Tracking Signals

Tracking signals are used to determine if there is a systematic bias in cost or other estimates. They are very valuable to a project or operational manager and the overall organization because they aid in determining if the forecast is accurate and how the project is performing to the forecast goals. It also aids in identifying trends or patterns and can determine how the project manager or operational manager should manage going forward based on the control limits.

An example of tracking signal being used in my personal experience is a chart titled 4 panels which monitors cost, schedule, and efficiency. On this chart it shows the production team's actual performance in relation to the goal or the forecast. Management utilizes the tool to make key business decisions and also uses it to set goals for the future. The charts are a good visual to management to depict if an area is performing well or not and also to determine if the forecast that was set is realistic to obtain. After looking at a few months' data, upper management has implemented a change in the goal or control limits because an area has consistently overran or under ran. The director LIVES by these charts as he constantly say that they tell a story and anyone should be able to understand what message the story is conveying. This chart utilized as a tracking signal tool is an all encompassed tool that makes looking at performance and schedule relatively easy to understand how an area is performing to their goal; and ultimately aids management in making sound business decisions.