Ministry of Statistics and Programme Implementaton:-
Infrastructure and Project Monitoring Division
The Infrastructure and Project Monitoring Division (IPMD), independent from planning and implementing agencies, collects at one place information about ongoing projects and provides management services to the Government for concurrent decision making and corrective action for efficient and effective management of projects. As a management arm of the Government, the IPMD monitors projects costing Rs.20 crores and above under implementation by the public sector enterprises and major infrastructure projects in the private / joint sector and facilitates their smooth implementation. It reviews the impact of Accelerated Irrigation Benefit Program (AIBP). As a member, it assists Public Investment Board (PIB) in the appraisal of projects, identifies causes and their remedies for time and cost overrun and assists the Government in fixing responsibility for cost and time overrun.
This Division has been successful in creating awareness about the impact of time and cost overruns not only on the project itself, but also on the national economy as a whole among the Managers in the public sector enterprises and also in top achelons of the Government and in reducing delays by bringing policy and system improvement in the project formulation, planning, implementation and monitoring. It has played a key role in the institution development, enhancement of project management practices in the country with a view to strengthening delivery of infrastructure projects for economic development of the country.
Major Activities of the Infrastructure and Project Monitoring Division
- To bring out periodical reports, review notes, suggest remedial measures and facilitate solution of the problems of projects under implementation
- To assist the Public Investment Board. In the case of new projects, the main job of the IPMD, as one of the Board members is critical appraisal of the state of preparedness with respect to the project inputs in terms of land availability, equipment deliveries, feedstock and other linkages necessary for the project completion and its commissioning, and the strength of the organisation / management team for implementation within the stipulated time and cost. In the case of revised cost estimates, the main job of the IPMD is to analysis the causes of time and cost overruns with a view to learning lessons for future and, if necessary, fixing responsibility for time and cost overruns;
- To assist the Committee of Secretaries (COS) headed by Cabinet Secretary which reviews the on-going projects and gives direction for remedial action. The IPMD continuously apprises the COS of the constraints in implementation and action taken or initiated by various agencies on its directions;
- To assist the Cabinet Committee on Infrastructure (CCI), set up under the chairmanship of the Finance Minister. The Minister of State (Independent Charge), Ministry of Planning & Programme Implementation, is a member of this committee;
- To monitor irrigation projects covered under the Accelerated Irrigation Benefit Programme (AIBP).
- To monitor private and joint sector infrastructure projects in Civil Aviation, Coal, Power, Petroleum & Natural Gas, Mines, Ports, Roads and Telecommunication sectors costing Rs.100 crores and above.
- To visit the project sites to identify critical and important milestones for monitoring the project, review the progress of implementation of projects, and hold in depth discussions with the Public Sector Undertakings (PSUs) and administrative ministries /departments in order to get first hand knowledge of the problems and to initiate facilitative action for resolving them;
- To assist the ministries / departments / public sector undertakings in evolving suitable monitoring system for keeping a close watch on the projects under their control and timely flow of information;
- To analyse the draft Memoranda of Understanding (MOU) between the Public Sector Undertakings and the Government of India and also assist the Adhoc Task Force and the High Power Committee to make the MOU system, particularly with respect to the implementation of projects, more effective.
- To motivate the project implementation agencies to strive for excellence in the implementation of projects;
- To carry out evaluation of the on-going projects and ex-post evaluation of the completed projects, on the basis of completion reports submitted by the PSUs with a view to drawing lessons for the future;
- To organise training programmes in the areas of Project Management, Computerised MIS, etc, for the managers of the PSUs and the Government officers engaged in the implementation of the Public Sector projects;
- To conduct seminars/workshops on various topics in the areas of Project Management & related activities and to make use of the feedback from such seminars and workshops for strengthening the art of project management in the country.
- To continuously review project formulation, appraisal, monitoring and implementation system and initiate action to bring improvements; and
- To facilitate development of project management profession by encouraging institutions working in the concerned areas.
Project Management Institute (PMI)
PMI is the world’s leading not-for-profit membership association for the project management profession, with more than 600,000 members and credential holders in more than 185 countries. Our worldwide advocacy for project management is supported by our globally-recognized standards and credentials, our extensive research program, and our professional development opportunities.
These products and services are the basis of greater recognition and acceptance of project management’s successful role in governments, organizations, academia and industries.
Project Management Associates (PMA)
Project Management Associates(PMA) established in 1993, is the only not-for-profit association with objective of propagating project management ideas and practices in India, to create awareness amongst all the stakeholders the imperatives of sound project management methodology as the backbone for the growth of society, to conduct examinations or tests in one or more aspects of project management and to promote certification in the field of project management. Project Management Associates, a vibrant non-profit national body of project managers in India is a member of International Project Management Association(IPMA), a body comprising of 50 National PM Associations from all over the world ,is providing the visionary direction to the project management profession and facilitating the pooling of national experiences to form a global depository of knowledge. IPMA's 4 Level Certification(4LC) scheme which is globally recognized, is administered in India through IPMC National Certification body of PMA India.
