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

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

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

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

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”

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

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

A Cybernetic Control System, Figure 11-1

Typical Paths for Correction of Deviation, Figure 11-2

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

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

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”

Sample Project Status Report, Figure 11-5

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

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

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

Critical Ratio Control Limits, Figure 11-8

Cost Control Chart, Figure 11-9

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

A Question of Balance Too little control? Too much control? C Control $ C Mistakes Amount of Control

Control of Creative Activities Controlling “knowledge work” is difficult Three tools Progress reviews Reassigning people Control of resource inputs

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

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

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

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

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