1. Dr. Alan C. Maltz Howe School of Technology Management Stevens Institute of Technology Alan.Maltz@stevens.edu Mgt 609 – Project Management Fundamentals Chapter – 11 – Project Control

2. MODULE 11: PROJECT CONTROL Purpose: give students an overview of project control. 2 © Alan C. Maltz, Ph.D, 2014

3. Module 11 Objectives Purpose of Control Explain the purpose of control Relate control to the project elements of Product scope Project scope Performance 3 © Alan C. Maltz, Ph.D, 2014

4. Purposes of Control Objectives of control: 1.Regulation of results through alteration of activities 2.Stewardship of organizational assets Project manager should Be equally attentive to both regulation and conservation Guard physical assets of organization, its human resources, and its financial resources 4 M&M Text, Ch 11 © Alan C. Maltz, Ph.D, 2014

5. Coordinating Changes 5 Subsidiary Change Control Performance Reporting Integrated Change Control Scope Schedule Cost Quality Risk Contract Admin PMBOK, Ch. 4 © Alan C. Maltz, Ph.D, 2014

6. Scope Control Mechanisms to ensure accomplishment of project scope objectives, consistent with cost and time objectives Avoidance of “creeping scope” and “creeping elegance” Continually review evolving scope definitions (product, project) with affected and interested stakeholders 6 © Alan C. Maltz, Ph.D, 2014

7. Integrated Change Control 7 - Who should receive the request change - How requests are to be made - What information is to be included - When can the requestor expect a response - What criteria will be used to evaluate Identify : © Alan C. Maltz, Ph.D, 2014

8. Configuration Management Any documented procedure used to apply technical and administrative surveillance to: Identify and document the functional and physical characteristics of an item or system Control any changes to such characteristics Record and report the change and its implementation status Audit the items and system to verify conformance to requirements 8 PMBOK, Ch. 4 © Alan C. Maltz, Ph.D, 2014

9. 9 Project quality management = to plan quality, to perform quality assurance, and to perform quality control © Alan C. Maltz, Ph.D, 2014

10. Principles for Project Quality Planning 10  Quality = the degree to which the project fullfills requirements.  A quality management plan incl. policies and procedures to be followed must be created  The purpose of project quality planning is to prevent rework and defects (wasting time and money and potentially causing unsatisfied stakeholders)  Project quality planning is about preventing problems rather than dealing with problems  Plan in quality instead of relying on inspection  Project quality builds on explicit requirements from the customer and a planned and agreed upon ways to confirm the requirements (= acceptance criteria)  All relevant standards and requirements for the quality of the project, the product, and the project management efforts must be determined © Alan C. Maltz, Ph.D, 2014

11. Tools for Project Quality Planning 11  Appoint quality responsibilities (the team members must be responsible for the quality of their own work)  Benchmark (look at other projects to get ideas for improvements)  Pilot-test (e.g. try your product on a smaller scale)  Make a quality management plan  Quality standards decided for the project  Who, when, specific duties  Review of earlier decisions  Plan meetings to address quality  Determine metrics to measure quality  Plan which part of the project/deliverables to measure and when  Make checklists  Update the project management plan and project documents and use version numbers © Alan C. Maltz, Ph.D, 2014

12. Principles for Project Quality Control… 12  Quality controlling is the process of ensuring a certain level of quality in a product or a service.  Controlling means measuring.  Quality controlling should answer: “Are we meeting the standards?” and “What changes in the project should be considered?”  The project’s home organization may have a quality department that needs to be involved. © Alan C. Maltz, Ph.D, 2014

13. Tools for Project Quality Control 13  Quality audits (ask project externals to go through the project documents and sub deliverables)  Checklists (compare what was done to what was planned)  Statistical sampling (check a few instead of all)  Control charts (compare measurements with upper and lower thresholds of variance)  Histograms (show data in form of bars to measure and plot how frequently a problem occurred) © Alan C. Maltz, Ph.D, 2014

14. Principles for Project Cost Control and Reporting... 14  How to control the project costs must be determined in the cost management plan before the project starts  To control means to measure  The purpose of measurement is to see if any variances exist  When variances to planned costs exist you must determine whether changes are required, incl. preventing and corrective actions  What will be measured and reported and when should be in the cost management plan  Amount of acceptable variation (control thresholds) should be determined in the cost management plan © Alan C. Maltz, Ph.D, 2014

15. Performance Reporting 15 Collect and disseminate performance information about Scope Schedule Cost Quality Risk Describe how resources are being used Status reporting Progress reporting Forecasting PMBOK Ch. 10 © Alan C. Maltz, Ph.D, 2014

