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Chapter 11

Project Control

Focus of Control

 Scope
 Cost
 Time

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Scope

 Technical problems
 Technical difficulties
 Quality problems
 Client wants changes
 Interfunctional complications
 Technological breakthroughs
 Intrateam conflict
 Market changes

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Cost

 Difficulties may need more resources

 Scope may increase
 Initial bid was too low
 Reporting was poor
 Budget was inadequate
 Correction not on time
 Input price changed

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Time

 Difficulties took longer than planned to

solve
 Initial estimates were optimistic
 Sequencing was incorrect
 Unavailable resources
 Preceding tasks were incomplete
 Change orders
 Governmental 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

(receipt, inspection…)
 Includes preventive and corrective
maintenance
 Must 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 monitored

 When a deviation is spotted, corrective
action is taken
 Cybernetic controls are not common in
projects
 Negative feedback loop

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A Cybernetic Control System

Figure 11-2 11-12

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Information Requirements for

Cybernetic Controllers

 Must have a counteraction for every

action
 Not possible for complex systems
1. Must define what characteristics of an
output to control
2. Standards must be set
3. Sensors must be acquired
4. Measurements must be compared to a
standard
5. 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

 Flexible  Accurate
 Cost effective  Simple
 Useful  Easy to maintain
 Ethical  Fully documented
 Timely

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Critical Ratio Control Charts

 actual progress   budgeted cost 

Critical ratio      
 schedule progress   actual cost 

Table 11-1 11-21

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 impacts
 Translate impacts into scope, cost, and
schedule
 Evaluate the benefits and costs

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Purpose of Formal Change Control

System Continued

 Identify alternative changes

 Accept or reject
 Communicate
 Ensure implementation
 Report

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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

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