Chapter 5

Monitoring and Controlling the Project

The PMP exam content from the Monitoring and Controlling the Project performance domain covered in this chapter includes the following:

• Measure project performance using appropriate tools and techniques, in order to identify and quantify any variances, perform approved corrective actions, and communicate with relevant stakeholders.
• Manage changes to the project scope, schedule, and costs by updating the project plan and communicating approved changes to the team, in order to ensure that revised project goals are met.
• Ensure that project deliverables conform to the quality standards established in the quality management plan by using appropriate tools and techniques (e.g., testing, inspection, control charts), in order to satisfy customer requirements.
• Update the risk register and risk response plan by identifying any new risks, assessing old risks, and determining and implementing appropriate response strategies, in order to manage the impact of risks on the project.
• Assess corrective actions on the issue register and determine next steps for unresolved issues by using appropriate tools and techniques, in order to minimize the impact on project schedule, cost, and resources.
• Communicate project status to stakeholders for their feedback, in order to ensure the project aligns with business needs.

Monitoring and Controlling is the fourth of the five project management process groups and accounts for 25 percent of the questions on the PMP exam. The processes in the Monitoring and Controlling process group concentrate on monitoring and measuring project performance to identify variances from the project plan and get them back on track. Regularly monitoring project performance provides insight into the current state of the project and allows you to correct areas that are falling off track before they impact your project significantly. The Monitoring and Controlling process group is concerned not only with monitoring the project work but also with the project as a whole. In multiphase projects, this process group coordinates the project phases.

Measuring Project Performance

As the project work is carried out, it is important to monitor the project performance closely. This can be done by using various tools and techniques that assist in identifying and quantifying variances as well as determining the necessary corrective action needed. Monitoring project performance occurs through the Monitor and Control Project Work process, part of the Project Integration Management Knowledge Area.

Work performed by sellers (resources external to the organization) are monitored and controlled through the Administer Procurements process. Administer Procurements is a process that belongs to the Project Procurement Management Knowledge Area.

Monitor and Control Project Work

The Monitor and Control Project Work process involves monitoring all the processes in the Initiating, Planning, Executing, and Closing process groups to meet the performance objectives outlined in the project management plan. Collecting data, measuring results, and reporting on performance information are some of the activities performed during this process.

According to the PMBOK® Guide, the Monitor and Control Project Work process encompasses the following:

• Reporting and comparing actual project results against the project management plan
• Analyzing performance data and determining whether corrective or preventive action is needed
• Monitoring project risks
• Documenting all appropriate product information throughout the life of the project
• Gathering, recording, and documenting project information
• Monitoring approved change requests

Figure 5-1 shows the inputs, tools and techniques, and outputs of the Monitor and Control Project Work process.

Inputs of Monitor and Control Project Work

Know the following inputs of the Monitor and Control Project Work process:

• Project management plan
• Performance reports
• Enterprise environmental factors
• Organizational process assets

Project Management Plan The project management plan provides the information necessary to monitor the project work and determine whether the project is progressing as planned.

Performance Reports Performance reports provide the current status and issues of the project.

Enterprise Environmental Factors The enterprise environmental factors provide the following information utilized by this process:

• Standards
• Work authorization systems
• Stakeholder risk tolerances
• Project management information systems

Organizational Process Assets The following organizational process assets are used as inputs:

• Communication requirements
• Procedures for financial controls, risk control, and problem solving
• Lessons learned database

Tools and Techniques of Monitor and Control Project Work

Expert judgment is the one tool of the Monitor and Control Project Work process.

Expert judgment involves interpreting the information that results from this process.

Outputs of Monitor and Control Project Work

The Monitor and Control Project Work process has three outputs.

Change Requests Change requests typically include the following items:

• Corrective actions
• Preventive actions
• Defect repairs

Project Management Plan Updates Project management plan updates may include updates to one or more of the following:

• Schedule management plan
• Cost management plan
• Quality management plan
• Scope baseline
• Schedule baseline
• Cost performance baseline

Project Document Updates Project document updates may include updates to the following:

• Forecasts
• Performance reports
• Issue log

Administer Procurements

The Administer Procurements process is concerned with monitoring the vendor’s performance and ensuring that all requirements of the contract are met. This process also manages the procurement relationships overall and makes changes and corrections as needed.

According to the PMBOK® Guide, you must integrate and coordinate the Direct and Manage Project Execution, Report Performance, Perform Quality Control, Perform Integrated Change Control, and Monitor and Control Risk processes during the Administer Procurements process.

Figure 5-2 shows the inputs, tools and techniques, and outputs of the Administer Procurements process.

Inputs of Administer Procurements

Know the following inputs of the Administer Procurements process:

• Procurement documents
• Project management plan
• Contract
• Performance reports
• Approved change requests
• Work performance information

Procurement Documents Procurement documents may include the following supporting documents:

• Procurement contract awards
• Statement of work

Project Management Plan The project management plan includes the procurement management plan, which guides the project management team in properly carrying out the process.

Contract To administer the relevant contracts, you must first include each contract as an input to this process.

Performance Reports Performance reports refer to seller-related documents, such as seller performance reports and technical documentation.

Approved Change Requests Approved change requests include changes that have been approved to the contract, such as these:

• Modifications to deliverables
• Changes to the product or service of the project
• Changes in contract terms
• Termination for poor performance

Work Performance Information Work performance information involves monitoring work results and examining the vendor’s deliverables. This includes monitoring their work results against the project management plan and making sure that certain activities are performed correctly and in sequence.

Tools and Techniques of Administer Procurements

Be familiar with the following tools and techniques of the Administer Procurements process:

• Contract change control system
• Procurement performance reviews
• Inspections and audits
• Performance reporting
• Payment systems
• Claims administration
• Records management system

Contract Change Control System The contract change control system describes the processes needed to make contract changes. Since the contract is a legal document, it cannot be changed without the agreement of all parties. It documents and includes the following items:

• Instructions for submitting changes
• Instructions for establishing the approval process
• Instructions outlining authority levels
• A tracking system for numbering the change requests and recording their status
• Procedures for dispute resolution

Figure 5-3 demonstrates where the contract change control system fits into the contract change process.

A formal process must be established to process and authorize (or deny) changes.

Procurement Performance Reviews Procurement reviews examine the contract terms and seller performance. If the seller is not in compliance, action must be taken to either get them back into compliance or terminate the contract. These reviews can be conducted at the end of the contract’s life cycle or at intervals during the contract period.

Inspections and Audits The purpose of inspections and audits is to determine whether there are any deficiencies in the seller’s product or service. These are conducted by the buyer or a designated third party.

Performance Reporting Performance reporting involves providing managers and stakeholders with information about the vendor’s progress in meeting the contract objectives.

Payment Systems Vendors submit seller invoices as an input to this process, and the payment system is the tool and technique used to issue payments.

Claims Administration Claims administration involves documenting, monitoring, and managing contested changes to the contract. Contested changes usually involve a disagreement about the compensation to the vendor for implementing the change. Here are some things to know about claims administration:

• Contested changes are also known as disputes, claims, or appeals.
• Claims can be settled directly between the parties themselves, through the court system, or by a process called arbitration.

Records Management System A records management system can be part of the project management information system (PMIS) and involves the following:

• Documentation
• Policies
• Control functions
• Automated tools

Records management systems typically index documents for easy filing and retrieval.

