Project Engineering

Chapter 4
Project implementation and controlling

29 January 2024

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Project Monitoring
• Monitoring is the collecting, recording and reporting of project information
that is of importance to the project manager and other relevant stakeholders.

• Monitoring is the continuous assessment of project implementation in

relation to agreed schedules.

• Monitoring provides managers and other stakeholders with continuous

feedback on implementation.

• Monitoring identifies actual or potential successes and problems as early as

possible to facilitate timely adjustments to project operation 2
Evaluation
• Evaluation is judging, appraising, determining the worth, value or quality of a
project to make necessary decision in terms of relevance, effectiveness,
efficiencies, sustainability and impact

• To make best possible use of funds

• To measure the progress in order to avoid weakness and future mistakes
• To identify the scope for modification and improvement
• To make future plan

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Controlling
• Controlling is the management function of comparing the actual
achievements with the planned ones at every stage and taking necessary
action if needed, to ensure the attainment of planned goals

• Ensures “right things are done at right time in right manner”

• “Plan-Do-Review”

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Monitoring & control cycle

Plan Progress Identification &

(Setting monitoring evaluation of
deviations
standard)

Control Reporting
(taking
action) 5
• Control uses the
monitored data and
information to bring
actual performance into
agreement with the
plan.

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Key Issue …
• The key issue in designing an effective monitoring and control
system is
• to create an information system that gives the project manager and others
the information they need to make informed and timely decisions that
will keep project performance as close as possible to the plan.

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Monitoring: Example
(Financial Procedural Rules 2064 of GoN)

Rule 25: All the PE implementing Budget and Program shall submit quarterly the
progress report to the one level higher authority, District Treasure Controller
Office (DTCO) and in the case of district level program to the District
Development Committee (DDC) in the format given as Appendix – 2.

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Monitoring

• Monitoring means to make sure sufficient intelligence is gained on the status

of the project that an accurate and timely evaluation can be conducted in the
project.

• Issues to be addressed
• What to monitor and evaluate?
• What monitoring tools to use?
• When to monitor and evaluate?
• Who should monitor and evaluate?
• Where should the monitoring and evaluation be carried out?
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What to monitor and

evaluate ?
• Project planning
• Project organization
• Program management functions
• Project accomplishment
• Project information

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 What monitoring tools to use?
• Gantt chart
• CPM
• EVA
• ?
• ?

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When to monitor and evaluate?
• During entire life cycle
• Pre-project evaluation – for selection of a project to determine if it fits the
objectives and overall strategy of the organization?
• On-going project evaluation – for measuring the status of a project during its life
cycle
• Project completion evaluation - for an immediate assessment of success upon
project completion
• Post project evaluation – for assessment of project success after project’s
activities are completed

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Who should monitor and evaluate?
• The work package level
• The functional manager level
• The project team level
• The general manager level
• The project owners level

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Purpose of monitoring
• It is important to ensure that projects are implemented as
efficiently and effectively as possible to accomplish the project
objectives – i.e. meeting the project time, cost and quality.

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Types of monitoring & evaluation
• Observation
• Review the progress reports
• Third party auditing

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Project control system
• Project controlling should be established as an independent function in project
management.

• It implements verification and controlling function during the processing of a project

in order to reinforce the defined performance and formal goals.

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Tasks of project controlling

• creation of infrastructure for supply of the right information and its update
• establishment of a process to communicate disparities of project parameters
• development of project information technology based on project key
performance index system (KPI)
• divergence analyses and generation of proposals for potential project
regulations
• establishment of methods to accomplish project objectives and governance
• creation of transparency among the project parameters

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 Project controlling
• Project control is that element of a project that keeps it on-track, on-time and within
budget.

• Project control begins early in the project with planning and ends late in the project with
post-implementation review, having a thorough involvement of each step in the process.

• Each project should be assessed for the appropriate level of control needed: too much
control is too time consuming, too little control is very risky.

• Control systems are needed for cost, risk, quality, communication, time, change,
procurement, and human resources

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Project control cycle- Basic steps
• Establishing standard (what is to be done)
• Starting point of control

• Observing/measuring performance(what actually was done)

• Actual performance is measured

• Finding deviations (cause of deviation)

• Compare the actual performance with the standards

• Taking corrections (future standards)

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• Improvement in design, changing raw materials
 Project control cycle

Establishing
standard

Taking corrective Observing/measuring

actions performance

Finding deviations
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Elements of project control
• Time control
• Cost control
• Quality control

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PROJECT SCHEDULE CONTROL

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Time/schedule control
• Monitors and controls changes to the project schedule

