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PROJECT CONTROL

PROJECT CONTROL. Project Control Defined Types of Control Systems Need for Balance in Control Systems Control of Creative Efforts Changes and Change Control. Project Control Defined. CONTROL: The act of reducing the difference between plan and reality

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PROJECT CONTROL

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  1. PROJECT CONTROL • Project Control Defined • Types of Control Systems • Need for Balance in Control Systems • Control of Creative Efforts • Changes and Change Control

  2. 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

  3. 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

  4. Two Fundamental Purposes of Project Control • Regulate project results through alteration of activities • Efficiently use and protect organizational assets

  5. 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”

  6. 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

  7. 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

  8. A Cybernetic Control System, Figure 11-1

  9. Typical Paths for Correction of Deviation, Figure 11-2

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

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

  12. 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”

  13. Sample Project Status Report, Figure 11-5

  14. 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

  15. 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

  16. 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

  17. Critical Ratio Control Limits, Figure 11-8

  18. Cost Control Chart, Figure 11-9

  19. 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

  20. A Question of Balance • Too little control? • Too much control? C Control $ C Mistakes Amount of Control

  21. Control of Creative Activities • Controlling “knowledge work” is difficult • Three tools • Progress reviews • Reassigning people • Control of resource inputs

  22. 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

  23. 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

  24. 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

  25. Business Changes • Business-related • Driven by such things as: • Spec relief • Deliverables changes • Funding shifts • Schedule changes • Acts of God • Subcontractor changes

  26. Technical Changes • Technological issues, such as: • New technologies • Laws of physics • Competitor response • Changes in client requirements (real or political)

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