chapter 5 project monitoring and control

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roject Monitoring and Contro

l

Chapter -5

Mohammed W. EiT-M Industrial Engineering Department→



roject Monitoring

The set of procedures and management practices used to

collect information about the performance of a project

Performance Analysis

The process of determining performance var iances basedon monitored and forecasted performance

The purpose of Project Monitoring and Control is to make

necessary actions when the project’s performance deviates

significantly from the plan



urpose

Monitor the actual values of the project planningparameters against the project plan

The common reference is the original Plan or the

!udgeted cost and value curve

Performance

CostTime



Project Control

Control " process and activities needed to correct

deviations from plan

Control the triple constraints

time #schedule$

cost #budget% e&penses% etc$

performance #specifications% testing results% etc$



Monitoring and control as part of a feedback syst

em



M easuring roject rogress

'tep ( define original budget and weighs of its ac

tivities

'tep ) measure activity progress and actual cost 'tep * calculate project progress as weighed sum

of activities



Measuring roject rogress +,&ample

BudgetedQuantity

UnitCost

BudgetActivityWeigh

Structures

1,100,001.40 100%

Footings 14,!00.00 1"%

#rocure$en

t & 1400

10&,400.0

0 !%

Ste'

1

Budget



Progress after 10 Months

ActualQuantity

ActualUnit Cost

Actual Cost[10 months]

Structures 00,000.(!

Footings 1&!,!0*.1!

Procurement 79 1500 11!500"00

#hi$$ing 79 %0&"% 1'!059"1%

Construction 79 &50 %7!'50"00

Co)u$ns (",*1.40

Procurement 10 &%00 &(5!'00"00

#hi$$ing 10 (00 (&!%00"00Construction 10 1&79"55 1(!991"(0

Ste'!



Actua)Quantity

Budget

edQuantit

y

Activity#rogress

ActivityWeigh

#ro+ect#rogress

Structures

Footings 104% 1"% 14.0%

Procurement 79 7' 10() 7%) 7("')

#hi$$ing 79 7' 10() 10) 10"7)

Construction 79 7' 10() 1) 1"7)

Co)u$ns 4*% % 4!.(%

Procurement 10 %%0 (9) '5) &1")

(&.4%

Ste'"



'chedule./uration. (0 months budget. (%(11%111 2

After (1 months.

Actual consumed cost. 311%111 2 Progress. 5406

And not 311%1117(%(11%111 8 4*4* 6

-a$')e Continued/

Look at the activity Progress Not at the cost progress !



Earned Value Analysis

9ntegrating cost% schedule% and work perform

ed by ascribing monetary values to each

A way of measuring overall perform ance #not in

dividual task$ using an aggregate performance measure

,arned value of work performed #value complete

d$ for those tasks in progress found by multiplying

the estimated percent physical completion of wor

k for each task by the planned cost for those tasks



Earned Value Analysis,arned value analysis has three major cost measur

ements.

budgeted cost of work scheduled#!C:'$%

budgeted cost of work performed #!C:P$%

Actual cost of work performed #AC:P$

!C:'. indicates the amount that should have been

e&pended for work scheduled during the reportin

g period

!C:P.indicates the number of dollars that should



Earned Value Analysis

!aseline cost to completion " referred to as bu

dget at completion #!AC$

Actual cost to date " referred to as estimated cost at completion #,AC$



erform ance 9ndices

Cost #spending$ variance #C;$" difference betwee

n budgeted cost of work performed #earned value$#!C: $ and actual cost of that work #AC: $ C; 8 !C:P " AC:P #negative value - cost overru

n$

'chedule variance #';$ " difference between earned value #!C: $ and cost of work we scheduled toperform to date #!C:'$

'; 8 !C:P " !C:' #negative value - behind schedule$

Cost Performance 9nde& #CP9$8!C:P7AC:P

'chedule Performance 9nde& 'P9 8 !C:P7!C:'



Fig. Areas of cost and time performance using Cost and Schedule performanceindexes



Possibilities ,arned ;alue Analysis



Earned Value Chart – basis for evaluatingcost & performance to date



,&ample

A(2, 40)

(2, 0)

C(4, 0)

"(2, #0) $(4, %0)