• Manages the actual changes when and as they occur

• Output
• Update schedule
• Corrective action
• Lessons learned

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Time/schedule control
• Involves :
• Determining current status
• Influencing factors that could cause schedule changes
• Identifying if the schedule has changes
• Managing changes as they occur

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Quality control
• Quality control
• Process of monitoring specific project result to determine whether this
comply with relevant quality standards and identifying ways to eliminate
cause of poor performance
• Raw materials and intermediate stage testing
• Self inspection by operator
• Feedback process information to operators, setters and production
supervisors

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Quality control
• Quality assurance
• Procedures and documentation for assuring the quality of products or
service
• Planned and systematic activities implemented in a quality systems so
that quality requirements for a product of service will be fulfilled

• Statistical process control

• Failure mode and effect analysis
• Use of quality cost
• Comprehensive quality manuals
• Advance quality planning 26
• System audit and third party approval
Quality control -tools
• Well written specification
• National and international standards
• Other international organizations
• Procedural guidance
• Training

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Cost of quality
• Cost to control quality (preventive and appraisal)
• Preventive costs: Planning cost
• Appraisal costs : Quality of material

• Cost of failure to control quality (internal and external)

• Internal failure costs : storage cost, disposal cost, transportation, inventory
• External failure costs : repair and maintenance cost of product warranty and product
recalls

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Project Cost control
• Controlling changes to the project budget
• Concerned with the cost of the resources needed to complete project activities
• Concerned with the
• factors causing changes to the cost baseline to ensure that changes are
beneficial,
• determining that the cost baseline has changed,
• managing the actual changes when and as they occur

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Cost control
• Includes:
• Monitoring cost performance to detect variances from plan
• Ensuring that all appropriate changes are recorded accurately in the cost
baseline
• Preventing incorrect, inappropriate, unauthorized changes from being
included in the cost baseline
• Informing appropriate stakeholders of authorized changes

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Cost control
• Outputs from cost control
• Revised cost estimate
• Budget updates
• Corrective actions
• Estimate at completion
• Lessons learned

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Cost control
• Elements of cost control
• Observation
• Comparison
• Deviations
• Corrective actions

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Cost control – Methods
• Short-term planning and control

• Accounting method of control

• Overall profit loss account
• Profit-loss on valuation dates
• Unit costing

• Project cost modes

• Earned value analysis
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Earned Value Analysis (EVA)
• Approach for measuring how much work has been completed in a project at a
given point of time and performance

• Work done is compared with resources utilized and compare it with planned
values of time and resources
• If actual time taken is higher than planned, project is behind schedule
• If resources are utilized more than planned, project performance is not
efficient

• Provide means to forecast future performance based on past performance

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Earned Value Definition
• Earned value analysis
• Actual cost of work performed (ACWP)
• Actual cost of work done

• Budgeted cost of work schedule (BCWS)

• Value of work that should have been done at a given point in time
• Indicates the portion of budget planned to have been used

• Budgeted cost of work performed (BCWP) or Earned value

• Value of work done at a given point in time
• Indicates what portion of the budge ought to have been used to achieve it
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 Cost control- Methods
• Earned value analysis
• Productivity factor
• Ratio of estimated man-hours to actual man-hours
• Schedule variance (SV) =
• Value of work done – value of work that should have been done (BCWP-BCWS)

• Cost variance (CV)

• Budgeted cost of the work done to date-actual cost of the work done to date (BCWP – ACWP

• Schedule performance index (SPI) =BCWP /BCWS <1 behind schedule

• Cost performance index (CPI) = BCWP /ACWP <1 Over budget
• New duration estimate =original time estimate /SPI 36

• New cost estimate = original cost estimate /CPI

Earned value analysis

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Earned value analysis
• The S-curve examine the progress of the project and forecast expenditure in terms of
man-hours or money

• Significant variables that need analyzing:

• Time, money and the shape of the S (Known as the route)

• Assessment and precise recording of the value if the work done is crucial to project cost
control
• “Persistent 99% complete syndrome” 99% of tasks in 99% of projects are 99% complete for
99% of time
• “Remaining duration” as good measure of progress for a work package
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• Has been adopted by oil, manufacturing, gas and process industries where man-hours
and material deliveries to the site are used to monitor projects from inception to
 Progress of value of work done

Work package level

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1. Suppose an activity had 5 days duration and was expected to cost Rs. 10,000 set into
the project and prior to finishing an activity, the following data were obtained about the
progress done to that activity. Perform all parameters of EVA and comment on it.
I. Have so far worked for 3.5 days on activity
II. 60% of activity has been accomplished/completed
III. Rs. 8000 has already spent on activity

