Chapter 4

Project Implementation and Controlling

4.1 Introduction to Monitoring, Evaluation & Controlling
4.2 Project Control
4.3 Project Control Cycle
4.4 Elements of Project Control (Time, Cost & Quality)
4.5 Project Schedule Control
4.6 Project Cost Control:
Methods & Procedure (Earned Value Analysis)
4.7 Project quality Control
4.8 Introduction to PMIS
4.1 Introduction to Monitoring, Evaluation and
Controlling
Monitoring
• Monitoring is collecting data, recording and reporting the information
concerning all aspects of project managers or others in the organization
wish to know.
• It is a management function to guide in the intended direction and to
check the performance against the predetermined plans.
Evaluation
• It is the systematic judgmental process for determining the relevance,
efficiency, effectiveness and impact on the project performance. It is
done to improve the project implementation and to improve future
project planning.
Controlling
• It is the management function of comparing the actual achievements with
the planned ones at every stage and taking necessary actions, if required
to ensure the attainment of the planned goals.
• It includes three step process
• Monitoring+ Evaluating+ Taking necessary actions
Inputs : Money , Materials, Human Resources
Activities : A Set of Tasks performed
Process :A set of activities, towards a common purpose
[Link]
nitoring-and-evaluation-14092959
4.2 Project Control
 The project is controlled by project control system.
 The project control system is an arrangement that
offers the project manager with details about the
deviations of the project from what has planned and
also recommend corrective actions needed for
rectifying the deviations.
 The control system help in identifying the cost over
run situations and deviations from quality
parameter.
Types of Control
Pre-control: (It is input Based)
• It is initiated before the start of the activity. It detects the probable
problem in advance and takes preventive , corrective actions.
Examples: Specification for quality Control, Acquisition of right
Human Resources.
Concurrent Control (Go/No control) (It is Transformation Based)
• It is initiated during the implementation of the activity. It ensures
that operations are being conducted according to plans. Problems
are corrected as they arise .Example: quality control from process
to process.
Post control (Feedback Control)
• It is initiated after completion of the activity. It is based on the
feedback performance results. Example: Financial Analysis
Elements of effective Project Control System
• Conformity to plans and activities
• Appropriate to positions and personalities
• Simplicity
• Accepted by the persons concerned.
• Timeliness
• Economy
• Emphasis on critical factors
• Corrective plan
• Flexibility
Difficulty in Implementing the Project Control
System

• Human factors ( resistance to change, reluctance to display

their plans )
• Complex characteristics of project
• Difficulties in keeping track of performance and expenditure
of complex project.
• Uncertainty and change
• Poor control and information system.
Difficulties in Project Control in Nepal
• In Nepal cost is given prime importance which results in
slippage of time and poor workmanship quality.
• Reluctance to change/ adopt proper control measures by
experienced personnel of the project team.
• Inappropriate reporting system or partially reporting.
• Personnel bias of project staff
• Information reporting and accounting mechanism may
be mis- leading.
• Other factors like culture, norms, values of personnel,
time period available, geographic location
• Lack of efficient manpower and technical knowledge
• Political influence
4.3 Project Control Cycle

Establishing
standards

Taking Observing/
corrective measuring
actions Performance

Finding
Deviations
Establishing standards( What to be done )
• Project performance standards are based on project planning.
Through the standards project is controlled. They are the standard
point of control. They should be reasonable standards and can be
in terms of time, quantity, quality cost etc.
• Observing/ measuring performance ( What actually was done )
• Actual performance is measured within a given period. It is
continuous ongoing process to feedback. Suitable monitoring
system is required to get required information.
Finding deviations ( extent and cause of deviations )
• In third steps the actual performance is compared with the
standards and deviation is identified if any. The sources of the
deviation is analyzed.
Taking the corrective actions
• After the identification of deviation, then corrective actions are
taken to bring back the project on track. If the performance
deviation is within allowable limit, no action will be taken. If not,
they can be corrected by improvement of design: changing raw
materials etc. or standards can be revised as requirement.
4.4 Elements of Project Control (Time , Cost ,Quality)

i) Time control (Schedule Control)

