Module 4
Monitoring and Controlling Projects:
Monitoring and Controlling Projects: Planning monitoring
and controlling cycle, Information needs and reporting, engaging
with all stakeholders of the projects, communication and project
meetings. Earned Value Management techniques for measuring
value of work completed, using milestones for measurement,
change requests and scope creep, Project audit, Project
Contracting: Project procurement management, contracting and
outsourcing.
MONITOR AND CONTROL PROJECT WORK:
• It is the process of tracking, reviewing, and reporting the overall progress to
meet the performance objectives defined in the project management plan.
• The key benefit of this process is that it allows stakeholders to understand the
current state of the project, to recognize the actions taken to address any
performance issues, and to have visibility into the future project status with
cost and schedule forecasts. This process is performed throughout the project.
Plan Monitor Control Cycle (PMC Cycle)
• The Plan-Monitor-Control (PMC) cycle is a fundamental
process in project management that enables teams to plan,
execute, monitor, control, and improve their projects. Plan Monitor
• It is a continuous improvement cycle that allows project
managers to assess the progress of their project against the
Control
project plan, make adjustments, and take corrective actions to
ensure the project stays on track.
1. Planning
Determining project objectives, defining scope, estimating resources, scheduling tasks,
budgeting, and identifying risks.
•Key Activities:
• Develop project plan, Define WBS (Work Breakdown Structure), Estimate time, cost,
and resources, Plan for quality, communication, and risk
2. Monitoring
Continuously tracking the project's progress to ensure alignment with the plan.
•Key Activities:
• Measure actual performance (cost, time, scope), Identify deviations from the plan, Use
tools like Gantt charts, dashboards, performance reports
3. 3. Controlling
Taking corrective or preventive actions to address variances and keep the project on track.
•Key Activities:
• Adjust schedules and resources. Manage changes through a change control process,
Update project plan as needed, Reassess risks
Information Needs and Reporting in Projects
What is it?
It refers to identifying:
• What information is needed,
• Who needs it,
• When they need it, and
• How it should be shared or reported during the project
lifecycle.
Information Needs and Reporting in Projects
Why is it Important?
• Helps in informed decision-making.
• Keeps all stakeholders updated.
• Supports transparency and accountability.
• Enables early identification of issues.
Types of Project Information to Report
Type Examples
Progress Task completion, milestones achieved
Financial Budget usage, cost overruns
Schedule Delays, upcoming deadlines
Risks New risks, risk responses
Quality Defect rates, quality audits
Common Reporting Tools Reporting Frequency
• Status Reports Report Type Frequency
Daily updates For internal team
• Dashboards
Weekly reports For project managers
• Project Meetings For
Monthly reports
• Gantt Charts clients/stakeholders
• Earned Value Reports After key events or
Milestone reviews
deliverables
Engaging with All Stakeholders of the Project
Who are stakeholders?
Stakeholders are individuals or groups who are affected by or can influence the
project's outcome.
Examples:
• Project sponsor
• Clients/customers
• Project team
• Vendors/contractors
• Regulatory bodies
Why is stakeholder engagement important?
• Builds trust and transparency
• Ensures clear expectations
• Increases chances of project success
• Helps in early identification of issues
• Encourages feedback and support
Steps to Engage Stakeholders
[Link] stakeholders
List all who are involved or affected.
[Link] influence and interest
Use tools like Power-Interest Grid to prioritize stakeholders.
[Link] communication
Define what, how, and when to communicate with each stakeholder.
[Link] and communicate
Share updates, gather feedback, address concerns.
[Link] and adapt
Adjust engagement strategies as project progresses.
Examples of Engagement Activities
• Kick-off meetings
• Regular status updates
• Stakeholder workshops
• Surveys and feedback forms
• One-on-one meetings with key stakeholders
Communication and Project Meetings
Importance of Communication in Projects
Effective communication ensures:
• Everyone is on the same page
• Roles and responsibilities are clear
• Issues are identified early
• Builds trust and coordination across the team
️ Studies show that poor communication is one of the top reasons for project failure.
