First task is to examine the project plans in order to extract performance, time and cost goals. Monitoring should concentrate primarily on measuring various facets of output rather than intensity of activity. Given all this, performance criteria, standards, and data collection procedures must be established for each of the factors to be measured. These goals should relate in some fashion to each of the different levels of detail. Data must be identified that measure achievement against these goals, and mechanisms designed that gather and store such data.
Monitoring can be useful to motivate team members, and alert team members of potential problems.
Statistical quality control and other qualitative techniques useful in determining variances and causes. Monitoring can serve to maintain high morale on the project team as well as to alert team members to problems that will have to be solved. Not necessarily periodic reporting system. Nature of the monitoring reports should be consistent with the logic of the planning, budgeting and scheduling systems. Mutual understanding of the goals of the project.