Copyright 2012 John Wiley & Sons, Inc.

Chapter 11

Project Control

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Focus of Control

Scope Cost Time

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Scope

Technical problemsTechnical difficultiesQuality problemsClient wants changes Interfunctional complicationsTechnological breakthroughs Intrateam conflictMarket changes

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Cost

Difficulties may need more resourcesScope may increase Initial bid was too lowReporting was poorBudget was inadequateCorrection not on time Input price changed

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Time

Difficulties took longer than planned to solve

Initial estimates were optimisticSequencing was incorrectUnavailable resourcesPreceding tasks were incompleteChange ordersGovernmental regulations were altered

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The Fundamental Purposes of Control

1. The regulation of results through the alteration of activities

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

Controlling and maintaining the growth of people

People working on projects can gain a wide range of experience

Measurement of human resource conservation is difficult

Performance appraisals and other measures are not satisfactory devices

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Financial Resource Control

Current asset control Project budget Capital investment control Techniques same as those applied to general

operation of the firm Context is different because project is

accountable to an outsider Must exercise due diligence over resources

owned by the client

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Three Types of Control Processes

Cybernetic control Go/no-go control Post control

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Cybernetic Control

A system that is constantly monitoredWhen a deviation is spotted, corrective

action is takenCybernetic controls are not common in

projectsNegative feedback loop

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A Cybernetic Control System

Figure 11-2

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Information Requirements for Cybernetic Controllers

Must have a counteraction for every action

Not possible for complex systems1. Must define what characteristics of an

output to control2. Standards must be set3. Sensors must be acquired4. Measurements must be compared to a

standard5. Difference sent to the decision maker

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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– Some will take place when work packages

are completed– Others 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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Postcontrol

These are controls that are applied after the fact

Their purpose is to mainly improve the performance on future projects

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

Sometimes called “lessons learned”

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Postcontrol Report Sections

The project objectives Milestones, gates, and budgets The final report on project results 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

FlexibleCost effectiveUsefulEthicalTimely

AccurateSimpleEasy to maintainFully documented

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Critical Ratio Control Charts

Table 11-1

cost actual

cost budgeted

progress schedule

progress actualratio Critical

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Benchmarking

Promoting the benefits of project management

Personnel Methodology Results of project management On-course improvement in project

management practices

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Control of Change and Scope Creep

Uncertainty about the technology Increase in the knowledge base or

sophistication Modification of the rules applying to the

project Coping with changes is perceived as the

most important problem facing project managers

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Purpose of Formal Change Control System

Review all changes Identify all task impactsTranslate impacts into scope, cost, and

scheduleEvaluate the benefits and costs

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Purpose of Formal Change Control System Continued

Identify alternative changesAccept or rejectCommunicateEnsure implementationReport

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Guidelines for an Effective Change Control Procedure

Include change process in all agreements

Issue a change order for all approved changes

Project manager must be consulted Changes must be approved in writing Master plan must be amended

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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 controls– Response tends to be positive

Go/no-go controls– Response tends to be neutral or negative

Post controls– See as a report card– Response depends on “grade”

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Balance in a Control System

Placing too much weight on easy-to-measure factors

Emphasizing shorter-run results at the expense of longer-run objectives

Ignoring changes in the environment or goals

Overcontrol by the top management “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

– Process Review– Personnel Reassignment– Control of Input Resources

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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

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