PROJECT CONTROL Project Control Defined Types of Control

PROJECT CONTROL • Project Control Defined • Types of Control Systems • Need for Balance in Control Systems • Control of Creative Efforts • Changes and Change Control 11 -1

Project Control Defined • CONTROL: The act of reducing the difference between plan and reality – The last element in the plan-implement-monitorcontrol cycle – Uses the information from the monitoring process to get and keep a project on track 11 -2

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 11 -3

Two Fundamental Purposes of Project Control • Regulate project results through alteration of activities • Efficiently use and protect organizational assets 11 -4

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” 11 -5

Purpose of Control • To make the actual meet the plan • The Process – 1. – 2. – 3. – 4. – 5. Identify key performance areas Set standards Measure performance Compare Take corrective action 11 -6

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 11 -7

A Cybernetic Control System, Figure 11 -1 11 -8

Typical Paths for Correction of Deviation, Figure 11 -2 11 -9

A 2 nd-Order Feedback System, Figure 11 -3 11 -10

A 3 rd-Order Feedback System, Figure 11 -4 11 -11

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” 11 -12

Sample Project Status Report, Figure 11 -5 11 -13

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 11 -14

Some Desirable Control System Features • • • Flexible, able to adapt to unforeseen events Cost effective (control value > control cost) Useful and ethical Accurate, precise, timely Simple and maintainable Fully documented 11 -15

Critical Ratio • Critical ratio = actual progress X scheduled progress budgeted cost actual cost • I. e. , CSI = SPI X CPI, as in Chapter 10 • Indices and ratios greater than 1. 0 are favorable 11 -16

Critical Ratio Control Limits, Figure 118 11 -17

Cost Control Chart, Figure 11 -9 11 -18

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 11 -19

A Question of Balance • Too little control? • Too much control? C Control $ C Mistakes Amount of Control 11 -20

Control of Creative Activities • Controlling “knowledge work” is difficult • Three tools – Progress reviews – Reassigning people – Control of resource inputs 11 -21

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 11 -22

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 11 -23

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 11 -24

Business Changes • Business-related • Driven by such things as: – Spec relief – Deliverables changes – Funding shifts – Schedule changes – Acts of God – Subcontractor changes 11 -25

Technical Changes • Technological issues, such as: – New technologies – Laws of physics – Competitor response – Changes in client requirements (real or political) 11 -26