Outputs of Administer Procurements

Know the following four outputs of the Administer Procurements process:

• Procurement documentation
• Organizational process assets updates
• Change requests
• Project management plan updates

Procurement Documentation Procurement documentation produced as part of this process includes, but is not limited to, the following:

• Contract
• Performance information
• Warranties
• Financial information
• Inspection and audit results
• Supporting schedules
• Approved and unapproved changes

Organizational Process Assets Updates Organizational process assets updates include the following items:

Correspondence Correspondence is information that needs to be communicated in writing to either the seller or the buyer, such as contract changes, audit results, notice of unsatisfactory performance, and notification of contract termination.

Payment Schedules and Requests Payment schedules and requests include information about paying the vendor on time and verifying that payment terms are met to warrant payment.

Seller Performance Evaluation Documentation Seller performance evaluation is a written record of the seller’s performance on the contract and is prepared by the buyer. It should include information about whether the seller successfully met contract dates and fulfilled the requirements of the contract and/or contract statement of work and whether the work was satisfactory.

Change Requests Change requests may result from performing the Administer Procurements process and may include changes to the following documents:

• Project management plan
• Procurement management plan
• Cost baseline
• Project schedule

Change requests are submitted and processed through the integrated change control system.

Project Management Plan Updates Project management plan updates that may result from the Administer Procurements process typically include updates to the procurement management plan and baseline schedule.

Managing Changes to the Project Scope, Schedule, and Costs

Managing the triple constraints is an important part of monitoring and controlling a project. This includes managing changes to the project scope, schedule, and costs, which requires that the project plan be updated as needed. The Verify Scope, Control Scope, Control Schedule, and Control Costs processes focus on managing these changes and uncovering existing variance to the plan. As the plan is updated with approved changes, these changes should be communicated to the team to ensure that revised project goals are met.

Verify Scope

Managing and reporting on project progress is the primary focus of the Monitoring and Controlling processes. One of the Monitoring and Controlling processes is Verify Scope. The primary purpose of the Verify Scope process is to formally accept completed deliverables and obtain sign-off that the deliverables are satisfactory and meet stakeholders’ expectations. Verify Scope formalizes the acceptance of the project scope and is primarily concerned with the acceptance of work results.

Figure 5-4 shows the inputs, tools and techniques, and outputs of the Verify Scope process.

Inputs of Verify Scope

Know the following inputs of the Verify Scope process:

• Project management plan
• Requirements documentation
• Requirements traceability matrix
• Validated deliverables

Project Management Plan The scope baseline is used in the project management plan. The scope baseline includes the project scope statement, work breakdown structure (WBS), and WBS dictionary, all of which will be utilized by this process.

Requirements Documentation To verify the scope of the project work, the project, product, and technical requirements (and any others) must be included as an input to this process.

Requirements Traceability Matrix The requirements traceability matrix tracks the requirements throughout the project life cycle.

Validated Deliverables Validated deliverables include deliverables that have been validated in the Perform Quality Control process.

Tools and Techniques of Verify Scope

Be familiar with the inspection tool and technique of the Verify Scope process. According to the PMBOK® Guide, inspection is concerned with making sure the project work and deliverables meet the requirements and product acceptance criteria. This may include ensuring, examining, and verifying activities.

Outputs of Verify Scope

The Verify Scope process results in three outputs:

Accepted Deliverables The accepted deliverables output signifies that the deliverables have been formally accepted and signed off by the customer or sponsor.

Change Requests Change requests address deliverables that were rejected by the customer or sponsor and that therefore require defect repair.

Project Document Updates Project document updates typically include updates to the following items:

• Documents that define the product
• Documents that report completion status

Control Scope

The Control Scope process involves monitoring the status of both the project and the product scope, monitoring changes to the project and product scope, and monitoring work results to ensure that they match expected outcomes. Any modification to the agreed-upon WBS is considered a scope change. This means the addition or deletion of activities or modifications to the existing activities on the WBS constitutes a project scope change.

Figure 5-5 shows the inputs, tools and techniques, and outputs of the Control Scope process.

Inputs of Control Scope

Know the following inputs of the Control Scope process:

• Project management plan
• Work performance information
• Requirements documentation
• Requirements traceability matrix
• Organizational process assets

Project Management Plan The following components of the project management plan are utilized in controlling scope:

• Scope management plan
• Scope baseline
• Change management plan
• Configuration management plan
• Requirements management plan

Work Performance Information Work performance information provides the status and progress of deliverables.

Requirements Documentation Information from the requirements documentation input used in this process includes the project, product, technical and any other requirements.

Requirements Traceability Matrix The requirements traceability matrix is used to track the requirements throughout the project life cycle.

Organizational Process Assets Organizational process assets utilized in this process include any policies, procedures, guidelines, and reporting methods that relate to scope control.

Tools and Techniques of Control Scope

The Control Scope process has one tool and technique: variance analysis. Variance analysis includes reviewing project performance measurements to determine whether there are variances in project scope and whether any corrective action is needed as a result of existing variances.

Outputs of Control Scope

The Control Scope process results in the following outputs:

• Work performance measurements
• Organizational process assets updates
• Change requests
• Project management plan updates
• Project document updates

Work Performance Measurements Work performance measurements compare planned and actual scope performance.

Organizational Process Assets Updates The following updates are typically made to the organizational process assets:

• Causes of variances
• Corrective actions taken
• Lessons learned

Change Requests When scope changes are requested, all areas of the project should be investigated to determine what the changes would impact. Change requests typically involve the scope baseline or components of the project management plan.

Project Management Plan Updates Depending on the approved changes, updates to the project management plan may result in changes to the scope baseline or other project baselines.

Project Document Updates Updates to project documents that occur as a result of this process typically include the requirements documentation and requirements traceability matrix.

Control Schedule

The Control Schedule process involves determining the status of the project schedule, determining whether changes have occurred or should occur, and influencing and managing schedule changes.

Figure 5-6 shows the inputs, tools and techniques, and outputs of the Control Schedule process.

Inputs of Control Schedule

Know the following inputs of the Control Schedule process:

• Project management plan
• Project schedule
• Work performance information
• Organizational process assets

Project Management Plan The schedule management plan and the schedule baseline are utilized to carry out the Control Schedule process from within the project management plan.

Project Schedule To control the schedule, the project schedule itself must be included as an input into the process.

Work Performance Information Work performance information provides status information on the activities.

Organizational Process Assets The following organizational process assets are utilized in this process:

• Policies, procedures, guidelines, and reporting methods relating to schedule control
• Schedule control tools

Tools and Techniques of Control Schedule

The Control Schedule process includes the following tools and techniques:

• Performance reviews
• Variance analysis
• Project management software
• Resource leveling
• What-if scenario analysis
• Adjusting leads and lags
• Schedule compression
• Scheduling tool

Performance Reviews Performance reviews in this process examine elements such as actual start and end dates for schedule activities and the remaining time to finish uncompleted activities. Schedule variance (SV) and schedule performance index (SPI) can be used to determine the impact of the schedule variations and whether corrective action is necessary.

Variance Analysis SV and SPI calculations can be used to determine how the actual schedule varies from the schedule baseline.

Project Management Software Project management scheduling software can be used to track actual versus planned activity dates and the impact of any existing changes.

Resource Leveling Resource leveling is used to better distribute the work among resources, literally leveling out the use of the resources.

