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VBB 4043 ENGINEERSIN SOCIETY:
PROJECT MANAGEMENT
LECTURE :PROJECT CONTROL AND
TERMINATION
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Recap from Previous
Lecture
Lect. 1 Main Duties of Project Manager:
POLC
Control
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Lecture outline
Control definition
Control mechanisms at various stage of
project life
Control During Construction : Time Control Control During Construction: Cost Control
Earn Value and S-curve
Resource Leveling
Control for Project Termination Control for Completion and Handing Over
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Control Definition
Measuring what is actually achieved in a projectwith regard to the OBJECTIVES (t, c, q),comparing it with a baseline (referenced/original)performance and monitoring and taking correctivemeasures should there be unacceptable deviationfrom the baseline
Or simply tracking, monitoring and steering aproject so that the objectives will be met
Q. What to control? Control the project resources
and project quality ( by other )
Q. How often is the measuring done?
Q. How is it generally done? Control cycle
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3.1 Control systems
throughout the project
Control systems / mechanisms must be
provided at each stage of the project
Defining or Initiation Stage
- Needed for understanding of the business
environment & making sure all necessary controls are
incorporated into the Project
- Mechanism e.g. : Cos Benefit Analysis; Budget ;
Project Charter (wrt cost, time and quality)
Planning and Design Stage
- To ensure that the final product will satisfy the client
and meet the specifications of the Project Charter
- Mechanism e.g. Benchmarking using models or
prototypes or mock structure
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Execution (Construction / production) stage
- To ensure all Plans are being executed and strictly
followed(Schedule Plan, Cost Plan, Quality Plan)
- Mechanism e.g. Time control (Schedule Baseline,Progress Comparison Bar Charts, Re-scheduling/Updates, etc.); Cost control (Earn Value and S-curve);Resource leveling, Quality Control Tests
Delivering stage
- To check the efficiency or quality of the productdelivered
- Mechanism e.g : Hand-over Document, Defects List,Defects Liability/ Guarantee Period, PerformanceBond, As-built Drawings
3.1 Control systems
throughout the project (cont.)
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3.2 Control During
Construction/Production
Control during this stage is most important
Two types of control
Time (Schedule) Control and
Cost Control
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3.2.1 Time or Schedule Control
Time or Schedule Control is concerned
with
Determining the current status of the project
schedule
Determining if the project schedule has changed
Influencing the factors that create schedule
changes
Managing the actual changes as they occur
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3.2.1 Time or Schedule Control (cont.)
Main Inputs Main Outputs
1. OriginalSchedule -Schedule as planned,
acts as basis for
comparison
2. Approved
schedule changes
- Information onapproved schedule
changes
3.Performance
reports
- information on time
performance such as
the actual progress;which planned dates
have been met and
which have not etc.
3.
1. Schedulecomparison bar
charts-Displays two bars for
each activity, one
shows current /actual
status, the other the
original schedule
2. Performance
measurement
measure variations in
project schedule
that may occur
eg using S-curve.
3. Project Mgmt
software-Track actual progress
dates vs planned
dates and forecast
effect of changes
1. Updated Schedule-updates to changes in
start and finish dates
2. Recommended
corrective actions
-Anything done to
bring future projectschedule in line with
the approved original
project schedule
baseline.
Tools & Techniques
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3.2.1 Time or Schedule Control:
Progress Monitoring Using
Comparison Bar Charts
Duration(Days) Amount Units 3/30 4/6 4/13 4/20 4/27 5/4 5/11 5/18 5/25 6/1 6/8 6/15 6/22 6/24 7/6 7/13 7/20 7/27 8/3
1 Move-in 5 -
2 Clear & Grub 20 SF
3 Earth moving 60 CY
4 Site Grading 45 SF
5 Subbase 45
6 Base 25
7 Paving 25
QuantityNo Acitivity
Week Ending
5/1
Reporting
date
Memorial day
holiday
Work planned
Work
completed
Assume the progress of the activity as a directlinear function of the elapsed time
Example: Road construction
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3.2.2 Cost Control
Cost Control includes
Influencing the factors that create changes to
the cost baseline Recording and monitoring cost performance to
detect and understand changes from the costbaseline
Assuring that potential cost overruns do notexceed the authorized funding periodically and
in total for the project.
Informing appropriate stakeholders of approvedchanges
Acting to bring expected cost overruns withinacceptable limits
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3.2.2 Cost Control (cont.)
Main Inputs Tools & Techniques Main Outputs
1. Cost estimatesCost estimates as
planned, act as
basis for
comparison
2. Performancereports-Provide Info on
cost performance
3. Approved
change
requests-Include
modifications to the
cost of the contract
(VO)
1. Cost change
control system
- defines proceduresfor changing cost
baseline eg JKRs.
2. Performance
measurement
analysis- Assess magnitude
of any variances that
will occur e.g. using
Earned Value .
