Copyright 2009 John Wiley & Sons, Inc.

Chapter 11

Project Control

Performance

Technical problems Technical difficulties Quality problems Client wants changes Inter-functional complications Technological breakthroughs Intra-team conflict Market changes

Cost

Difficulties may need more resources Scope may increase Bid was be too low Reporting was poor Budget was inadequate Correction not in time Input price changed

Time

Difficulties took long to solve Initial estimates were optimistic Sequencing was incorrect Resources unavailable Preceding tasks were incomplete Change orders Governmental regulations were altered

Project Control

The process of keeping the project on target and as close to plan as feasibly possible.

Of course, this means you must first have a plan

It also means you must have a way of detecting when a project is off the target

The Fundamental Purposes of Control

1. The regulation of results

2. The stewardship of organizational assets

Physical Asset Control

Control over the use of physical assets Includes preventive and corrective

maintenanceMust also control inventory

Human Resource Control

Want to make sure people are used wisely

Employees need to be motivated to perform at their best

Project manager may have to write performance appraisals

Financial Resource Control

Financial resource control is tied in with the other types of control

Project financial controls are very similar to general financial control

The project may be answerable to another firm or division

It is important the project manager manage financial assets properly

This is known as due diligence

Three Types of Control Processes

1. Cybernetic control2. Go/no-go control3. Post control

Cybernetic Control

A system is constantly monitoredWhen a deviation is spotted, corrective

action is takenCybernetic controls are not common in

projectsNegative feedback loop

Go/No-go Controls

Testing to see if some preset condition has been met

Most of project management is go/no-go controls

Use cannot be based on the calendar– Some will take place at milestones– Other will take place when work packages are

completed– Still other will be on-going

Go/No-go Controls Continued

Data to be collected will match the critical elements of the project plan

Actual is compared to what was expected in the plan

Regular reports are given to the project manager and senior management

Phase-Gated Processes

Controls the project at various points throughout its life cycle

Most commonly used for new product/service development projects

Project must pass gate to continue funding

Post Control

These are controls that are applied after-the-fact

Their purpose is mainly for improving performance on future projects

Often times, a final report is prepared comparing the plan with reality

Sometimes called “lessons learned”

Post Control Report Sections

1. The project objectives2. Milestones, checkpoints, and budgets3. The final report on project results4. Recommendations for performance

and process improvement

The Design of Control Systems

Who sets the standards? Are the standards realistic? Are the standards clear? Will they achieve the project goals? What should be monitored? How should they be monitored? Many more…

Characteristics of a Good Control System

Flexible Cost effective Useful Ethical Timely

Accurate Simple Easy to maintain Can be changed Fully documented

Critical Ratio Control Charts

Table 11-1

Benchmarking

1. Promoting the benefits of project management

2. Personnel3. Methodology4. Results of project management

Control as a Function of Management

Control is usually exercised through people Control is exercised when monitoring flags a

problem The control may come from any level of

management The goal of the control is to get the project

back on track

Human Response to Controls

Cybernetic controlsGo/no-go controlsPost controls

Balance in a Control System

Investment in control is subject to diminishing returns

Too much control dampens innovationA control system should correct errorsCorrections should be the smallest

needed It should minimize its impact on people

Common Control System Problems

1. Placing too much weight on easy-to-measure factors

2. Emphasizing the short-run at the expense of the long-run

3. Ignoring changes to the environment or goals

4. Over-control by top management5. “If it is not measured, it is not important”

Control of Creative Activities

Creativity is hard to control Too much control will stifle creativity Three general approaches

1. Progress Review2. Personnel Reassignment3. Control of Input Resources

Control of Change and Scope Creep

Controlling scope creep is the biggest problem that many project managers face

Scope creep is not always badHowever, if they are not managed, they

cause havoc with project schedules and budgets

Formal Change Control System

Review requests for changes Identify impacts Translate impacts to plan Evaluate cost and benefits Identify alternative changes Accept or reject Communicate Ensure implementation Report

Change Guidelines

1. All contracts specify how change will be handled

2. Any change requires a change order3. Project manager must be consulted4. Must be approved in writing5. Master plan should reflect changes