UNIT IV

PROJECT MONITORING AND CONTROL

Project monitoring and control are, in some ways, simply the opposite sides ofproject
selection and planning. The bases for selection dictate what to monitor and thedetails of planning
identify the elements to be controlled. Monitoring is the collection,recording, and reporting of
project information that is of importance to the projectmanager and other relevant stakeholders.
Control uses the monitored data andinformation to bring actual performance into agreement with
the plan. Clearly, the needto exert proper control mandates the need to monitor the proper
activities and elementsof the project. Frequently, the distinction between monitoring and control
is blurred, andtheir interaction often makes us think we are working on a single task, but they
arehighly distinct and serve significantly different purposes.
Although the data gathered from monitoring often serve many objectives—auditing,
keeping management informed, learning from mistakes—these are allsecondary compared to the
purpose of control. The purpose of monitoring is to ensurethat all interested parties have
available, when needed, the information required toexercise control over the project. Thus, the
key issue in designing an effectivemonitoring and control system is to create an information
system that gives the projectmanager and others the information they need to make informed,
timely decisions thatwill keep project performance as close as possible to the plan.
Plan-Monitor-Control cycle
Managing a project involves continually planning what to do, checking onprogress, comparing
progress to plan, taking corrective action to bring progressinto agreement with the plan if it is
not, replanning, and so on. As notedpreviously, the fundamental items to be planned, monitored,
and controlled aretime, cost, and performance so that the project stays on schedule, does
notexceed its budget, and meets its specifications.
This plan-monitor-control cycle constitutes a “closed-loop” process thatcontinues until the
project is completed.

Project monitoring and control provides an understanding of project progress, identifies

deviation from the plan and is a mechanism for making any necessary corrective actions.
Consider the ramifications of deviation and learn about ways to avoid it.  It is during the monitor
and control process that we keep abreast of project progress, the quality of our efforts,
identifying deviations, determining necessary corrective action and implementing those
corrective actions.
• The plan–monitor-control cycle constitutes a “closed loop” process
– Continues until the project is completed
 • With complex projects, there is a temptation to minimize the planning–monitoring–
controlling effort so that “real work” can be done
– It is these projects that need the planning–monitoring–controlling process the
most
It is often the case that when particularly complex, challenging, or uncertain projects are
initiated, the planning-monitoringcontrolling effort is minimized so that “the real work” can be
done. It is of great temptation to focus on doing something, anything, rather than to spend time
onplanning, monitoring, and controlling, especially if the stakes are high and theproject is a
difficult one. It is precisely such projects, however, that most desperately need the maturity of a
project manager who realizes the importance.
Cost and schedule are of utmost importance in project monitoring and control. However,
the importance of scope, quality, and risk control as well as overall performance measurement
and reporting cannot be underestimated.
 When the project’s performance deviation is identified significantly from the plan,
appropriate corrective actions and preventive actions will be taken. Project activity monitoring is
an aspect of project management that is performed throughout the project. Controlling is the
aspect of the project in which corrective and preventive actions are taken.

The key to setting up a monitoring system is to identify the specialcharacteristics

performance, cost, and time that need to be controlled in orderto achieve the project goals stated
in the action plan. Also, the exact boundarieswithin which the characteristics should be
controlled must be determined.
 Moreover, performance characteristics should be specified for each level ofdetail in the
project: subtasks, tasks, and so all the way up to the project itself.In order to manage for overall
project success, control must be exercised at thedetailed work level for each aspect of project
performance or no significantchange will occur.
It is the action plan that identifies what is being done, when, and theplanned level of
resource usage for each task and subtask in the project. Realtimedata must then be identified by
which to measure achievement againstthese plans. The mechanisms to gather and store such data
must he designed.

In addition to data collection systems for hard data, the monitoring systemshould include
telephone logs, change tracking/control systems, documentationprocesses for both formal (e.g.,
meetings) and informal communications, andother such softer data collection systems. The
monitoring system is the directconnection between project planning and control.

It is essential to spend time up front designing the planning-monitoringcontrollingprocess,

especially for more challenging projects. The action planis the primary document to guide the
design of the monitoring system in termsof the detailed tasks and resources that need to be
controlled in order for theproject to achieve its time, cost, and performance goals. Common
errors insetting up monitoring systems are monitoring easy measures instead ofrelevant
measures, monitoring activity in place of results, monitoring inputs assurrogates for outputs, and
monitoring measures that don’t change from oneperiod to the next.

