Monitoring and control

A plan is only useful if actual performance is measured against it and corrective action is taken in time. Monitoring and control is the continuous cycle of measuring progress, comparing it with the baseline, analysing variances, forecasting the outcome and acting.

The baseline has three parts: scope (what will be built, through the WBS), schedule (when, through the programme) and cost (how much, through the budget phased over time). Progress is measured objectively: quantities installed, milestones achieved, or percent complete using agreed rules for each activity type. Earned value management integrates the three: planned value (PV) is the budgeted cost of work scheduled, earned value (EV) the budgeted cost of work actually performed, and actual cost (AC) what that work really cost. Cost and schedule variances and indices follow. A cost performance index below one means overspending for the work done; a schedule performance index below one means slower progress than planned.

Forecasts such as estimate at completion (EAC) help management see where the project will end if trends continue. Reports should be timely, simple and honest: key indicators, top risks, critical path changes and actions with owners. Control actions include re-sequencing, adding resources, value engineering, scope changes through formal change control and, sometimes, rebaselining. Quality, safety and risk are monitored alongside cost and time, because a project that is on budget but unsafe or defective has not succeeded.