3. Forecasting
-Predict futureconditions of project
based on current info
4. Project Mgmt
software
1. Cost estimate
(updates)
2. Performance
measurements
- Cost variance andSchedule variance
for each activity
3. Forecasted
completion cost
4. Recommended
corrective action-Anything done tobring expected future
performance of
project to match
original plan
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3.3.3 Earn Value and S-Curve
Earn value analysis compares the cost value of workdone with the value of work that should have beendone (i.e. the base-line)
Value of work done comprises of:
Indirect costs
Cost of materials delivered on sit
Cost of actual physical work on site
Earn value can also be presented in the form of S-
curvesimpler and more widely used
S-curve examines and compares the value of workdone with the actual value or progressin terms oftime (delays) or amount (over or under-achievement)
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Important Terms
Time-now is the date when progress is measured
Budget at Completion (BAC)is the original cost estimateindicating the funds required to complete work
Percentage Complete(PC) (planned)is the plannedwork progress up to time-now
Percentage Complete(PC) (actual)is the actual workprogress up to time-now
Earned Value (EV)is the budgeted cost of work actuallycompleted on that point of time (based on budgeted rates).
EV = PC(actual) x BAC eg 25% x RM 2,500,000 =RM 625,000
Planned Value (PV)is the portion of cost of work plannedto have been spent between start date and time-now
PV = PC (planned) x BAC
Actual Cost (AC) is the total actual cost incurred between
the start date and time-now
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EARNED VALUE ANALYSIS
Time-now
Cost
Variance
Overs
pend
Slippage
ScheduleVariance
Budget At Completion (BAC)
Time of completion
AC(total actual
cost)
100%
PV(planned wk
done wrt
budget)
Time
EV(actual wkdone wrt
budget)
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SCURVE
0%
100%
Valueof
work
Time
Job
Start
Completion
Time-now
Delay
Unachieved
Work
Q. Why S shape ?
Planned / scheduled
Actual /(Earned
SIRIMexample revisited
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3.4 Resource Allocation and
Leveling
Resources of a project need to be scheduled i.e. right amount of resources must be
allocated to a given task at the required time
leveled i.e. distributed accordingly at the required time
to avoid or minimize fluctuations in day-to-day use.
Resource Leveling (RL) makes use of floats ortime tolerances in the schedule to re-schedule
resources and bring back any deviation of actual
progress from schedule to within acceptable limits
RL applies to resources which are hired i.e. labour
and equipment as the need for these resourcesfluctuates greatly as some activities start (requiring
resources) while other finish (releasing resources)
RL improves efficiency and minimize project cost
(by optimizing labour usage and cost)
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3.4 Resource Allocation and
Leveling (cont.)
STEPS:
Determine critical path and floats from networkor other techniques
Identify key resource and produce bar chartusing network data
Plot histogram of resource demand
Reschedule timing of activities using float toobtain a more even demand profile
Redraw the resource profile
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3.4 Resource Allocation and
Leveling (cont.)
Example: Flooring Project
ACTIVITY DESCRIPTIONIPA* DURATION LABOUR
A DELIVERY OF
MATERIALS
- 5 2
B REMOVE OLD
TILES
- 7 4
C INSTALL
CERAMIC TILES
A 3 3
D INSTALL VINYLTILES
A,B 5 3
E CLEAN UP AND
INSPECT
C,D 2 2
* Immediately Preceding Activity
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3.5 Control in Project
Termination
The Project Manager will continuously monitor,control and manage the project to ensure the goodprogress.
But if PM finds the performance is very
unsatisfactory and/or contractor is no longercapable of continuing the project, then PM mayrecommend to S.O. Termination of the project.Performance Bond of the contract will also beforfeited.
The procedure for issuing notice of terminationmust follow conditions of contract e.g. adequatetime given for contractor to improve performanceand adequate notice or warning letters given toterminate the contract.
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3.6 Control in Project
Completion and Handing Over
If then project has been successfully completed,then PM must certify this
In construction projects, completion refers toPractical Completion - a stage where the
project constructed has achieved its intendedfunction, or can be occupied or used despitesome outstanding work to be completed, orsome repair work which, if carried out, will notcause inconvenience to the user or occupier.
The control mechanism used is Certificate ofPractical Completionissued to the contractor,together with a list of outstanding works anddefects observed in project to be carried out ormade good during a Defects Liability Period
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DLP is a guarantee period during whichthe contractor has to complete anyoutstanding works or carry out repairs to
any defects in the completed facility,failing which the Performance Bond willbe forfeited.
Upon completion of the the project, a
Handing Over Document is prepared andsigned by the client.This starts thehanding over of responsibility to the clientfor the whole project.
3.6 Control in Project
Completion and Handing
Over (cont.)
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End of Lecture
Thank you