What-If Scenario Analysis What-if scenarios are used to bring the actual schedule back in line with the planned schedule.

Adjusting Leads and Lags Leads and lags are used to bring the actual schedule back in line with the planned schedule.

Schedule Compression Schedule compression techniques, such as fast-tracking and crashing, are used to bring the actual schedule back in line with the planned schedule.

Scheduling Tool Scheduling tools are used to perform schedule network analysis, which results in an updated project schedule.

Outputs of Control Schedule

The Control Schedule process includes the following outputs:

• Work performance measurements
• Organizational process assets updates
• Change requests
• Project management plan updates
• Project document updates

Work Performance Measurements Work performance measurements include the calculated SV and SPI values.

Organizational Process Assets Updates Organizational process assets updates typically include the following items:

• Causes of variances
• Corrective actions
• Lessons learned

Change Requests Changes requests generated as a result of this process typically include modifications to the schedule baseline.

Project Management Plan Updates Project management plan updates typically include updates to the schedule baseline, the cost baseline, and the schedule management plan.

Project Document Updates The project document updates output may require updates to the schedule data or the project schedule.

Control Costs

The Control Costs process monitors the project budget, manages changes to the cost performance baseline, and records actual costs. It’s concerned with monitoring project costs to prevent unauthorized or incorrect costs from being included in the cost baseline. The activities are among those included in this process:

• Monitoring changes to costs or the cost performance baseline and understanding variances from the baseline
• Monitoring change requests that affect cost and resolving them in a timely manner
• Informing stakeholders of approved changes and their costs

Figure 5-7 shows the inputs, tools and techniques, and outputs of the Control Costs process.

Inputs of Control Costs

Know the following inputs of the Control Costs process:

• Project management plan
• Project funding requirements
• Work performance information
• Organizational process assets

Project Management Plan The project management plan includes the cost performance baseline and the cost management plan, which will be utilized by this process. The cost performance baseline compares actual expenditures to date on the project to the baseline. The cost management plan details how costs should be monitored and controlled throughout the life of the project.

Project Funding Requirements Project funding requirements include the periodic and total project funding provided.

Work Performance Information The work performance information input provides information about the project’s progress, including authorized and incurred costs and project estimates.

Organizational Process Assets The following organizational process assets are utilized by this process:

• Policies, procedures, guidelines, and reporting methods relating to cost
• Cost control tools

Tools and Techniques of Control Costs

You should be familiar with the following tools and techniques of the Control Costs process:

• Earned value management (EVM)
• Forecasting
• To-complete performance index (TCPI)
• Performance reviews
• Variance analysis
• Project management software

Earned Value Management Performance measurement analysis can be accomplished by using a technique called earned value management (EVM). EVM compares what you’ve received or produced to what you’ve spent and establishes the cause and impact of variances to determine necessary corrective action. It is the most often used performance measurement method.

EVM is performed on the work packages and the control accounts of the WBS. To perform the EVM calculations, the planned value (PV), earned value (EV), and actual cost (AC) are collected. They are defined in Table 5-1 along with other terms associated with the EVM technique.

Table 5-1: Earned value management definitions

Term	Definition
Planned value (PV)	The PV is the budgeted cost of work that has been authorized for a schedule activity or WBS component during a given time period or phase. These budgets are established during the Planning processes. All PVs add up to the budget at completion (BAC). PV is also known as budgeted cost of work scheduled (BCWS).
Earned value (EV)	EV is measured as budgeted dollars for the work performed. EV is typically expressed as a percentage of the work completed compared to the budget. It is also known as budgeted cost of work performed (BCWP).
Actual cost (AC)	AC is the cost of completing the work component in a given time period. AC measures the costs (direct, indirect, or other) that were used to calculate the planned value. It is also known as actual cost of work performed (ACWP).
Cost variance (CV)	CV determines whether costs are higher or lower than budgeted. A negative CV means the project is over budget; a positive CV means the project is under budget.
Cost performance index (CPI)	CPI measures the value of the work completed against actual cost. A CPI of 1 means the project is on budget; a CPI >1 means the project is under budget; a CPI <1 means the project is over budget.
Schedule variance (SV)	SV determines whether the work is ahead of or behind the planned schedule. A positive SV means the project is ahead of schedule; a negative SV means the project is behind schedule.
Schedule performance index (SPI)	SPI measures the schedule progress to date against the planned progress. An SPI of 1 means the project is on schedule, an SPI of >1 means the project is ahead of schedule, and an SPI of <1 means the project is behind schedule.
Estimate at completion (EAC)	EAC is the expected total cost of a work component, a schedule activity, or the project at its completion.
Estimate to complete (ETC)	ETC is the amount of effort remaining based on completed and expected activities.
Budget at completion (BAC)	BAC is the sum of all the budgets (or PVs) established.
Variance at completion (VAC)	VAC is the difference between the budget at completion and the estimate at completion.

PV, AC, and EV measurements can be plotted graphically to show the variances between them. If there are no variances in the measurements, all lines on the graph remain the same, meaning that the project is progressing as planned. All of these measurements include a cost component. Costs are displayed in an S curve because spending is minimal in the beginning of the project, picks up steam toward the middle, and then tapers off at the end. This means your earned value measurements will also take on the S curve shape. Figure 5-8 shows an example that plots these three measurements.

Cost Variance Cost variance is one of the most popular variances that project managers use, and it tells you whether your costs are higher than budgeted (with a resulting negative number) or lower than budgeted (with a resulting positive number). It measures the actual performance to date or during the period against what’s been spent.

Use this formula:

CV = EV – AC

Schedule Variance Schedule variance, another popular variance, tells you whether the schedule is ahead or behind what was planned for this period. This formula is most helpful when you’ve used the critical path methodology to build the project schedule.

Use this formula:

SV = EV – PV

Together, the CV and SV are known as efficiency indicators for the project and can be used to compare performance of all the projects in a portfolio.

Cost and schedule performance indexes are primarily used to calculate performance efficiencies, and they’re often used to help predict future project performance.

Cost Performance Index The cost performance index (CPI) measures the value of the work completed against actual cost. It is the most critical of all the EVM measurements according to the PMBOK® Guide because it tells you the cost efficiency for the work completed to date or at the completion of the project. As mentioned previously, if CPI is greater than 1, your spending is less than anticipated. If CPI is less than 1, you are spending more than anticipated for the work completed.

Use this formula:

CPI = EV ÷ AC

Schedule Performance Index The schedule performance index (SPI) measures the progress to date against the progress that was planned. This formula should be used in conjunction with an analysis of the critical path activities to determine if the project will finish ahead of or behind schedule. As mentioned previously, if SPI is greater than 1, you are ahead of schedule. If SPI is less than 1, you are behind schedule.

Use this formula:

SPI = EV ÷ PV

Forecasting Forecasting uses the information gathered to date and estimates the future conditions or performance of the project based on what is known when the calculation is performed.

One of the forecasting formulas used is called estimate at completion (EAC). EAC estimates the expected total cost of a work component, a schedule activity, or the project at its completion. This is the probable final value for the work component (or project).

Use this formula:

EAC = AC + bottom-up ETC

The bottom-up estimate to complete (ETC) is the amount of effort remaining based on the activities completed to date and what is thought to occur in the future. Each estimate is summed to come up with a total ETC.

