Chapter 10

Monitoring and
Information
Systems

© 2012 John Wiley & Sons Inc.

Terms
 Monitoring - Collecting, recording, and
reporting information concerning any and
all aspects of project performance
 Controlling - Uses the data supplied by
monitoring to bring actual performance
into compliance with the plan
 Evaluation - Judgments regarding the
quality and effectiveness of project
performance

10-2
The Planning–Monitoring–Controlling
Cycle

 We mainly want to monitor:

– Time (schedule)
– Cost (budget)
– Scope (project performance)
 Closed-loop system
– Revised plans and schedules following
corrective actions

10-3
Three key factors to be controlled in
Monitoring system: Time - Cost - Scope
• Time: Monitoring the project's timeline is crucial to ensure that activities
are completed as scheduled and milestones are achieved within the
specified time frame. It involves tracking the progress of tasks, identifying
any delays or bottlenecks, and taking corrective actions to keep the project
on schedule.
• Cost: Monitoring the project's cost involves tracking and managing the
project's budget. It includes monitoring expenses. comparing them to the
planned budget, identifying cost overruns or variances, and implementing
strategies to control costs. Effective cost control helps ensure that the
project is financially sustainable and stays within budgetary constraints.
• Scope: Monitoring the project's scope involves ensuring that the
deliverables and objectives defined at the start of the project are being
met. It includes assessing the completeness and quality of the work
performed, identifying any scope changes or deviations, and managing
scope creep. By monitoring the project's scope, stakeholders can ensure
that the project is aligned with the intended outcomes and requirements.

10-4
How to design good monitoring system

The planning - monitoring - controlling cycle:

• The key things to be planned, monitored, and controlled are time
(schedule), cost (budget), and performance (specifications).
• It is useful to perceive the control process as a closed-loop
system, with revised plans and schedules following corrective
actions.
• The planning-monitoring-controlling cycle is continuously in
process until the project is completed.
• Closed-loop system
• Evaluation and control of projects are the opposite sides of project selection
and planning
• Monitoring is the collecting, recording, and reporting information concerning
any and all aspects of project performance
• The purpose of the control system is to act on the data
 Design the Monitoring system
 Many levels of monitoring: low, medium, high
10-5
 Project Authorization and Expenditure
Control System Information Flow

Figure 10-1 10-6

Designing the Monitoring System
 Identify key factors to be controlled
– Scope
– Cost
– Time
 Information to be collected must be
identified

10-7
Designing the Monitoring System
Continued

 Do not want to avoid collecting necessary

data because it is hard to get
 Do not want to collect too much data
 The next step is to design a reporting
system that gets the data to the proper
people in a timely and understandable
manner

10-8
Much Data Involves
 Frequency counts
 Raw numbers
 Subjective numeric ratings
 Indicators
 Verbal measures

10-9
Some types of Measures

• Frequency counts: a simple tally of the occurrence of

an event
• Raw numbers: dates, dollars, hours, physical amounts
of resources used & specifications are usually reported
in this way
• Subjective numeric ratings: these numbers subjective
estimates, usually of a quality, made by knowledgeable
individuals or groups
• Indicators: used when the PM cannot measure some
aspect of system performance directly
• Verbal measures: measures for such performance
characteristics frequently take the form of verbal
characterizations
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Some types of Measures
• Frequency counts: These measures involve keeping track of the occurrence or frequency of
specific events or activities. For example, counting the number of defects identified during
quality inspections or tracking the number of project meetings held
• Raw numbers: This type of measure involves reporting data using actual values or quantities.
It includes metrics such as dates (start and end dates of tasks or milestones), financial data
(costs, budgets), hours worked on specific activities. or physical amounts of resources used.
• Subjective numeric ratings: These measures involve assigning subjective estimates or
ratings to certain aspects of the project. They are typically based on the judgment and
expertise of knowledgeable individuals or groups. For example, rating the quality of
deliverables on a scale of 1 to 10 or providing a subjective assessment of the level of
stakeholder satisfaction.
• Indicators: Indicators are used when direct measurement of certain aspects of system
performance is not feasible or practical. Indicators are indirect measures that provide insight or
suggest the performance of a particular aspect. For example, using transaction processing
speed as an indicator of customer satisfaction or using employee turnover rate as an indicator
of team morale.
• Verbal measures: Verbal measures involve describing or characterizing certain performance
characteristics using words or verbal descriptions. They are often used when it is difficult to
quantify or measure a specific aspect numerically. For instance, describing the team's morale
as "high," "moderate," or "low" or assessing the level of communication effectiveness as
"excellent," "satisfactory." or "poor."

