UNIT - V

PROJECT MONITORING & RESOURCE ALLOCATION

Creating a framework for monitoring &control, Progress monitoring, Cost monitoring, earned
value Analysis, Defects Tracking, Issues Tracking, Status reports, Types of
Resources,Identifying resource requirements, Resource scheduling

PROJECT MONITORING& CONTROL

Monitoring and Controlling are processes needed to track, review, and regulate the progress
and performance of the project. It also identifies any areas where changes to the project
management method are required and initiates the required changes.

The Monitoring & Controlling process group includes eleven processes, which are:

1. Monitor and control project work: The generic step under which all other
monitoring and controlling activities fall under.
2. Perform integrated change control: The functions involved in making changes to
the project plan. When changes to the schedule, cost, or any other area of the project
management plan are necessary, the program is changed and re-approved by the
project sponsor.
3. Validate scope: The activities involved with gaining approval of the project's
deliverables.
4. Control scope: Ensuring that the scope of the project does not change and that
unauthorized activities are not performed as part of the plan (scope creep).
5. Control schedule: The functions involved with ensuring the project work is
performed according to the schedule, and that project deadlines are met.
6. Control costs: The tasks involved with ensuring the project costs stay within the
approved budget.
 7. Control quality: Ensuring that the quality of the project?s deliverables is to the
standard defined in the project management plan.
8. Control communications: Providing for the communication needs of each project
stakeholder.
9. Control Risks: Safeguarding the project from unexpected events that negatively
impact the project's budget, schedule, stakeholder needs, or any other project success
criteria.
10. Control procurements: Ensuring the project's subcontractors and vendors meet the
project goals.
11. Control stakeholder engagement: The tasks involved with ensuring that all of the
project's stakeholders are left satisfied with the project work.

Creating a framework for monitoring & control

Creating a framework for monitoring and control in software engineering involves

establishing processes and tools to track project progress, manage changes, and ensure project
objectives are met. Here’s a step-by-step guide to developing an effective framework:

Planning and Scheduling

Risk Management

Quality Assurance

Change Management

Performance Monitoring

(Repeat)
Framework Components

1.Planning and Scheduling

 Work Breakdown Structure (WBS): Break down the project into smaller,
manageable tasks.
 Gantt Charts: Visualize the project schedule and track progress against timelines.

2.Risk Management

 Risk Identification: Continuously identify new risks throughout the project lifecycle.
 Risk Mitigation Plans: Develop and implement plans to mitigate identified risks.
 Risk Monitoring: Regularly review the status of risks and update mitigation plans as
necessary.

3.Quality Assurance

 Testing: Implement unit testing, integration testing, system testing, and user
acceptance testing (UAT).
 Code Quality Tools: Use tools like SonarQube to monitor code quality and maintain
coding standards.

4.Change Management

 Change Requests: Document and track all change requests.

 Impact Analysis: Assess the impact of changes on project scope, timeline, and
budget.
 Approval Process: Establish a formal process for approving or rejecting change
requests.

5.Performance Monitoring

 Dashboards: Create dashboards to provide real-time visibility into project status,

using tools like Grafana or Power BI.
 KPIs: Track KPIs such as velocity, burn-down charts, and defect density to monitor
project health.

Progress monitoring

Progress monitoring in project management involves tracking and assessing the ongoing
status of a project to ensure it is on course to meet its objectives, within the defined scope,
time, and budget constraints. Effective progress monitoring helps identify potential issues
early, allowing for timely corrective actions.

1.Plan at your project

ProjectProgress Monitoring
• Creating a project plan with team collaboration.
• Outlining project scope, resources, tasks, and deadlines.
• Creating a timeline for tasks with deadlines.
• Identifying team members for each task.
• Outlining project objectives and key performance indicators.

2. Set clear goals for your project

Project Goal Setting and Progress Monitoring

• Use SMART method to set clear, quantifiable project goals.

