BUSINESS PLANNING AND PROJECT

MANAGEMENT

Faculty Name : Dr. Supriya Kamale

Unit No:3

Project Feasibility
Analysis
Project Monitoring & Controlling

Introduction :

Monitoring and controlling are processes required to track, review and regulate the
progress and performance of the project.

By monitoring and controlling – the project performance is observed and measured

regularly and consistently to identify variances from the project management plan.

Monitoring & Control Project Work Process is concerned with: -Comparing actual
project performance vs the PMP.

Assessing performance – any corrective/ preventive action need to be done

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Project Monitoring & Controlling

Monitoring and controlling include:

Measuring the ongoing project activities ( where we are )

Monitoring the project variables ( cost, effort and scope) against the PMP.

Identifying corrective actions to address issues and risks properly ( how can we get
on track again)

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Monitoring & Controlling cycle

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Monitoring & Controlling – A construction
Project
1)Performance/scope

Some factors affecting project performance:

•Unexpected technical problems – eg nature of the project beyond expectation

•Insufficient resources when needed

•Unexpected technical difficulties – due to site condition or soil condition

•Client requires changes

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Monitoring & Controlling – A construction
Project
2) Time- schedule

•Technical difficulties take longer than planned to solve

•Initial time estimate is not enough

•Task sequencing is incorrect – incorrect timing

•Required inputs of material, personnel, machineries are unavailable when needed –

idling & wasting of time – require extra time

•Client want changes and need rework

•New Government regulation

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Monitoring & Controlling – A construction
Project
3) Cost:
aspects that may increase project cost!

•Technical difficulties requires more resources

•Scope of work increase

•Tender price too low

•Reporting is poor or untimely – can not monitor !

•Budgeting is inadequate – working capital is not enough !

•Price of material increase

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Monitoring & Controlling

Monitoring status of the project to update project progress and managing changes to
the schedule baseline

Activities:
•Work performance measurements
•Frequency Counts – a simple tally of the repetition of an event. This type of measure is
frequently used for complaints, days without accident, bugs in a computer program and
like items.
•Raw numbers – dates, currency, hours, physical amounts of resources and specifications
•Subjective numeric rating – Subjective estimates of quality made by a knowledgeable
individuals or groups.
•Indicators – when PM cannot measure some aspect of system performance directly it is
most likely to find indicators. The speed with which changes are included into the project
is often good measure of team efficiency. Response to change is also an indicator of the
quality.
•Verbal measures – quality of team member cooperation, moral of team members

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Monitoring & Controlling – A construction
Project
Control Costs
Monitoring and controlling status of the project - update the project budget -
managing changes to the cost baseline

Activities
•Ensuring all change requests - approved by the client - do not proceed unapproved
changes – inform client all cost implication on changes made

•Ensuring that cost expenditure do not exceed permissible values

•Monitoring cost performance, understand variance – check standard or previous projects

•Monitoring work completed against expenditure – compare cost between cost

projections to actual cost spent !

•Taking action to ensure cost overrun within acceptable limit

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Monitoring & Controlling – A construction
Project

Who to control ?

•Clients )
•Consultants ) - Have to play their roles
•Contractors )

How ?

•Progress Reports – reporting progress

•Site meetings – check & monitor progress, time, cost & quality
•Technical meetings
•Regular site visits by the client, Director of the consultant firms

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Monitoring & Controlling

The two fundamental Objectives of control are:

1.The regulation of results through the alteration of activities.

2.The stewardship of organisational assets.

Types of Control:

1.Physical Assets Control – equipment, machineries, records of all incoming shipments, project office
furniture etc… to be counted, maintained and conserved.

2.Human Resource Control – It requires controlling and maintaining the growth and development of people.
Devices like employee appraisals, personnel performance indices, screening methods for appointment,
promotion and retention are used.

3.Financial Resource Control – Techniques of financial control includes current asset controls, project
budgets as well as capital investment controls through series of analysis and audits conducted by the
controller.

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Project Management Information System

 A project management information system (PMIS) is typically a software

application for collecting and using project information.

 This electronic system help to plan, execute and close project management goals.

 PMIS systems differ in scope, design and features as per the organization’s
requirements.

 The PMIS can vary from something as simple as a File system containing Microsoft
Excel documents to a full enterprise PMIS software.