• The time/schedule control process monitors and controls the
changes to the project schedule. Output includes
• Updates of the schedule model data and baseline
• Performance measurements
• Requested changes
• Recommend corrective actions
• Updates to the project management plan
• Activity list and activity attribute updates
ii) Cost Control
• Cost control may be broadly defined as the process of
controlling the expenditure in a project at all stages from the
inception through its development.
• Cost control means controlling the changes to project
budget.
Cost control is mainly concerned with:
• Influencing the factors which create changes to the cost
baseline to ensure that changes are beneficial.
• Determining the cost baseline has changed.
• Managing the actual changes as when they occur.
Elements of cost control
Elements of cost control Description
Observation Regular observation should be made on:
material consumed, manpower and equipment
employed, other direct costs
Comparison The observed data must be compared with the
design standard by calculating variances
Identify the reasons for If the variance is large, it is important to know
variance the reasons for the variance. For this it is
important to check the purchase price of
materials, quality, wastage, work condition
Corrective action If the variance cannot be justified then the
middle level or higher level management takes
the necessary action for bringing the cost of the
project in to the track. It should be worked out
and implemented which may include re-
scheduling of the project
iii) Quality Control
• The quality control performances process measures
specific project results to determine whether the project
is meeting quality standards.
• Under the quality control following things are used.
Raw materials and intermediate stage product testing
Some self inspection by operator
Lagging process performance data
Feedback process information to the operators, setters
and production supervisors
Use of basic statistics
Process control
Tools for Quality Control
• Well written specification
• National and international standards ( codes ) NS , ISI
• Other international organization WHO UNO
• Procedural guidelines
• Training.
Quality attributes
• Performance
• Features
• Reliability
• Serviceability
• Durability
• Aesthetic characteristics
• Perceived quality
4.5 Project Schedule Control
• Controlling schedule is the project management activity in which the
activities are compared against the schedule baseline to understand
whether project is ahead of schedule or behind.
• Based on the deviation you can plan on corrective or preventive actions
and manage the baseline.
• During the process of implementing the plan according to schedule , we
may come across one or more of the following possibilities
i. that some or all activities are progressing according to schedule
ii. that some or all activities are ahead of schedule &
iii. that some or all activities are behind schedule
If all activities are progressing according to the schedule , there is no need
for updating the network but this is seldom the case.
Therefore, based on the progress of the work and the revised durations of
unfinished activities due to delays , the schedule has to be redrawn.
Schedule control involves
• Determining the current status
• Influencing factors that could cause schedule changes
• Identify if the schedule has changed (Compare with planned and actual)
• Managing the changes as they occur.
4.6 Project Cost Control
• Cost control is the process of monitoring the status of the project to
update the project budget and managing changes within the budgets.
• Controllable & uncontrollable Cost (Environment effect)
There are three cost categories
i. Direct Cost (Labour/Material/Equipment Cost etc.)
ii. Indirect Cost
iii. Overhead Cost
For Example:
Labour Cost: Nos. of hours spent on each part of the job by each employee
(Actual time taken)
Estimated Hour (Men- Hours) for each work item
Calculate the deviation between them
Projected Variance= Budgeted Cost (Hr.)– Actual total cost expenses (Hr.)
Zero, Positive or Negative ???
4.6 Project Cost Control
Methods & Procedure (Earned Value Analysis)
• Earned value analysis is an approach for measuring, how much
work/capital has been completed in a project at given point of time
and performance
• This analysis can be done by calculating how much time, the work
has taken and the resources it has utilized.
• These value are compared with the planned value of time and
resources. If the time taken to do the particular task is greater than
what was planned, it means that the project is running behind
schedule. Similarly, if the resources utilized are more than what
were planned, it means the project has not been managed
efficiently in terms of resources.
• It is used as a tool for cost control as it is very helpful in
determining how the project is going, in terms of cost ,scope and
time.
• That is whether the cost is under control and if it will go over
planned budget or in how much time the project would be
completed if we continue working at same pace.
 EVA Concept
 The earned value concept focuses on a relationship between the actual
costs being expended against the physical work done on the project
 The focus is on the true cost performance : what we got for what we
spent
Elements of EVA
Budgeted Cost of work performed (BCWP): BCWP is the budgeted cost
for completed work at a point in time. BCWP is known as the earned
value.
It is a value that indicates the amount of the budget that should have been
expended taking into consideration the work that has already been
performed up to the moment, as well as the cost baseline of the activity or
resource.
Budgeted Cost of work Scheduled (BCWS):BCWS is the planned value
i.e. the value of work that should have been done at a given point in time.
It is a value that indicates the amount of the budget that should have be
expended, taking into consideration the cost baseline of the activity or
resource.
• Actual Cost of work performed (ACWP): ACWP is
the cost actually expended in completing the work
accomplished within a given time period.
• It shows the incurred costs of the performed work
until the status date or present date.
Schedule Variance (SV)- It is monetary difference between the earned
value (BCWP) and the schedule baseline (BCWS).
SV= BCWP-BCWS = (Value of work-Planned Value)
SV= 0 means, The project is Right on Schedule in terms of cost
SV= - ve means, The project is behind the Schedule
SV= +ve means, The project is ahead of Schedule

