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Project Management-BM63C4

12th session

Project Monitoring and

Controlling, and
Terminating

Management of Business for Telecommunications and

Informatics Fifth Semester, 2019-2020
School of Economic and Business
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THE TOPIC KEYPOINTS

1. STRUCTURE OF PROJECT MONITORING

2. PROJECT CONTROL PROCESS
3. PROJECT AUDIT
4. MONITORING PERFORMANCE
5. PROJECT TIME AND COST
6. HUMAN FACTORS
7. REVIEW AND SUMMARY
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1. Structure of Project Monitoring

Project Management System Overview

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Process group
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1. Structure of Project Monitoring

concept
Creating a project monitoring system

How, when, and who will collect the data

Collect Data

What kind of data to How to analyze How to report

collect the data current progress
Information System
Structure Method, scenario Template
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1. Structure of Project Monitoring

Information System Structure •Information System Structure

(cont’d)
• What data are collected?
• Collecting data and analysis
• Current status of project (schedule and
cost) • Who will collect project data?
• How will data be collected?
• Remaining cost to compete project
• When will the data be collected?
• Date that project will be complete
• Who will compile and analyze the data?
• Potential problems to be addressed now
• Reports and reporting
• Out-of-control activities requiring • Who will receive the reports?
intervention
• How will the reports be transmitted?
• Cost and/or schedule overruns and the
• When will the reports be distributed?
reasons for them
• Forecast of overruns at time of project
completion
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2. Project Control Process and Audit

1.Setting a Goal

4.Taking Action 2.Measuring

and Recycling Progress
the Process

3.Comparing Actual
with Planned
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2. Project Control Process and Audit

t Project Progress Report Format

t-1 t+1
One time period before One time period after
Cumulative trends
Current project status
Progress since last 1. Schedule Corrective action
report 2. Cost planned
3. Scope, quality, resource

Problems and issues since last report

1. Actions and resolution of earlier problems
2. New variances and problems identified
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2. Project Control Process and Audit

Main purpose
•The main purpose of an audit is to help achieve the goals of
the project
•All facets of the project are studied and analyzed
•A project audit is equivalent to the application of TQM to
project management

oAll facets of the project are studied

Approach
to project oThe strengths and weaknesses are identified
audit oRecommendations are prepared to help current
and future projects
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2. Project Control Process and Audit

Contents and context

• Current status of the project
• Expected status of the project
• Status of critical tasks
• An assessment of potential risks
• What lessons can be applied to other projects?
• What are the limitations of the audit?

Depth of the audit

Time and money limit the depth of an audit
Audits are distracting to those working on the project
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A poor audit result will lower morale on the project
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2. Project Control Process and Audit

Base on period
In-process project audits
Allow for corrective changes if conditions have changed
and for concentration on project progress and performance.

Post-project audits
Take a broader and longer-term view of the project’s
role in the organization and emphasize improving the
management of future projects.
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3. Monitoring Performance, Time and Cost

Tools of monitoring project performance

o Project S-Curve
o Milestone Analysis
o Tracking (Gantt) Charts

o Earned Value Management

(Earned Value Analysis)

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3. Monitoring Performance, Time and Cost

Milestones are events or stages of the project that

represent a significant accomplishment.
Milestones mean:
…show completion of important steps
…signal the team and suppliers
…can motivate the team
…offer reevaluation points
…help coordinate schedules
…identify key review gates
…delineate work packages
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3. Monitoring Performance, Time and Cost

Cost

Project S-
Cost
Curves

Performance Schedule Earned

Cost
Value
Performance Schedule

Performance Schedule
Tracking Control Charts
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3. Monitoring Performance, Time and Cost

Actual Cost: what you Today
have actually spent to
this point in time.

Cost (Person-Hours)
Planned Value: what your plan
called for sending on the tasks
planned to be completed by this
date.

Earned Value: value (cost)

of what you have
accomplished to date, per
the base plan.

Time (Date)
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3. Monitoring Performance, Time and Cost

Disparity Among Monitoring Systems
Time-Phase Baseline Plan
o Corrects the failure of most monitoring systems to connect a project’s
actual performance to its schedule and forecast budget.
o Systems that measure only cost variances do not identify resource and
project cost problems associated with falling behind or progressing ahead
of schedule.

Earned Value Cost/Schedule System

An integrated project management system based on the earned value concept that uses a
time-phased budget baseline to compare actual and planned schedule and costs.

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3. Monitoring Performance, Time and Cost

Project Schedule Control Chart

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3. Monitoring Performance, Time and Cost

Today

Over
Cost (Person-Hours)
Budget

Behind
Schedule

Time (Date)
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3. Monitoring Performance, Time and Cost

Basic concepts of Earned Value Management (EVM)
Each task in a project earns value as planned work is completed

Earned value can be compared to actual cost and budgeted cost to

determine variance and predict future performance

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3. Monitoring Performance, Time and Cost

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4. Human Factors in Project Evaluation-

Control
Do with the need to recognize the human factor in all project activity completion
projections.
That is there is a strong incentive in most organizations for project team members to
continuously report stronger results than may be warranted in the interest of looking
good for the boss or sending the right signals about the project’s status

The common feature of control approaches is their reliance on measurable data based
on project outcome; that is the result of projects actions taken in any one time period
are collected an reported after the fact

Be suggested it is equally essential to maintain a clear understanding of the important

of the management of the people in the project management implementation process.