Project Communication Plan Types of Communication
A communication plan outlines: • Formal (reports, presentations,
• Who needs what information emails)
• What information needs to be shared • Informal (quick chats, messages)
• When and how often it should be • Internal (within project team)
shared • External (with clients, vendors)
• How it will be shared (email, meetings,
reports)
Project Meetings Tips for Effective Meetings
Project meetings help in: • Have a clear agenda
• Sharing updates • Start and end on time
• Discussing issues • Ensure everyone participates
• Making decisions • Record minutes and action items
• Ensuring progress • Follow-up after the meeting
Types of Project Meetings
Type Purpose
Kick-off Meeting Initiate the project, align goals
Status Meeting Review progress and track deliverables
Review Meeting Evaluate specific tasks or deliverables
Client Meeting Update client/stakeholders
Retrospective Reflect on what went well or not
Earned Value Management techniques for measuring value of
work completed
• The monitoring of performance for the entire project is very crucial.
• Individual task performance must be monitored carefully because the timing and
coordination between individual tasks is important. But overall project performance
is the crux of the matter and must not be overlooked.
• One way of measuring overall performance is by using an aggregate performance
measure called earned value.
• Estimating the “percent completion” of each task (or work package) is very
important.
Key Concepts
Term Full Form Description
PV Planned Value Budgeted cost of scheduled work
EV Earned Value Budgeted cost of completed work
AC Actual Cost Actual expense incurred
Performance Metrics
Metric Formula Interpretation
CV EV - AC Cost Variance
SV EV - PV Schedule Variance
CPI EV / AC Cost Performance Index
SPI EV / PV Schedule Performance Index
Find CV and SV?
BAC = Budget at Completion
Estimate at Completion (EAC)
Formula: EAC = BAC / CPI
Used to forecast total project cost
We identify several variances on the earned value chart following two primary
guidelines:
(1) A negative variance is “bad,” and
(2) the cost and schedule variances are calculated as the earned value minus some other
measure.
• The cost (or sometimes the spending) variance (CV) is the difference between the
amount of money we budgeted for the work that has been performed to date, that
is, the earned value, EV, and the actual cost of that work (AC).
EV - AC = cost variance (CV, overrun is negative)
• The schedule variance (SV) is the difference between the EV and the cost of the work
we scheduled to be performed to date, or the planned value (PV).
EV - PV = schedule variance (SV, behind is negative)
• The time variance is the difference in the time scheduled for the work that has been
performed (ST) and the actual time used to perform it (AT).
ST - AT = time variance (TV, delay is negative)
• The variances are also often formulated as ratios rather than differences so that the
cost variance becomes the Cost Performance Index (CPI) = EV/AC, the schedule
variance becomes the Schedule Performance Index (SPI) = EV/PV, and the time
variance becomes the Time Performance Index (TPI) = ST/AT.
• Use of ratios is particularly helpful when an organization wishes to compare the
performance of several projects (or project managers), or the same project over
different time periods.
• Also, the two indexes, CPI and SPI, are combined to make a type of “critical ratio”
called the Cost–Schedule Index
• The estimated cost to complete (ETC) is defined as ETC = (BAC - EV) /CPI
• The estimated cost at completion (EAC) is defined as EAC = (ETC+ AC)
The Earned
Value Chart
The earned value chart provides a
basis for evaluating cost and
performance to date.
Example 1
Assume that operations on a work package were expected to cost $1,500 to complete
the package. They were originally scheduled to have been finished today. At this
point, however, we have actually expended $1,350, and we estimate that we have
completed two-thirds of the work.
1. What are the cost and schedule variances?
2. Find cost and schedule index. Also find the cost schedule index.
3. Estimated cost to complete (ETC) and estimated cost at completion (EAC)
of the project.
Solution:
A software development project at day 70 exhibits an actual cost of
$78,000 and a scheduled cost of $84,000. The software manager
estimates a value completed of $81,000. What are the cost and
schedule variances and CSI? Estimate the time variance.
Using Milestones for Measurement in Project Management
• In project management, a milestone is a significant
event or checkpoint that marks a key point in a project's
timeline, helping to track progress and ensure projects
stay on track.
• A project milestone is a marker or checkpoint that
indicates a major goal, event, or task within a project's
lifecycle.
Examples:
• Project start and end dates
• Completion of a major phase of work
• Business case approval
• Sign-off of design documents
• Testing & go-live
• Client or stakeholder approval
Why Use Milestones?
Milestones are used to:
• Track project progress
• Provide early warning signals for delays
• Help in schedule control
• Enable management reporting
• Improve team focus and motivation
Change Request
A Change Request is a formal proposal to modify any aspect of a project,
including:
• Scope
• Schedule
• Cost
• Resources
• Deliverables
Examples of Change Requests:
• Adding a new feature to a software application.
