11-1 project control project control defined types of control systems need for balance in control...

11-1

PROJECT CONTROL

Project Control Defined

Types of Control Systems

Need for Balance in Control Systems

Control of Creative Efforts

Changes and Change Control

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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

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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

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Two Fundamental Purposes of Project Control

Regulate project results through alteration of activities

Efficiently use and protect organizational assets

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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”

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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

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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

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A Cybernetic Control System, Figure 11-1

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Typical Paths for Correction of Deviation, Figure 11-2

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

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

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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”

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Sample Project Status Report, Figure 11-5

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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

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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

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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

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Critical Ratio Control Limits, Figure 11-8

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Cost Control Chart, Figure 11-9

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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

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A Question of Balance Too little control? Too much control?

$

Amount of Control

CControl

CMistakes

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Control of Creative Activities Controlling “knowledge work” is

difficult Three tools

Progress reviews Reassigning people Control of resource inputs

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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

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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

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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

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Business Changes Business-related Driven by such things as:

Spec relief Deliverables changes Funding shifts Schedule changes Acts of God Subcontractor changes

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Technical Changes Technological issues, such as:

New technologies Laws of physics Competitor response Changes in client

requirements (real or political)