Earned Value Management (EVM) - Performance Measurement for Projects
Raj Kalady, Country Director/Managing Director of Project Management Institute(PMI)
“You can't manage what you don't measure.” It is an old management adage that is accurate even today. Unless you measure something you don't know if it is getting better or worse. You can't manage for improvement if you don't measure to see what is getting better and what isn't. This is true irrespective of whether you are in Government or in a non-government organization.
In today’s competitive environment, the challenges faced in managing projects are multifaceted. While on one side choosing the right project with a clear understanding of the objectives is important, balancing the scope, time and cost finally decides the success of the project. However, study carried out in public sector shows that most of the projects tend to overshoot both their budgets and timelines while often falling short on benefits and scope. It is this challenge that makes it important to have a scientific method of Performance Measurement in place when Projects are being executed.
In project management, performance measurement techniques are used to assess the magnitude of deviations from the original project plan. Some of the performance measurement techniques include:
- Performance Reviews to assess status and/or progress toward meeting objectives
- Trend Analysis to examine project results over time to determine if performance is improving or deteriorating
- Earned Value Management
Earned Value Management (EVM) has proven itself to be one of the most effective performance measurement and feedback tools for managing projects. It enables managers to close the loop in the plan-do-check-act (PDCA) management cycle. EVM has been called “management with the lights on” because it can help clearly and objectively illuminate where a project is and where it is going – as compared to where it was supposed to be and where it was supposed to be going. EVM uses the fundamental principle that patterns and trends in the past can be good predictors of the future. Cost, Schedule and Scope are the three parameters across which a project is built. A true understanding of project performance can only arise from the integration of these three project parameters. Earned Value Management provides the management and control of Time, Cost, Resources and Quality collectively thus leading to successful completion of projects on time and within the stipulated budget.
Earned Value Management (EVM) relies on four key data points:
- Planned Value (PV) – describes how much of the project work was planned to be performed.
- Earned Value (EV) – is the measure of the work performed at a specific point in time, expressed in terms of the approved budget authorized for that work.
- Actual Cost (AC) – is the realized cost incurred for the work performed during a specific time period.
- Budget at Completion (BAC) – is the sum of all the budgets established for the work to be performed.
EVM can play a crucial role in answering management questions that are critical to the success of every project, such as:
- Are we ahead of or behind schedule?
- How efficiently are we using our time?
- When is the project likely to be completed?
- Are we currently under or over budget?
- How efficiently are we using our resources?
- What is the remaining work likely to cost?
- What is the entire project likely to cost?
- How much will we be under or over budget at the end?
The basic requirements for an organisation to implement Earned Value project management are as follows:
- The project scope is well defined.
- The work is decomposed into detailed product-oriented components and assigned to a single organization.
- The project plan is detailed in terms of the scope, time and cost by which progress can be measured.
- Actual costs are recorded at the same level where the work is planned, but may be collected at a lower level.
- Performance is objectively measured on a regular basis.
- Variances and deviations are analyzed, impacts are forecasted, and estimates at completion are based on the actual performance to date and the remaining effort to be made.
- Changes to the performance measurement baseline are controlled through a well-defined monitoring and control system.
EVM criteria accepted as Quality standards- In 1998 EVM criteria were accepted as an American National Standards Institute/Electronic Industry Association standard, called ANSI/EIA 748. This standard was reaffirmed in August 2002 and defines 32 criteria for full-featured EVM system compliance. As of the year 2007, a draft of ANSI/EIA-748B, a revision to the original is available from ANSI. Other countries have established similar standards. In Australia EVM has been codified as standards AS 4817-2003 and AS 4817-2006.
EVM is now a requirement for all major capital funded IT programs in most Federal Governments. In US, for many government managers, the newly revised Office of Management and Budget (OMB) Circular A-11, Preparation, Submission, and Execution of the Budget, requires all federal agencies to monitor and manage their capital asset projects' information technology, buildings, structures, major rehabilitation, land, vehicles, furniture, and equipment--using an earned-value approach. Moreover, Circular A-11 requires agencies to submit, as part of their annual budgets, a capital asset plan and business case--Exhibit 300--for each capital asset project. Completing the exhibits requires calculating the earned value for each project.
The National Aeronautics and Space Administration (NASA) has been one of the pioneers in the U.S. government in using project management principles, tools, and techniques, and consistently demonstrates the effective application of EVM to the oversight and management of its many projects and programs. Department of Defense (DOD) requires EVM on contracts worth more than $50 million and the application of at least some EVM principles on contracts worth more than $20 million.
Therefore, to conclude-
- EVM is considered to be one of the most efficient tools for monitoring and controlling complex projects in diverse project environments.
- EVM helps provide objective project assessments when applied appropriately, and clearly quantifies the opportunities to maintain control over cost, schedule, and specifications of various types of projects.
- EVM helps managers in making evidence-based decisions about project scope, resources, and risks; hence, it allows effective control and project oversight.