Spm unit iii-risk-monitoring & control1
Download as PPTX, PDF6 likes1,594 views
The document discusses project monitoring and control. It explains that after a project begins, progress must be regularly monitored by comparing actual achievements to schedules and revising plans as needed. Key aspects of monitoring include establishing a framework, assigning responsibilities, setting reporting structures and checkpoints, collecting and assessing data visually through charts, and tracking costs and schedules through earned value analysis. The overall goal is to exercise control by finding what is happening and comparing to targets to ensure projects meet their goals.
Spm unit iii-risk-monitoring & control1
- 1. SPM-UNIT III RISK MANAGEMENT MONITORING & CONTROL Prof. Kanchana Devi
- 2. Introduction After scheduling , project will start and then attention must be focused on progress. Progress needs monitoring What is happening Comparison of actual achievement against the schedule Revision of plans and schedules (wherever necessary) 2 Prof. Kanchana Devi
- 3. Creating Framework Prof. Kanchana Devi 3 Exercising control over a project and ensuring that targets are met is a matter of regular monitoring. Finding out what is happening and comparing it with targets Re-planning also sometimes required
- 4. Project control cycle Prof. Kanchana Devi 4
- 5. Responsibility Prof. Kanchana Devi 5 The overall responsibility Ensuring satisfactory progress on a project It is the role of “Steering Committee”, project management board or Project Board.
- 6. Project Reporting Structure Prof. Kanchana Devi 6
- 7. Reporting Prof. Kanchana Devi 7 Reporting may be Oral/Written Formal/Informal Regular/Ad-hoc
- 8. Assessing Progress Prof. Kanchana Devi 8 Information should be collected routinely Information should be objective and tangible Whether or not a particular report has been delivered Sometimes the assessment depends on estimates of proportion of current activity that has been completed
- 9. Setting Checkpoints Prof. Kanchana Devi 9 Necessary to set a series of check points in the initial activity plan. Checkpoints may be: Regular(Monthly) Tied to specific events (production of report)
- 10. Collecting the Data Prof. Kanchana Devi 10 Rule: Manager will breakdown the long activities into more controllable tasks of one or two weeks. It is necessary to gather information about partially completed activities, forecasts of how much work is left to be completed.
- 11. Example of partial completion reporting Prof. Kanchana Devi 11
- 12. Risk Reporting Prof. Kanchana Devi 12 One way to overcome the objections of partial completion report is to avoid asking for completion dates. (instead ask for likelihood of meeting the target) Called “Traffic Light Method”.
- 13. Consists of following steps Prof. Kanchana Devi 13 Identify the key elements for assessment in a piece of work Break these key elements into constituent element Assess each of the second level element on the scale Green for target, Amber for ‘not on target but recoverable’ Red for ‘not on target and recoverable only with difficulty’ Review second level assessment to arrive at first level Review first level assessment to produce an overall assessment
- 15. Visualizing Progress Prof. Kanchana Devi 15 Gantt Chart Slip Chart Ball Chart Timeline Chart
- 16. Cost Monitoring Prof. Kanchana Devi 16 Expenditure monitoring is an important component of project control A project might be on time but only because more money has been spent on activities than originally budgeted
- 17. Tracking cumulative expenditure Prof. Kanchana Devi 17
- 18. Cumulative Expenditure Chart Prof. Kanchana Devi 18
- 19. Earned Value Prof. Kanchana Devi 19 Analysis is based on assigning a ‘value’ to each task or work package based on expenditure forecasts. The assigned value is the original budgeted cost for the item and is known as the ‘baseline budget’ or ‘budgeted cost of work scheduled’(BCWS) The total value credited to a project at any point is known as the ‘earned value’ or ‘budgeted cost of the work performed’(BCWP)
- 20. Actual Cost Prof. Kanchana Devi 20 By recording the “Earned Value”, the actual cost of each task can be collected as “Actual Cost” or ACWP-Actual Cost of Work Performed. There are three types of Variance: Schedule Variance(SV) Time Variance(TV) Cost Variance(CV)
- 21. Schedule Variance(SV) Prof. Kanchana Devi 21 The Schedule Variance is measured in cost terms as EV-PV It indicates the degree to which the value of the completed work differs from the planned work.
- 22. Example: Prof. Kanchana Devi 22 A work with a PV of $40,000 should have been completed by now. In fact, some of that work has not been done so that the EV is only $35,000. Calculate SV. SV=EV-PV 35000-40000= - 5000 A negative SV means the project is behind schedule
- 23. Time Variance (TV) Prof. Kanchana Devi 23 Difference between the time when the achievement of the current earned value was planned to occur and the time now. Eg: The current EV should have been achieved in the early part of month 9 and as the time now is end of month 11, the TV is about -1.75 months from graph.
- 24. Cost Variance (CV) Prof. Kanchana Devi 24 This is calculated as EV-AC. It indicates the difference between the earned value or budgeted cost and the actual cost of the completed work. Let Actual Cost for previous example is $ 55,000 CV=35000-55000 = -20000 A negative CV means that the project is over cost
- 25. Prioritizing Monitoring Prof. Kanchana Devi 25 List of priorities Critical Path Activities Activities with no free float Activities with less than a specified float High Risk Activities Activities using critical resources