Cost Variance (CV)- it is the difference between the estimated cost to

reach the present level of conclusion (BCWP) and the actual incurred cost
(ACWP) , up to the status date or present date.

CV= BCWP-ACWP = (Value of work-Actual Work)

CV= 0 means, The project is Right on Budget
CV= - ve means, The project is on over budget
CV= +ve means, The project is on under budget (less then the its forecast
or baseline)
• Scheduled Performance Index (SPI) = (BCWP/BCWS)x100. Values under
100% indicates that the project is behind schedule
• Cost Performance index (CPI) = (BCWP/ACWP)x100. Value under 100%
indicates that the project is over budget.
(SPI) = (BCWP/BCWS)

(CPI) = (BCWP/ACWP)
Formula
1. SV= BCWP-BCWS
2. CV= BCWP-ACWP
3. SPI = (BCWP/BCWS)x100
4. CPI= (BCWP/ACWP)x100
5. New Activity Duration = Original Time Estimate/SPI
6. New Cost Estimate = Original Cost Estimate/CPI
Methods & Procedure for EVA
There are 8 steps to performing earned value analysis effectively.
1. Determine the percent complete of each task.
2. Determine Planned Value (BCWS).
3. Determine Earned Value (BCWP).
4. Obtain Actual Cost (ACWP).
5. Calculate Schedule Variance (SV).
6. Calculate Cost Variance (CV).
7. Calculate Other Status Indicators (SPI, CPI, New Duration estimate & New
Cost estimate)
8. Compile Results
• Each metric is calculated for each individual task in the project. Therefore they
need to be added up into overall project variances to get the overall progress
indicator for the project. This represents the total variance of the project and can
be reported to management, clients, and stakeholders.
• The results are as instantaneous as the input data, that is, if you input the percent
complete as of right now the status reported will be as of right now as well. It’s
amazing how a small variance does not cause anyone concern until they see it as
a number, and it can be corrected before it becomes more serious
Significance of EVA
• One of the main benefits of Earned Value method is that it can be used for all projects
independent of size and type.
• EVA gives comparable data or collective data for the entire portfolio of projects.
• Despite its simple model, it is widely used method in practice. Using this method for
measuring project performance. (Focus on project performance measurements)
• EVA is best standard methodology for practice monitoring and control, as a simple way to
simultaneously considered indicators related to the scope, time, cost, quality and risk of the
projects.
• As an additional advantage, this methodology can be used to predict future performance of
projects and the time and cost at the moment of their completion. (Future Predictions)
• The basic contribution of Earned Value concept is to motivate project managers and
members of project teams to manage rationally with the project costs, minimize risk and be
implemented within budget.
• This concept provides reliable information essential for realized productivity and taking
corrective actions. (opportunity to correct the issues)
 Numerical
Q.1 WRC company has bagged a fixed cost contract for the supply , installation ,
testing and commissioning of 200 Lathe machine of same specification at a cost of
Rs.600Lakhs. The company had estimated that it could supply , install , test and
commission 10 Lathe machine per day so that the entire work would be completed
in 20 days time. The project status was reviewed after the completion of 16 days. It
was noted at the time of review that only 120 lathe machine have been installed and
the cost incurred was Rs. 380 Lakhs. It was estimated at the time of the review that