• Goals should be specific, measurable, achievable, relevant, and time-based.
• Set deadlines for tasks and objectives to keep the project on schedule.
• Measure project progress in relation to goals and key performance indicators.

SMART goals are:

Specific
Measurable
Attainable
Relevant
Time-based

3. Create a steady check-in schedule

Project Check-In Schedule

• Establish a regular check-in schedule for regular progress updates.
• Vary check-in frequency for different projects.
• Balance check-ins to keep project on track and allow team freedom.
• Inform project team about scheduled check-ins.
• Compare team progress to key performance indicators.
• Record project data for tracking progress.
• Use check-ins as communication opportunity to address project challenges.

4. Record and analyze data

Project Progress Tracking and Analysis

• Recording and analyzing project progress post-check-ins.

• Gathering data through meetings or prepared progress reports.
• Selecting the most efficient data collection process.
• Recording data using databases, spreadsheets, or project management tools.
• Analyzing data to determine project progress and identify areas for improvement.

5. Make changes to your goals if necessary

Project Goal Adjustment
• Based on progress monitoring, reassess project goals.
• Consider extending deadlines if team struggles or delays important steps.
• Adjust goals if team is ahead of schedule, allowing quicker project completion.

Cost monitoring

Cost monitoring is a crucial aspect of project management that involves tracking, reviewing,
and managing the expenses incurred during a project. It plays a vital role in ensuring that a
project stays within budget and delivers value to stakeholders. Effective cost monitoring
allows project managers to identify potential issues early, make informed decisions, and take
corrective actions to keep the project on track. In this article, we'll explore the importance of
cost monitoring in project management and discuss some best practices for implementing
cost monitoring processes.

1.Resource Planning
Project Management Resource Planning
• Crucial for cost management.
• Identifies and allocates necessary resources.
• Enables efficient task completion.
• Controls project costs by avoiding resource shortages or overallocation.

Key Elements of Resource Planning

1. Resource Identification
2. Resource Estimation
3. Resource Allocation
4. Resource Leveling and Optimization

2.Cost Estimating

Cost estimation involves forecasting the financial resources required to complete a project.
This process includes identifying and quantifying all the costs associated with project
activities.
Components:
• Labor Costs: Wages, salaries, and benefits for the project team.
• Material Costs: Costs for all materials required for the project.
• Equipment Costs: Costs for any equipment needed for project activities.
• Subcontractor Costs: Payments to subcontractors or consultants.
• Contingency Costs: Additional funds set aside for unforeseen expenses.

3.Cost Budgeting
Cost budgeting involves aggregating the estimated costs of individual activities or work
packages to establish a cost baseline. This baseline serves as the approved budget for the
project and is used to measure and monitor project performance.

Components:
• Cost Baseline: The approved version of the project budget, excluding any management
reserves, which can only be changed through formal change control procedures.
• Management Reserves: A portion of the project budget reserved for unforeseen work that
is within the scope of the project.

4.Cost Control

Cost control involves monitoring project costs to ensure that the project remains within the
approved budget. This process includes tracking actual expenditures, comparing them to the
cost baseline, and taking corrective actions when necessary.

Components:

•Cost Performance Measurement: Using techniques such as Earned Value Management

(EVM) to measure cost performance.
•Variance Analysis: Comparing actual costs to planned costs to identify and understand
variances.

•Trend Analysis:Analyzing project cost performance over time to predict future performance
and identify potential issues.

earned value Analysis

Earned Value Analysis (EVA) is a project management technique used to measure project
performance and progress in an objective manner. It integrates project scope, cost, and
schedule measures to provide a comprehensive view of how a project is performing against
its plan. EVA helps project managers understand whether a project is on track and within
budget, and it provides early warning signals if the project is deviating from its plan.

Key Components of Earned Value Analysis

Planned Value (PV)
Earned Value (EV)
Actual Cost (AC)

1.Planned Value (PV)

PV, also known as Budgeted Cost of Work Scheduled (BCWS), represents the approved
budget for the work scheduled to be completed by a specific point in time.

