Project Monitoring & Control

Content

Introduction Controlling concept Planning Schedule Project Lift Cycle Project controlling system

Project controlling methodology

Need of Project Monitoring & Control

Project success is measured as the ability to complete the project: According to desired specifications Within the Specified Budget Within the Promised time Schedule Keeping the Customer & Stakeholders happy.

Thus, Project Monitoring & Control process becomes one of the key processes of Project Management.

Project Management Process

Standard procedure of project management
Initiation Planning

Initiation

Executing
Controlling Finish

Planning

Controlling

Executing

Finish

Project Monitoring
Project Monitoring is Tracking of :

the scope
time schedule project cost and resources

quality of the product

safety and the risk

Project Monitoring

It is the process used by the project team to ensure the team is making satisfactory progress

Provide visibility to the status so that correction can be made

Incorporate the status in the plan and revise

Why do we need Early Warning?

Course corrections are easier when you have time to make small adjustments Its too late when youre this close to the iceberg!

Project Control

It is taking corrective action to reduce difference between plan & reality, to achieve a balance between Cost, Time & Performance parameters of the project.

Decides the action plan among various alternatives available.

Controlling the project

Project controlling: Time and the schedule control Resource control based on the ace Quality control Safety control Resource allocation.
Inputs: Feed back{ stake holders} Project plan &Time schedule Cost report & Cost Budgets Productivity report Project Mile stones Progress reports

Project Schedules
Master Programme

Schedule Of Revenue Schedule Of Milestone Events Schedule Of Plant And Machinery Schedule Of Staff Schedule Of Labor Schedule Of Materials Schedule Of Specialized Agencies Schedule Of Direct Cost Schedule Of Indirect Cost Schedule Of Liquidity

Master Programme

Construction Schedule

With all activities along with all the connectivity to other tasks

Project and activity duration with standard time scale

Identify critical activities

Helpful in tracking the project through out the project life cycle

Facilitate to reschedule the project by accommodating the changes

Master Programme

Schedule Of Month wise Revenue

Formulated in relation to the Master Programme

Take account of all the activities to be carried out in the respective month

Consider the quantity of all the items

Cumulative cost when plotted against the time will generate the S-Curve of invoice

Schedule Of Month wise activity

Sl. Item Description
PART A : STRUCTURAL WORKS EXCAVATION CONCRETE INCL. SHUTTERING WATER PROOFING MASONRY MISCELLANEOUS WORKS 02 PART B : FINISHING WORKS MASONRY FLOOR FINISHES PLASTER AND WALL FINISHES MISCELLANEOUS WORKS 03 PART C : ROAD WORKS EXCAVATION ROAD PAINTING ROAD MARKING PAINTS STORM WATER DRAIN WORKS COMPOUND WALL MONTHWISE INVOICE CUMULATIVE INVOICING

Unit

Rate

Qty

M1

M2

M3

M4

M5

M6

01

Schedule Of Milestone Events

Useful

for higher Management to review the Project progress as it provides the overview of the project condition

Takes

account of all the major activity

When

plotted along the planned dates as per Master Construction Programme will exhibit the delay in terms of time

Schedule Of Milestone Events

SL NO

MILESTONE EVENT

START DATE

FINISH DATE

REMARKS

1 2 3 4

CASTING OF BASEMENT ROOF SLAB (Main Building) CASTING OF BASEMENT ROOF SLAB (Future block) CASTING OF GROUND FLOOR ROOF SLAB CASTING OF 1ST FLOOR ROOF SLAB

5
6 7 8 9

CASTING OF 2ND FLOOR ROOF SLAB

CASTING OF 3RD FLOOR ROOF SLAB CASTING OF 4TH FLOOR ROOF SLAB CASTING OF 5TH FLOOR ROOF SLAB CASTING OF 6TH FLOOR ROOF SLAB FINISHING WORKS

10 11 12 13 14

BLOCK WORK PLASTERING WORK FLOORING EXTERNAL FINISHES ROAD WORKS

Schedule Of Plant & Machinery

One of the 4 Ms - Man - Materials - Money - Machinery

Takes record of all the major Plant & Machinery employed either own or hired

Helpful in scheduling the release of a particular machinery from one project to other

Schedule Of Plant & Machinery

Requirement Sr 1 2 3 4 8 9 10 11 12 13 14 16 17 19 20 Description DEWATERING PUMP 5HP SUBMERSIBLE DEWATERING PUMP VIBRATORY PLATE COMPACTOR VIBRATORY PLATE COMPACTOR COMPRESSION TESTING MACHINE BUILDERS HOIST - 1 TON capacity BUILDERS HOIST - 1 TON capacity 7.5 HP MULTI STAGE WATER PUMP 10/7 MIXER MACHINE - Electrical 10/7 MIXER MACHINE - Electrical WEIGH BATCHER SURFACE PLANER - WARTON make CIRCULAR SAW CUTTING MACHINE BAR BENDING MACHINE WELDING GENERATOR No From To Recd Dt