According to the PMBOK® Guide, there are three EAC forecasting formulas (see Table 5-2), which use budget at completion (BAC). BAC is the sum of all the budgets established for all the work in the work package, control account, schedule activity, or project. It’s the total planned value for the work component or project. In addition to the bottom-up ETC, there are two other formulas for calculating ETC that you should be aware of for the exam. These are also listed in Table 5-2.

Table 5-2: EAC forecasting

Forecast	Formula	Description
For ETC work performed at the budgeted rate	EAC = AC + BAC – EV	This formula calculates EAC based on the actual costs to date and the assumption that ETC work will be completed at the budgeted rate, thereby accepting previous performance (whether good or bad).
For ETC work performed at the present CPI	EAC = BAC ÷ CPI	This forecast assumes that future performance will be just like the past performance for the project.
For ETC work considering both SPI and CPI factors	EAC = AC + ((BAC – EV) ÷ (CPI × SPI))	This formula assumes there is a negative cost performance to date and the project schedule dates must be met.
For future cost variances that will be similar	ETC = (BAC – EV) ÷ CPI	Use this formula for predicting future cost variances that will be similar to the types of variances you’ve seen to date.
For future cost variances that will not be similar	ETC = BAC – EV	Use this formula for predicting future cost variances that will not be similar to the types of variances you’ve seen to date.

To-Complete Performance Index To-complete performance index (TCPI) is the projected performance level the remaining work of the project must achieve to meet the BAC or EAC. It’s calculated by dividing the work that’s remaining by the funds that are remaining.

The formula for TCPI when using the BAC is as follows:

TCPI = (BAC – EV) ÷ (BAC – AC)

When the BAC is no longer attainable, the project manager should calculate a new EAC, and this new estimate becomes the goal you’ll work toward once it’s approved by management. The formula for TCPI when EAC is your goal is as follows:

TCPI = (BAC – EV) ÷ (EAC – AC)

Performance Reviews Performance reviews compare cost performance over time and the estimates of funds needed to complete the remaining work. The following three analysis types are associated with performance reviews:

• Variance analysis calculates the difference between the budget at completion and the estimate at completion. To calculate this, use the variance at completion (VAC) formula:

VAC = BAC – EAC

• Trend analysis analyzes existing trends of project performance over time and whether performance is improving or declining.
• Earned value performance includes a comparison of the baseline plans to actual performance.

Variance Analysis Variance analysis works closely with the performance reviews technique. Aside from calculating VAC, variance analysis also focuses on the cause that led to a deviation from the baselines. By determining the cause of existing or potential variance, the project management team can then formulate an effective response through a change request.

Project Management Software Project management software is used to monitor PV, EV, and AC. Table 5-3 shows the formulas used to calculate values.

Table 5-3: Earned value formulas

Item	Formula	Comments
Cost variance (CV)	CV = EV – AC
Schedule variance (SV)	SV = EV – PV
Cost performance index (CPI)	CPI = EV ÷ AC
Schedule performance index (SPI)	SPI = EV ÷ PV
Estimate at completion (EAC)	EAC = AC + bottom-up ETC	EAC using actual costs to date plus new budgeted rates based on expert feedback.
Estimate at completion (EAC)	EAC = AC + BAC – EV	EAC using actual costs to date and future performance will be based on budgeted rate.
Estimate at completion (EAC)	EAC = BAC ÷ CPI	EAC assuming future performance will behave like past performance.
Estimate at completion (EAC)	EAC = AC + [(BAC – EV) ÷ (CPI × SPI)]	EAC when cost performance is negative and schedule dates must be met.
Estimate to complete (ETC)	ETC = (BAC – EV) ÷ CPI	When future cost variances will be similar to the types of variances experienced to date.
Estimate to complete (ETC)	ETC = (BAC – EV)	When future cost variances will not be similar to the variances experienced to date.
To-complete performance index (TCPI)	TCPI = (BAC – EV) ÷ (BAC – AC)	This TCPI formula is used when employing BAC.
To-complete performance index (TCPI)	TCPI = (BAC – EV) ÷ (EAC – AC)	This TCPI formula is used when EAC is your goal.
Variance at completion (VAC)	VAC = BAC – EAC

Outputs of Control Costs

The Control Costs process results in the following outputs:

• Work performance measurements
• Budget forecasts
• Organizational process assets updates
• Change requests
• Project management plan updates
• Project document updates

Work Performance Measurements Work performance measurements include the calculated CV, SV, CPI, and SPI values.

Budget Forecasts Budget forecasts include the calculated EAC, ETC, TCPI, and VAC.

Organizational Process Assets Updates Organizational process assets updates typically include the following items:

• Causes of variances
• Corrective actions taken
• Lessons learned

Change Requests Change requests that result from this process typically involve a change to the cost performance baseline.

Project Management Plan Updates Project management plan updates typically include updates to the cost performance baseline and cost management plans, which should reflect any approved changes.

Project Document Updates Project document updates typically include cost estimates and the basis of estimates.

Ensuring Adherence to Quality Standards

The Perform Quality Control process is responsible for ensuring that project deliverables conform to the quality standards as laid out in the quality management plan. This inspection can be carried out by using several tools and techniques, such as control charts and testing, in order to satisfy customer requirements.

Perform Quality Control

The Perform Quality Control process identifies the causes of poor product quality or processes and makes recommendations to bring them up to the required levels. Quality control is practiced throughout the project to identify and remove the causes of unacceptable results.

Figure 5-9 shows the inputs, tools and techniques, and outputs of the Perform Quality Control process.

Inputs of Perform Quality Control

Know the following inputs of the Perform Quality Control process:

• Project management plan
• Quality metrics
• Quality checklists
• Work performance measurements
• Approved change requests
• Deliverables
• Organizational process assets

Project Management Plan The project management plan contains the quality management plan, which is used to carry out the Perform Quality Control process.

Quality Metrics Quality metrics provide the basis for measuring project or product quality attributes in this process.

Quality Checklists Quality checklists in this process are used to ensure that the set of required steps determined in the Plan Quality process are completed.

Work Performance Measurements Work performance measurements allow the project team to evaluate actual versus planned progress in the areas of technical performance, schedule performance, and cost performance.

Approved Change Requests Approved change requests are requested changes that were approved through the Perform Integrated Change Control process and submitted as an input for implementation.

Deliverables Part of achieving quality is ensuring that all deliverables are completed successfully. Deliverables will be validated as part of this process.

Organizational Process Assets The following organizational process assets are utilized by this process:

• Standards, policies, and guidelines relating to quality standards
• Procedures for reporting and communicating issues and defects

Tools and Techniques of Perform Quality Control

Be familiar with the following tools and techniques of the Perform Quality Control process and how they are utilized in this process:

• Cause-and-effect diagrams
• Control charts
• Flowcharting
• Histogram
• Pareto chart
• Run chart
• Scatter diagram
• Statistical sampling
• Inspection
• Approved change requests review

Cause-and-Effect Diagrams Cause-and-effect diagrams, also known as Ishikawa or fishbone diagrams, help identify root causes of issues. The idea is to determine the possible issues or effects of various factors. A cause and its potential sub-causes are plotted on the diagram, which resembles the skeleton of a fish. Figure 5-10 shows what the cause-and-effect diagram may look like.

Control Charts Control charts measure the results of processes over time and display the results in graph form. They provide a way of measuring variances to determine whether process variances are in or out of control.