a sum of Rs. 260 Lakhs would be required for completing the pending works, viz.,
installation of the remaining 80 Lathe. Make a performance analysis by arriving at
the various connected parameters.
Given
BCWS:
Work scheduled per day : 10 Lathe installation
Work scheduled for 16 days (16x10) : 160
Budgeted cost of one installation (600/200) : Rs. 3 Lakhs
BCWS : 160x3 = Rs. 480 Lakhs
BCWP:
After 16 days , only 120 Lathe have been installed
Hence BCWP :120x3 = Rs. 360 Lakhs
Given ACWP : Rs. 380 lakhs
i) Cost Variance (CV)
(CV)= BCWP-ACWP=360-380=Rs. (-) 20 Lakhs (Over Budget)
The actual cost is more than the budgeted Cost
ii) Cost Performance Index (CPI)
CPI= (BCWP/ACWP)=360/380=0.947 (<1) Cost overrun
iii) Schedule Variance(SV)
SV= BCWP-BCWS=360-480= Rs. (-) 120Lakhs (behind the schedule)
iv) Schedule Performance Index (SPI)
SPI= (BCWP/BCWS)=360/480=0.75 (<1) Behind Schedule
New Activity Duration =Original time estimate/SPI=20/0.75=26.66 (i.e. 27
days)
New Cost Estimate = Original Cost Estimate/CPI=600/0.947=633.57
Lakhs
Hence the project is behind the schedule and running on over budget
 Numerical
Q.2 Suppose that an activity had 5 day duration and was expected to cost Rs.
10,000. Set into the project , and prior to finishing an activity , the following data
were obtained about the progress done to that activity:
i) Have so far worked for 3.5 days on activity
ii) 60% of an activity has been accomplished
iii) Rs. 8000 already spent on activity
Perform The earned value analysis
Solution: Given ACWP = 8,000
BCWP= 60% x10,000= 6,000
BCWS = (3.5 x10000)/5=7,000
Cost Variance (CV)= BCWP-ACWP=6000-8000=-2000 (Over Budget)
Schedule Variance(SV) = BCWP-BCWS=6000-7000=-1000 (behind the
schedule)
CPI= (BCWP/ACWP)=6000/8000=0.75 (<1) Cost overrun
SPI= (BCWP/BCWS)=6000/7000=0.86 (<1) Behind Schedule
New Activity Duration =Original time estimate/SPI=5/0.86=5.86 (i.e. 6 days)
New Cost Estimate = Original Cost Estimate/CPI=10000/0.75=13333.33
 Numerical
Q.3 Suppose you have a project that is scheduled to be completed in 10 days at the budgeted
cost of Rs. 100,000. After the completion of 6 days , you do an analysis and you determined the
job is 70% of work is completed and expenditure is Rs. 65,000. Based on the this data is your
work performance is on track? Perform EVA and comment on your own performance.
Given
BCWS:
Work scheduled for 10 days : Rs. 100,000
BCWS for 6 days : Rs. 100,000*6/10 =
Rs. 60,000
BCWP:
After 6 days , only 70% work finished
Hence BCWP :70% @100,000 =
Rs. 70,000
Given ACWP : Rs. 65,000
Cost Variance (CV)= BCWP-ACWP=70,000-65,000=5000 (Under Budget)
Schedule Variance(SV) = BCWP-BCWS=70000-60000=10000 (Ahead of schedule)
CPI= (BCWP/ACWP)=70000/65000=1.08 (>1) Under Budget
SPI= (BCWP/BCWS)=70000/60000=1.17 (>1) ahead of Schedule
Hence the project is ahead of schedule and under budget. Considering
only time and budget, the work performance is on track. (But the ahead
of schedule and under budget cost may come at the cost of poor quality.)
 Numerical
Q.4 15 houses were to be completed in three months with per unit cost of Rs.
2,500,000. In one month 4 houses were completed with total expenditure of Rs.
9,600,000. Use earn value analysis to find the status of the project.
Given that Total Cost = 15x2,500,000=3,750,000
BCWS: 3 Months = Rs. 37,500,000
1Month =Rs.12,500,000
ACWP=Rs. 9,600,000
BCWP = 4 @2,500,000=10,000,000
Cost Variance (CV)= BCWP-ACWP=10,000,000-9,600,000=400,000 (Under
Budget)
Schedule Variance(SV) = BCWP-BCWS=10,000,000-12,500,000=-2,500,000
(behind the schedule)
CPI= (BCWP/ACWP)=10,000,000/96,000,000=1.04 (>1) Under Budget
SPI= (BCWP/BCWS)=10,000,000/12,500,000=0.80 (<1) Behind Schedule