DATA COLLECTION AND REPORTING

For the monitoring system, data in various forms have to be collected,analyzed, and
reported. Data also need to be aggregated, manipulated invarious ways, and compared with
planned values in order to allow effectivecontrol. The monitoring system helps PMs prevent
problems instead ofhaving to solve them. Project reports vary in content and
frequency,depending on who the reports are targeted to and what controls they willexert. A
special consideration is the relationship between the organization’sinformation system and the
project’s system. In addition to printed reports,reports may also have to be given orally at
meetings but steps can be takento maximize the effectiveness of such meetings. The Internet and
theorganization’s local area network (intranet) have enhanced projectcommunication and
meetings as well as facilitated the management ofgeographically dispersed virtual projects.

Once we have decided on the type of data we want to monitor, the nextquestion is how to collect
this data and turn them into information useful forcontrolling the project. This is the activity of
data collection and reporting. In thissection we cover the physical collection of data and the
analysis of that data, ifnecessary, to transform them into information. Once transformed,
however,there are many ways to present the information and these are covered underthe topic of
reporting, including a discussion of the three main types of reports.
A very special means of both collecting and disseminating data, and evensometimes information,
is the proverbial “meeting,” and we offer some advicefor this often painful phenomenon—both
in-person and virtual meetings areincluded. The use of electronic means for distributing
information or reports isbriefly examined.
At some point we have to decide what data we need to collect andprecisely how to go about
collecting them. A number of questions are raised.Should we design and use special forms?
Should data be collected just beforeor after an important milestone? Should time and cost data
always be collectedat the same time each month? There are many such issues that arise
whenconsidering the data collection process and most of them can only be answeredin the
context of a specific project. There are a few generalizations that can bemade concerning the
information needed to control projects; these aredescribed in the next section.
Data Collecting
The majority of data to be collected will eventually exist in one of thefollowing five formats.
1. Frequency counts A simple tally of the occurrence of an event iscommon—for example, days
without an accident. Often a count of eventsper time period or as a fraction of some standard
number is used, such ascomplaints per month, defects per thousand products, and fraction of
luggage lost.
2. Raw numbers Actual amounts are used, usually in comparison to someexpected or planned
amount, such as dollars spent, hours required, andpounds consumed. The comparison to plan
may take the form of variances,that is, differences between planned and actual, or ratios of one to
the other.The ratio format is particularly appealing for reporting on a control chart with
predetermined limits, as is described later in the chapter. When collectingraw amounts it is
important that the basis, time period, and collectionprocess always be the same.
3. Subjective numeric ratings. These are usually subjective estimates ofsome quality offered by
specialists in the topic, such as ordinal “rankings” ofperformance. They can be reported in the
same ways as raw numbers, butthey often cannot be mathematically processed in the same ways
rawnumbers can.
4. Indicators and surrogates. When it is especially difficult to find a directmeasure of a variable,
indicators or surrogates are frequently used instead. Ifthis approach is taken, it is important that
the indicator or surrogate be asdirectly related to the variable as possible. For example, body
temperature isan indicator of infection and years of experience can be a surrogate forexpertise.
The number of salespersons, however, would be a poor, andclearly indirect, measure for level of
customer service.

5. Verbal characterizations Other variables that are difficult to measure, suchas team spirit or
clientcharacterizations. These forms of data are acceptable and useful as long as the terminology
is limited and is uniformly understood by all parties.
Data Analysis
Following the collection of the data through the monitoring system, it willfrequently be
necessary to analyze or processthe data in some manner beforereporting it for control purposes.
This may take the form of simple aggregationof the data, such as averaging the values, or
something as complex as fittingstatistical distribution functions to the data to ascertain relation
and trends. Some ofmanagement techniques for the presentation and analysis of data are often
useful here.