10-11
How to collect data
Collecting: Collecting, in the context of project management. refers to the
process of gathering relevant data or information for analysis, decision-
making, or reporting purposes. It involves systematically gathering data from
various sources using appropriate methods and tools.
When you are the center manager, you have to collect customer information,
after that, the information of the team members also needs to be collected
(Staff by staff)
• Once we know the data we want, we need to decide how to collect it
• Frequency counts - How often an event occurs.
• Raw numbers - Amount of something, like hours spent on a task.
• Subjective numeric ratings - Subjective estimates often applied to quality measures.
• Indicators - Indirect measures, such as transaction processing speed, being used to
suggest customer satisfaction.
• Verbal measures - Descriptions of characteristics like the morale of the team.
• Should the data be collected after some event?
• Should it be collected on a regular basis?
• Are there any special forms needed for data collection?
• Useful, necessary, not too much, quality > quantity
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How to collect data
 Here's an example to illustrate the concept of collecting: a project to
develop a new mobile application. As part of the project, the project
manager wants to collect customer feedback to understand user
satisfaction and identify areas for improvement. The project manager
decides to use a survey as a data collection method.
 The process of collecting data in this example involves the following steps:
• Defining the Purpose: The project manager clarifies the objective of the data collection,
which is to gather customer feedback regarding the mobile application.
• Designing the Survey: The project manager creates a survey questionnaire that includes
relevant questions related to user experience, functionality, user interface. and overall
satisfaction.
• Distributing the Survey: The project manager determines the target audience for the
survey, which could be existing users of the application or a sample of potential users.
• The survey is distributed through various channels, such as email, online platforms, or in-
app notifications.
• Collecting Responses: As users receive and respond to the survey, their feedback is
collected and recorded. The project manager ensures that the data collection process is
ongoing for a specified period or until a sufficient number of responses is received.

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How to collect data
• Analyzing the Data: Once the data collection phase is complete, the project
manager analyzes the survey responses. This involves summarizing and
aggregating the data to identify patterns, trends, and areas for improvement.
Statistical analysis or data visualization techniques may be applied to gain
insights from the collected data.
• Utilizing the Findings: The project manager uses the findings from the data
collection and analysis process to make informed decisions. For example, if
certain features or functionalities receive negative feedback, the project
manager may prioritize improvements or updates in subsequent development
cycles.

→ In this example, collecting involves designing and distributing a

survey to gather customer feedback about the mobile application.
The collected data provides valuable insights that can guide
decision-making and help enhance the application's user
experience.

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Recording
is a project to giving out the information in our team members
 Recording, in the context of project management, refers to the
process of documenting and organizing collected data or
information in a structured manner for future reference, analysis.
and reporting. It involves systematically capturing and storing data
in a format that is easily accessible and usable.
 Here's an example to illustrate the concept of recording: the
project to develop a new mobile application. After collecting
customer feedback through surveys, the project manager needs to
record and organize the data for further analysis and decision-
making.