• Extending the deadline due to resource unavailability.
• Changing a material specification due to supply issues.
Process:
• Request is submitted (by stakeholder, customer, team).
• Evaluated for impact (cost, time, quality).
• Approved or rejected by the Change Control Board (CCB) or Project
Manager.
• If approved, updates are made to the project plan.
Scope Creep
Scope Creep refers to the uncontrolled expansion of project scope without
formal approval or changes to schedule/budget.
Causes of Scope Creep:
• Poorly defined requirements
• Stakeholders continuously requesting "just one more thing"
• Lack of change control processes
• Miscommunication
Consequences: How to Manage Them
• Project delays • Define clear scope and get stakeholder sign-
• Budget overruns off
• Resource strain • Establish a formal change control process
• Quality issues • Communicate impacts of changes
• Stakeholder dissatisfaction • Maintain a project log for all changes
• Regularly review project scope against
deliverables
Feature Change Request Scope Creep
Control Formal and controlled Uncontrolled and informal
Yes (via CCB/Project
Approval Needed No (happens informally)
Manager)
Impact Assessed Yes Often overlooked
Planned change with
Results In Hidden cost/time overruns
adjustments
Project Audit
A systematic and independent examination of a project's objectives, processes, and
outcomes to determine whether project activities comply with planned arrangements
and are implemented effectively.
Objectives of Project Audit:
• Verify adherence to project plans, scope, and standards
• Evaluate performance in terms of time, cost, quality, and risk
• Identify areas for improvement
• Ensure compliance with organizational policies and stakeholder requirements
• Accountability and responsibility: Project Audits establish clear accountability, ensuring that team
members are responsible for their designated tasks and outcomes, fostering a sense of ownership and
dedication.
• Risk identification and mitigation: By systematically analysing project processes, audits identify
potential risks, enabling proactive risk management strategies to mitigate these challenges effectively.
• Quality assurance: Audits assess the quality of work, ensuring that project deliverables meet
established standards and client expectations, thus maintaining the reputation and credibility of the
organisation.
• Resource optimisation: Through evaluation, audits analyse resource allocation and utilisation,
enabling organisations to optimise resources, reduce wastage, and enhance cost-effectiveness.
• Performance evaluation: Audits provide a comprehensive overview of project performance, allowing
organisations to assess the effectiveness of strategies, identify bottlenecks, and make data-driven
decisions for future projects.
• Stakeholder confidence: Well-conducted audits instil confidence in stakeholders, assuring them that
projects are being managed efficiently, leading to stronger partnerships and support.
• Lessons for continuous improvement: Audit findings serve as a valuable source of lessons learned,
guiding organisations in refining their Project Management Processes and fostering a culture of
constant improvement and innovation.
When is it done?
• At project milestones
• At project closure
• During critical phases (if needed)
Benefits:
• Improved accountability and transparency
• Early detection of issues
• Better decision-making for future projects
Process audit
Process audits concentrate on evaluating the Project Management processes and methodologies employed
during Project Execution. It assesses whether the operations are efficient, effective, and aligned with
industry best practices. This type of audit helps in identifying bottlenecks, inefficiencies, and areas where
process improvements are necessary.
Performance audit
Performance audits provide a comprehensive assessment of the project’s overall performance. This
includes evaluating project deliverables, timelines, budget adherence, and stakeholder satisfaction. By
analysing these aspects, performance audits offer insights into the project's effectiveness in meeting
objectives and satisfying stakeholders.
Compliance audit
Compliance audits focus on ensuring that the project adheres to legal, regulatory, and organisational
guidelines. This is particularly important in industries with strict regulations, such as healthcare or finance.
Compliance audits help minimise legal risks and ensure that the project activities align with established
standards and regulations.
Financial audit
Financial audits concentrate on the project’s financial aspects. This includes a detailed review of project
budgets, expenditures, financial controls, and adherence to economic policies. Financial audits ensure
transparency in financial transactions, prevent financial mismanagement and verify that project funds are
utilised judiciously.
Scope and objectives
a) Clearly define the scope of the audit, outlining the specific areas, processes, and objectives that will be evaluated.
b) Establish the goals of the audit, whether it's performance improvement, risk identification, or compliance assessment.