Release Dt

Remarks

Schedule Of Staff

Traces the requirement and release of the most important resource i.e. Manpower

Helpful in restricting the staff at the project location and hence the overhead cost

Avoids the conditions of dual command

Provides freedom of work and fixing up of responsibility

Schedule Of Staff
Requirement Sl.No. 1 2 3 Description CONSTRUCTION MANAGER PLANNING ENGINEER BILLING ENGINEER SITE WORKS 1 2 3 SITE ENGINEER : DAY SHIFT SITE ENGINEER : NIGHT SHIFT FINISHING ENGINEER REINFORCEMENT 1 REINFORCEMENT IN-CHARGE FORMWORK ENGINEER 1 2 FORMWORK ENGINEER CARPENTRY FOREMAN SERVICES 1 2 3 QA/QC ENGINEER SAFETY ENGINEER P & M MECHANICAL ACCOUNTS / ADMIN 1 2 3 ACCOUNTANT TIME KEEPER STORE KEEPER Name From To Reported On Remarks

Schedule Of Labor

Most important as it optimizes the head count of labor of both skilled and unskilled type

Absence of tracking of the labor count may lead to delay in planned activities

Helpful in deciding the shifting and release of the labor at any point of the time throughout the project cycle

Labor consumes a major component of both Direct and Indirect Cost

Schedule Of Labor

SL NO

CATEGORY OF WORKMEN

M1

M2

M3

M4

M5

M6

UNSKILLED WORKMEN

MASONS

MASON HELPER

CARPENTERS

CARPENTER HELPERS

REINFORCEMENT FITTERS

FITTER HELPERS

GRAND TOTAL

Schedule Of Materials

Gives the amount of various materials required for a particular month

Helps in restricting the storage space at the Project by optimizing the quantity of material

Helps in controlling the Working Capital at any point of time

Prime importance in days of unstable price market

Proper use will ensure no idling labor at Project site

Schedule Of Materials
SL NO MATERIAL DESCRIPTION UOM TOTAL QTY M1 M2 M3 M4 M5 M6

QTY 1 2 3 4 5 6 7 8 9 10 11 12 15 13 14 15 CEMENT SAND - MEDIUM SAND - FINE REINFORCEMENT STEEL STRUCTURAL STEEL 200 MM THK SOLID BLOCKS 100 MM THK SOLID BLOCKS SOLING STONE - 6" 40MM AGREGATE 20MM AGREGATE QUARY DUST RED MURRUM KOTTA CERAMIC TILE VERTIFIED TILE MOSAIC BAGS CUM CUM MT MT NOS NOS CUM CUM CUM CUM CUM SQM SQM SQM SQM

QTY

QTY

QTY

QTY

QTY

Schedule Of Specialized Agencies

Take account of the schedule of the specialized works such as Waterproofing, Anti-termite Treatment, Mosaic flooring, testing & commissioning of control & relay panels (electrical) etc.

Helpful in accessing the time to start the process of selection of Specialized Agencies in good time

Gives an idea of the activities requiring the specialized works

Schedule Of Specialized Agencies

SL NO ITEM DESCRIPTION UO M CU M SQ M SQ M SQ M SQ M SQ M SQ M SQ M SQ M QT Y SCHEDULED START 1 2 3 4 5 EXCAVATION BY MECHANICAL MEANS BASEMENT WATERPROOFING RETAINING WALL WATERPROOFING TERRACE WATERPROOFING ANTI-TERMITE TREATMENT VERTIFIED TILE FLOORING GRANITE FLOORING MARBLE FLOORING MOSAIC FLOORING SS & GLASS RAILING ROAD WORKS ROAD PAINTING FINISH AGENCY FINALISATION START FINISH AGENCY REQUIR ED REMARKS

6
7 8 9 10 11 12

RM T
SQ M SQ M

Direct Cost & Indirect Cost

A price that can be completely attributed to the production of specific goods or services is the Direct Cost

Direct costs refer to materials, labor and expenses related to the production of a product.

Indirect costs are costs that are not directly accountable to a cost object (such as a particular project, facility, function or product. These are those costs which are not directly related to production. Indirect costs may be either fixed or variable. Indirect costs include administration, personnel and security costs.

Other

costs, such as depreciation or administrative expenses, are more difficult to assign to a specific product, and therefore are considered indirect costs.