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Recording
The process of recording data in this example involves:
• Data Compilation: The project manager compiles the survey responses received from
customers. This may involve aggregating the responses from different sources, such as email,
online platforms, or in-app notifications.
• Data Entry: The project manager enters the survey data into a structured format. such as a
spreadsheet or a database. Each response is recorded as a separate entry, with relevant
details captured. such as respondent ID, ratings, and comments.
• Data Verification: The project manager ensures the accuracy and integrity of the recorded data
by reviewing the entries for completeness and correctness. Any inconsistencies or errors are
corrected to maintain data quality.
• Data Organization: The recorded data is organized in a logical and meaningful manner. This
may include categorizing responses based on specific criteria, such as user demographics,
geographical location, or specific aspects of the mobile application.
• Data Storage: The project manager stores the recorded data in a secure and accessible
location, such as a centralized project repository or a dedicated database. Proper data backup
procedures may be implemented to ensure data integrity and prevent loss.
• Documentation: The project manager documents the data recording process, including details
about the data sources, collection methods, and any specific considerations or limitations. This
documentation helps maintain a record of the data collection process and provides context for
future analysis and reporting.

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Information Needs and Reporting
 Everyone should be tied into the reporting
system
 Reports should address each level
 Not at same depth and frequency for
every level
– Lower-level needs detailed information
– Senior management levels need overview
reports
 Report frequency is typically high at low
levels and less frequent at higher levels

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The Reporting Process
 Reports must contain relevant data
 Must be issued frequently
 Should be available in time for control
 Distribution of project reports depends on
interest
– For senior management, may be few
milestones
– For project manager, there may be many
critical points

10-18
How to make report
 Reporting: Reporting in project management involves the process
of collecting project data, analyzing it. and presenting it in a
structured format to stakeholders. The purpose of reporting is to
provide stakeholders with information on project progress,
performance, and potential risks. It includes steps such as data
collection, analysis, report compilation, formatting, distribution, and
review. Effective reporting ensures transparency, facilitates
decision-making, and promotes collaboration among project
participants.
 Reports must contain relevant data
 Must be issued frequently
 Should be available in time for control
 Distribution of project reports depends on interest
o For senior management, may be few milestones
o For project manager. there may be many critical points

10-19
How to make report
 Here's an example to illustrate the concept of reporting: a construction project
to build a new office building. The project manager is responsible for providing
regular reports to the project sponsor, the client, and other key stakeholders. The
reporting process involves the following steps:
• Data Collection: The project manager collects relevant data and information from
various sources, such as project plans, progress updates, financial records, and
team feedback. This data includes information on tasks completed, milestones
achieved, budget utilization, risks, and any issues encountered.

• Data Analysis: The project manager analyzes the collected data to derive
meaningful insights and trends. This involves comparing actual progress against the
planned schedule, assessing budget performance, identifying any deviations or
variances, and evaluating the overall project health.

• Report Compilation: Based on the analyzed data, the project manager compiles a
comprehensive report that includes key project information and metrics. The report
typically includes sections such as project summary, schedule status, cost status,
risk analysis, and notable achievements. It may also include graphical
representations, such as charts or graphs, to present the data visually.
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How to make report
• Report Formatting: The project manager ensures that the report is properly
formatted and organized for readability and clarity. This may involve structuring the
report into sections, using headings and subheadings, and incorporating
appropriate visual aids to enhance understanding.
• Report Distribution: The project manager shares the report with relevant
stakeholders according to the agreed reporting frequency and distribution channels.
This can be done through email, project management software, or in-person
meetings. The report is sent to the project sponsor, client representatives, project
team members, and other stakeholders who require project updates.
• Report Review and Discussion: After stakeholders receive the report, they review
the information and may schedule meetings or discussions to address any
questions, concerns, or decisions that need to be made based on the report. This
allows stakeholders to gain a deeper understanding of the project's progress and
collaborate on necessary actions.