&(#, #0)

'(, 0)(#, *00)

+(, #)

-(*, 40)

Duration (Months)

Cost (1000$)

Activity A B C F 2 3

*# 0 0 ! ! ! % & ( 11 5

+# 0 ! ! ! ( & 11 7

Cost,Month

! !( 1 "0 !0 %0 10 %5 40 %0



Time 'caled <etwork

#,arliest 'tart $



Time 'caled <etwork

#=atest 'tart $



Cumulative Costs



,&ample. >eviewing the project

'uppose at the end of * months we obtained t

he following.

a/ !udgeted cost#!C:'$ 8(35k2 + ?rom master sched

ule

5/ Actual money 'pent #AC: $8 (51k2

c/ ;alue of work Completed #,; or !C: $845

Activity A is completed +(1168

1k2

Activity C and / have not started

1k2



Cost #spending$ var iance #C;$8 !C:P " AC:P

oC;845-(518-

05k2 +verrun'chedule variance #';$

o '; 8 !C:P " !C:'845-(358-((1k

2

+behind the sch

edule $o *-(438(** months behind the schedule

Cost Performance 9nde& #CP9$8!C:P7AC:P8 457(518 1*

'chedule Performance 9nde& #'P9$8 !C:P7!C:'8457(358

1*3

,&ample. Continued



EXAMPLE

Assume that operations on a :ork Package cost (%5112 to complete They were originally scheduled to finish today At this point% we actually spent (%*512 And we estimate that we have completed two thirds #)7*$ of the work :hat are thecost and schedule variancesB

C; 8 !C:P " AC:P 8 (511 #)7*$ " (*51 8 - *51 +co

st overrun

'; 8 !C:P " !C:' 8 (511 #)7*$ " (511 8 - 511 +!e

hind 'chedule

CP9 8 !C:P7AC:P 8 (511#)7*$7(*51 8 13

'P9 8 !C:P7!C:' 8 (511#)7*$7(511 8 143

'pending higher than budget% and given what we h

ave spent% :e have not completed as m uch wor

k as we should have



EXERCISE

A project to develop a country park has an actual co

st in month (3 of 2*51%111% a planned cost of 235%111% and a value completed of 2*11%111 ?ind the cost and schedule variances and the inde&es

Month 17

Planned !"aseline# – $%'(((

Actual cost – )('(((

Value completed – )(('((( BCWP

ACWP

BCWS

Time t



Solution

!C:' 8 35%111

!C:P 8 *11%111

AC:P 8 *51%111

C; 8 *11%111 " *51%111 8 -51%111 #negat ive value - cost overru

n$

'; 8 * 11%111 " 35%111 8 -(35%111 #negat ive value - beh ind sch

edule$

Cost er form ance 9nde& #C 9 $ 8 !C: 7AC: 8 *117*51 8 1 04

'chedule erform ance 9nde& #' 9 $ 8 !C: 7!C: ' 8 *11735 8

14*

CV = BCWP – ACWP

SV = BCWP – BCWS



?orecast ing erformance

Attempts to predict the conditions at a later time or th

e end of the projectTypically made repeatedly on a regular basis througho

ut a project

,stimate at completion ,AC 8 cost spent estimate to complete

,AC 8 AC:P #!AC " !C:P$ 7 C9

AC:P 7 !C:P 8 ( 7 C9 ,AC 8 !AC 7 C9



,&ample +,AC

!AC8(%(11

!C:P84)(@ AC:P8311

,AC8!AC7C9

C98 !C:P7AC:P84)(731181003 ,AC8 (%(11 71003 8 (%)1%111 2

;AC variance at completion 8 (%(11 " (%)1 8 - (1%111

2



?orecast ing com pletion t im e

Actual completion date #AC$

AC 8 Current date #:ork remaining 7 ,&pected work rate$

T = current date (time no)BC = !ud"et com#etion time

Previo.s $/ampe % T=10 months & BC=1' months

AC=10(1100*+,1)-(1'*10)./(1100 ++0)-(+,1.++0)

= 1023 - '.1 = 10 34,+ = 13 m ' da5s

Time overr.n 1 % ays

chapter 5 project monitoring and control

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