A control chart is based on sample variance measurements. From the samples chosen and measured, the mean and standard deviation are determined. Quality is usually maintained—or said to be in control—in plus or minus three standard deviations, also referred to as the upper and lower control limits.

Figure 5-11 illustrates a sample control chart.

Out-of-control variances should be investigated to determine whether corrective action is needed.

For reference, know that standard deviation, or sigma, is equal to the following levels of quality:

±1 sigma is equal to 68.26 percent

±2 sigma is equal to 95.46 percent

±3 sigma is equal to 99.73 percent

±6 sigma is equal to 99.99 percent

Perform Quality Control says that if the process measurements fall in the control limits, then 99.73 percent (3 sigma) of the parts going through the process will fall in an acceptable range of the mean.

Flowcharting Flowcharts are diagrams that show the logical steps that must be performed to accomplish an objective; they can also show how the individual elements of a system interrelate. Flowcharting helps identify where quality problems might occur on the project and how problems occur.

Histogram Histograms are typically bar charts that depict the distribution of variables over time. In Perform Quality Control, the histogram usually depicts the attributes of the problem or situation.

Pareto Chart Pareto charts are named after Vilfredo Pareto, who is credited for discovering the theory behind them, which is based on the 80/20 rule. The 80/20 rule as it applies to quality states that a small number of causes (20 percent) create the majority of the problems (80 percent). Pareto theorized that you get the most benefit by spending the majority of time fixing the most important problems.

Pareto charts are displayed as histograms that rank-order the most important factors—such as delays, costs, and defects—by their frequency over time. The information shown in Table 5-4 is plotted on an example Pareto chart shown in Figure 5-12.

Table 5-4: Frequency of failures

The problems are rank-ordered according to their frequency and percentage of defects. The defect frequencies in this figure appear as black bars, and the cumulative percentages of defects are plotted as circles. The rank ordering of these problems demonstrate where corrective action should be taken first.

Run Chart Run charts are used to show variations or trends in the process over time. They are similar to control charts, but without a displayed limit. Here’s some additional information to know about run charts:

• Common causes of variances come about as a result of circumstances or situations that are relatively common to the process you’re using and are easily controlled at the operational level. There are three types of variances that make up common causes of variances:
  • Random variances
  • Known or predictable variances
  • Variances that are always present in the process
• Special-cause variances are variances that are not common to the process.

Trend analysis is another technique that’s carried out by using run charts. Trend analysis in the Perform Quality Control process is a mathematical technique that uses historical results to predict future outcomes, such as these:

• Technical performance, which compares the technical accomplishments of project milestones completed to the technical milestones defined in the project Planning process group
• Cost and schedule performance, which compares the number of variance activities occurring per period

Scatter Diagram Scatter diagrams use two variables, one called an independent variable, which is an input, and one called a dependent variable, which is an output. Scatter diagrams display the relationship between these two elements as points on a graph. This relationship is typically analyzed to prove or disprove cause-and-effect relationships.

Figure 5-13 shows a sample scatter diagram.

Statistical Sampling Statistical sampling involves taking a sample number of parts from the whole population and examining them to determine whether they fall in acceptable variances. The quality plan defines how to measure the results.

Inspection Inspection involves physically looking at, measuring, or testing results to determine whether they conform to the requirements or quality standards. Inspection will tell you where problems exist and gives you the opportunity to correct them, thus leading to quality improvements. Here’s some additional information to know about inspections:

• Inspections might occur after the final product is produced or at intervals during the development of the product to examine individual components.
• Inspections are also known as reviews and peer reviews.
• Measurements that fall in a specified range are called tolerable results.
• One inspection technique uses measurements called attributes. Attribute sampling is used to verify conformance and nonconformance to predefined specifications.

Approved Change Requests Review Change requests that have been approved and implemented are reviewed to ensure that they were implemented correctly.

Outputs of Perform Quality Control

The Perform Quality Control process results in the following outputs:

• Quality control measurements
• Validated changes
• Validated deliverables
• Organizational process assets updates
• Change requests
• Project management plan updates
• Project document updates

Quality Control Measurements Quality control measurements include the results of the quality control activities performed during this process.

Validated Changes Validated changes are the results of changes, defect repairs, or variances that have been inspected and corrected.

Validated Deliverables Validated deliverables are deliverables that have been taken through the tools and techniques of this process to determine if they are correct and accurate.

Organizational Process Assets Updates Organizational process assets updates include the following items:

• Completed checklists
• Lessons-learned documentation

Change Requests Change requests to the project management plan may result from carrying out this process and will be submitted to the Perform Integrated Change Control process.

Project Management Plan Updates Updates to the project management plan typically consist of changes to the quality management plan and the process improvement plan.

Project Document Updates Project document updates typically include updates to quality standards.

Updating the Risk Register

Identifying new risk, assessing old risks, and implementing the appropriate response strategies should occur as an integral part of monitoring and controlling activities. This is important to managing the impact of risks on the project and is carried out through the Monitor and Control Risks process.

Monitor and Control Risks

The Monitor and Control Risks process should be carried out throughout the project life cycle. In addition to the activities just mentioned, this process is responsible for improving the risk management processes in a number of ways:

• Evaluating risk response plans that are put into action as a result of risk events
• Monitoring the project for risk triggers
• Reexamining existing risks to determine if they have changed or should be closed out
• Monitoring residual risks
• Reassessing project assumptions and determining validity
• Ensuring that policies and procedures are followed
• Ensuring that risk response plans and contingency plans are put into action appropriately and are effective
• Ensuring that contingency reserves (for schedule and cost) are updated according to the updated risk assessment
• Evaluating the overall effectiveness of the risk processes

Figure 5-14 shows the inputs, tools and techniques, and outputs of the Monitor and Control Risks process.

Inputs of Monitor and Control Risks

There are four inputs of the Monitor and Control Risks process that you should know:

• Risk register
• Project management plan
• Work performance information
• Performance reports

Risk Register The risk register contains all of the documented information of the identified risks. It tracks and ranks individual risks, identifies the risk owner, describes risk triggers and residual risks, and lists the response plans and strategies you should implement in the event of an actual risk event.

Project Management Plan The project management plan includes the risk management plan, which provides the necessary information for carrying out this process.

Work Performance Information Work performance information is used in monitoring previously identified risks. It also includes information that may assist in the identification of risk triggers, indicating that a risk event is about to occur.

Performance Reports Performance reports are examined from the perspective of risk and include information such as status reports, performance measurements, and forecasts.

Tools and Techniques of Monitor and Control Risks

Know the following tools and techniques of the Monitor and Control Risks process:

• Risk reassessment
• Risk audits
• Variance and trend analysis
• Technical performance measurement
• Reserve analysis
• Status meetings

Risk Reassessment Periodic, scheduled reviews of identified risks, risk responses, and risk priorities should occur during the project. The idea is to monitor risks and their status and determine whether their consequences still have the same impact on the project objectives as when they were originally planned.

Risk Audits Risk audits are specifically used to examine the implementation of response plans and their effectiveness at dealing with risks and their root causes. They are also used to determine the effectiveness of the risk management processes.

Variance and Trend Analysis Variance and trend analysis looks at the planned results in comparison with the actual results. Deviations found may indicate risk.