In this example, reporting in project management involves collecting, analyzing,

compiling, formatting, and distributing project data and information to stakeholders. The
reports provide stakeholders with a comprehensive overview of the project's
performance, enabling informed decision-making and effective communication among
project participants.
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Benefits of Detailed and Timely Reports

 Mutual understanding of the goals

 Awareness of the progress of parallel
activities
 Understanding the relationship of tasks
 Early warning signals of problems
 Minimizing the confusion
 Higher visibility to top management
 Keeping client up to date

10-22
Benefits of Detailed and Timely Reports
• Mutual understanding of goals: Reports help ensure that all
stakeholders have a clear understanding of the project's objectives and
goals. It helps align everyone towards a common vision and minimizes
misunderstandings.
• Awareness of progress: Project reports provide visibility into the
progress of parallel activities. They help team members and stakeholders
understand how different tasks and activities are progressing and how
they relate to each other.
• Task relationship understanding: Reports highlight the
interdependencies and relationships between tasks. This allows project
participants to see how one task's completion or delay can impact other
tasks and the overall project timeline.
• Early warning signals: Reports serve as early warning signals for
potential issues or problems. By monitoring key metrics and progress
indicators, project managers can identify and address challenges
proactively, preventing them from becoming major obstacles later on.

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Benefits of Detailed and Timely Reports
• Minimizing confusion: Reports promote clarity and minimize confusion
by providing structured and organized information about the project's
status. activities, and milestones.
• They help stakeholders stay informed and avoid misunderstandings.
• Higher visibility for top management: Reports provide higher visibility to
top management. enabling them to make informed decisions and provide
necessary support. They offer a comprehensive overview of the project's
progress. challenges. and achievements. allowing management to stay
involved and take timely actions.
• Keeping clients informed: Project reports keep clients updated on
project progress. milestones, and any deviations from the original plan.
Regular communication through reports helps build trust, manage
expectations, and maintain a positive client relationship

10-24
Report Types
 Routine - Reports that are issued on a regular
basis or each time the project reaches a
milestone
 Exception - Reports that are generated when
an usual condition occurs or as an
informational vehicle when an unusual
decision is made
 Special Analysis - Reports that result from
studies commissioned to look into unexpected
problems

10-25
Report Types
In project management, there are different types of reports that serve specific purposes:
• Routine Reports: These reports provide regular updates on the project's progress.
They typically include information on task completion, milestones achieved. and any
deviations. from the schedule. Routine reports help stakeholders stay informed
about the project's status and ensure ongoing communication.

• Exception Reports: Exception reports focus on highlighting key information or

significant deviations from the expected or planned outcomes. They identify
exceptions or anomalies that require attention, enabling stakeholders to focus on
critical areas that may need corrective action or further investigation.

• Special Analysis Reports: Special analysis reports are the most important type of
report as they involve in-depth analysis and examination of specific project aspects.
These reports often involve gathering and analyzing data, identifying trends, root
causes of issues, and the resulting impact. Special analysis reports provide insights
and recommendations to address problems, optimize performance, or make
informed decisions.

10-26
The main benefits of monitoring: PM,
organization, client, team members
Monitoring in project management provides several benefits to different
stakeholders involved in the project:
 Project Manager:
Progress Tracking: Monitoring allows the project manager to track the
progress of the project, ensuring that it stays on schedule and meets the
defined milestones.
Early Issue Detection: By regularly monitoring project activities, the project
manager can identify any issues or risks that may arise and take proactive
measures to address them before they escalate.
Performance Evaluation: Monitoring provides data on the performance of the
project team and individual team members. enabling the project manager to
assess their effectiveness and make necessary adjustments.
Decision-making Support: Monitoring provides the project manager with real-
time information and insights, facilitating informed decision-making regarding
project adjustments, resource allocation, and risk mitigation.
10-27
The main benefits of monitoring: PM,
organization, client, team members
 Organization:
Resource Allocation: Monitoring helps organizations allocate
resources effectively by providing visibility into resource utilization,
identifying areas of inefficiency or overallocation.

Budget Control: Monitoring enables organizations to control project

costs by tracking expenditures, identifying cost overruns, and taking
corrective actions to align with the project budget.
Risk Management: Monitoring helps identify potential risks and
deviations from the project plan. allowing organizations to implement
appropriate risk management strategies and minimize the impact on
project outcomes.