Reporting and Report Types

After the data have been collected and analyzed, they need to bereported in some form.
There are many possible report formats, but the mostpopular are project status reports, time/cost
reports,presentations, and similar documents. All tables, charts (such as PERT/CPMand Gantt),
and especially action plans should be updated to reflect currentreality. In addition to alerting
team members to potential problems, suchupdates help maintain team morale. Where known,
some form of “comparables”should also be reported such as distributions of previous data,
perhaps fromearlier but similar projects, so that the PM and others can better interpret thedata.
As we have noted before, any time project reports, plans, or otherdocuments are updated, great
care should be taken to preserve all documentsfrom earlier stages of the project’s life. When the
project is completed, a project“history” should be prepared and these materials will be
invaluable.
The reports delivered to those engaged in carrying out or managing theproject should be
timed to allow control to be exercised before completion of thetask in question. The project
action plan, again, identifies the level of tasks andresponsibilities according to the level of
management, and this providesguidance for both the level detail and the timing of reports.
In addition to WBS-determined data and information, individual managerswish to see
specific types of information in their reports and these should beincluded well. Moreover, they
may even have preferences on the timing ofreports, which should also be followed when they are
within reason. The PM,however, must make sure the relevant (for their level) information about
projectprogress is included in their ports, and in such a way that it cannot beoverlooked.
For projects, there are primarily three distinct types of reports: routine,which have been
describing so far, exception, and special analysis. Exceptionreports are primarily intended for
special decisions or unexpected situationswhere affected team member and outside managers
need to be made aware ofa change, and the change itself needs t be documented. Special
analysisreports are prepared to disseminate the results of a special study in a projectconcerning a
particular opportunity or problem for the project. They may bedistributed to top management,
other project managers who would bent fromthe knowledge, functional managers, or anyone who
might be affected orinterested. Typical subjects might include studies of new materials,
capabilitiesof new software, and descriptions of the impact of new government regulations.

PROJECT CONTROL
Control, the act of reducing differences between plan and actuality, is thefinal element in
the planning-monitoring-controlling cycle. Monitoring andcomparing activities with plan, and
reporting these findings is to no avail ifactions are not taken when reality deviates significantly
from what was planned.This is not to say that the act of noting and reporting discrepancies may
not byitself correct the deviations. Simply bringing discrepancies to light may be allthat is
needed to correct some problems. When it is not, however, active controlis needed to bring
performance, schedule, cost, or perhaps all three, back inline with plan.
Particularly in large projects with a wealth of detail and constanthubbub, it is all too easy
to lose sight of these three fundamental targets. Largeprojects develop their own momentum and
tend slowly to move out of hand,going their own way regardless of the wishes of the PM, top
management, andeven the client. In large projects early control is crucial!
Control is one of the PM’s most difficult tasks, invariably involving bothmechanistic and
human elements. Sometimes humans, through action orinaction, set in motion a chain of events
that eventually results in a discrepancybetween actuality and plan. Sometimes events occur that
affect people in anegative way leading to undesirable discrepancies. Anger, frustration,
irritation,helplessness, apathy, despair, and many other emotions arise during thecourse of a
normal project arid affect the activities of the project team memberswho experience them. It is
over this welter of confusion, emotion, inertia,fallibility, and general cussedness that the PM tries
to intervene and exert control.
Control is difficult for a number of reasons, perhaps the most important ofwhich is that it
involves human behavior. The problem that the human elementposes for control by the PM is
that it invariably involves the project team, a “we”group rather than a “they” group—a group we
perceive as our friends. Yet it isdifficult to criticize friends, which is exactly what control does.
Control meansinterceding in an activity that someone has been doing and “correcting” it,thereby
implying that someone was at fault and doing something wrong.

Purposes of Control
There are two primary purposes of control: the stewardship oforganizational assets and
the regulation of results through the alteration ofactivities. Thus, we take a moment to discuss the
firstpurpose, conserving the organization’s three primary assets: physical, human,and financial.
Physical asset control is concerned with the maintenance and use of theproject’s physical
assets. This includes the timing as well as quality ofmaintenance being con- ducted on the assets.
For example, it is important toconduct preventive maintenance prior to that last stage of the
project life cycleknown as the Last Minute Panic (LMP), even though the precise timing of
theLMP is usually unknown. And, of course, physical inventory must be received,inspected,
certified for payment to suppliers, and per- haps stored prior to use.
All project assets, even the project coffeepot, project team’s couch, and projectlibrary,
must be controlled. Most important, however, is the set of physicalequipment that was charged to
the client that must be delivered to the client atthe end of the project.
The stewardship of human resources primarily involves controlling andmaintaining the
growth and development of the project team. Fortunately,projects provide a particularly fertile
environment for cultivating humans, giventhat each project typically offers a unique professional
experience over a shortduration. These experiences, more than performance appraisals and
reports,foster growth and development of project team members.
Last, financial control involves stewardship of the organization’sexpenditures on the
project, including both conservation of financial resourcesand regulation of resource use. Most
accounting tools used for projects areexcellent in this area of control: current asset controls,
project budgets, capitalinvestment controls, audits, and even representation on the project
teamthrough the project accountant.