Audit team formation
a) Assemble a skilled and diverse audit team comprising individuals with expertise in project management, analysis, and evaluation
techniques.
b) Assign roles and responsibilities within the team to ensure a comprehensive approach to the audit process.
Audit process design
a) Develop a structured and systematic audit process outlining the Project Management Methodologies, data collection techniques, and
evaluation criteria to be employed.
b) Plan the timeline, detailing when each phase of the audit will take place and allocating resources accordingly.
Documentation and data collection
a) Gather relevant project documents, including plans, reports, financial records, and communication logs, ensuring a comprehensive review.
b) Collect data through interviews, surveys, and direct observations, ensuring the information gathered is accurate, reliable, and representative
of the project's activities.
Analysis and evaluation
a) Analyse the collected data to identify patterns, Project Management Trends, and discrepancies in project performance and outcomes.
b) Evaluate the project against predetermined benchmarks, industry standards, and organisational objectives, identifying areas of success and
areas needing improvement.
Reporting and recommendations
a) Document audit findings in a clear, concise, and structured report, highlighting strengths, weaknesses, opportunities, and threats.
b) Provide actionable recommendations based on the audit results, offering specific strategies for improvement and outlining the potential
benefits of implementing these changes.
Follow-up and implementation monitoring
a) Establish a follow-up mechanism to track the implementation of audit recommendations, ensuring that identified issues are addressed
promptly.
b) Monitor the progress of recommended changes, assess their impact on the project, and make necessary adjustments to the project
management strategies based on the outcomes of the audit.
Project Procurement Management
• Project Procurement Management involves the processes necessary to
purchase or acquire products, services, or results needed from outside the
project team to complete the project.
• It includes planning, conducting, administering, and closing procurements.
Key Processes of Project Procurement Management
[Link] Procurement Management
1. Identify what needs to be procured.
2. Determine how and when it will be acquired.
3. Develop procurement strategies (buy, lease, build).
4. Create procurement documents like RFPs (Request for Proposal), RFQs (Request for Quotation).
[Link] Procurements
1. Distribute procurement documents to sellers.
2. Obtain seller responses.
3. Evaluate proposals and select vendors.
4. Negotiate and award contracts.
[Link] Procurements
1. Manage relationships with vendors.
2. Monitor contract performance.
3. Make necessary changes and ensure compliance with the agreement.
[Link] Procurements
1. Complete and settle each contract.
2. Confirm all deliverables are met.
3. Finalize payments and close contract documentation.
Best Practices in Procurement Importance of Procurement Management
Management
• Clearly define the scope and deliverables. • Helps manage costs and schedule risks.
• Use standard contract templates. • Brings in expertise or technology not
• Maintain transparent communication available in-house.
with suppliers. • Ensures compliance with legal and
• Monitor performance against contract. regulatory requirements.
• Conduct periodic procurement audits. • Promotes vendor accountability and
quality assurance.
Contracting and Outsourcing in Project Management
Contracting refers to the formal process of creating and managing legally
binding agreements between the project organization and external
vendors/suppliers to deliver goods or services.
Common Elements in a Contract:
• Scope of Work (SOW)
• Delivery timeline
• Payment terms
• Legal obligations
• Penalties for non-performance
Risk for
Type Description
Buyer
Set price for entire job
Fixed Price Low
regardless of actual cost
Types of Project
Contracts: Cost
Reimbursable
Seller is reimbursed for
costs + fee
High
Time & Material Based on hours worked and
Medium
(T&M) materials used
What is Outsourcing?
Outsourcing is the practice of delegating certain tasks, operations, or
processes to third-party organizations to improve efficiency or cost-
effectiveness.
Examples in Projects:
• Software development outsourced to an IT firm
• Manufacturing outsourced to a contract manufacturer
• Technical writing outsourced to freelancers
Aspect Contracting Outsourcing
Legally binding Strategic decision for
Focus
agreement cost/efficiency
Difference between Project team controls
External party may
Contracting and Control
deliverables
have operational
control
Outsourcing Duration
Often short to Can be long-term
medium-term partnerships
Focus on core
Get work done per
Objective business by delegating
contract terms
tasks
Advantages of Outsourcing and Contracting
• Access to expertise
• Cost savings
• Faster project delivery
• Focus on core activities
• Reduces overhead and HR costs
Module 4
Closing the Project