10-28
The main benefits of monitoring: PM,
organization, client, team members
 Client/Stakeholders:
Transparency: Monitoring provides clients and stakeholders with
visibility into project progress, allowing them to have a clear
understanding of the project's status and any potential risks or
challenges.

Timely Communication: Monitoring facilitates regular and effective

communication between the project team and clients/stakeholders,
ensuring that expectations are managed, and any concerns or
changes can be addressed promptly

Confidence and Trust: Monitoring provides clients/stakeholders with

confidence that the project is being actively managed and progress is
being tracked. fostering trust in the project team and the
organization's ability to deliver on commitments.

10-29
The main benefits of monitoring: PM,
organization, client, team members
 Team Members:
Performance Feedback: Monitoring provides feedback to team
members on their performance and progress, allowing them to assess
their contributions and make improvements as needed.

Alignment and Clarity: Monitoring helps team members understand

project priorities. expectations. and deadlines, ensuring they are
aligned with project objectives and can focus their efforts accordingly.

Collaboration and Support: Monitoring facilitates collaboration among

team members by providing visibility into each other's activities,
promoting coordination and support among team members to achieve
project goals.

10-30
Meetings
 Reports do not have to be written
 They can be delivered verbally in
meetings
 Projects have too many meetings
 The trick is to keep them to as few as
possible

10-31
Meeting Rules
 Use meetings to make group decisions
 Start and end on time and have an
agenda
 Do your homework before the meeting
 Take minutes
 Avoid attributing remarks to individuals in
minutes
 Avoid overly formal rules of procedure
 Call meeting for serious problems
10-32
Common Reporting Problems
 Too much detail
 Poor interface between the
data/procedures of the project and the
information system of the parent
company
 Poor correspondence between the
planning process and the monitoring
process

10-33
Common Reporting Problems
Common reporting problems in project management include:
• Inaccurate or incomplete data: Reporting relies on accurate and
complete data. If the data collected or entered into the reporting system is
incorrect or incomplete, it can lead to inaccurate reports and misleading
information.
• Lack of consistency: Inconsistent reporting formats, terminology, or
metrics can create confusion and make it challenging to compare and
analyze data across different reports or projects. Consistency in reporting
ensures clear communication and facilitates data analysis.
• Poor data visualization: Reports that lack clear and effective data
visualization can make it difficult for stakeholders to interpret and
understand the information. Visual elements such as charts, graphs, and
diagrams should be used to present data in a visually appealing and easily
understandable manner.

10-34
Common Reporting Problems
• Overwhelming or irrelevant information: Reports that contain excessive
or irrelevant information can overwhelm stakeholders and make it
challenging to identify key insights or important trends. It is important to
focus on presenting concise and relevant information that aligns with the
stakeholders' information needs.
• Lack of context or insights: Reports should not only present data but
also provide context and insights. Without proper analysis or interpretation
of the data, reports may fail to provide meaningful information or
actionable insights for decision-making.
• Delayed or infrequent reporting: Timely reporting is essential to keep
stakeholders informed and enable prompt decision-making. Delayed or
infrequent reporting can lead to missed opportunities for course correction
or addressing issues in a timely manner.
 Lack of stakeholder engagement: Reports should be tailored to the
needs and preferences of the intended audience. Inadequate stakeholder
engagement in the report development process can result in reports that
do not meet stakeholders' information requirements or fail to effectively
communicate the desired message. 10-35
Earned Value Analysis
 Have covered monitoring parts
– Timing and coordination between individual
tasks is important
 Mustalso monitor performance of entire
project
– Crux of matter should not be overlooked
 One way is by using an aggregate
performance measure called earned
value

10-36
Why is the Earned Value Chart a key
element in Earned Value Analysis ?
• measure project performance that incorporates scope.
time, and cost data.
• displaying earned value management metrics over
time.
• lines that represent budget (planned project cost),
actual cost and earned value - how much progress has
been made.

