What are the benefits and drawbacks with the use of milestone analysis as a monitoring device?

Milestone analysis is beneficial in signaling the completion of important project stages and in creating distinctions between work packages.  This increases the team’s ability to respond to change and create logical review points.  Milestones also provide periodic goals that keep team members motivated.  They represent significant accomplishments within the larger picture of the project.  It also draws the team’s attention to the project’s status.  Overall, the analysis provides a clear picture of project development.  However, this form of analysis only allows for reaction to problems, not foresight or prevention.  Problems are then able to compound and grow to the point of unmanageable resulting in a significantly over budget/schedule project.