the project performance parameters.
Critical tasks not started on time - Schedule
Supplier price change - Cost
Change i labour supply - Resources, cost
Change in labour productivity - Cost, schedule
Change in material quality - Cost, function, schedule
There are two monitoring methods. What are these?
- Milestone monitoring
- Earned Value Analysis (EVA)
What is milestone monitoring?
as the project is planned, milestone for project progress are set and fixed.
These need to be easily determined and there can be no ambiguity over what constitutes a completed milestone.
If planned information about the date and the cost budget for each milestone is provided then the actual data can be very simply compared.
Milestone could be aligned with the WBS.
On physical projects the conclusion of ‘complete/not-complete’ should be objective and straightforward
On other types of projects (e.g. using Agile delivery like IT projects), it may be more difficult to make this judgement.
What is Earned Value Analysis?
At any point in time by assessing time and cost independently based on progress (as opposed to assess cost based on time).
Unlike other monitoring methods, enables estimating the outcome of the project in terms of final cost and duration.
Three different measurements are made:
- Budgeted Cost of Work Scheduled (BCWS).
The proportion of the budget consumed for the work
that should have been done given the planned
schedule, “Planned value”
BCWP = PC * Total Budget
- Budgeted Cost of Work Performed (BCWP).
The actual work complete to the measurement point,
this is the proportion of the budget assigned to that
work, “Earned Value”.
BCWS = %Work scheduled to measurement point *
Total budget
- Actual Cost of Work Performed (ACWP).
What was actually spend on the project so far.
How is progress expressed?
It is expressed as a Percentage Complete (PC).
If project activities are physical - Measurement in physical units (quite accurate).
For non physical projects - Subjective (tricky).
How is Cost Variance calculated?
CV = BCWP - ACWP
How is Schedule Variance calculated?
SV = BCWP - BCWS
What is Cost Performance Index?
CPI = BCWP / ACWP
CPI > 1 = Saving Money
What is Schedule Performance Index?
SPI = BCWP / BCWS
SPI > 1 = Ahead of Schedule
How is Duration at Completion (DAC) measured? Assuming schedule performance will continue as planned (for remaining activites).
DAC = PD + SV
Planned project duration * the delay observed at the point of measurement