2.Earned Value (EV)

EV, also known as Budgeted Cost of Work Performed (BCWP), represents the value of the
work actually completed by a specific point in time, expressed in terms of the approved
budget.

3.Actual Cost (AC)

AC, also known as Actual Cost of Work Performed (ACWP), represents the actual cost
incurred for the work completed by a specific point in time.

Formulas in Earned Value Analysis

1.Cost Variance (CV)
CV indicates whether the project is under or over budget.

Formula: CV = EV - AC
Limitations:
CV > 0: Under budget
CV < 0: Over budget

CV = 0: On budget

2.Schedule Variance (SV)

SV indicates whether the project is ahead of or behind schedule.

Formula: SV = EV - PV
limitations:
SV > 0: Ahead of schedule
SV < 0: Behind schedule
SV = 0: On schedule

3.Cost Performance Index (CPI)

CPI measures cost efficiency by comparing the value of work performed to the actual cost.

Formula: CPI = EV / AC
limitations:
CPI > 1: Cost efficiency (under budget)
CPI < 1: Cost inefficiency (over budget)
CPI = 1: On budget

4.Schedule Performance Index (SPI)

SPI measures schedule efficiency by comparing the value of work performed to the planned
value.
Formula: SPI = EV / PV
limitations:
SPI > 1: Ahead of schedule
SPI < 1: Behind schedule
SPI = 1: On schedule

5.Estimate at Completion (EAC)

EAC forecasts the total cost of the project based on current performance.

Formula: EAC = BAC / CPI (if future work is assumed to be performed at the same cost
efficiency as the current performance)
Alternative Formula: EAC = AC + (BAC - EV) (if future work is assumed to be performed
at the planned cost)
limitation: Provides an estimate of the total project cost at completion.

6.Estimate to Complete (ETC)

ETC estimates the cost required to complete the remaining work.

Formula: ETC = EAC - AC

limitation: Indicates the additional cost needed to finish the project.

7.Variance at Completion (VAC)

VAC, indicates the expected budget surplus or deficit at the end of the project.

Formula: VAC = BAC - EAC

limitations:
VAC > 0: Under budget
VAC < 0: Over budget
VAC = 0: On budget
Defects Tracking
The Defect Management Process is a systematic approach to identify, track, and resolve
defects in software development.

1. Defect identification – Defects are identified through various testing activities,

such as unit testing, integration testing, and user acceptance testing.
2. Defect logging – Defects are logged in a defect tracking system, along with details
such as description, severity, and priority.
3. Defect triage – The triage process involves evaluating the defects to determine their
priority and the resources required to resolve them.
4. Defect assignment – Defects are assigned to developers or testers for resolution,
based on their expertise and availability.
5. Defect resolution – The assigned personnel work on resolving the defects by fixing
the code, updating the documentation, or performing other necessary actions.
6. Defect verification – Once the defect is resolved, it is verified by the tester to
ensure that it has been fixed correctly and does not introduce any new defects.
7. Defect closure – Once the defect has been verified, it is closed and the status is
updated in the defect tracking system.
8. Defect reporting – Regular reports on the status of defects, including the number of
open defects, the number of defects resolved, and the average time to resolve
defects, are generated to provide visibility into the defect management process.