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Project Management Information System

Characteristics of a PMIS

A PMIS software supports all Project management knowledge areas:

Integration Management
Project Scope Management
Project Time Management
Project Cost Management
Project Quality Management
Project Human Resource Management
Project Communications Management
Project Risk Management
Project Procurement Management

A PMIS software is a multiuser application and can be cloud based .

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Project Management System

A project management system (PMS) is a part of PMIS or sometimes an

external tool .

PMS is an aggregation of the processes, tools, techniques, methodologies,

resources and procedures to manage a project.

PMIS is to manage all stakeholders in a project such as the project owner,

client contractors, sub contractors, in house staff, workers, managers etc.

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Project Auditing

What is Project Audit ?

A formal review of any aspect of a project.

An audit is a systematic, independent, documented assessment using

standards and set criteria.

Audit is an evaluation of a person, system, organization, process, project.

Audits are performed to ascertain the validity and reliability of information
and also provide an assessment of a system’s internal control.

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Project Auditing – an Approach

The main purpose of an audit is to help achieve the goals of the project
Why Audits are done:

1.Verify data of processes or operations

2.Judge the effectiveness of current processes
3.Judge effectiveness of meeting standard requirements
4.Provide information about problem areas.

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Project Auditing – Definition

Project auditing can be defined as the process of detailed inspection of the

management of a project, its methodology, its techniques, its procedures, its
documents, its properties, its budgets, its expenses and its level of completion.

Project auditing can help you assess the current state of a project, and tells you if
your project management processes are being followed.

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Phases of Project Audit

A project Audit Consists of three phases:

Phase 1 : Defining criteria’s and preparation of Questionnaire

1.Success criteria development – discuss with the stakeholders, project owner and
customers and identify the success criteria for the project audit.
2.Prepare list of questionnaire – Develop a questionnaire – send to core project
team. It helps to reflect on the project’s successes, failures, challenges and missed
opportunities.
3.Type of Audit Questions – Develop the questions so that they will help to identify
the major project successes, the major project issues, concerns and challenges, how
the team worked together, conflict areas, how vendors were manages, reporting and
meetings handled, risk and change was managed etc.

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Phases of Project Audit

Phase 2 : In depth Research :

1.Schedule and conduct meetings with project stakeholders.

2.Develop questionnaire to get to the root causes of the problems.
3.Review all historical and current documentation related to the project:
-Team structure, scope statement, project plan, milestone report, meeting minutes,
risk logs, issue logs, change logs
4. Review the project plan
5. Interview selected stakeholders to find out their expectations
6. Review the project quality management plan
7. Document the lessons learned

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Phases of Project Audit

Phase 3 : Generate Reports

1.Compile the collected information

2.Consolidate the findings
3.Specify the identified issues, concerns, challenges and isolate the opportunities
4.Specify the recommendations

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Project Auditing – Format and Use of the Audit
Report

1. It should facilitate the comparison of actual versus predicted results

2. Significant deviations should be highlighted

3. Reasons for significant deviations should be given

4. Plans for resolving negative deviations should be discussed

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Project Auditing – Life Cycle

1. Project audit initiation :

Focus and scope of audit: assess methodologies, team members required

2. Baseline Definition :
Determine the standards against which performance will be measured. Determining
the benchmark standards for each area.

3. Establishment of Audit database:

Gathering or organizing pertinent data. Creation of database.
Focus on what’s necessary. Cost performance, schedule performance, project status,
output quality etc.

4. Data analysis:
The judgment phase.
Comparison of actuals to standard. The purpose of the audit is to improve the entire
process of managing the projects.

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Project Auditing – Life Cycle

5. Audit report preparation :

Present findings to PM first
Then, prepare final report with recommendations.

6. Audit Termination :
Review of audit process
Disbanding of team.

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Project Audit Recommendations

• Identify problems earlier

• Clarify scope, cost, and time relationships

• Improve performance

• Locate technological advances

• Evaluate quality

• Reduce costs

• Improve risk identification

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Conclusion

The purpose of a project audit is to identify “Lessons Learned” that can help
improve the performance of a project or to improve the performance of
future projects by undertaking a forensic review to uncover problems to be
avoided.

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Thank You