PROJECT MANAGEMENT

INFORMATION SYSTEM
The purpose of a project management information system (PMIS) is for gathering,
recording, filtering, and disseminating pertinent information. The information is both
verbal and documented. Both must be managed.

Projects are run with communications and good communications improve productivity.
Approximately 70% of the information on a project is initiated during the Develop stage
of the project life cycle.
The information system requires a plan which is devised for the benefit of the users,
and which will provide the information required for control of the work.
Ideally a system should be easy to learn and easy to use, neither too complex nor too
minimal to be of much use.
PROJECT MANAGEMENT
INFORMATION SYSTEM
Whether an information system is existing or is produced for a special purpose, management needs to ask the question

"Who needs to know what and why?“

In order to answer the previous questions, we should first ask

◦ "Who is involved?" (i.e., who are the players?)

"Who does what?" (i.e., what are the functions of the members of the organization?)
 PROJECT MANAGEMENT
INFORMATION SYSTEM
Information flows both up and down the
organization. As the flow occurs, information is
filtered. By necessity some repackaging of the
information is needed.
As scope objectives flow downward from the
executive level through management and
supervision levels to production, an increasing level
of detail is required.
Conversely, in reporting upward the information must
be presented in a summary form for each level of
management.
PROJECT MANAGEMENT
INFORMATION SYSTEM
WHO IS INVOLVED? WHAT DO THEY DO?

CLIENT
The client is a key party because he has originated the project, and his main
functions are to establish the requirements, provide financing, approve
expenditures and changes, and monitor schedule, cost, quality and progress.
PROJECT MANAGEMENT
INFORMATION SYSTEM
WHO IS INVOLVED? WHAT DO THEY DO?

EXECUTIVE MANAGEMENT
Executive management monitors cost, and revenues, and progress and provides support
and direction for project management.

PROJECT MANAGEMENT
Project Management reports project status to the owner and executive management,
directs the project, approves schedules, estimates, expenditures, and contracts, plans and
organizes the projects, and controls costs and progress.
PROJECT MANAGEMENT
INFORMATION SYSTEM
WHO IS INVOLVED? WHAT DO THEY DO?

PROCUREMENT DEPARTMENT
The procurement department prepares requests for quotations and bidders lists,
obtains prices, valuates quotations, awards purchase orders, expedites, inspects,
and arranges transportation, awards contracts, and approves payment of invoices.
PROJECT MANAGEMENT
INFORMATION SYSTEM
WHO IS INVOLVED? WHAT DO THEY DO?

PROJECT CONTROLS
Project controls (i.e., the costing and scheduling groups) generates most of the
documents used bv management for control and status reporting.
Their functions are to prepare estimates and schedules, gather and report costs,
prepare change orders, and report cash flow position.
PROJECT MANAGEMENT
INFORMATION SYSTEM
WHO IS INVOLVED? WHAT DO THEY DO?

CONSTRUCTION MANAGEMENT
As construction begins, the center of gravity of project activity shifts to the field.
Construction management organizes the site and executes the work.
Also, the construction group acquires manpower, tools, and equipment obtains
permits, and administers subcontractors.
PROJECT MANAGEMENT
INFORMATION SYSTEM
WHO IS INVOLVED? WHAT DO THEY DO?

ENGINEERING
Engineering, whether internal to the organization or in the form of a consultant,
generate considerable documentation but also require much information.
Engineering produces drawings and specifications, initiates requests for
purchase or quotation, reviews vendor data, and reports on engineering
progress.
PROJECT MANAGEMENT
INFORMATION SYSTEM
WHO IS INVOLVED? WHAT DO THEY DO?