DESIGNING THE CONTROL SYSTEM

When designing the control system, there are certain helpful guidelines tokeep in mind.
For instance, the primary purpose of the control system is tocorrect error, not to identify and
punish the guilty. Managers must realize thatthe past cannot be changed, no matter how loudly
they yell. Moreover,investment in control is subject to sharply diminishing returns. The cost
ofcontrol increases faster and faster while the degree of control—and its value—increases more
and more slowly.We could, if we wished, control the quality of “hardware store” typewooden
yard- sticks, so that they were accurate to 1/10,000th of an inch. Butwho cares? Moreover, who
would be willing to invest the increased cost in aproduct that is usually given away as a gift?
Thus, there is some optimumamount of resources worth investing in the control process. The
control systemshould exert control only to the degree required to achieve its objectives;additional
control will not help and may be cost-inefficient.In the same vein, as the degree of control
increases beyond some difficultto-define point, innovation and creativity are discouraged until
they are finally shutoff completely. In general, the control system should employ the lowest
degree ofhassle consistent with accomplishing its goals. It is best to avoid annoying thosepeople
whose cooperation is needed to reach project goals. To summarize, thecontrol system should be
cost-effective and should operate with the minimumforce required to achieve the desired end
results.
There are three primary mechanisms by which the PM exerts control:process reviews,
personnel assignment, and resource allocation. The process review is directed to an analysis of
the process of reaching the projectobjectives rather than on the results, per Se. Because results
are largelydependent on the process used to achieve them, the process can be subjectedto control
even if the results cannot.
Control can also be exercised through personnel assignments based onpast project
productivity. Although it is relatively easy to separate workers in thetop and bottom quartiles by
measuring performance or productivity, separatingthe middle two quartiles is much more
difficult so this approach should be usedcarefully.
Controlling resource allocation can be a powerful motivator—anddemotivator. Resources
are usually allocated to the more productive orimportant tasks and this can significantly
influence the attainment of projectresults.

PROJECT EVALUATION

The term “evaluate” means to set the value of or appraise. A project evaluation appraises
the progress and performance relative to the project’s initial or revised plan. The evaluation also
appraises the project against the goals and objectives set for it during the selection process.
A project evaluation appraises the progress and performance relative to the project’s initial or
revised plan.
 Also appraises project against goals and objectives set for it during selection process.
 Projects should be evaluated at a number of crucial points.
 Purpose is to improve process of carrying out project.

Evaluation Criteria
There are many different measures that may be applied in a project evaluation. Project
management team may have particular areas that they want to evaluate for future planning and
decisions. One study identified four important dimensions of project success.
Evaluation Methods
PROJECT AUDIT
The main purpose of a project audit is to assist in satisfying the goals of the project in relation to
its contribution to the parent organization's goals. All elements of the project are reviewed in an
effort to identify and understand strengths and weaknesses.
Objective:
The project audit is a thorough examination of the management of a project, its methodology and
procedures, its records, properties, budgets, expenditures, progress, and so on.
The project audit is not a financial audit but is far broader in scope and may deal with the whole
or any part of the project.

The project audit thoroughly examines:

 Project management
 Methodologies and procedures
 Records
 Properties
 Budgets and expenditures
 Degree of completion

The result of this audit is a set of recommendations that can help both on-going and future
projects to:

 Anticipate and identify potential problems before they get out of hand
 Clarify performance, cost, and time relationships
 Improve project performance
 Locate opportunities for future technological advances
 Evaluate the quality of project management
 Reduce costs
 Speed the achievement of results
 Identify mistakes, remedy them, and avoid them in the future
 Provide information to the client
 Reconfirm the organization's interest in and commitment to the project

Typical steps in a project audit are:

Audit Levels:
An audit can be conducted at three levels:

AUDIT REPORT

Project Termination

Eventually the project is terminated, either quickly or slowly, but the manner in which it is
closed out will have a major impact on the quality of life in the organization. Occasionally, the
way project termination is managed can have an impact on the success of the project. As part of
the project termination, contracts will be closed with all the service providers.
When to terminate a project:
• Sunk Cost Approach
– whether organization is willing to invest the time and cost required to complete
the project
• Two Other Criteria
– the degree to which the project has met its goals
– the degree to which the project qualifies against a set of factors associated with
success or failure
Types of project termination:
• Project Extinction
– project activity suddenly stops
– either successfully completed or high expectation for failure
• Termination-By-Addition
– becomes a new formal part of organization
• Termination-By-Integration
– becomes standard part of operating systems
• Termination-By-Starvation
– a project in name only
Project Termination Process:
• Decision made by broad based committee of senior managers
• Termination process should be specified in project plan
• Termination manager
Project Final Report
• Project Performance
– what was achieved and reasons for resulting performance
• Administrative Performance
– review of how well administrative practices worked
• Organizational Structure
– identify modifications to help future projects
• Project Management Techniques
– recommendations for improvements in future projects