Schedule Of Direct Cost

Most important as it forms the major part of the cost incurred

In accordance with the schedule of Invoice and Master Construction Programme gives the capital requirement for the current month

Should be handled carefully as any missing part may lead to financial disorders

Covers almost 85-90% of the total cost

Schedule Of Direct Cost

Sl. Item Description PART A : STRUCTURAL WORKS EXCAVATION CONCRETE INCL. SHUTTERING READY MIX CONCRETE FOR BEAMS FOR SLABS STEEL WATER PROOFING MASONRY MISCELLANEOUS WORKS PART B : FINISHING WORKS MASONRY FLOOR FINISHES PLASTER AND WALL FINISHES Sqm Sqm Sqm Cum Cum Cum Cum Cum Mt Sqm Sqm Sqm Unit Qty M1 M2 M3 M4 M5 M6

MISCELLANEOUS WORKS
PART C : ROAD WORKS EXCAVATION ROAD PAINTING STORM WATER DRAIN WORKS COMPOUND WALL Cum Sqm Mtr Rmt

MONTHWISE INVOICE (LAKHS)

CUMULATIVE INVOICING

Schedule Of Indirect Cost

Critical as cannot be tracked directly unlike direct cost

Contributes 10-15% of the total expenditure of the project

Uncontrolled Indirect cost eat up profit from the project

Control on it will gives healthy rise in the profit margin

Schedule Of Indirect Cost

Sl. Description Total Cost M1 1 2 3 4 5 6 7 9 10 11 12 14 15 16 SALARIES MISC. LABOUR CONTRIBUTION OF PF STAFF BENEFITS RENT, RATES & TAXES POWER WATER CHARGES FREIGHT, PACKING TRAVEL CONVEYANCE OUT OF POCKET EXP. POSTAGE & TELEGRAPH PRINTING & STATIONERY HIRE CHARGES M2 COST (p.m.) M3 M4

17
18 19 20 21

SUNDRIES
SECURITY CHARGES SAFETY EXPENSES TEMP. STRUCTURES LABOUR COLONY TOTAL

Why do you need Project Control?

The essential meaning of project controlling is to guarantee the final realization of project objectives
No controlling is needed without a target !!!

Project controlling means project objective controlling

Why do you need Project Control?

The project has been base lined and work has started Is everything going according to plan? Next step in the process: figure out your status figure out the problems figure out what you need to do to fix them figure out what the impact might be
BCWS

BCWP $

time

Project Monitoring & Control Cycle

BASE PLAN - Schedule - Budget - Scope
COMAPRE

REVISED PLAN

STATUS - Schedule - Budget - Scope

CHANGE REQUESTS

DECIDE ACTION PLAN

OBSERVED DEVIATIONS - Schedule - Budget - Scope

MANAGERIAL ASSESSMENT OF ALTERNATIVES

ANALYSE EFFECT On Schedule, Budget & Scope

Project Lift Cycle Uncertainty & Risk

Project Lift Cycle Amount at Stake

Project Lift Cycle Cost of Making Changes

Focus for Monitoring & Control Progress of the project Productivity

Cost of the project Performance and efficiency

Material consumption
Quality and safety

Controlling Factors
Reduce time - Increase cost Reduce time - Improve cost-effectiveness Improved quality Reduce maintenance cost

Cost
Objective Triangle

Time
Higher quality Less time

Increase investment Improve Quality

Less time More quality defects

Quality

The Main tasks of controlling is to approach the balance of project objectives systematically in a conflicting situation

Methods to Monitor & Control

written status reports Progress status- planed to actual progress updates regarding the action required, risks, problems, and issues comparisons of actual costs to budgeted costs, The cost/benefit analysis from the starting

Quality audit reports

Status of work in progress Status of working capital

Status of capital employed

Controlling Points

Possible controlling points

Milestones End of tasks Interfaces End of each month/week/day

Selection of controlling point should be based on the controlling target, method, and personnel

Project Controlling system

To conduct project controlling

Project information

Controlling cycles

Functional tasks

Characteristics of Controlling System

Should Should Consist Can

be project objective oriented be based on the nature of the project of variety of controlling areas and procedures

be depicted as a three-dimensional framework Project functional tasks Project information Controlling cycles of the controlling tasks can be organized within this framework

All

Controlling System
Project

information Various project data generated from whole process tasks Different tasks carried out by various functional positions

Functional

Market Price

Controlling

cycle Long/short term controlling procedure determined by selected controlling points

Quality Stand.

