14 | Monitoring and Controlling Project Performance

Question 1

Technical Performance Measurement?

Answer 1

Technical performance measurement is used to identify the overall technical accomplishments
made during the project. It compares the project’s accomplishments to the planned
accomplishments as outlined in the project plan. Objective, quantifiable measures of technical
performance are used here. These measures may include the functionality of a deliverable at a
milestone, as well as specific measurable criteria such as conformance to specifications. Any
differences can help predict if the final project scope will be achieved. The parameters used to
measure technical performance include the system, software, and resource performance.

Question 2

The Change Management Process?

Answer 2

Change management is the process of managing project changes in a structured and standardized manner.

Question 3

What are the 5 stages in change management?

Answer 3

1. Change identification:
   Involves identifying the changes that must be made to a project. The changes may positively or negatively impact the planned project deliverables and performance. The requirement for change can be identified by anyone involved in the project.
2. Change documentation:
   Involves documenting the changes in the change control form, initiating a formal request for the change.
3. Analyzing the impact of the change:
   Involves identifying and assessing issues that may arise and adversely impact the various aspects of the project. This will usually be done by the project manager or any other requester.
4. Course of action:
   Involves coordinating with the appropriate stakeholders, to select the necessary actions to be taken, and implementing the approved changes.
5. Updating related plans:
   Involves updating the project management plan components that are related to the approved change requests.

Question 4

Change Control Form?

Answer 4

A change control form is used to request a project change. Change control forms or change management forms are generally referred to as change request forms.

Question 5

Advantages of Effective Change Management?

Answer 5

Effective change management presents several advantages to project managers, including:

• Faster response time.
• Maximum traceability of changes.
• Increased team awareness of change needs.
• Increased engagement of team and stakeholders, internally and externally.
• Better team support for change requirements.
• An organizational framework for moving forward effectively.

Question 6

The Impact Analysis Process?

Answer 6

Impact analysis is the process of evaluating the impact of a change on the project.

Question 7

What are the 3 major steps for impact analysis?

Answer 7

1. Impact identification Identifying the impact of a potential change on:

• The triple constraints (time, cost, scope).
• Quality.
• Project complexity.
• The current and subsequent phases of the project.
• The list of project milestones and deliverables.
• Project testing needs.
• Resources needed for a project.

2. Impact prediction Forecasting the characteristics, magnitude, and duration of the major impacts.
3. Impact evaluation Evaluating how the expected impact can be mitigated.

Question 8

Scope Creep?

Answer 8

Scope creep is the extension of the project scope caused by unapproved and uncontrolled changes that impact the cost, quality, or timing of the project. Scope creep contributes significantly to project failure.

Question 9

Formal Acceptance of Project Work?

Answer 9

Formal acceptance of project work is the process for securing approval for completing the remainder of the project work. It requires change requests to be documented and analyzed for their impact on other aspects of project work including time, cost, quality, and risk. It includes a receipt, or documented acknowledgment, that the terms of the contract have been satisfied. It also validates that the acceptance criteria will still be satisfied as a consequence of this change.

Question 10

What are the 5 performance measurement tools?

Answer 10

1. Key Performance Indicators
2. Dashboards
3. Key Performance Parameters
4. Balanced Scorecard

Question 11

Key Performance Indicators (KPIs)?

Answer 11

Key Performance Indicators (KPIs) in project management consist of tools that indicate if the project is meeting specific goals. KPIs should be defined early in the project; they should be quantifiable; and they should
be measured regularly. Common KPIs relate to how well the project is tracking against the planned schedule and cost baselines and if project milestones are being met. Other indicators can include the status of issues
(resolved vs. unresolved); change requests (pending, approved, and disapproved); and effectiveness of risk response strategies. KPIs are often displayed as charts (e.g., line, pie, column, etc.) and indicators (e.g.,
colored traffic lights).

Question 12

Dashboards?

Answer 12

Dashboards are graphical summaries of project measures, often a collection of multiple KPIs. They provide an “at-a-glance” view of important data that managers can base business decisions on. Dashboards can be created from project management software, or purchased from a
number of software suppliers.

Question 13

Key Performance Parameters (KPPs)?

Answer 13

Key Performance Parameters (KPPs) are key system capabilities that must be met for a system to meet its goals. The threshold value of a KPP is the minimum acceptable value (cost, schedule, and technology) below
which the system is unacceptable

Question 14

Balanced Scorecard?

Answer 14

The balanced scorecard is a tool that integrates project management and portfolio management so that projects are aligned with an organization’s strategy. It identifies a small number of financial and nonfinancial measures and attaches targets to them. When performance deviates from expectations, managers can focus their attention on areas where meaningful improvement in performance is possible.

Question 15

Budget Forecasts?

Answer 15

Budget forecast is the estimated budget required to complete the remaining project work.

Question 16

The Estimate to Complete (ETC)?

Answer 16

The Estimate to Complete value is the estimated cost to finish all the remaining project work.

