2020 T2 MN601 Lecture 10 Determine Project Progress and Results

Lecture 10
Determining Project Progress
MN601 Network Project Management
2020 T2 Compiled by: Dr Nalin Sharda 1

Outline

1. Determining Project Progress and Results
– Decision Making for Project Determination
2. Project Balanced Scorecard Approach
3. Internal Project Issues
4. Customer Issues
5. Financial Issues
6. References

• Fundamental reason for determining project

progress and results is to present actionable,
decision-making information to project leaders.
– what needs to be done
– ensure that the project is progressing as planned
and
– deliver the intended results at the end

Decision Making for Project Determination

• The project manager may need to:
– personally make decisions
– be part of a group that makes decisions
– delegate decision making to others
– facilitate the process by which the decision is
made.

Project Balanced Scorecard Approach

• The balanced scorecard, a performance measurement
system that involves collecting data and analysing
organisations from four different perspectives:
– Financial
– Customer
– Business process
– Learning & growth
• Different aspects of a project are often interrelated and their

impacts on each other need to be considered.

Project Balanced Scorecard Approach

Quiz: Determining Project
Progress
1. How should a project manager make
decisions about a project’s progress?
2. What are the main elements of a Project
Balanced Scorecard Approach ?

Internal Project Issues
• Project work and risks form the project’s

internal issues.
• Project managers deal with these issues by:
– Directing and managing project execution.
– Monitoring and controlling the project work.
– Performing integrated change control.
– Monitoring and controlling project risks.
– Reporting project performance.

Direct and Manage Project Execution

• “the process of performing the work defined in the
project management plan to achieve the project’s
objectives.” PMBOK
– Empower others when possible  control others when
necessary
– It should be clear who is allowed to authorise work to commence.
– The project management plan identifies work to be accomplished.
– The PM or his appointee must tell someone when it is time to
perform the work.


• Sources of Work to be Performed:
– The work package level of the work breakdown
structure (primary)
– Approved corrective actions
– Preventive actions
– Defect repairs

Aids to Project Tradeoff Decisions
– Well-developed project charters
– Effective stakeholder management

Monitor and Control Project Work

• Monitoring and controlling project work “the processes required to
track, review, and regulate the progress to meet the performance objectives
of the project plan.” - PMBOK® Guide
– Monitor : collect project performance data with respect to a plan, and

report performance information.
– Control: compare actual performance with planned and recommend
appropriate corrective action when needed.
• Happens continuously throughout the project.
• Activities occur in parallel with project execution.
• Activities need to be timely.
• Allow workers to self-control their work where possible.

Monitor and Control Project Work

• A smart PM keeps an eye on many things that can indicate how well the
project is doing and is prepared to act if necessary to get the project back
on track.

Types of Project Control

• Steering control - on a continual basis, the work is compared to
the plan to see if progress is equal to, better than, or worse
than the project plan.
• Go/no go control - requires a project manager to receive
approval to continue.
• Recommendations can include corrective actions, preventive
actions, and defect repair.

Results of Monitoring and Controlling

1. If the actual progress is very different than the original intent,
perhaps the project charter needs to be revisited to ensure that the
project still makes sense.
2. If progress is somewhat different than planned, but the charter is still
a good guide, perhaps the project plan needs to be adjusted.
3. If the project plan is still a useful guide, perhaps minor adjustments
need to be made in day-to-day instructions within the project
executing stage.
4. Finally, if the results indicate the customer is ready to accept the
project deliverables, perhaps it is time to proceed into the project
closing stage.
Perform Integrated Change Control

Integrated change control - “the process of
reviewing all change requests, approving changes,
and managing changes to deliverables, organisational
process assets, project documents, and project
management plan.” - PMBOK
• The decision to approve the proposed change needs
to be made by the correct person or group.

Perform Integrated Change Control

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Monitoring and Controlling Project Risk

• “the process of implementing risk response plans, tracking
identified risks, monitoring residual risks, identifying new risks,
and evaluating risk processes throughout the project.” –
PMBOK
• Consider multiple responses to a given risk
• For previously identified risk events:
– Track the identified risks
– Execute the response plans
– Evaluate their effectiveness.

