PROJECT CONTROL

1
PROJECT CONTROL

• Project Control Defined
• Types of Control Systems
• Need for Balance in Control Systems
• Control of Creative Efforts
• Changes and Change Control

2
Project Control Defined

• CONTROL The act of reducing the difference
  between plan and reality
• The last element in the plan-implement-monitor-con
  trol cycle
• Uses the information from the monitoring process
  to get and keep a project on track

3
Control Can Be Complicated

• Performance, cost, and schedule issues all have a
  human element
• Symptoms are obvious, but root causes never are
• Messes vs. problems
• Hard to separate random events from systemic
  difficulties

4
Two Fundamental Purposes of Project Control

• Regulate project results through alteration of
  activities
• Efficiently use and protect organizational assets

5
Asset Conservation Has Three Aspects

• Physical Assets
• Maintenance, inventories, security protection
• Human Resources
• Managing acquisition, development and performance
  of people
• Financial Resources
• Budgets, audits, financial ratio analyses
• The concept of due diligence

6
Purpose of Control

• To make the actual meet the plan
• The Process
• 1. Identify key performance areas
• 2. Set standards
• 3. Measure performance
• 4. Compare
• 5. Take corrective action

7
Three Types of Controls

• Cybernetic controls
• Steering
• Key feature automatic operation
• Go-no go controls
• Most common project control
• Test that predetermined specifications have been
  met
• Post controls
• After the fact

8
A Cybernetic Control System, Figure 11-1
9
Typical Paths for Correction of Deviation, Figure
11-2
10
A 2nd-Order Feedback System, Figure 11-3
11
A 3rd-Order Feedback System, Figure 11-4
12
More on Go-No Go Controls

• Based on project plans, budgets, schedules
• Can be periodic or milestone-driven
• Both are essential
• Phase-gated criteria are hurdles that must be
  passed to go to next project stage
• Common terms exit criteria, milestone
  decisions, system maturity models

13
Sample Project Status Report, Figure 11-5
14
Components of Post Control Process

• Benefits future projects more than the present
  one
• See Project Auditing in Chapter 12
• Four parts
• Project objectives
• Milestones, checkpoints, budgets
• Final report on project results
• Recommendations

15
Some Desirable Control System Features

• Flexible, able to adapt to unforeseen events
• Cost effective (control value gt control cost)
• Useful and ethical
• Accurate, precise, timely
• Simple and maintainable
• Fully documented

16
Critical Ratio

• Critical ratio actual progress X
  budgeted cost scheduled progress
  actual cost
• I.e., CSI SPI X CPI, as in Chapter 10
• Indices and ratios greater than 1.0 are favorable

17
Critical Ratio Control Limits, Figure 11-8
18
Cost Control Chart, Figure 11-9
19
Effective Control Systems Must be Balanced

• Balance means
• Measuring both tangibles and intangibles
• Looking at both long-term and short
• Keeping flexibility in the system
• Addressing human factors
• Focusing on correction, not punishment
• Optimizing control, not maximizing it

20
A Question of Balance

• Too little control?
• Too much control?

C
Control

C
Mistakes
Amount of Control
21
Control of Creative Activities

• Controlling knowledge work is difficult
• Three tools
• Progress reviews
• Reassigning people
• Control of resource inputs

22
Controlling Changes and Scope Creep

• Changes can drive higher costs and stretched out
  schedules
• So controlling them is an essential project
  management task
• A formal change system is a must for project
  control

23
Five Principles of a Formal Change Program

• All contracts specify formal change process
• All changes require formal change order
• All change orders approved in writing by client
  and project organization
• Project manager is always consulted
• The approved change order becomes part of the
  master plan

24
Changes and Change Control

• Remember the last step of the control process
  Take corrective action, so that the actual
  matches the plan
• Two Types Business and Technical Changes

25
Business Changes

• Business-related
• Driven by such things as
• Spec relief
• Deliverables changes
• Funding shifts
• Schedule changes
• Acts of God
• Subcontractor changes

26
Technical Changes

• Technological issues, such as
• New technologies
• Laws of physics
• Competitor response
• Changes in client requirements (real or political)