Question 17

Estimate at Completion (EAC)?

Answer 17

The Estimate at Completion value is the estimated total cost of completing all work, expressed as
the sum of the actual cost to date and the estimate to complete.

Question 18

What are the 3 forecasting methods?

Answer 18

1. Time series methods
2. Causal or econometric methods
3. Judgmental methods

Question 19

Forecasting method | Time series methods?

Answer 19

Estimation of future outcomes is based on historical data. Some of the methods under this category include earned value and moving average.

Question 20

Forecasting method | Causal or econometric

methods?

Answer 20

Causal forecasting includes the factors that may influence the identified variables, by combining economic theories and statistical information. Some econometric methods under this category include regression analysis and econometrics.

Question 21

Forecasting method | Judgmental methods?

Answer 21

Forecasting where there is a complete lack of historical data; for example, when a new product is being launched. Some of the methods under this category include scenario forecasting, Delphi technique, and forecasting by analogy

Question 22

Reporting Systems?

Answer 22

Reporting systems are tools that help in collecting, storing, and distributing project information to stakeholders. Information can be distributed through various formats such as a presentation and spreadsheet analysis.

Question 23

What are the 3 report types?

Answer 23

1. Progress report
2. Status report
3. Dashboard report

Question 24

Progress report?

Answer 24

A summary of activities over a period of time, such as a week or month.

Question 25

Status report?

Answer 25

A summary of activities over a cumulative period of time, such as a year-to-date or since the start of a project.

Question 26

Dashboard report?

Answer 26

A simple status report that commonly uses colored indicators, such as red, yellow, and green to provide an at-a-glance identifier for the state of a project component.

Question 27

Performance Reports?

Answer 27

A performance report is a document that reports the progress made in the project activities against the specified baseline. Project performance is reported to ensure that the project manager is monitoring the project progress, comparing achievements with the plan, reviewing plans and options against future scenarios, detecting issues during the early phases of the project, initiating corrective action, and authorizing further work.
Performance reports can be classified by either frequency, purpose, or both.

Question 28

What are the 3 common classifications of performance reports:

Answer 28

1. Routine
2. Exception
3. Special analysis

Question 29

Routine performance reports?

Answer 29

Routine performance reports aren’t necessarily scheduled but might be distributed at intervals that coincide with project phases or milestones. The frequency of performance reports depends on how smoothly the project functions.

Question 30

Exception performance reports?

Answer 30

Exception performance reports provide project team members with information they need to make a decision on or notify them of a change that affects their work. Exception performance reports are also distributed to stakeholders to inform them that a decision has been made.

Question 31

Special analysis performance reports?

Answer 31

Special analysis performance reports contain information about the results of a focused study that might be conducted as part of a project or to determine a solution to a problem encountered during a project. These special reports are not only useful documents for a current project, but are also valuable records of lessons learned for future projects.

Question 32

Common Problems with Reports?

Answer 32

Some frequent problems with performance reports include:

• Too much information or the wrong kind of information.
• Information not distributed in a timely manner.

To avoid these problems when reporting, it is important to:

• Make sure information is current and relevant.
• Create reminders for the due dates of progress reports.

Question 33

What are the 5 types of performance reports?

Answer 33

1. End stage:
   Submitted by the project manager to the PMO or senior managers to sign off the stage, having met its required success criteria, and approve transition to the next stage.
2. Highlight:
   Submitted by the project manager to the PMO or senior managers at regular intervals as the project progresses. This reports the progress of the stage and project. It also identifies exceptions and issues.
3. Exception:
   Submitted by the project manager to the PMO or senior managers when early warnings of any forecast deviations beyond the tolerance levels are identified in the project. Tolerance levels might be ten percent on time and five percent on cost, but of course they will vary from one project to another.
4. End project:
   Created and submitted by the project manager to the PMO or the senior manager for the project to be signed off as completed and to consider the necessary follow-up actions.
5. Post implementation review:
   Controlled by members external to the project. They are notified whether the expected project benefits have been realized. This review is carried out as soon as the benefits and issues are identified and measured after the
   project’s completion.

Question 34

Performance Report Components?

Answer 34

Performance reports mainly serve the purpose of making the actual versus baseline information with forecasted results available in a consolidated manner. They may be simple or detailed. A simple report may contain information on the project scope, time, cost, and quality, whereas the detailed report may also contain components such as:

• Inferences of the past analysis.
• Current risk status.
• Work completed.
• Work to be completed.
• Summary of approved changes.
• Variance analysis results; for example, Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index (CPI).
• Forecasted results; for example, Estimate at Completion (EAC), and Estimate to Complete (ETC)

Question 35

Benefits of Creating Performance Reports?

Answer 35

Some of the overall benefits of creating performance reports include:

• Analysis of the current status of the schedule and budget.
• Feedback to team members and work package owners.
• Communication with upper management and customers.
• Early identification of variance.
• Early implementation of corrective actions