16. Cause and Effect Relationships 16 timemachinemethodmaterial energymeasurementpersonnelenvironment materialmethodmachinetime environmentpersonnelmeasurementenergy CauseEffect Major performance gap Corrective action(s) Response Corrective Action on Cause © Alan C. Maltz, Ph.D, 2014

17. Financial Resource Control Techniques of financial control, both conservation and regulation, are well known: Current asset controls Project budgets Capital investment controls Controls are exercised through series of analyses and audits conducted by accounting/controller function 17 M&M Text, Ch 11 © Alan C. Maltz, Ph.D, 2014

18. Physical Asset Control Requires control of use of physical assets Concerned with asset maintenance, whether preventive or corrective Timing of maintenance or replacement Quality of maintenance Setting up maintenance schedules To keep equipment in operating condition Minimizing interference to ongoing work Physical inventory must also be controlled 18 M&M Text, Ch 11 © Alan C. Maltz, Ph.D, 2014

19. Human Resource Control Stewardship of human resources requires controlling and maintaining growth and development of people Projects provide fertile ground for cultivating people Because projects are unique, it is possible for people working on projects to gain wide range of experience in reasonably short period of time 19 M&M Text, Ch 11 © Alan C. Maltz, Ph.D, 2014

20. Controlling Time Things that cause project’s schedule to require control include: Technical difficulties took longer than planned to resolve Initial time estimates were optimistic Task sequencing was incorrect Required inputs of material, personnel, or equipment were unavailable when needed Necessary preceding tasks were incomplete Customer generated change orders, rework required Governmental regulations were altered 20 M&M Text, Ch 11 © Alan C. Maltz, Ph.D, 2014

21. Time Tracking 21 © Alan C. Maltz, Ph.D, 2014

22. Module 11 Objectives Project Baseline Define the baseline Explain the baseline’s importance in project control Discuss when the baseline should be changed Relate baseline changes to integrated project control 22 © Alan C. Maltz, Ph.D, 2014

23. Baseline The original approved plan plus or minus approved scope changes. Usually, baseline is preceded by a modifier: Cost baseline Schedule baseline Performance measurement baseline 23 © Alan C. Maltz, Ph.D, 2014

24. Trends vs. Baseline 24 Time Now Time CV ACWP (Actual Cost) BCWS (Planned Value) SV EAC BAC Cumulative Cost BCWP (Earned Value) © Alan C. Maltz, Ph.D, 2014

25. CV, SV, CPI, and SPI Data 25 Task IDDurationBCWSBCWPACWPCVSVCPISPI SUMMARY TASK 1 A4 W$32$34$35-$1 $20.9711.063 B6 W$36$33$36-$3 0.917 C3 W$24$22$24-$2 0.917 D2 W$ 8$10$11-$1 $20.9091.250 SUMMARY TASK 2 E3 W$14.4$15$16-$1 $0.60.9381.041 F3 W$21.6$20 $0-$1.61.0000.926 G2 W$14.4$13$12 $1-$1.41.0830.903 H4 W$14.4$16 $0 $1.61.0001.111 I2 W$ 9.6$10 $0 $0.41.0000.960 J2 W$ 9.6 $10 -$0.4$00.9601.000 © Alan C. Maltz, Ph.D, 2014

26. Funding Scope Changes 26 Incremental funding must be obtained for approved scope changes. This funding should NOT come from the contingency allowances or managerial reserve. Return to sponsor or the customer as appropriate and request the additional required resources. If additional resources and/or time are not available, something should be cut from the existing scope. Seek to make everyone aware of what will be cut. Seek agreement with the changes. © Alan C. Maltz, Ph.D, 2014

27. Module 11 Objectives Characteristics of Effective Control Systems Identify and discuss characteristics commonly associated with effective control systems 27 © Alan C. Maltz, Ph.D, 2014

28. Characteristics of a Control System A good control system should be: Flexible Cost effective Useful Able to satisfy real needs of the project Timely, reliable and relevant Accurate enough to enable control within desired tolerances for uncertainty As simple as possible, but never simpler Maintainable Properly/adequately documented 28 M&M Text, Ch 11 © Alan C. Maltz, Ph.D, 2014

29. Common Reporting Problems 3 common difficulties in the design of project reports are: Too much detail in the: Reports Input solicited from workers Poor interface between the Project information system Parent firm’s information system Poor correspondence between the Planning system Monitoring system 29 M&M Text, Ch 10 © Alan C. Maltz, Ph.D, 2014

30. 30 Alan C. Maltz, Ph.D. Howe School of Technology Management Stevens Institute of Technology Castle Point on the Hudson Hoboken, NJ 07030 Phone: +1 (561) 632-4848 E-mail:alan.maltz@stevens.edu Web:http://www.stevens.edu/@stevens.edu Thank You - Questions? © Alan C. Maltz, Ph.D, 2014