Fundamentals of Project Control Chapter 11 Design Stage 1 Preconstruction Stage 2: Procurement Conceptual Planning Stage3: Construction Stage 4: Project Close-out

Introduction The purpose of the project control process is to guarantee that design requirements, budget and schedule are met by project team. Project control begins with a plan composed of design documents, an estimate, and schedule The plan involves checkpoints throughout the project cycle. As the project advances, the actual work is compared to the original plan. Actions maybe taken based on this comparison. The expected cost and duration to complete the work must be continually updated and reported. Why?

Project Control Objectives Check progress against acceptable standards at key dates –standards of quality are defined by the specs. –Standards of quantity are defined by the drawings – standards of budget are defined by the estimate. –Standards of time are defined by the schedule. Measurements of actual performance on the project –actual performance is monitored, documented, and compared to the planned performance. –A project control report is then produced. The report is based on data from time sheets, daily reports, purchase orders, etc.

–Based on this comparison, an evaluation of the performance can be done and actions can be suggested to meet the goals of the project. –Data in the report are then analyzed, variances are examined, and actions may be taken. –Example of a site clearing report: BudgetActualVariance Quantity(acres) 5 acres 5 acres - Equipment (hrs) 40 hrs 48 hrs 8 Labor (hrs) 40 hrs 48 hrs 8 Why variance? Weather, site conditions, approach, estimate, or worker performance? What should we do for the next similar activity?

Project Control Cycle Examine Figure 11-3

cost schedule engineers coordinate the data from the field and compare the performance with the original plan. They also prepare recommend adjustments to the plan based on the field data. data are then stored as historical records for future use. In the mean time, status reports are delivered to the managers to decide the best course of action. The project management may seek outside support, such as consultants. Final instructions are given to field personnel. Control cycle is repeated as often as necessary.

Optimum Project Duration Node notation used in the book: float of i-j = LET j - (EET i + duration i-j ) ij LETEETLETEET Activity duration float

It might be more economic to pay the extra cost to finish the project earlier if other returns are higher. Finishing the project earlier saves indirect expenses and may result in a bonus. The extra cost comes from the increase in direct costs of material, labor, and equipment because of working extra hours

Crash –the process of accelerating an activity or multiple activities to shorten the overall duration of the project. –crashing is effective when activities on the critical path are crashed. –As the project finish earlier, the direct cost increases and the indirect costs decreases. –crashing is a good idea when the total costs are reduced as the project is shortened. In other words, when savings in the indirect costs are more than the extra cost of the direct costs.

The relationship between the direct, the indirect, and the total cost can be displayed graphically. Figure 12-3 is the relationship between the cost (Y) and finish time (X) In that curve, point A is the normal finish time. As the project finish earlier, the direct cost increases and the indirect costs decreases. This is true down to day 30. The direct cost will be more than the indirect cost if the project finishes in day 29. The optimal duration is day 30, which is the lowest point in the total cost curve.

Example