Technical Performance Measurement This tool and technique compares the technical accomplishments of project milestones completed during the Executing processes to the technical milestones defined in the project Planning processes. Existing variations may indicate risk.

Reserve Analysis Reserve analysis compares the amount of contingency reserve remaining to the amount of risk remaining in the project. The idea is to determine whether the contingency reserve is sufficient.

Status Meetings Status meetings are used as a means of discussing risk with the project team.

Outputs of Monitor and Control Risks

The Monitor and Control Risks process produces the following five outputs:

• Risk register updates
• Organizational process assets updates
• Change requests
• Project management plan updates
• Project document updates

Risk Register Updates The risk register may need the following updates:

• Addition of newly identified risks
• Updates to the probability and impact, priority, response plans, and ownership of previously identified risks
• Outcome of the project’s risks and their risk responses

Organizational Process Assets Updates The following updates are typically made to the organizational process assets:

• Risk management templates
• Risk breakdown structure (RBS)
• Lessons learned

Change Requests Recommended corrective actions or preventive actions may result from contingency plans or workarounds that were implemented as part of the Monitor and Control Risks process. Change requests are submitted to the Perform Integrated Change Control process.

Project Management Plan Updates The project management plan may include updates to the following documents, among others:

• Schedule management plan
• Cost management plan
• Quality management plan
• Procurement management plan
• Human resource management plan
• WBS within the scope baseline
• Schedule baseline
• Cost performance baseline

Project Document Updates The result of carrying out this process typically includes updates to the assumptions log and technical documentation.

Assessing Corrective Actions

As the need for corrective actions arise, the team may respond by submitting changes requests. All change requests are reviewed by the change control board through the Perform Integrated Change Control process. The issue register should be assessed regularly for needed corrective action so that unresolved issues receive the appropriate follow-up. Responses to open issues should be made by using the necessary tools and techniques so that impact on the schedule, cost, and resources is minimized.

Perform Integrated Change Control

The Perform Integrated Change Control process manages the project’s change requests. This process approves or rejects changes and also manages changes to the deliverables. All change requests generated by other processes are submitted to the Perform Integrated Change Control process for review before implementation. Changes may involve corrective actions, preventive actions, and defect repair.

According to the PMBOK® Guide, the responsibilities of the Perform Integrated Change Control process are primarily as follows:

• Influencing the factors that cause change control processes to be circumvented
• Promptly reviewing and analyzing change requests as well as reviewing and analyzing corrective and preventive actions
• Coordinating and managing changes across the project
• Maintaining the integrity of the project baselines and incorporating approved changes into the project management plan and other project documents
• Documenting requested changes and their impacts

Figure 5-15 shows the inputs, tools and techniques, and outputs of the Perform Integrated Change Control process.

Inputs of Perform Integrated Change Control

There are five inputs of the Perform Integrated Change Control process:

• Project management plan
• Work performance information
• Change requests
• Enterprise environmental factors
• Organizational process assets

Project Management Plan The project management plan includes several documents that will be utilized in this process, such as the project schedule, budget, and scope statement. These documents will be used when reviewing submitted changes.

Work Performance Information Work performance information includes performance results, such as status of deliverables, schedule progress, and costs incurred to date.

Change Requests Change requests include requests that have been submitted for review and approval, such as corrective action, preventive action, and defect repairs. All change requests must be submitted in writing. Figure 5-16 reiterates that all change requests are submitted as inputs into the Perform Integrated Change Control process.

Enterprise Environmental Factors Enterprise environmental factors used to carry out this process include the PMIS, which includes the configuration management system and scheduling software.

Organizational Process Assets The following organizational process assets are utilized by this process:

• Change control and authorization procedures
• Process measurement database
• Configuration management knowledge base
• Project files

Tools and Techniques of Perform Integrated Change Control

The Perform Integrated Change Control process has two tools and techniques that you will need to be familiar with.

Expert Judgment The following sources of expert judgment may be used in this project:

• The project management team
• Key stakeholders
• Subject matter experts
• Consultants
• Industry or professional groups
• The project management office, if applicable

Change Control Meetings Change control meetings are meetings in which the change control board reviews and makes decisions on submitted change requests. The change control board is established to review all change requests and is given the authority to approve or deny them. This authority is defined by the organization. The decisions should be documented and reviewed by stakeholders.

You will also need to know about configuration management systems and change control systems, which are not listed as tools and techniques of the process but directly influence how the process is carried out.

Configuration Management System Configuration management is generally a subsystem of the PMIS. It involves managing approved changes and project baselines. According to the PMBOK® Guide, the following activities are associated with configuration change management in this process:

Configuration Identification Configuration identification describes the characteristics of the product, service, or result of the project. This description is the basis used to verify when changes are made and how they’re managed.

Configuration Status Accounting This includes the approved configuration identification, the status of proposed changes, and the status of changes currently being implemented.

Configuration Verification and Auditing Verification and audits are performed to determine whether the configuration item is accurate and correct and to make certain the performance requirements have been met.

Change Control System Change control systems are documented procedures that describe how the deliverables of the project and associated project documentation are controlled, changed, and approved. Here are some things to note about change control systems:

• Often describe how to submit change requests and how to manage change requests
• Are usually subsystems of the configuration management system
• Track the status of change requests
• Ensure that changes that are not approved are tracked and filed in the change control log for future reference
• Define procedures that detail how emergency changes are approved

In addition, you should know about implementing these two types of systems. The PMBOK® Guide gives these three objectives for implementing and using configuration management systems and change control processes:

• Establish a method to consistently identify changes, request changes to project baselines, and analyze and determine the value and effectiveness of the changes.
• Continuously authenticate and improve project performance by evaluating the impact of each change.
• Communicate all change requests, whether approved, rejected, or delayed, to all the stakeholders.

Figure 5-17 provides a brief overview of the configuration management and change control systems.

Outputs of Perform Integrated Change Control

Know the three outputs of the Perform Integrated Change Control process:

Change Requests Status Updates Change requests status updates reflect the approval status of change requests submitted as inputs, whether approved or rejected.

Project Management Plan Updates Project management plan updates are made to reflect changes that have been approved or rejected after going through the Perform Integrated Change Control process. This may include changes to the following documents:

• Baselines
• Subsidiary management plans

Project Document Updates Project document updates may include updates to any documents impacted by approved or rejected changes as well as the change request log, which will reflect the status update of the change requests.

Communicating Project Status

Communicating project status occurs throughout activities related to the Executing and Monitoring and Controlling processes. Gathering project status from stakeholders and collecting their feedback is necessary to generating project reports. Project reports help to align the project with the business needs.

Collecting information and feedback and performing further analysis on the project’s performance occur within the Report Performance process. It is in this process that project reports are generated and then handed over to the Distribute Information process for dissemination to the appropriate stakeholders.

Report Performance

The Report Performance process collects, documents, and reports baseline data. Report Performance is part of the Project Communications Management Knowledge Area. Thus, it involves collecting actual performance data and comparing it to baseline data. This information is then reported to project team members, the management team, and other interested parties as specified in the communications management plan. Reporting might include status updates on work completed, status of risks and issues, analysis of performance, and approved changes.

Figure 5-18 shows the inputs, tools and techniques, and outputs of the Report Performance process.

Inputs of Report Performance

The Report Performance process includes the following inputs:

• Project management plan
• Work performance information
• Work performance measurements
• Budget forecasts
• Organizational process assets

Project Management Plan The project management plan contains the project management baseline data used to monitor and compare results. Deviations from this data are reported to management.