Risk Event Resolution Strategies

Report Performance
• Performance Reporting -“the process of collecting and
distributing performance information, including status
reporting, progress measurements and forecasting.” - PMBOK
• Report Performance:
– At meetings
– At fixed time intervals or at key project milestones
– Weekly/daily on a project with critical time pressure.
– Emphasise specifics
– Report the target date, current status
– Update the risk register and issues logs
– Consider recommended changes
Time Horizons for Project Performance

Quiz: Internal Project Issues
1. “Empower others when possible , control others when

necessary” is good dictum for project management. Explain
this dictum with examples.
2. At what stages any project should be monitored and
controlled? Give examples of what can happen if this is not
done in a timely manner.
3. What strategies need to be adopted for risk monitoring and
control?
4. At what stage(s) should a Performance Report be prepare for
a project?
5. What elements should be included in a Performance Report?

Customer Issues
• Quality assurance and Quality control

– Quality assurance – “the application of planned,
systematic quality activities to ensure that the
project will employ all processes needed to meet
requirements.” – PMBOK
– Project manager ensures that work is performed

correctly and that key stakeholders are convinced
that the work is performed correctly.

Customer Issues
Performing quality assurance

• “the process of auditing the quality requirements and the
results of quality control measurements to ensure
appropriate quality standards and operational definitions
are used.” PMBOK® Guide
• Perform Quality Assurance
– Conduct quality audits
– Improve project processes
• Control Quality

Customer Issues
• Quality audit is the process of systematic examination of
a quality system carried out by an internal or external quality
auditor or an audit team.
– Undertaken to improve the manner in which work is
accomplished.
– Review of the official documentation (how the work is
supposed to be done?).
– Interview the workers (how the work is actually done?).
– Investigate documentation records (verify how the work was
completed).

Customer Issues
• Avenues for Improving Project Processes

– Interpret the results from quality control
measurements
– Feedback from customers, suppliers, work
associates, and other stakeholders
– Benchmarking is a structured consideration of how
another organisation performs a process.

Customer Issues
• Quality control - deals with comparing specific

project measurements with stakeholder’s
standards
• Quality control purposes:

– To reduce the number of defects and inefficiencies
– To improve the project process and outputs

Customer Issues
Quality control consists of…

• Monitoring the project to ensure that everything is
proceeding according to plan.
• Identifying when things are different enough from the plan to
warrant preventive or corrective actions.
• Repairing defects.
• Determining and eliminating root causes of problems.
• Providing specific measurements for quality assurance.
• Providing recommendations for corrective and preventive
actions.
• Implementing approved changes as directed by the project’s
integrated change control system.

Customer Issues
Monitor the Project Quality

• Focus on inputs, processes, and output.
• Ensure that the materials, information, and other
inputs provided meet the required specifications and
will work satisfactorily.
• Minimise rework which wastes time and money.
• Use internal inspection to ensure the deliverables
work before they are sent to the customer.

Customer Issues
Pairs of Project Quality Control Terms

Customer Issues
Quality Control Terms

• Prevention vs. Inspection - keeping errors out of a process vs. trying to find
errors so they do not get to the customer.
• Sample vs. Population - big enough sample to be representative of the

population, small enough sample that it is cost and time effective.
• Attribute vs. Variable - An attribute is a yes or no test; a variable is

something that can be measured.
• Tolerance vs. Control Limit - A tolerance limit is what the customer will
accept; A control limit reflects what the process can consistently deliver
when things are behaving normally.

Customer Issues
Quality Control Terms

• Special vs. Common cause - Special causes are statistically unlikely events
that mean something is different than normal. Common causes are normal
or random variation that is considered part of operating the system at its
current capability.
• Preventive vs. Corrective Action - Preventive action is a proactive approach
of making a change because a problem may occur otherwise. Corrective
action is a reactive approach of making a change to fix a problem that has
occurred.

Customer Issues
Project Quality Control Tools

Customer Issues
Project Quality Control Tools

• Flow chart - Flow charts can be used to show any level
of detail from the overall flow of an entire project
down to very specific details of a critical process.
• Check sheet - Decide exactly what data will be useful
in understanding and controlling a process and create
a form to collect that information
• Pareto chart - Quickly understand the primary causes
of a particular problem using the 80/20 rule, where 80
percent of defects often come from only about 20
percent of all the sources.
Customer Issues
• Flow chart -

Customer Issues
Check sheet

Customer Issues
• Pareto chart: Named after Vilfredo Pareto, is a type of chart that contains

both bars and a line graph, where individual values are represented in descending
order by bars, and the cumulative total is represented by the line.
Ref: https://en.wikipedia.org/wiki/Pareto_chart
•

Quiz: Customer Issues
1. Explain the differences between the following similar

quality control terms:
• Prevention vs. Inspection
• Sample vs. Population
• Attribute vs. Variable
• Tolerance vs. Control Limit
• Special vs. Common cause
• Preventive vs. Corrective Action
2. What are some of the most widely used Project
Quality Control Tools? Explain how these are useful.