• ensure the project is sticking to the performance

measurement baseline expectations
• adequately manage project risk and ensure corrective
action can be taken if necessary to get the project back
on track
10-37
Why is the Earned Value Chart a key
element in Earned Value Analysis ?

The Earned Value Chart is a key element in Earned Value Analysis

because it provides a visual representation of the project's
performance in terms of cost and schedule. It combines three
important metrics: Planned Value (PV), Earned Value (EV), and Actual
Cost (AC).
 Planned Value (PV): This represents the authorized budget for the
work scheduled to be completed up to a specific point in time. It
serves as the baseline for cost and schedule performance.
 Earned Value (EV): This represents the value of the work actually
performed up to a specific point in time. It is determined based on
the completion status of the scheduled activities.
 Actual Cost (AC): This represents the actual cost incurred for the
work performed up to a specific point in time. It reflects the real
expenditures made on the project.
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Why is the Earned Value Chart a key
element in Earned Value Analysis ?
The Earned Value Chart compares these three metrics by plotting them over time. It
allows project managers and stakeholders to analyze the project's performance and
make data-driven decisions. Here's why the Earned Value Chart is crucial:
• The Earned Value Chart provides a concise overview of how the project is performing in terms of cost and
schedule. It allows project managers to assess if the project is ahead, on, or behind schedule and if it is
over or under budget.
• By comparing the Planned Value (PV) with the Earned Value (EV) and Actual Cost (AC). project
managers can identify any variances in cost and schedule. Variances provide insights into project
performance, highlighting areas where corrective actions may be required.
• The Earned Value Chart tracks the project's performance over time, enabling trend analysis. It helps
identify patterns or trends in cost and schedule performance. allowing project managers to anticipate
potential issues and take preventive measures.
• The Earned Value Chart allows project managers to forecast the project's future performance based on
the current trends and variances. It helps in predicting if the project will be completed within the budget
and schedule, enabling proactive adjustments if necessary.

Overall, the Earned Value Chart is a powerful tool in Earned Value Analysis as it
provides a visual representation of the project's cost and schedule performance,
facilitates variance analysis, trend analysis, and forecasting. It enables project
managers to make informed decisions. take corrective actions, and ensure project
success.

10-39
The Earned Value Chart and Calculations

 Actual against baseline ignores the

amount of work accomplished
 Earned value incorporates work
accomplished
 Multiply the estimated percent work
complete for each task by the planned
cost
 Only need percent complete estimate for
tasks currently in progress
10-40
Rules to Aid in Estimating Percent
Completion

 50-50 rule
 0-100 percent rule
 Critical input use rule
 Proportionality rule

10-41
Rules to Aid in Estimating Percent
Completion
 50-50 rule: Fifty percent completion is assumed when
the task is begun, and the remaining 50 percent when
the work is complete. This seems to be the most
popular rule, probably because it is relatively fair and
does not require the effort of attempting to estimate
task progress.

10-42
Rules to Aid in Estimating Percent
Completion

 0-100percent rule: This rule allows no credit

for work until the task is complete. - Quy tắc 0–
100 phần trăm: Quy tắc này cho phép không
ghi công cho công việc cho đến khi nhiệm vụ
hoàn thành.

10-43
Rules to Aid in Estimating Percent
Completion

 Critical input use rule: This rule assigns task

progress according to the amount of a critical
input that has been used. Obviously, the rule is
more accurate if the task uses this input in
direct proportion to the true progress being
made.

10-44
Rules to Aid in Estimating Percent
Completion

 Proportionality rule: This commonly used rule

is also based on proportionalities, but uses time
(or cost) as the critical input. It thus divides
actual task time-to-date by the scheduled time
for the task [or actual task cost-to-date by total
budgeted task cost] to calculate percent
complete.