Work Performance Information Work performance measures are taken primarily during the Control Cost, Control Schedule, and Perform Quality Control processes. Information such as status of deliverables, schedule, and costs is used in the Report Performance process.

Work Performance Measurements Work performance measurements are used to create activity metrics that will allow for the comparison of actual to planned performance. The items evaluated for work performance include schedule, cost, and technical performance.

Budget Forecasts Budget forecasts look at the forecasted costs needed to complete the remaining project work and the cost forecast for the project as a whole.

Organizational Process Assets The following organizational process assets are used in the Report Performance process:

• The organization’s policies and procedures for defining metrics and variance limits
• Report templates

Tools and Techniques of Report Performance

You should know the following tools and techniques of the Report Performance process:

• Variance analysis
• Forecasting methods
• Communication methods
• Reporting systems

Variance Analysis Variance analysis determines the cause of any existing variances between baselines and actual performance. The steps used to conduct variance analysis may look something like the following:

Forecasting Methods According to the PMBOK® Guide, forecasting methods fall into four categories:

Time Series Methods Time series methods include earned value, moving average, extrapolation, trend estimation, linear prediction, and growth curve.

Causal/Econometric Methods The methods included in this category are regression analysis, autoregressive moving average (ARMA), and econometrics.

Judgmental Methods Judgmental methods use opinions, intuitive judgments, and probability estimates to determine possible future results. Methods in this category include composite forecasts, Delphi method, surveys, technology forecasting, scenario building, and forecast by analogy.

Other Methods Other types of forecasting methods include simulation, probabilistic forecasting, and ensemble forecasting.

Communication Methods Communication methods used in this process include status review meetings. The purpose of a status meeting is to provide updated information regarding the progress of the project. Note the following about status review meetings:

• Status review meetings are a venue for formally exchanging project information.
• The project manager is usually the expediter.

Reporting Systems Reporting systems are used to record, store, and distribute information about the project, including cost, schedule progress, and performance information. According to the PMBOK® Guide the following are types of distribution formats:

• Spreadsheets and their analysis
• Presentation documents
• Tables
• Graphics

Outputs of Report Performance

The Report Performance process results in three outputs.

Performance Reports Performance reports document and report performance information to the stakeholders as outlined in the communications management plan. These reports might take many forms:

• S curves (as cost performance baselines are recorded)
• Bar charts
• Tables
• Histograms
• Earned value information
• Variance analysis

According to the PMBOK® Guide, performance reports may range from simply stated status reports to highly detailed reports:

• Dashboards
• Analysis of project performance for previous periods
• Risk and issue status
• Work completed in the current reporting period
• Work expected to be completed during the next reporting period
• Changes approved in the current reporting
• Results of variance analysis
• Time completion forecasts and cost forecasts
• Other information stakeholders want or need to know

Organizational Process Assets Updates The organizational process assets may include updates to the following items:

• Lessons-learned documentation
• Report formats
• Causes of issues
• Corrective actions taken

Change Requests The following changes may be requested:

• Recommended corrective actions to bring performance in alignment with the project management plan
• Preventive actions to reduce probable future negative performance

Bringing the Processes Together

In this chapter, you learned all about the processes that fall in the Monitoring and Controlling process group. If anything is amiss, the processes in this group work together to bring the project back in line with the project management plan.

In addition to correcting any differences between the actual work and the project management plan, the Monitoring and Controlling process group is responsible for preventive actions. During these processes, changes are verified and managed, and the status of identified risks is monitored in order to manage hurdles as soon as they arise. This process group is the project’s gatekeeper.

Figure 5-19 summarizes the objectives in the Monitoring and Controlling process group.

In total, the Monitoring and Controlling process group contains eight processes, covering nearly all of the knowledge areas:

• Project Integration Management
• Project Scope Management
• Project Time Management
• Project Cost Management
• Project Quality Management
• Project Communications Management
• Project Risk Management
• Project Procurement Management

We will review the process interactions that occur in each knowledge area during the Monitoring and Controlling process group. This will help you understand how the processes work together.

Project Integration Management Knowledge Area Review

Two key processes in the Monitoring and Controlling process group belong to the Project Integration Management Knowledge Area. Figure 5-20 shows how the project work is tracked and regulated as part of this knowledge area and how all project changes are approved or rejected. Changes are reviewed by the integrated change control system, which determines whether the changes are necessary and in the best interest of the project.

Project Scope Management Knowledge Area Review

As you may recall, scope documents are necessary to keep the project focused by providing it with boundaries and defining exactly what it set out to accomplish (no more, no less). The two processes in the Project Scope Management Knowledge Area fall in the Monitoring and Controlling process group and ensure that the project is in line with the defined requirements.

Figure 5-21 shows how validated deliverables are formally accepted during this phase and how the project and product scope are monitored and managed. Changes made to the project scope are carefully watched. If something does not align with the project’s defined requirements, then recommended changes are made. Performance measurements are also recorded and are used in project quality processes and project communications.

Project Time Management Knowledge Area Review

Only one process from the Project Time Management Knowledge Area occurs in the Monitoring and Controlling process group. This process is responsible for monitoring and controlling changes to the project schedule. Here, we are also concerned with monitoring the status of the project so that progress updates can be made. Performance measurements emerge from this step. The performance measurements will be important to monitoring and controlling quality and communications.

As Figure 5-22 shows, changes are recommended based on the progress and status of the project schedule.

Project Cost Management Knowledge Area Review

During the monitoring and controlling of project costs, we utilize the budget developed during the execution of the project work. Figure 5-23 shows the single cost-related process in the Monitoring and Controlling process group.

As you may recall during our review of this process earlier in this chapter, the following items are generated out of this process:

• Budget forecasts
• Performance measurements, which will be used for monitoring and controlling quality and communications (similar to the performance information of the project schedule)
• Recommended changes to bring the budget back in line with the project management plan as needed

Generating the budget forecasts and performance measurements involves the use of earned value management (EVM), which itself includes several formulas. Although we won’t go through the formulas and calculations here, you’ll need to remember the calculations and various performance measurements in EVM:

• Planned value (PV)
• Earned value (EV)
• Actual cost (AC)
• Schedule variance (SV)
• Cost variance (CV)
• Schedule performance index (SPI)
• Cost performance index (CPI)
• Estimate at completion (EAC)
• Estimate to complete (ETC)
• To-complete performance index (TCPI)

Project Quality Management Knowledge Area Review

Monitoring and controlling quality involves monitoring and recording the results of quality activities that have been executed in addition to assessing performance. Figure 5-24 shows how several items carry out this purpose.

The results of the single quality-related process in the Monitoring and Controlling process group include the following items:

• Quality measurements, which are submitted back into the Perform Quality Assurance process (which is part of the Executing process group)
• Validated deliverables and changes, to make sure the results of the project work are correct
• Recommended changes, which are made for changes or deliverables that have been rejected from a quality standpoint

To generate these results, you may recall that several tools and techniques were used. You should be familiar with the quality tools for the exam. Also note that those conducting quality control activities should have a working knowledge of sampling and probability. At the least, project teams should be familiar with the following:

• Prevention
• Attribute sampling
• Tolerances and control limits

Project Communications Management Knowledge Area Review

Monitoring and controlling project communications relies on performance information and budget forecasts; these are collected and distributed as performance reports. The recipients of these reports are outlined in the communications management plan. Figure 5-25 displays the results of the communications process in the Monitoring and Controlling process group.

