Lecture Sheet-14

(Session 25)
E2: Enterprise Management

Scope of session
 Chapter 14– Project Stages – Execution, Control & Completion
Execution, configuration management & change control, planning & control, Earned Value
Management (EVM), Project Reporting, Project Meeting, Completion, Post Completion
Audit, Continuous Improvement, PMMM

Chapter 14: Project Stages – Execution, Control & Completion

1. Execution
 Project execution is where the work is performed.
 At this stage, the project manager must provide leadership & co-ordination to the project team members
and other stakeholders with the aim of successfully delivering the project objectives.
 This is the stage where stakeholders need to be focused upon the project tasks and the project team will
perform the tasks they are responsible for, as and when scheduled in the plan.
 This stage can be weeks, months or years long.

2. Configuration management & Change Control

Change Control
 Change is an inevitable part of any project.
 Change may arise from internal or external factors, and can often change the outcome of the project.
 It is important to have an agreed change management process in place so that everyone in the project is
aware of how change will be managed.
 It is also important that the initial project documents such as PID and the detailed project plan, remain
as “baselines” so that all changes can be carefully monitored & controlled.
 A change control process is to ensure that the changes are agreed & communicated to all parties before
they are implemented.

Change Process
At the outset of the project a change management process must be agreed. It should include the following:
 Method for prioritizing changes requested (Must be done/Nice to have).
 Authorization for changes. (PM/PD/PSC/Ministry/Planning Commission).
 Agreement of a change budget. (Additional cost).
 Recording of changes (A set procedures & who will manage the procedures).
 Communication of changes (How to communicate to all interested parties).

Configuration Management
 Configuration management is an important element within projects.
 It involves tracking & controlling all aspects of the projects and all documentations and deliverables
from the project.
 The Configuration management system for a project will specify how all aspects of the project are to be
managed.
 Configuration management include:
 Version control for documentation
 Ownership & responsibility for documentation
 Authorization & tracking procedures for any changes require to documentation

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 Monitoring & control procedure to ensure only authorized documents & records are held
 Access control over project records

3. Planning & Control

o The project manager will collect actual project data on costs, schedule & progress and compare these
against the project plan.
o Take corrective action for any deviation, following authorization, to get the project on target/track.
o Project manager should take advice of team members to ensure participation in decision-making and
foster commitment to successful completion of project objective.
o Corrective action must be carried out AQAP & communicate to all relevant stakeholders.
o Monitoring of progress should be carried out on regular basis.
o A regular project reporting period should be set up (daily/weekly/monthly), depending on the
complexity or duration of the project.

Project planning & Control Methodology

Arears that need to be addressed by project planning & control methodology:
 Control begins at the inception of the project, not just before implementation. (a clear & authorized
brief)
 When work is planned it will need to be controlled. (Critical elements to completion & defines control
accordingly)
 A control should be targeted at the agreed critical success factors not on the assumptions of the project
manager.
 The milestone plan allows the project manager to define the go/no go control points in the project, and
the enter/exit criteria for each activity.
 A control system needs to be balanced with the objectives of the project.

Project Control System

 A project control system enables recognition of problems before they become too difficult to solve.
 It integrates the actual work to be done with the cost of doing the work and the time needed to do.
 The purpose is to develop a plan of the work that is to be accomplished and to develop a system that
monitors that plan and the performance of the work.
 This system must provide the information necessary so that the project team, company management and
the client can identify problem areas and initiate corrective action.

What are the main Controls?

 Prevention of deviations
 Correction of deviations
 Prevention of any future deviations, by revising plans, target, measures etc.
 Implementation of conclusions from monitoring, reviewing and evaluating the project.

4. Earned Value Management (EVM)

 EVM is a systematic project management process used to find variances in projects based on
comparison of work performed and work planned.
 It helps project managers to measure project performance.
 EVM provides quantitative data for project decision making.

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 The project baseline is an essential component of EVM and serves as part of overall project monitoring
& control.
 EVA involves calculating three primary measurements for each activity from a project’s work
breakdown structure (WBS):
 Budgeted cost of work schedules (BCWS)
 Actual cost of work performed (ACWP)
 Budgeted cost of work performed (BCWP).