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4. Human Factors in Project Evaluation-

Control
A key component of any process evaluation of project performance must include an
assessment of its people:
• Technical skill
• Management
• Team work
• Communication process
• Motivation and leadership

A variety of factors that directly predict project success:

Project coordination and relations among stakeholders
• Adequacy of project structure and control
• Project uniqueness, important and public exposure
• Success criteria salience and consensus
• Lack of budgetary pressure
• Avoidance of initial overoptimism and conceptual difficulties
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4. Human Factors in Project Evaluation-

Control
Optimistic progress reports

Level of detail

Process evaluation

Non-technical performance measurement

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4. Human Factors in Project Evaluation-

Control

Critical Success Factor

Project Implementation Profile:
• Project mission
• Top management support
• Project plan and schedule
• Client consultation
• Personnel
• Technical task
• Client acceptance

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5. Project Termination and Close-Out

When to Terminate a Project

Reasons projects fail:

Project organization is not required
Insufficient support from senior management
Wrong person as project manager
Poor planning

Some questions to ask when considering termination:

Has the project been obviated by technical advances?
Is the output of the project still cost-effective?
Is it time to integrate or add the project as a part of regular operations?
Are there better alternative uses for the funds, time and personnel devoted to the
project?
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Has a change in the environment altered the need for the project’s output?
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5. Project Termination and Close-Out

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5. Project Termination and Close-Out

Conditions for Closure Close-out Plan: Questions to

Normal
Premature
be Asked
What tasks are required to close the project?
Perpetual
Who will be responsible for these tasks?
Failed Project
When will closure begin and end?
Changed Priority
How will the project be delivered?

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5. Project Termination and Close-Out

All activities consistent with closing out the project

Extinction: no real afterlife

Addition: institutionalization
Integration to the functional organization
Starvation: loosing the resources

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5. Project Termination and Close-Out

Project Termination Conditions

A project can be said to be terminated when work on the substance of

the project has ceased or slowed to the point that further progress is
no longer possible
There are four fundamentally different ways to close out a project:
extinction, addition, integration, and starvation

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5. Project Termination and Close-Out

The Termination Process

Components of termination process

o Whether or not to terminate
o Goal/Objective-based
or
o Qualification factors

o If terminate:
o Carry out termination procedures
o Planned
o Orderly
o Procedures vary

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5. Project Termination and Close-Out

Project Termination Factors

1.Low Probability
Technical Objectives
Commercial Viability
ROI Achieved

2.No Solution
Engineering Design
Lasting Process

3.Intellectual Property Issues

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5. Project Termination and Close-Out

Why are Closeouts Difficult?

o Project sign off can be a de-motivator

o Constraints cause shortcuts on back-end
o Low priority activities
o Lessons learned analysis seen as bookkeeping
o Unique view of projects

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5. Project Termination and Close-Out

1. Evaluate if the project delivered the expected

benefits to all stakeholders.
• Was the project managed well?
• Was the customer satisfied?

2. Assess what was done wrong and what contributed

to successes.
3. Identify changes to improve
the delivery of future projects.
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5. Project Termination and Close-Out

Goals of the System Evaluation
BASIC CONCEPT
•A formal review of any aspect of a project
•Audits focus on whatever matters senior management desires
•Another type of audit is an ethics audit
•Evaluate means to set the value of or appraise
•Project evaluation appraises progress and performance
against standard

Efficiency in meeting the Customer impact/ Business/ Future

budget and the schedule satisfaction direct success potential
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5. Project Termination and Close-Out

The Final Project Report:

• Preliminary and Executive summary
• Data and chronology
• Analysis
• Recommendation

The administrative and governance

Preparing Final o Legal
Project Report o Technical operational
o Financial
o Ethical
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5. Project Termination and Close-Out

Final Report Elements
o Project performance
o Administrative performance
o Organizational structure
o Team performance
o Project management techniques
o Benefits to the organization and customer

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6. Post Implementation Evaluation

Reasons for Poor-Quality Project

Performance Evaluations:
• Evaluations of individuals are left to supervisors of the team
member’s home department.
• Typically measure team performance only on time, cost, and
specifications.
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6. Post Implementation Evaluation

Project Performance Evaluation: Individual

Performance Assessment Responsibilities:

Functional organization or functional matrix: the individual’s area manager.
Balanced matrix: the project manager and the area manager jointly evaluate an
individual’s performance.
Project matrix and project organizations: the project manager is responsible for
appraising individual performance.
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6. Post Implementation Evaluation

Conducting
Performance Reviews

Begin the individually to evaluate performance.

Avoid to compare among team members; rather, assess the
individual in terms of established standards and expectations.
Focus criticism on specific behaviors related the project
performance.
Be consistent and fair in treatment of all team members.
Treat the review as one point in an ongoing process.
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7. Review and Summary

Reviewing Lessons learned analysis
Common Errors
o Misidentifying systematic errors
o Misinterpreting lessons based on events
o Failure to pass along conclusions

Meeting Guidelines
o Establish clear rules of behavior
o Describe objectively what occurred
o Fix the problem, not the blame

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7. Review and Summary

Project Closure Checklist
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7. Review and Summary

Project Audit Recommendations
•Identify problems earlier
•Clarify scope, cost, and time relationships
•Improve performance, or quality
•Locate technological advances
•Evaluate quality
•Reduce costs
•Improve risk identification
•Many more…

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7. Review and Summary

• Project
management plan
• Accepted
deliverables Inputs
• Organizational
process assets

• Expert judgment Close Project

• Analytical techniques
• Meetings o Final product, service, or
Tools and result transition
techniques o Organizational process
assets updates