BCWS = Rs. 10000 / 5 *3.5 =Rs. 7,000

BCWP = 60% * 10000 = Rs. 6,000
ACWP = Rs. 8,000
CV = BCWP- ACWP = Rs.6,000 - Rs. 8,000 = Rs. – 2000 cost overrun
CPI = BCWP/ ACWP = Rs.6,000 / Rs. 8,000 = 0.75 <1 cost overrun
SV = BCWP-BCWS = = Rs.6,000 - Rs. 7,000 = Rs. – 1000 behind schedule
SPI =BCWP/BCWS = = Rs.6,000 / Rs. 7,000 = 0.86 <1 behind schedule
New cost estimate = original cost estimate /CPI =10,000/ 0.75 = Rs. 13,333
New time estimate =original time estimate /SPI =5/0.86 =6 DAYS
Since CPI is less than 1, the project is over budget and since, SPI is less than 1, the project is 41
behind schedule. If work continues at this rate, the project will be delayed and over budgeted.
Therefore corrective action should be taken
2. A construction company planned to fix 100 units of precast windows in 20 days
with a budget of 25 lakhs. The progress status was received 10 days from the date
of start of fixing and only 40 units were fixed with the expenses of 9 lakhs. Find all
the parameters of EVA and comment on its performance

3. 50 units of plantation have to be done in 2 weeks period per unit cost of

plantation is estimated as Rs. 200 of which progress monitoring was done 1 week
after the work was started. Only 40% work was found completed and the account
record showed that the actual expenditure for plantation per unit was Rs. 250 .
Find all the parameters of EVA and comment on its performance.

4. In a road project, budgeted cost for making 10 km road was 2 crore. It was planned
to be done in 10 weeks. But in 4 weeks only 50% of work had been completed and
the expense incurred was 1.25 crore. Find all the parameters of EVA and comment
on its performance
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Quality control VS QUALITY ASSURANCE
• Quality control is product oriented whereas quality assurance is process oriented
practice
• QC makes sure the end product meets the quality requirement whereas QA makes
sure that the process of manufacturing the product adheres to set standard
• QC is a reactive process whereas QA is a productive process

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Project Management Information System
(PMIS)
• PMIS consists of the tools and techniques used to gather, integrate, and
disseminate the outputs of the other project management processes.

• It is used to support all aspects of the project from initiating through closing
and includes both manual and automated systems

• It enables an organized and controlled flow of information

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PMIS
• To reduce project duration
• To increase resource productivity
• To make better use of resources
• To decrease cost
• To reduce uncertainty in decision making

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PMIS
• Requirements of PMIS
• Project forms are periodically filled based on the project progress
• Forms entered in PMIS generates progress report
• Corrective actions are taken based on report

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Elements of PMIS

Inputs Process Outputs

• Data • Data analysis • Regular

generation • Data storage reports
• Internal • Data retrieval • Special
resources • Data reports
• External dissemination
resources

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Feedback
 Essential Features of PMIS
Typical PMIS has a series of tools.
• Schedule and Planning: Computes early and late schedule, slack times and the critical
path
• Resource Management: Includes resource loading, levelling, allocation, etc.
• Budget: Costs associated with individual tasks for more accurate budget estimation and
generation.
• Control and Performance: Analyze and control cost and performance, update existing
plans as actual against planned data changes and provide what-if scenarios for the
project manager.
• Reporting and Communication: Creation of graphs, reports and charts of collected and
analyzed data that can be shared with stakeholders and team members.
• Integration and Ease of Use: Some PMIS will access data from different projects for
multi-project analysis, integrating with other systems, such as payroll, inventory, etc. The 48
easier a PMIS is to use, the less time and money required to train.
 S. Monitoring Evaluation
No.
1 Continuous process for the project Ex – ante -k"j{ d"Nof+sg_, Mid-term -
period and hence is considered as dWofalws_, Terminal -clGtd_ and Ex-post
internal function -;DkGg_ evaluations are in practice
2 Conducted only during Conducted during implementation as well as
implementation of the project after completion of a project also
3 An institutional process of improving It is the mechanism of lessons learning from the
implementation deficiencies or implemented projects and bringing improvement
weaknesses in the future projects/programs or decision
making
4 Directly related with the project Related to pre-determined goals & achievement
process, investment and outcomes of the project and study of its effect and impact
on the beneficiaries
5 A part of monitoring management It is a function oriented managerial tool of
system lesson learning from the past projects
6 Carried out from the implementing In general, evaluation is carried out through the
agency itself external and independent agency .
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THANK YOU 50