(i) Schedule Variance (SV) = (BCWP-BCWS)

 A comparison of amount of work performed during a given period of time to what was
scheduled to be performed.
 A negative variance means the project is behind schedule

(ii) Cost Variance (CV) = (BCWP-ACWP)

 A comparison of the budgeted cost of work performed with actual cost.
 A negative variance means the project is over budget

(iii) Schedule Index (SI) = BCWP/BCWS

 Schedule Index compares work performed to work planned
 How fast does the project progress w.r.t. how fast we expected it to be?
 SI > 1: Project is ahead of schedule; SI <1: Project is behind schedule

(iv) Cost Index (CI) = BCWP/ACWP

 CI compares cost of work performed to actual cost.
 How much are we getting for each taka we spend?
 CI >1: Project is efficient; CI<1: Project is inefficient
Benefits of EVM
i. Preventing scope creep
ii. Providing an objective measurement of the scope, schedule and cost
iii. Improved effectiveness and accuracy of the status report
iv. Improved communication with stakeholders
v. Reducing risk
vi. Profitability analysis
vii. Project forecasting

5.1 Project Reporting

To enhance and facilitate the communication of control & progress through the life of the project, the following
main reports are produced:

Project Initiation Document (PID) -

Contains the following details about the project:
 Plans, budgets and timetables including deadlines
 Nature, background and scope

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 Objectives and summary overview
 Organizations issues such as roles, responsibilities and signatories
Exception Report: This is when everything is in accordance with the plan. Only exceptions are reported.
Effort Reports: Effort reporting is the process of certifying that cost/expenses charged to project accounts are
reasonable in relation to the actual work performed. It assures a sponsor that
o the sponsor only paid for the amount of effort that directly benefited the project and
o the project team met their effort commitment to the project.

Progress report/Project status report: Progress reporting is an essential activity of project management. The
project manager issues regular reports on progress against budget, schedule and scope. It normally includes:
o Status against plan in terms of cost, timetable and scope
o Status and progress of resolving issues identified to date
o New issues
o Corrective action plan
o Expected achievement of milestones before next report
o Next report date

5.2 Project Meetings

Regular project meetings are essential to enhance relationships and communicate objectives with the team.
There are three main types of meetings:
I. Project status review meeting:
 These are regular meetings, involving the project manager, team members & the customer.
 The purpose of the meeting is to provide an update on the project status, identify any issues and
establish action plans from that point.
II. Project design review meeting:
Regular meetings are required to resolve design problems or to present new technical specifications.
III. Project problem solving meeting:
These meetings will be called as soon as a problem occurs to identify and resolve the issue.
6. Completion
The final stage of the project life cycle is the closure of the project once the project work is finished. A number
of activities must be undertaken at this stage:
 Project is delivered to users
 End of project meeting
 Formal sign off of project
 Project review meeting
 Final report issued
 Project team disband
An end of project meeting confirms closure of the project by a formal sign off. Project review meetings should
be carried out both internally with project team members and externally with the customer.
End of Project review meeting
 The internal review (team):

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 Review the planning, management, reporting & control
 Discuss the success and failure of the project
 Learning from the project for future reference
 Discuss roles, performance of the members
 The external review (customer):
 Crucial aspect of the project
 Whether the project has satisfied the customer’s requirement
 Obtain feedback to help improve future projects
 Project operation and manual, training
 Business review
 An evaluation from the business perspective
 Are benefits from the feasibility study likely to be realized
 If not what ongoing actions need to be taken?

The Final report

 The contents are-
 Brief overview of the project
 Customer original requirements & original deliverables
 List of deliverables customer received
 Actual achievement regarding cost, schedule & scope
 Future consideration

Reference documents:
 Feasibility study & report
 PID
 Project planning reports
 Milestones

7. Post Completion Audit (PCA)

When the project solution has been delivered, the final phase – an audit of the entire project – is conducted.
Assessment of the following should take place:
 the extent to which the required quality has been achieved;
 the efficiency of the solution during operation compared with the agreed performance and
standards;
 the actual cost of the project compared with the budgeted expenditure and the reasons for over-
or under-expenditure identified;
 the time taken to develop the solution compared with the targeted date for completion, and
reasons for a variance identified;
 the effectiveness of the management process and structures in managing the project;
 the significance of any problems encountered and the effectiveness of the solutions generated to
deal with them.


8. Continuous Improvement & PMMM

 Many organizations view project management as a strategic competence, from which they can gain a
competitive advantage. This is particularly true of organizations in project-based industries, such as
engineering and consultancy.

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 Excellence in project management requires the development of a methodology, a culture that believes
in the methodology, and continues improvements to the methodology.
 One such approach is the Project Management Maturity Model (PMMM), proposed by Kerzner (2001),
which provides guidance on how to become excellent in project management.
The Project Management Maturity Model (PMMM)
 The PMMM consists of five levels, and each level represents a different degree of maturity in project
management.

Concept & Compiled by:

Md. Shahadat Hossen
ACMA, ACCA (Finalist), CFC (Canada), CIPFA (Affiliate, UK)
Deputy Manager- Finance (Additional Charge)
Dhaka Power Distribution Company Limited
Ministry of Power, Energy & Mineral Resources

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