Issues Tracking {Diagram as above}

Issue tracking is a crucial aspect of project monitoring and control, ensuring that all
problems, challenges, and questions that arise during a project are identified, documented,
addressed, and resolved in a timely manner. Effective issue tracking helps maintain project
progress, reduces risks, and ensures project goals are met.
Key Steps in the Issue Tracking Process
1.Issue Identification
2.Issue Logging
3.Issue Prioritization
4.Issue Analysis
5.Issue Resolution
6.Issue Monitoring
7.Issue Reporting
Description of the Diagram
1. Issue Identification: The process begins with identifying issues during the project
lifecycle through various feedback and review mechanisms.
2. Issue Logging: Identified issues are logged into a centralized system with detailed
information for tracking.
3. Issue Prioritization: Issues are reviewed and prioritized based on their impact and
urgency to ensure critical issues are addressed first.
4. Issue Analysis: The root causes of issues are analyzed to determine the best course of
action for resolution.
5. Issue Resolution: Issues are assigned to responsible team members for resolution,
and actions are taken to fix the issues.
6. Issue Monitoring: The resolution progress is monitored to ensure issues are being
resolved as planned.
7. Issue Reporting: Reports are generated to provide stakeholders with visibility into
the status and trends of issues, facilitating informed decision-making.

Status reports
Project status reports are essential to the successful management of any project. They provide
a snapshot of the progress made towards achieving goals, help identify risks and issues that
may be impacting progress, and enable stakeholders to make informed decisions about how
best to move forward with the project.
Components of Project Status Reports
1.Project Scope and Objectives
Project Scope and Objectives Review
• Provides baseline for progress measurement.
• Identifies changes since project start.
• Ensures understanding of project goals.
• Alerts team about discrepancies between plan and actual results.
2.Project Schedule and Timeline
Project Schedule and Timeline Overview
• Provides an overview of the project, including planned milestones, tasks, and deadlines.
• Helps stakeholders understand project progress and identify potential risks.
• Serves as a reference for future planning, determining task completion time.
• Provides a roadmap for successful project completion, enabling informed decisions for
stakeholders.
3.Resource Allocation
Project Resource Allocation Overview
• Essential for project status reporting.
• Defines necessary resources for project completion.
• Includes staff, materials, equipment, and other physical resources.
• Included in project plan scope for accurate tracking.
• Evaluation of current allocations against new needs or changes.
• Tracking resources throughout project lifecycle helps identify areas needing additional
support or reallocation.
4.Budget and Cost Analysis
Project Cost and Budget Analysis
• Essential for project managers to understand estimated and actual costs.
• Helps ensure projects stay within budgets for successful completion and delivery.
• Helps forecast future expenses for a proper financial plan.
5.Risk Management
Risk Management in Project Status Reports
• Risk management involves identifying, assessing, and prioritizing potential risks affecting
project success.
• Proper implementation aids in informed resource allocation decisions.
• Clear documentation of risk assessment steps in project status reports ensures stakeholder
access to accurate information.
• Transparency in risk management allows better collaboration and awareness of new risks
throughout a project's life cycle.
6.Team Member Performance
Project Manager's Role in Team Member Performance
• Ensuring team members meet performance goals and expectations.
• Outlining each team member's current task performance and areas for improvement.
• Identifying areas needing additional training or guidance for task completion.
• Assessing resources and plan changes for successful completion.

Types of Resources
In project monitoring and control, various types of resources are managed to ensure project
success. These resources encompass both tangible and intangible assets that are essential for
project execution. Here are the primary types of resources commonly monitored and
controlled in project management:
There are three types of resources that are considered and are very essential for execution
of project and completion of project on time and on budget. These resources can be denoted
by pyramid which is also known as Resource Pyramid. At base of pyramid i.e. last layer,
hardware and software tools are present, then at middle layer, reusable components are
present, and at top of pyramid i.e. top layer, human resources are present. This is shown in
following diagram :

When software planner wants to specify resources, they specify it using four characteristics
:
 Description of resource
 Resource availability
 Time of resource when it will be available
 Duration of resource availability
Types of resources :
1.Human Resource
Human Resource Importance in Software Development
• Essential for effective project execution regardless of project size and complexity.
• Positions assigned include manager, software developer, software testing, engineer, etc.
• Roles vary based on skills and specialty.
• Small projects require individual roles, large projects require teamwork.
• Total project personnel required estimated by calculating development effort inters of
person-months.
2.Reusable Components
Reusable Components in Softwa
Software Development
• Industry uses ready software components for ease and acceleration in software
development.
• Components are software building blocks that can be created and reused.
• Project managers manage project budgets, which are crucial for reducing development
costs.
• Component-Based
Based Software Engineering emphasizes reusability, reducing overall
development costs.
3.Hardware and Software tools
Project Management: Hardware and Software Tools
• Material resources part of project.
• Planning these resources before project development is crucial.
• Delays in timely delivery can cause project delays.