Financial Issues
• Cost and schedule are so closely related that

they are monitored and controlled at the same
time.
• Cost and schedule are financial issues.
• Start with the approved cost and schedule
baseline.
• Determine current status of the schedule and
cost.

Financial Issues
• Methods for controlling cost and schedule include
– Earned value management
– Project scheduling software (MS Project)
• If the schedule or budget has changed by a pre-agreed
amount, changes should be formally recommended
and managed through the integrated changes control
system.
• Cost control requires consideration that no more
money is spent than the amount authorised.

Financial Issues
Earned Value Management

• “a management methodology for integrating scope,
schedule, and resources, and for objectively measuring
project performance and progress.” – PMBOK
– A decision-making tool for examining how a project is doing
at a given point in time.
– Allows a project team to understand their project’s progress
in terms of cost and schedule.
– Allows for quick assessment of how the project is doing
according to the baseline plan.

Financial Issues

• Cost and schedule are considered independently
• Earned value terms deal with only 2 time frames

Financial Issues
Currently Known Values

• Planned value (PV) – “the authorised budget assigned to the
scheduled work to be accomplished.….” PMBOK® Guide
• Earned value (EV) – “the value of completed work expressed in
terms of approved budget assigned to that work.…” PMBOK® Guide
• Actual cost (AC) – “total costs actually incurred and recorded in
accomplishing work performed during a given time period.…” PMBOK®
Guide
• Budget at completion (BAC) – “the sum of all budgeted values

established for the work to be performed on a project.… The total
planned value of the project..” PMBOK® Guide

Financial Issues
Variances
Schedule variance (SV) – “a measure of schedule
performance on a project. It is …EV minus PV.” PMBOK®
Guide
SV  EV - PV
Cost variance (CV) – “a measure of cost performance on
a project. It is … EV – AC.” PMBOK® Guide
CV  EV - AC
Financial Issues
Indexes
• Schedule performance index (SPI) – “a measure of
schedule efficiency on a project. It is … EV divided by
PV.” PMBOK® Guide
SPI  EV/PV
• Cost performance index (CPI) – “a measure of cost
efficiency on a project. It is …EV divided by AC.”
PMBOK® Guide
CPI  EV/AC
Financial Issues
Use past performance to estimate future performance

• Estimate to complete (ETC) – “the expected cost
needed to complete all the remaining work for … the
project.” PMBOK® Guide
ETC  (BAC - EV)/CPI
Estimate at completion (EAC) – “the expected total cost
of … the project when the defined scope of work will be
completed. It is AC plus ETC.” PMBOK® Guide
EAC  AC  ETC
Financial Issues
EXAMPLE:
You are well settled in Australia. In your third job you have been promoted to
the position of project manager in FabSoft Pty. Ltd.
By now you are married and have a 4 year old son and another child is on the
way.
You are building your dream home, with a planned cost of $ 750 k. At the
present time you have spent $400 k to reach a stage that was planned to
have been reached at a budged cost of $250 k.
However, you have managed to build only to a level that would get you $200k
in the market if you have to sell your incomplete home.
Calculate EV, PV, AC, BAC , SV, CV, SPI, and CPI for this project.

Financial Issues
EXAMPLE:
• Earned value (EV) = 200,000 (how much work is done? )
• Planned value (PV) = 250,000 (how much work should be done?)
• Actual cost (AC) = 400,000 (how much did the “EV” cost?)
• Budget at completion (BAC) = 750,000 (How much was the total project supposed to
cost)
• Schedule variance, SV = EV-PV 200,000 – 250,000 = -50,000 (-ve , BEHIND
SCHEDULE)
• Cost variance, CV = EV-AC 200,000 – 400,000 = -200,000 (-ve, OVER BUDGET)
• Schedule performance index, SPI = EV / PV 200,000 / 250,000 = 80% ( 80% OF
PLANNED )
(SPI of 80% => project is less efficiently than planned and is behind schedule)
• Cost performance index, CPI = EV / AC 200,000/400,000 = 50% (50% OF PLANNED
Results)
(CPI of 0.50 demonstrates the project is over budget, and that we are only receiving
$0.50 worth of results for every dollar we have spent.)