Hence the project is behind schedule and under budget
 Numerical
Q.5 A contractor agreed to build 50 workshop buildings in 90 days at a price of
Rs. 1000 per unit. 20 Days alter, the contractor has finished 10 workshop
buildings with actual cost of Rs. 8,500. What is the status of project?
Given: Planned expenditure in 90 days=50x1,000=50,000
In 20 Days = 50,000x20/90=11,1111.11 (BCWS)
BCWP (EV) = Rs. 10x1,000= Rs. 10,000
ACWP=Rs. 8,500.00
Cost Variance (CV)= BCWP-ACWP=10,000-8,500=1,500 (Under Budget)
Schedule Variance(SV) = BCWP-BCWS=10,000-11,111.11=-1,111.11 (behind
the schedule)
CPI= (BCWP/ACWP)=10,000/8,500=1.18 (>1) Under Budget
SPI= (BCWP/BCWS)=10,000/11,111.11=0.90 (<1) Behind Schedule
Hence the project is behind schedule and under budget
New duration estimate =90/SPI =90/0.9=100days
New Cost estimate = original cost estimate/CPI=50,000/1.18=
4.7 Project Quality Control
Quality Definitions
The meaning of quality
• Quality is a relative term and it is generally used with
reference to the end of the product. For example, a gear
used in a sugarcane juice extracting machine may not
possess good surface finish , tolerance and accuracy as
compared with the gear in the head stock of lathe , still
it may be considered of good quality if it works
satisfactorily in the juice extracting machine (Customer
Satisfaction)
• The word “Quality” has variety of meanings:
1. Fitness for purpose: The component is said to possess
good quality, if it works well in the equipment for
which it is meant. Quality is thus defined as fitness
for purpose.
2. Feature : Product appearance , performance , life , reliability ,
taste ,odour , maintainability etc as a quality characteristics.
3. Degree of preference over competition
4. Customer Satisfaction etc.
Definition of Quality
1. Dr. Juran: Quality is fitness for use
2. Philip Crosby: Quality is conformance to requirements
3. Dr. Deming: Quality should be aimed at the needs of
consumer, present and future.
4. Feigenbaum: “The total composite product and service
characteristics of marketing , engineering, manufacturing
and maintenance through which the product and service in
use will meet the expectation of the customer”
5. ISO 8403-1994 : “Quality is totality of characteristics of an
entity that bears an ability to satisfy stated and implied
needs”.
Quality costs more , but lack of quality costs even more.
Quality control
• Quality control is the process for monitoring specific project result to
determine whether this comply with relevant quality standards and
identifying ways to eliminate cause of unsatisfactory performance.
• According to American society for quality (ASQ)” Quality control
consist of the observation techniques and activities used to fulfill
requirement for quality.”
• Quality control is the operational techniques and activities that are used
to fulfil requirements for quality. Quality inspection is done first for
quality control. Activities such as measuring , examining , testing ,
gauging one or more characteristics of product or service and comparing
these with specified requirements to determine conformity is quality
inspection
• Quality control is concerned with feedback of the comparative
information in order to regulate the process. In quality control, the limits
are set so that the process can be adjusted before product from the
process reaches the limit where it has to be rejected.
• Various Factors affect the quality :Materials, Tools, Machines , Type of
labour , working Conditions ,measuring instruments, use of basic
statistic, process control etc.
Various Techniques of Quality
Control