Scheduled Date

Planning Procurement Production Accounting

Project Controlling Methodology

Key of Project Controlling

Objective Controlling

Key of Objective Controlling

Comparison between planned value and actual data

Method of Comparison

Dynamic Controlling

Project Status Reporting

Assumption: An accurate management control system yields accurate data Basic principles: Report on periodic basic Weekly Monthly

Only ask for the data that you really need and use Tailor the data to match how youre managing

Review At Various Stages

Key

Criteria Understanding Project Life Cycle

Role

of Stack holder

Strategy

of Organisation

Review During all Phase

Business

Plan

Scope

Milestones

/ Project Status

Comparisons

Action

Plan

Review Initiation Phase

Project

Charter

Project

Frame Work

A formal

document providing authority to a project manager to conduct a project within scope, quality, time and cost and resource constraints as laid down in the document. usually includes a mission statement, including background, purpose, and benefits, a goal, objectives, scope, assumptions and constraints.

It

It

may also be called a "Project Brief," or any number of other synonyms.

Project Framework
Project Title:

Project description:
One sentence to describe the project

Begin date: The context:

End date:

What triggered the start of the project? What are the goals/objectives of this project? Why are we undertaking it? All projects start with a business problem/issue to solve

Deliverables and criteria for close-out:

What we will have at the end of the project. This statement should be short and to the point. It should not contain language or terminology that might not be understood. Typically a deliverable should be quantifiable to easily determine if it was 'delivered' or not

The project boundaries:

Interdependencies (with other projects, groups, system interfaces, etc)

Additional benefits/links with strategy:

Regarding, clients, the organization, know-how, new services/products, savings, regulations, technologies.

Project Framework
The main risks:
What are the barriers to achieving project success (ie the major risks)? For each of these risks, what steps will be undertaken to minimize them?

Stakeholders:
Client (sponsor): Project Manager: Project team: Steering committee: Other stakeholders: Groups who will impact the project or be impacted by the project and describe how they will be engaged. Tasks already started:

Budget and resources:

$, people, equipment, facilities, software, etc.

Milestones:

Date

Key deliverable

Review Design / Planning Phase

Project

Charter

Project

Frame Work

Scope

Design Reviews

Budgets

Reviews

Planning

Reviews

Risk Analysis

/ Action Plan

Review Execution Phase

Project

Framework Plans Reviews

Business Progress Status

Plans

Risk Analysis
Value Additions Productivity Budget

Review Procedures

Closeout

Cost

time

technical

Earned Value Management

What is EVMS?

A project management technique for measuring project performance and progress in an objective manner.

It

has the ability to combine measurements of:

Scope Schedule, and Costs

In

a single integrated system, Earned Value Management is able to provide accurate forecasts of project performance problems, which is an important contribution for project management.

Why use EVMS?

Life without EVMS
Given:

total budget of rs100,000 Period 12 month produce 20 units

Status:

spent to date: rs64,000 time elapsed: 6 months units produced: 8 complete, 2 partial
How
How

are you doing, and how do you know how you are doing?
far along are you? (64%, 50%, >40%)

EVMS measures progress

Progress = Movement Forward to measure progress, there must be a standard against which the forward movement may compared

be

EVMS establishes a baseline to measure progress

What do we measure progress against?

Performance

measurement baseline

-cost is measured against the budget

-time is measured against the period

-work is measured by physical progress
Earned

Value is key concept - how much progress did I make against my original plan? - expressed in cost or time

baseline

cost
earned value

time

Five Basic Elements

BCWS BCWP ACWP BAC EAC Budgeted Cost of Work Scheduled Budgeted Cost of Work Performed Actual Cost of Work Performed Budget at Completion Estimate at Completion

Five Basic Performance Data Questions & Answers

QUESTION How much work should be done? How much work is done? ANSWER Budgeted Cost for Work Scheduled Budgeted Cost for Work Performed Actual Cost of Work Performed Budget at Completion ACRONYM BCWS

BCWP

How much did this done work cost? What was the total job supposed to cost? What do we now expect the total job to cost?

ACWP

BAC

Estimate at Completion

EAC

Earned Value Concept

Analysis of Variances

Schedule Variance SV ($)

BCWP - BCWS

SV (%) =

BCWP - BCWS BCWS

100%

Cost Variance

CV ($)

BCWP - ACWP

CV (%) =

BCWP - ACWP BCWP

100%

Schedule Status

% scheduled = BCWS x 100% BAC

% completed = BCWP x 100% BAC

TIME NOW

Months ahead or behind =

SV Average monthly BCWS

BCWS

BCWP

MONTHS BEHIND

Why do we need accurate EACs?

Variance

at Completion vs. Contractor Loss

Positive VAC: EAC < BAC underrun

contractor gain

Negative VAC: EAC > BAC share area contractor partial loss EAC > ceiling overrun contractor loss (100%)

Government

develops top level EAC for comparison government will limit progress payments if EAC is greater than ceiling government needs forecast of fund requirements still have time to change the final outcome

May