Technical PM-competences (Subject) / 1.16 Control & Reports (Lesson)

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• Summary Project controlling is about regular comparisons of PLAN and ACTUAL. The objective is toidentify deviations from the objective at an early stage and manage them accordingly. Project controlling should be conducted regularly, i.e. weekly or by-weekly. The tools of project controlling are cost trend analysis, milestone trend analysis or EarnedValue Analysis. In order to appropriately use the tools of project controlling, the method of performanceprogress measurement should be agreed upon between the project manager and thework package owner. The Earned Value Analysis is the only tool which enables an integrated view of all projectobjectives (performance, costs, time). This is possible, as the Earned Value Analysisexpresses performance in terms of costs. As a result, the analysis reflects what the value in terms of Euro of the actual performance is.
• Deming-cycle The approach towards project controlling is best described using the Deming-cycle. W. Edwards Deming helped develop a cycle known as the Deming-cycle or PDCA-cycle:- Plan:  Set up project plan - Do: Collect actual data - Check: Compare plan / actual and identify deviations - Act:  Manage: plan and implement controlling measures 
• Examples for controlling measures are Changing the scope of services, i.e.by shifting priorities, limitation of quality, reducing the requests for change. Re-prioritise the project, e.g. make it an A-priority project Increase of productivity, e.g. by change of technology or method, increase of motivation in the project team Reducing the effort,e.g. by using technical alternatives, purchasing know-how, adapting the process Modification of resources, e.g. more or qualified personnel, subcontracting
• Why is project controlling required? Without controlling the planned progress with the actual progress, the project objectives cannot be achieved.
• Cost Trend Analysis A cost trend analysis depicts (datsellen) the expected total cost (estimate at completion - EAC) over the originally planned budget (budget at completion - BAC) for predefined reporting dates.
• Milestone Trend Analysis The milestone trend analysis (MTA) is an easily established overview of the development of the milestones. A milestone trend analysis can also be easily integrated into ongoing projects.
• Objectives of the milestone trend analysis Raise awareness for schedules with project stakeholders Ensure the transparency of the project schedule Anticipate and react to future deviations from the time schedule Facilitate communication between project stakeholders Consider the hard and soft facts of the project situation
• Advantages of the milestone trend analysis easy to understand transparent easy to introduce, even in ongoing projects
• Interpretation of milestone trend analysis A downward trend indicates the milestone is estimated to be completed early. A horizontal trend indicates the milestone is estimated to be completed as planned. An upward trend indicates the milestone is estimated to be completed late.
• Earned Value Analysis (EVA) - for larger projects The Earned Value Analysis is the only tool which enables an integrated view of all projectobjectives (performance, costs, time). This is possible, as the Earned Value Analysis expresses performance in terms of costs. As a result, the analysis reflects what the value in terms of Euro of the actual performance is.

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