This process generates the following items:

• The performance reports, such as status reports, measurements of the project’s progress, and forecasts
• Any recommended changes made to bring the project back in line with the project management plan, implement preventive actions, or accommodate changes that were made to the product or project as a result of managing stakeholder expectations

Project Risk Management Knowledge Area Review

The Project Risk Management Knowledge Area has only one process that falls in the Monitoring and Controlling process group. As you may recall, this single process accomplishes a lot of things. Within this risk-related process, we will carry out the following actions:

• Implement the risk response plans, which were developed in the Planning process group
• Evaluate the effectiveness of the plans
• Monitor the identified risks
• Identify new risks
• Evaluate the effectiveness of the risk management processes

As shown in Figure 5-26, carrying through these actions results in the following:

• Actual outcomes of the identified risks
• Newly identified risks
• The documenting and recording of the risk outcomes for use by future projects
• The documenting and recording of the risk audits that were conducted to evaluate the effectiveness of the risk response plans and the risk management processes
• Any recommended changes to bring the project back in line with the project management plan as well as corrective actions and preventive actions (typically includes the implementation of contingency plans and workaround plans)

Project Procurement Management Knowledge Area Review

During monitoring and controlling of the project, vendor relationships and performance are managed and monitored. Figure 5-27 shows what occurs in the single procurement-related process that falls in the Monitoring and Controlling process group.

The following information is used throughout this process:

• Procurement information, such as the procurement contracts and any documents relating to the procurements being administered
• Vendor performance information, including internal performance reports and reports generated by the vendors
• Approved changes, which typically involve changes to the contract terms and conditions
• The project management plan, which contains the procurement management plan

As a result of the Administer Procurements process, recommended changes are made to bring vendor performance and progress back in line with the project management plan.

Keep in mind that the Monitoring and Controlling process group’s purpose is given away by its title. The processes in this process group are concerned with making sure the project (performance and status) is moving along as planned. In the event that this is not the case, corrective actions are issued and proactive measures are taken through preventive actions.

Review Questions

1. The Monitor and Control Project Work process results in all of the following EXCEPT:

A. Change requests

B. Preventive actions

C. Defect repairs

D. Deliverables

2. A project manager of a technical training company is working on a project that will automate the company’s course registration process. Due to the expertise involved, the company hired an external vendor to create the backend development of the registration system. While monitoring the project work, the project manager discovered that the vendor was two weeks behind schedule and about to miss an important milestone. What tool and technique did the project manager use to make this determination?

A. Contract

B. Work performance information

C. Performance reporting

D. Procurement documentation

3. All of the following processes integrate with the Administer Procurements process EXCEPT:

A. Close Procurements

B. Direct and Manage Project Execution

C. Report Performance

D. Perform Integrated Change Control

4. Which of the following BEST describes the contract change control system?

A. Meetings where the change control board reviews and makes decisions on change requests submitted

B. A subsystem of the PMIS that manages approved changes and project baselines

C. A system that describes the processes needed to make contract changes

D. A system that describes how the deliverables of the project and associated project documentation are controlled, changed, and approved

5. While conducting earned value management, the project manager of a software development company receives a request from a stakeholder for the most current cost estimate report. Specifically, the stakeholder needs to know the value of the work completed against actual cost. Which formula will the project manager use to calculate this information?

A. EV ÷ AC

B. EV – AC

C. EV – PV

D. EV ÷ PV

6. During a project status meeting, the project manager provided the room of stakeholders with results of a recent quality audit. After the group discussed the results, it was determined that a minor adjustment needed to be made to bring the variance levels under control. The project sponsor, also a meeting participant, agreed and gave her approval to implement the changes immediately. What should the project manager do next?

A. Inform the quality management team and implement the changes that day.

B. Obtain the customer’s approval for the change, even though the project sponsor has approved it.

C. Document the change request and submit it for review by the change control board.

D. Bypass the change control process because the change has already received approval by a high authority.

7. After the implementation of yet another risk response plan, the project manager became concerned about whether the budget was sufficient enough to cover the remaining identified risks. Which of the following tools and techniques can the project manager use to evaluate the status of the budget in terms of risk?

A. Risk reassessment

B. Risk audits

C. Budget analysis

D. Reserve analysis

8. If budget at completion (BAC) is 1,500 and estimate at completion (EAC) is 1,350, what is the current variance at completion (VAC)?

A. 150

B. 75

C. 0.90

D. 1.11

9. A project manager is in the process of determining the existing variance between the schedule baseline and actual schedule. To determine the variance, the project manager used schedule variance (SV) and schedule performance index (SPI). The project manager is currently in what process?

A. Control Costs

B. Control Schedule

C. Perform Quality Control

D. Report Performance

10. What level of accuracy does 3 sigma represent?

A. 68.26 percent

B. 95.46 percent

C. 99.73 percent

D. 99.99 percent

Answers to Review Questions

1. D. Deliverables are an output of the Direct and Manage Project Execution process, not of the Monitor and Control Project Work process. Preventive actions and defect repairs (options B and C) are part of change requests.

2. C. Options A and B are inputs of the Administer Procurements process, and option D is an output. This leaves C, performance reporting. Performance reporting provides information about the vendor’s progress in meeting contract objectives. This question simply tested your ability to distinguish between the inputs, tools and techniques, and outputs of the process.

3. A. According to the PMBOK® Guide, you must integrate and coordinate the Direct and Manage Project Execution, Report Performance, Perform Quality Control, Perform Integrated Change Control, and Monitor and Control Risk processes during the Administer Procurements process. Only Close Procurements, option A, is not included in this list of processes.

4. C. Option A refers to change control meetings, option B refers to the configuration management system, and option D refers to the change control system. Also notice that C, the correct choice, is the only option that specifically mentions contracts.

5. A. In this scenario, the stakeholder is looking for the latest cost performance index, which measures the value of the work completed against actual cost. The correct formula simply takes earned value and divides it by actual cost.

6. C. Change requests should always be documented, even if verbal approval has been provided by a high authority figure of the project (such as the project sponsor in this scenario). Obtaining the approval of the project sponsor may speed up the approval process, but it may not replace it.

7. D. You may have been tempted to choose option C. However, budget analysis is not a tool and technique of the Monitor and Control Risks process, which is the process used in this scenario. The correct choice is reserve analysis. Reserve analysis compares the amount of unused contingency reserve to the remaining amount of risk. This information is then used to determine whether a sufficient amount of reserve remains to deal with the remaining risks.

8. A. To calculate variance at completion, simply subtract the estimate at completion (EAC) from the budget at completion (BAC). Plug in the numbers provided in the question and work out the problem as follows:

VAC = 1,500 – 1,350

9. B. The project manager is currently in the Control Schedule process. This can be a tricky question because PV and SPI were mentioned, steering you toward the Control Costs process. In this scenario, the project manager is specifically utilizing the variance analysis technique of the Control Schedule process.

10. C. For reference, know the level of quality for 1 sigma (68.26 percent level of accuracy), 2 sigma (95.46 percent level of accuracy), 3 sigma (99.73 percent level of accuracy), and 6 sigma (99.99 percent level of accuracy).