10-45
 The Earned Value Chart

Figure 10-6 10-46

Variances
 Variances can help analyze a project
1. A negative variance is bad
2. Cost and schedule variances are calculated
as the earned value minus some other
measure
 Will look at some of the more common
ones

10-47
Cost Variance (CV)
 CV = EV – AC

 Negative variance indicates a cost

overrun

 Magnitude depends on the costs

10-48
Schedule Variance (SV)
 SV = EV – PV

 Negativevariance indicates you are

behind schedule

 Measured using costs

10-49
Time Variance (TV)
 TV = ST – AT

 Negativevariance indicates you are

behind schedule

10-50
Indices
 Cost Performance Index
CPI = EV/AC
 Schedule Performance Index
SPI = EV/PV
 Time Performance Index
TPI = ST/AT
 Cost Schedule Index
CSI = EV2/(AC)(PV)

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“To complete” and “At Completion”
 Project manager reviewing what is
complete and what remains
 Final cost and final completion date are
moving targets
 The project manager compiles these into
a to complete forecast
 Actual + forecast = final date and cost at
completion

10-52
ETC and EAC

ETC = (BAC + EV)/CPI

EAC = ETC + AC
where,
ETC = Estimated cost to complete
BAC = Budget at completion
EV = Earned value
CPI = Cost performance index
EAC = Estimated cost at completion
AC = Amount expended to date (actual cost)

10-53
Milestone Reporting
 Reports that are created when a project
reaches a major milestone
 They are designed to keep everyone up-
to-date on project status
 For executives and clients, these may be
the only reports they receive

10-54
Computerized PMIS (Project Management
Information Systems)

 Real projects are often large

– Hundreds of tasks
– Thousands of work units
 Reporting is clearly a job for the computer
 Project management information systems
were one of the earlier applications
 Initially focus was on scheduling
 Now it includes, earned values,
variances, and more
10-55
PMIS Errors
 Managing the PMIS
 Computer paralysis
 PMIS verification
 Information overload
 Project isolation
 Computer dependence
 PMIS misdirection

10-56
PMIS Desirable Attributes
 Graphics
Friendliness
 Charts
Schedules
 Migration
Calendars
 Consolidation
Budgets
 Access
Reports

10-57
Define "Monitoring".
 Monitoring refers to the systematic and ongoing process of
collecting, recording, and analyzing information or data
about a project, program, or activity. It involves the regular
observation. measurement, and assessment of progress,
performance, and results against predetermined goals,
targets, or standards. It aims to provide real-time insights
into the implementation of a project, allowing for timely
identification of any deviations, challenges, or
opportunities. It involves tracking activities, outputs,
outcomes, and impacts, to ensure that they align with the
intended objectives and expectations.

10-58
Define "Monitoring".
The key elements of monitoring include:
 Data Collection: Gathering relevant data and information through
various methods, such as surveys, interviews, observations, document
reviews, or data tracking systems.
 Data Analysis: Analyzing the collected data to assess the status.
trends, patterns, and quality of project implementation. This involves
organizing, interpreting, and drawing conclusions from the data to
identify any issues, gaps, or successes.
 Feedback and Reporting: Providing feedback and reporting the
findings to stakeholders, including project managers, and other
relevant parties. It often used to communicate the monitoring results,
highlighting key insights and recommendations for improvement.

10-59
Describe the three variances of an earned
value chart and explain their significance.

An earned value chart, also known as an

Earned Value Management (EVM) chart, is a
tool used in project management to track and
analyze project performance. It provides
insights into the project's progress, cost
efficiency, and schedule adherence. The three
variances measured by an earned value chart
are schedule variance (SV), cost variance
(CV), and schedule performance index (SPI).
Here's an explanation of each variance and10-60
Describe the three variances of an earned
value chart and explain their significance.