FINANCE AND ACCOUNTING DEPARTMENT

The finance and accounting department needs a constant stream of documents in
order to accumulate the actual revenues and expenditures.
For each project, this department pays the bills and payroll, and keeps a
commitment register of costs committed but not yet processed through the
accounting process.
INTEGRATED MANAGEMENT
INFORMATION SYSTEM
PROJECT PROCEDURE MANUAL
-overall controlling document for a project
-management’s communication tool
-contains such items as code of accounts, work breakdown
structure, expenditure approval procedures, overall coding of
documents and correspondence, project scope definition, and any
other project-specific information which must be disseminated
uniformly.
INTEGRATED MANAGEMENT
INFORMATION SYSTEM
All companies have an integrated information system which includes
estimating, job costing, accounting, payroll, and scheduling; these
are manual systems for the most part.
Some organizations have integrated computerized systems, but
commonly the job costing, payroll, and accounting are integrated but
estimating and scheduling are separate.
INTEGRATED MANAGEMENT
INFORMATION SYSTEM
A management information system is integrated by means of a cost code of
accounts. The following is a list of components for a computerized project control
system with reports available for each.
Estimating Small Tools Control
Performance Analysis Subcontract Administration
Progress Control and Reporting Documents Control
Cost Control General Accounting
Scheduling Commitment Register
Material Management
Payroll and Personnel
INTEGRATED MANAGEMENT
INFORMATION SYSTEM
The features of a Progress Reporting System are:
Work Breakdown Structure
Physical Percent Complete
Planned and Actual Hours and Costs
Productivity Analysis and Productivity Database
Progress Reporting at Detail or Summary Level
INTEGRATED MANAGEMENT
INFORMATION SYSTEM
Project Accounting includes:
Accounts Payable Commitment Register
Journal Vouchers General Ledger Processing
Purchase and Expenditure Open Purchase Order
Register
Project Cost Detail or Summary
Contract Costs
INTEGRATED MANAGEMENT
INFORMATION SYSTEM
A project cost system must interface with accounting systems and report
costs of materials, labor, equipment, materials, labor hours, and commitments.
This system should keep track of change orders also. The objective of a cost
system is to track and forecast costs for comparison against budgets.
A material management system tracks materials from the requisition stage
through to surplus disposal. A complete system includes requisitioning,
purchasing, shipping, tracking, inspections, receiving, warehousing, issuing,
and inventory control.
A scheduling system must schedule the activities, identify critical activities,
level resources, and be produced graphically.
PROGRESS REPORTING
A "Monthly Progress Report" provides the essential information and contains the
following:
1. Summary of project status
2. Financial summary
3. Milestone Schedules
4. Home Office Progress
5. Schedule Status
6. Resource utilization, especially for manpower and any staffing or labor problems
7. Procurement Status
PROGRESS REPORTING
SUMMARY OF PROJECT STATUS
This report is a short, overall summary of project status.
It contains a brief narrative description of the status of each major
phase, provides quantitative information such as the physical
percentage complete compared with scheduled completion and
forecast "at completion" costs against budget.
Major accomplishments, changes, and problems are outlined here.
PROGRESS REPORTING
PROCUREMENT STATUS
This item reviews contracts and purchase orders awarded during the
period and those currently out for bid. Status of the manufacture and
delivery of purchased items including expediting information is
significant.
A schedule showing actual procurement status and contract awards
compared with the original plan is useful.
PROGRESS REPORTING
CONSTRUCTION STATUS
This unit of the Progress Report should provide a description of work
accomplished during the period, significant work to be
accomplished in the next period, and a discussion of major
problems with solutions or proposed solutions.
Quantitative information such as productivity for major cost accounts
not only provides control information but enhances team building.
PROGRESS REPORTING
SCHEDULE STATUS
This item should contain the summary level schedules, comparing
actual progress to the plan with an explanation of the problems and
the indicated solution or measures being adopted to solve the
problems.
PROGRESS REPORTING
FINANCIAL STATUS
This summary should show actual recorded costs, committed costs,
and estimated costs to complete. It should compare "at completion"
costs with project budgets and identify and explain changes from the
previous report.
An evaluated contingency should be included so that an overall
estimate of actual costs at completion is provided.
The format of these reports varies from company to company and the
reports shown are part of one example set.