Financial Issues

• Cost and schedule are considered independently
• Earned value terms deal with only 2 time frames

Conclusions
1. Determining Project Progress at regular intervals, or milestones, is

important to finish the project in time.
2. Project Balanced Scorecard Approach is used to keep track of Financial
issues, Customer satisfaction, Business processes, and opportunities for
learning and growth.
3. Internal Project Issues are best tackled by regular monitoring and
control, e.g. corrective action, reviewing of the project progress.
4. Customer Issues relate to keeping the client informed of the project
progress, by using tools such as Flow chart, Check sheet and Pareto
chart.
5. Financial Issues are measured by checking the financial health of the
project by comparing the funds spent with the level of project
completed.

References
Acknowledgement: Some of the text in this lecture is taken almost verbatim from the
following references:
1. T. J. Kloppenborg, Contemporary Project Management: Organize, Plan and Perform. South-
Western Cengage Learning, 2012.
2. M. A. Fuller, J. S. Valacich and J. F. George, Information Systems Project Management: A Process
and Team Approach. Upper Saddle River, New Jersey, Pearson Education Inc.,2008. 07458.
3. D. Nevogt, “Managing Remote Employees: How to Be an Effective Remote Manager”.
Blog.hubstaff.com https://blog.hubstaff.com/managing-remote-employees (accessed Sep. 15,
2017).

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Lecture 10

Determining Project Progress

MN601 Network Project Management

2020 T2 Compiled by: Dr Nalin Sharda 1

Determining Project Progress

2020 T2 Compiled by: Dr Nalin Sharda 2

• Fundamental reason for determining project

2020 T2 Compiled by: Dr Nalin Sharda 3

Decision Making for Project Determination

2020 T2 Compiled by: Dr Nalin Sharda 4

Project Balanced Scorecard Approach

• Different aspects of a project are often interrelated and their

2020 T2 Compiled by: Dr Nalin Sharda 5

Project Balanced Scorecard Approach

2020 T2 Compiled by: Dr Nalin Sharda 6

2020 T2 Compiled by: Dr Nalin Sharda 7

• Project work and risks form the project’s

2020 T2 Compiled by: Dr Nalin Sharda 8

Direct and Manage Project Execution

2020 T2 Compiled by: Dr Nalin Sharda 9

Direct and Manage Project Execution

2020 T2 Compiled by: Dr Nalin Sharda 10

2020 T2 Compiled by: Dr Nalin Sharda 11

Monitor and Control Project Work

– Monitor : collect project performance data with respect to a plan, and

2020 T2 Compiled by: Dr Nalin Sharda 12

Monitor and Control Project Work

2020 T2 Compiled by: Dr Nalin Sharda 13

Types of Project Control

2020 T2 Compiled by: Dr Nalin Sharda 14

Results of Monitoring and Controlling

Perform Integrated Change Control

2020 T2 Compiled by: Dr Nalin Sharda 16

Perform Integrated Change Control

2020 T2 Compiled by: Dr Nalin Sharda 17

Monitoring and Controlling Project Risk

2020 T2 Compiled by: Dr Nalin Sharda 18

Risk Event Resolution Strategies

2020 T2 Compiled by: Dr Nalin Sharda 19

Time Horizons for Project Performance

2020 T2 Compiled by: Dr Nalin Sharda 21

1. “Empower others when possible , control others when

2020 T2 Compiled by: Dr Nalin Sharda 22

• Quality assurance and Quality control

– Project manager ensures that work is performed

2020 T2 Compiled by: Dr Nalin Sharda 23

Performing quality assurance

2020 T2 Compiled by: Dr Nalin Sharda 24

2020 T2 Compiled by: Dr Nalin Sharda 25

• Avenues for Improving Project Processes

2020 T2 Compiled by: Dr Nalin Sharda 26

• Quality control - deals with comparing specific

• Quality control purposes:

2020 T2 Compiled by: Dr Nalin Sharda 27

Quality control consists of…

2020 T2 Compiled by: Dr Nalin Sharda 28

Monitor the Project Quality

2020 T2 Compiled by: Dr Nalin Sharda 29

Pairs of Project Quality Control Terms

2020 T2 Compiled by: Dr Nalin Sharda 30

Quality Control Terms

• Sample vs. Population - big enough sample to be representative of the

• Attribute vs. Variable - An attribute is a yes or no test; a variable is