Additional Types of Resources used in Project Development:

1. Money Resources: Financial planning, budgeting and funding make sure that
you’ve got the money to pay your staff, obtain more resources and maintain the
project.
2. Information Resources: Access to important information, records and additional
materials that support your team’s decision-making and seamless progress.
3. Resources for Legal and Compliance: Legal knowledge and resources to
guarantee that your project comply with legal requirements.
4. Examining and ensuring quality Resources: Equipment and workers committed
to making sure the final product is free of mistakes and fulfils the required
standards.
5. Physical Space: The actual or virtual workspace where your team works together to
develop ideas.
6. Communication Resources: Anything that enables easy communication within
your team, such as video conferencing tools, messaging apps and email.

Identifying resource requirements

Identifying resource requirements is a crucial step in project monitoring and control. It
involves determining the types and quantities of resources needed to successfully execute
project tasks and deliverables. Here's a structured approach to identifying resource
requirements:
Requirements
1. Define Your Project Scope. ...
2. Write a Scope of Work. ...
3. Make a Resource Breakdown Structure. ...
4. Estimate the Costs Related to Your Project Resources. ...
5. Create a Resource Schedule. ...
6. Create a Resource Management Plan. ...
7. Use Resource Tracking Tools.

1. Define Your Project Scope

The first step is to understand the scope of your project. That is knowing the project’s
goals, deadlines and deliverables. There are many ways to determine the scope of a project.
Using the project teams to mine their knowledge of the work and historical data can also
play a role in estimating the project scope. More time-consuming, but accurate, is a work
breakdown structure, or a hierarchical tree diagram that helps you to identify the project
deliverables and tasks.
2. Write a Scope of Work
The scope of work is a project document that defines all the work that’s done over the
project’s life cycle. That includes the project deliverables, timeline, milestones, how
reporting will be done and more. The importance of this step goes beyond estimating your
project resource requirements and helps manage them to avoid scope creep, such as adding
tasks to the project during its execution. A scope of work document will help you have a
more accurate idea of the project and, in so doing, its resource requirements.
3. Make a Resource Breakdown Structure
Just as you use a work breakdown structure to identify deliverables, a resource breakdown
structure can help you identify the project resource requirements. It’ll help you to identify
resource types, such as people and tangible and intangible assets before the start of the
project. This will not only help estimate your resource requirements but also help with
scheduling and managing them, such as resource allocation.
4. Estimate the Costs Related to Your Project Resources
Resources aren’t just team members, raw materials, equipment and so forth. It’s also
money. One must consider costs when estimating and managing project resource
requirements. This means you must forecast the cost for each resource that will be used in
your project. This will also inform your budget. Accurately forecasting the related costs for
your project resources helps to save money without negatively affecting the project quality
of your deliverables.
5. Create a Resource Schedule
Identify resource requirements for the project and allocate them on a timeline to create a
resource schedule. To do this, you’ll need to know the availability of your team members
and the start and end dates of their assigned tasks. This will make your project more
efficient and save money by having the right resources allocated at the right time.
6. Create a Resource Management Plan
The next step is to develop a resource management plan that details the acquisition,
development, usage, management, control and release of the project resources. This will
provide a guide or roadmap for the project manager and project team to allocate, manage
and control resources needed to complete the project as efficiently as possible.
7. Use Resource Tracking Tools
Anyone who’s made a resource management plan knows that there will be changes during
execution. Therefore, a project manager must use resource-tracking tools to monitor and
control resource requirements. Whatever resource tracking tool you use should provide a
clear view of where and how those resources are being used. This will enhance the resource
management plan and allocation of those resources as you can adjust to respond to changes
in your project.