Schedule Variance (SV):

Schedule Variance (SV) is a measure of the deviation between
the planned schedule and the actual progress of the project. It
shows whether the project is ahead of or behind schedule at a
given point in time.
Significance:
- Positive SV: A positive SV indicates that the project is ahead of
schedule.
- Negative SV: A negative SV indicates that the project is behind
schedule.
- Zero SV: A zero SV means that the project is precisely on
schedule, with the actual progress matching the planned
schedule.
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Describe the three variances of an earned
value chart and explain their significance.
Cost Variance (CV):
Cost Variance (CV) is a measure of the deviation between the
planned budget and the actual cost of the work completed. It shows
whether the project is under or over budget at a given point in time.
- Positive CV: A positive CV indicates that the project is under
budget. It means that the actual cost of work performed is less than
what was planned or budgeted.
- Negative CV: A negative CV indicates that the project is over
budget. It means that the actual cost of work performed exceeds
the planned or budgeted cost.
- Zero CV: A zero CV means that the project is exactly on budget,
with the actual cost of work performed matching the planned
budget.
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Describe the three variances of an earned
value chart and explain their significance.
Schedule Performance Index (SPI):
Schedule Performance Index (SPI) is a ratio that measures the efficiency
of time utilization in the project. It shows the relationship between the
earned value (EV) and the budgeted cost of work scheduled.
Significance:
- SPI > 1: An SPl greater than 1 indicates that the project is ahead of
schedule in terms of time efficiency. It means that more work has been
accomplished per unit of planned time.
- SPI < 1: An SPI less than 1 indicates that the project is behind schedule
in terms of time efficiency. It means that less work has been accomplished
per unit of planned time.
- SPI = 1: An SPI equal to 1 means that the project is precisely on
schedule in terms of time efficiency, with the earned value matching the
planned value.

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What is the purpose of "earned value?"
 The purpose of "earned value" in project management is to measure
and assess the value of work that has been actually accomplished in
relation to the planned work and associated costs. It is a method used
to evaluate the progress and performance of a project by integrating
the measurement of work completed, time expended, and the
corresponding budget.
 The key purposes of earned value are as follows:
– Performance Measurement: Earned value provides a quantitative
measurement of project performance. By comparing the planned value
(PV) or budgeted cost of work scheduled with the earned value (EV) or
budgeted cost of work performed, it indicates how much of the planned
work has been completed at a given point in time. It enables project
managers to assess the actual progress of the project and determine if it is
meeting the desired milestones and targets.

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What is the purpose of "earned value?"
 The key purposes of earned value are as follows:
– Cost Analysis: Earned value facilitates cost analysis by comparing the
actual cost of work performed with the earned value (EV) or budgeted cost
of work performed. This analysis provides insights into the cost efficiency of
the project, identifying if it is under or over budget. It helps in monitoring
and controlling project costs and making informed decisions related to
resource allocation and cost management.
– Schedule Analysis: Earned value supports schedule analysis by comparing
the planned value (PV) or budgeted cost of work scheduled with the earned
value (EV) or budgeted cost of work performed. It allows project managers
to assess the project's schedule performance and determine if it is ahead
of or behind schedule. It helps in identifying schedule deviations. analyzing
the causes, and taking corrective actions to keep the project on track.

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What is the purpose of "earned value?"
 The key purposes of earned value are as follows:
– Performance Forecasting: By analyzing earned value data over time,
project managers can forecast the future performance of the project. It
enables project managers to estimate the project's completion date,
forecast the remaining work, and predict potential cost overruns or
schedule delays. This information aids in proactive decision-making and
effective resource management.
– Performance Reporting: Earned value provides a standardized and
objective basis for reporting project performance to stakeholders. It allows
for clear and concise communication of progress, cost efficiency, and
schedule adherence. Project managers can use earned value metrics,
such as schedule variance (SV), cost variance (CV), and schedule
performance index (SPI), to present a comprehensive picture of the
project's status and performance trends.

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What tools are available to a PM to use to
control a project?

Some of the tools available to the

PM are:
• EV analysis
• Critical ratio charts
• Gantt charts

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