Download - Chapter 11
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Copyright 2009 John Wiley & Sons, Inc.
Chapter 11
Project Control
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Performance
Technical problems Technical difficulties Quality problems Client wants changes Inter-functional complications Technological breakthroughs Intra-team conflict Market changes
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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
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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
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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
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The Fundamental Purposes of Control
1. The regulation of results
2. The stewardship of organizational assets
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Physical Asset Control
Control over the use of physical assets Includes preventive and corrective
maintenanceMust also control inventory
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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
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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
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Three Types of Control Processes
1. Cybernetic control2. Go/no-go control3. Post control
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Cybernetic Control
A system is constantly monitoredWhen a deviation is spotted, corrective
action is takenCybernetic controls are not common in
projectsNegative feedback loop
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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
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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
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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
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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”
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Post Control Report Sections
1. The project objectives2. Milestones, checkpoints, and budgets3. The final report on project results4. Recommendations for performance
and process improvement
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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…
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Characteristics of a Good Control System
Flexible Cost effective Useful Ethical Timely
Accurate Simple Easy to maintain Can be changed Fully documented
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Critical Ratio Control Charts
Table 11-1
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Benchmarking
1. Promoting the benefits of project management
2. Personnel3. Methodology4. Results of project management
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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
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Human Response to Controls
Cybernetic controlsGo/no-go controlsPost controls
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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
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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”
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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
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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
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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
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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