7. Check Sheet
Quality Assurance
• Quality assurance is a broad practice used for assuring the
quality of products or service. According to American
society for quality (ASQ) “Quality assurance is the planned
and systematic activities implemented in a quality system so
that quality requirements for the product and service will be
fulfilled”.
• It contains all those plan and systematic actions required to
provide adequate confidence that a product or service will
satisfy given requirement for quality (ISO-8402-1986)
Process for quality assurance:
i. Statistical process control
ii. Failure mode and effect analysis
iii. Use of quality cost
iv. Comprehensive quality manuals
v. Advance quality planning
vi. System audits and third party approval
• Quality Control vs Quality Assurance
• Quality control is a product oriented whereas
quality assurance is process oriented.
• Quality control makes sure that the end product
meets the quality requirement where as quality
assurance makes sure that the process of the
manufacturing the product does adhere to the
standards.
• Quality assurance can be identified as a productive
process while quality control can be noted as a
reactive process.
Techniques of Quality control
Following techniques shall be applied for the quality
control/assurance
• Preparation of quality control/ assurance plan
• Regular inspection/ supervision
Testing
• a. Destructive test or non destructive
• b. field or lab
Sampling
• Identifying deviations or discrepancies
• Adopting necessary corrective measures
Quality costs more , but lack of quality costs even more.
Cost of Quality
Cost of quality (COQ) is defined as a methodology that allows an
organization to determine the extent to which its resources are used for
activities that prevent poor quality, that appraise the quality of the
organization’s products or services, and that result from internal and
external failures. Having such information allows an organization to
determine the potential savings to be gained by implementing process
improvements.
COST OF POOR QUALITY (COPQ)?
• Cost of poor quality (COPQ) is defined as the costs associated with
providing poor quality products or services. There are three categories:
• Appraisal costs are costs incurred to determine the degree of
conformance to quality requirements.
• Internal failure costs are costs associated with defects found before the
customer receives the product or service.
• External failure costs are costs associated with defects found after the
customer receives the product or service.
• Quality-related activities that incur costs may be divided into prevention
costs, appraisal costs, and internal and external failure costs.
Appraisal Cost
Appraisal costs are associated with measuring and
monitoring activities related to quality. These costs are
associated with the suppliers’ and customers’ evaluation
of purchased materials, processes, products, and services
to ensure that they conform to specifications. They could
include:
• Verification: Checking of incoming material, process
setup, and products against agreed specifications
• Quality audits: Confirmation that the quality system is
functioning correctly
• Supplier rating: Assessment and approval of suppliers of
products and services discrepancy
Internal Failure Costs
Internal failure costs is applicable when the product is in
factory and not been sold. These cost include
• Internal Failure Cost (Scrap, Rework, Failure analysis, Re-
inspection , scrap and rework from suppliers etc.)
External Failure Costs
These cost are applicable to goods when the product has been
sold. These cost include
• Warranty cost/charge
• Product liability( insurance and settlements )
• Consumers affairs ( dealing primarily with the customer
complaints about quality )
• Product returns, recalls
Intangible Quality Cost
 Loss of goodwill of the company
Prevention cost
Prevention costs are incurred to prevent or avoid quality problems.
These costs are associated with the design, implementation, and
maintenance of the quality management system. They are planned
and incurred before actual operation & they could include:
• Product or service requirements: Establishment of
specifications for incoming materials, processes,
finished products, and services
• Quality planning: Creation of plans for quality,
reliability, operations, production, and inspection
• Quality assurance: Creation and maintenance of the
quality system
• Training: Development, preparation, and maintenance
of programs
 Total Quality Management Principles
• Customer Satisfaction
• Total Employee Commitment: This creates empowerment through
training and suggestion mechanisms.
• Fact-Based Decision Making: Teams collect data and process
statistics to ensure that work meets specifications.
• Effective Communications: There should be an open dialogue
throughout an organization.
• Strategic Thinking: Quality must be part of an organization’s long-
term vision.
• Integrated System: A shared vision, including knowledge of and
commitment to principles of quality, keep everyone in a company
connected. Taiichi Ohno recognized that even suppliers are an
important part of the system.
• Process-Centered: You can deconstruct every activity into
processes, and, therefore, locate and repeat the best process.
• Continuous Improvement: Every employee should always be
thinking about how to better perform their job.
[Link]
Million Units)
4.8 Project Management Information System ( PMIS)