Resource scheduling
Resource scheduling is the process of assigning resources to projects and tasks within a
specified timeframe. A resource schedule should clearly define who needs to do what and
when, and make that information available at a glance to all project managers, resource
managers, and team members involved.
Effective resource scheduling helps businesses ensure their team knows what tasks are
coming up, preventing project delays. It also helps them track how their teams use time,
making it possible to reallocate tasks among individuals to address over- or underutilization.

Scheduling methods
When scheduling tasks, two situations are likely to present themselves:
1. You might have multiple projects to complete and very little time
2. You might have a limited number of people to assign tasks to
In either case, two resource scheduling methods can help optimize your people’s time and
complete the project:
1.Resource-constrained scheduling
Resource-Constrained Scheduling Overview
• Planning tasks within available resources.
• Ensuring team members' capacity is not overloaded.
• Helps maximize available time without overworking or missing deadlines.
• Can delay project start date or stretch task length.
• Drawback: Projects may exceed minimum duration.
• Resource leveling technique can help manage resource constraints.
2.Time-constrained scheduling
Time-Constrained Scheduling Overview
• Used to schedule team time for fixed deadlines.
• Example: hiring a freelance developer to speed up a project.
• Cost-effective but may increase project costs when new team members are brought
on at the last minute.
• Resource smoothing can be used to complete projects on time when time constraints
are present.

Resource Scheduling in Project Management

1. Use Resource Management Software
Use resource management software to help you keep track of your resources and your project
schedule. A resource management software stores all your project information to help you
manage your human resources, material and equipment.

2. Use a Work Breakdown Structure (WBS)

You can’t start to schedule your resources until you know how many you’ll need and when
you’ll use them. This involves collecting every task that leads to your final deliverable. It
might seem a daunting task, but using a WBS makes sure you don’t neglect any steps. It’s a
tree diagram with your final deliverable on top and beneath that, the various branches that
lead to it. The more complete your list, the more accurate your resource schedule is.

3. Try Resource Smoothing

Once you have all the steps, there are many ways to schedule resources. One technique is
resource smoothing, which focuses on the time constraint over all others. Here, the deadline
is king. This practice is best applied when things must be done on time, even if it means
delaying some work. While it removes some flexibility in your schedule, it tends to make
scheduling more efficient and cost-effective.

4. Practice Resource Leveling

Another resource optimization technique to use is called resource-leveling. This is used when
you have enough resources on hand to complete the project. It then distributes the resources
over the work evenly.

This helps to improve morale and makes the schedule both realistic and achievable. That
might happen by shortening or loosening the schedule and the deadline might even change,
but that’s okay because you’re not adding capacity.

5. Be Aware of Constraints
There are constraints on any project, such as the triple constraint of time, cost and scope. All
of these forces are working on your resources, so the better you can define how they’ll impact
the tasks in the previous tip, the tighter your resource schedule will be.

6. Know How Many Resources You Need

Going back to your task list, make a determination as to how many resources each task will
require.

What type of resource is it? How many of each will be required to finish the task? This figure
can be numerical, as in the quantity needed, but it can also be expressed in time. You might
need the resource for an hour or weeks. This all should be noted.

7. Control Availability of Resources

You want to control the future availability of resources. To do this requires knowing how
much capacity you have and your current resource utilization. That is, for example, how
much work your team can accomplish over a specific timeframe.

Do team members have time off scheduled over that period? Are there holidays? The more
data around the availability of your resources, the more you can manage the schedule for your
resources.

8. Assign Your Resources Wisely

The final tip applies to assigning your resources after you’ve listed tasks, identified
constraints and know how many resources you’ll need and their availability. At this point,
you have the information necessary to build a resource schedule that can avoid costly
bottlenecks.Assign with care. Depending on your resources, demand and capacity, due dates
might need to change or even be delayed. A resource schedule can work better than tea leaves
in divining your project’s future.