2.7 Reporting Progress

Project managers use the monitoring and controlling processes to translate project execution data from information into knowledge and this knowledge is then used to make the right management decisions and to take the right actions at the right time. According to the PMBOK Guide – Monitoring and Controlling activities include:

• Comparing planned results with actual results
• Reporting performance
• Determining if action is needed, and what the right action is
• Ensuring deliverables are correct based on the previously approved definitions and/or requirements
• Acquiring sign-off on deliverables by authorized stakeholders
• Assessing the overall project performance
• Managing risks
• Managing contracts and vendors

Project status reporting is a regular, formalized report on project progress against the project plan. It keeps project stakeholders informed of critical aspects of project health such as schedule, issues, scope, resources, cost, etc. and allows management to take action to address project issues and risks.

There are several types of project reports and may be prepared daily, weekly, monthly, or quarterly. They simplify the process of gathering and disseminating information about key information on the project.

Performance reports indicate the physical progress to date. The report might include information about procurement, delivery, and usage.

Trends reports shows performance over time.

Status reports identify where we are today – they are generally referred to as static reports because they relate to the moment in time. They may use the information from the performance reports to calculate Schedule Variances (SV) and Cost Variances (CV).

Projection or Forecasting reports provide forward-looking projections and emphasize where the project will end up.

Variance Analysis reports compares project actual and budgeted results.

Exception reports identify exceptions, problems, or situations that exceed the threshold limits on such items as variances, cash flows, resources assigned etc.

A convenient format used in status reporting is the color chart where the “health” of a project is characterized by a color. Usually, Green and Blue signify satisfactory and excellent performance while Yellow, Orange and Red depict increasing levels of difficulty.

Red: Serious issues and the project will be delayed or have significant budget overrun

Yellow: Potential issues with schedule or budget, but both can be saved with corrective actions.

Green: On schedule, on budget, all good.

Key Takeaways

• Project budget has the potential of impacting every facet of the project, making it one of the most critical responsibilities of a project manager.
• Extra money is allocated in a contingency fund to deal with activities where costs exceed estimates. Funds are allocated in a management reserve in case a significant opportunity or challenge occurs that requires change of scope, but funds are needed immediately before a scope change can typically be negotiated.
• Schedule variance is the difference between the part of the budget that has been done so far (EV) versus the part that was planned to be completed by now (PV). Similarly, the cost variance is the difference between the EV and the actual cost (AC).
• The schedule performance index (SPI) is the ratio of the earned value and the planned value.
• The cost performance index (CPI) is the ratio of the earned value (EV) to the actual cost (AC).
• The formula used to calculate the amount of money needed to complete the project (ETC) depends on whether the cost variance to this point is expected to continue (typical) or not (atypical). If the cost variance is atypical, the ETC is simply the original total budget (BAC) minus the earned value (EV). If they are typical of future cost variances, the ETC is adjusted by dividing the difference between BAC and EV by the CPI.
• The final budget is the actual cost (AC) to this point plus the estimate to complete (ETC).