Chapter 11

1. Chapter 11 Project Control

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

3. 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

4. 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

5. 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

6. The Fundamental Purposes of Control • The regulation of results • The stewardship of organizational assets

7. Physical Asset Control • Control over the use of physical assets • Includes preventive and corrective maintenance • Must also control inventory

8. 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

9. 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

10. Three Types of Control Processes • Cybernetic control • Go/no-go control • Post control

11. Cybernetic Control • A system is constantly monitored • When a deviation is spotted, corrective action is taken • Cybernetic controls are not common in projects • Negative feedback loop

12. 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

13. 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

14. 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

15. 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”

16. Post Control Report Sections • The project objectives • Milestones, checkpoints, and budgets • The final report on project results • Recommendations for performance and process improvement

17. 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…

18. Flexible Cost effective Useful Ethical Timely Accurate Simple Easy to maintain Can be changed Fully documented Characteristics of a Good Control System

19. Critical Ratio Control Charts Table 11-1

20. Benchmarking • Promoting the benefits of project management • Personnel • Methodology • Results of project management

21. 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

22. Human Response to Controls • Cybernetic controls • Go/no-go controls • Post controls

23. Balance in a Control System • Investment in control is subject to diminishing returns • Too much control dampens innovation • A control system should correct errors • Corrections should be the smallest needed • It should minimize its impact on people

24. Common Control System Problems • Placing too much weight on easy-to-measure factors • Emphasizing the short-run at the expense of the long-run • Ignoring changes to the environment or goals • Over-control by top management • “If it is not measured, it is not important”

25. Control of Creative Activities • Creativity is hard to control • Too much control will stifle creativity • Three general approaches • Progress Review • Personnel Reassignment • Control of Input Resources

26. Control of Change and Scope Creep • Controlling scope creep is the biggest problem that many project managers face • Scope creep is not always bad • However, if they are not managed, they cause havoc with project schedules and budgets

27. 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

28. Change Guidelines • All contracts specify how change will be handled • Any change requires a change order • Project manager must be consulted • Must be approved in writing • Master plan should reflect changes