• PMIS are system tools

and techniques used in
project management to
deliver information.
Project managers use
the techniques and
tools to collect,
combine and distribute
information through
electronic and manual
means.
 PMIS
• PMIS are system tools and techniques used in project
management to deliver information.
• Project managers use the techniques and tools to
collect, combine and distribute information through
electronic and manual means.
• PMIS is used by upper and lower management to
communicate with each other.
• It is an automated system to quickly create, manage
and streamline the project management processes.
• In the develop portion of the project, the PMIS can be
used to help the project management team create
schedule, estimates , and risk assessments, and to
gather feedback from stakeholders.
PMIS
• PMIS help plan, execute and close project management goals.
• During the planning process, project managers use PMIS for
budget framework such as estimating costs. The Project
Management Information System is also used to create a specific
schedule and define the scope baseline.
• At the execution of the project management goals, the project
management team collects information into one database. The
PMIS is used to compare the baseline with the actual
accomplishment of each activity , manage materials, collect
financial data, and keep a record for reporting purposes.
• During the close the project, the PMIS is used to review the goals
to check if the tasks were accomplished. Then, it is used to create
a final report of the project close.
• To conclude, the PMIS is used to plan schedules, budget and
execute work to be accomplished in project management.
[Link]
system-47183643
PMIS
• The Project Management Information System
(PMIS) aims at collecting economically , the right
data , in the right form , through right means , at the
right time , in the right place: and communicating
the extracted information to the right person on time
, for making decisions.
• PMIS is a broad concept rather than a rigid system.
Its design varies with the nature and type of the
project
Functions of PMIS
1. Scheduling
2. Estimating
3. Resources
4. Project documents & data
5. Portals and dashboards
6. Collaborative work management tools
7. Social media
8. Project Control
Objectives of PMIS
• To reduce project duration
• To make better use of resources
• To increase resources productivity
• To decrease cost/price
• To bring the new facts to the knowledge
• To reduce the uncertainty in decision making
Aim (areas of work ) of PMIS
• Effective communication with the users
• Reliable and logical data supply
• Essential information and feedback
• Rational analysis of information
Advantages of PMIS
• Promote the better understanding in project
• Ability to handle complexity on large-scale projects
• It helps to target control by quantifying the risks and initiating the
corrective actions
• Record Keeping/PMIS simplifies project control
• Speed/ Ease of use/Accuracy/
• It helps to comprehend the change in the project
• It provides basis to monitor, evaluate and show the interrelationship
among cost, Schedule and technical performance of entire project.
• It helps to identify project problem before they occur
• It helps to make better decision and execution of those decisions
• It facilitates project planning
• It informs the stakeholders about the progress and status of project.
• It facilitates project transaction such as progress payments
Disadvantages of PMIS
• Require constant monitoring of sensitive data
• Security issues like hacking always prevail
• Quality of output depends on quality of input
• Implementation of PMIS is costly as require hardware,
software and training of human resource
• Lack of flexibility to upgrade software.
• Takes only quantitative data
• Increase unemployment
• Effectiveness decrease due to frequent change in top
management and their policies
 Home Assignment for Chapter -4
1. Write the concept of Monitoring, Evaluation and controlling. Describe
the project control cycle. Explain why project controlling is difficult in
Nepal.
2. Define Quality. What are the techniques of quality control in a
project? Explain the different types of cost of quality.
3. Why quality assurance is important in project? Explain the TQM
system
4. Justify the statement "quality costs more but lack of quality costs even
more" giving examples of total quality cost included to achieve good
quality.
5. Describe the function, objectives and importance of PMIS in project &
justify " the right information at the right time reduces the risk of
wrong decision".
6. Explain the project schedule control. Discuss the significance of
Earned Value Analysis (EVA) in project control. Write the methods
and procedures of EVA.
7. Explain the relationship between Cost, Schedule and Quality in a
project.
8. Explain the terms related to S-curve. i) BCWP ii) BCWS iii) ACWP
iv) CV v) SV
Numerical related to EVA