PROJECT MONITORING

AND CONTROL

Argaw Asha
ECWC
A.A ,Ethiopia
October 21,2021

O1
Contents

 Positive attitude for your Personal &

Project success
 Project Management Process Group
wrt PMC
 Project Monitoring & Control (PMC)

2
POSITIVE ATTITUDE
FOR PERSONAL &
PROJECT SUCESS

3
 Definition

 Attitudes are simply an expressions of how

much we like or dislike various things .They
represent our
- Evaluations,
- Preferences, towards a wide
variety of attitudes.
Our Attitudes are based on information.
Because we can never know all the information
available on any particular attitude object, our
attitudes are open to revision. 4
 THE ICEBERG

KNOWN
TO OTHERS
BEHAVIOR 10 %
SEA LEVEL

UNKNOWN
TO OTHERS

VALUES – STANDARDS – JUDGMENTS

ATTITUDE 90 %
MOTIVES – ETHICS - BELIEFS

5
Benefits of Positive Attitude

 For you  For your Projects

-is energizing -Increase productivity
-increase your enjoyment -fosters team work
of life -solves problems
-inspire others around you -improves quality
-makes for pleasant -makes for congenital
personality atmosphere
-help you become a -breeds loyalty
contributing member of -increases profit
society and an asset to -foster better relationships with
your country employees ,employers and
customers
-reduces stress 6
ADKAR Model

Understanding how to achieve change at an

individual level
 A=Awareness
A= Awareness of the need for change
 D=Desire
D= Desire to support and participate in the
change
 K=Knowledge
K= Knowledge of how to change
 A=Ability
A= Ability to implement the change
 R=Reinforcement
R= Reinforcement to sustain the change

The ADKAR model is that link between

individual performance, organizational change
7

management and business results.

 IQ/EQ
ልዩነት

EQ/ስሜታዊ ጥንካሬ IQ/አንድ ሰው

የራስን እና የሌሎችን ስሜትን
መረዳትእና ማስተዳደር ነው
ያለው የእውቀት
ደረጃ
8
 Johari window For self
self--awareness
ጆሴፍ እና ሃሪ
የተሰወረ/በራስ
ግልፅ የሆነ ያልታወቀ

ለራስ ግልፅ የሆነ ለራስ ግልፅ ያልሆነ

ለሌሎች ግልፅ ከራስ የተሰወረ

የሚታወቅ

ለሎች
የማያውቁት የተደበቀ ያልታወቀ
ድብቅ የሆነ
በህሪ የማይታወቅ
9
 የተሟ
የተ ሟላ ስብዕና
ራ
ስ ጭንቅላት
ን Mental

ማ
በ መንፈሳዊ
Spiritual
ል
ጸ ማህበራዊ
Social
አካል/ጤንነት
Physical
ግ 10
Process Groups Interact in a
phase or project

Extracted from A Guide to The Project Management Body of Knowledge (PMBOK®

11

Guide) - Fourth Edition, ©2008 Project Management Institute

Monitoring and Control
Processes in Knowledge Areas
1. Integration management:
– Develop Project Management Plan
– Monitor and Control Project Work
– Perform Integrated Change Control
2. Scope management:
– Plan scope Management
– Control Scope
3. Time management:
- Plan Schedule Management
- Control Schedule
4. Cost management:
- Plan Cost Management
- Control cost
-Perform Quality Control
12
Cont’d
5. Quality management:
-Plan Quality Management
6. Human resource Management
– Plan Human Resource Management
– Manage Project Team
7. Communication management:
– Plan Communication Management
– Control Communications
13
Cont’d

8. Risk management:
– Plan Risk Management
– Control Risks
9. Procurement management:
– Plan Procurements Management
– Control Procurements
10.. Stakeholders Management:
10
– Plan Stakeholder Management
– Control Stakeholder engagement 14
PROJECT MONITORING
AND CONTROL

15
Contents

 Project Monitoring
– Designing the monitoring
system
– Data Collecting Formats
– Data Analysis
– Reporting types
– Meetings + Guidelines for
16

meetings
 Contents
 Project Control (PC)
– Project control : The big picture
– Designing the Controlling System
– Primary Mechanism by which PM Exert Controls
– How can we tell when PC is needed?
– Resources for Project Control
– Elements of Project Control
– Mechanisms of Project Control
– Project Control Process
– Project control areas (Integrated Change control,
Scope Control , Schedule Control, cost control , Quality
Control , communication control, performance control
,Risk monitoring & control, Procurement control ,
Control stakeholders engagements) Case Study 17
Maya Angelou

“You may not control all the events that

happens to you, but you can decide not
to be reduced by them.”

18
Good Project Monitoring and Control

 Goal of Project Monitoring: To detect

detect,, at any time of the project, the
following:
– Deviations from Budget
– Lagging Schedule
– Poor Quality
Key questions in monitoring:
What/How should we measure?
Will we know it soon enough?
enough?
 Goal of Project Control: To correct
correct,, at any time of the project, the deviations
from budget, schedule, and quality.
 Bring project performance (budget, time, quality) back in line with
plans
 Sometimes, revise plans to bring them in line with performance!!!19
Monitoring & Control: A Feedback Process

Detect
deviations

Monitoring Control
1. Measurement 1. Actions
2. Performance Analysis) 2. Revised Plans, Cash Flows, Schedules, etc.

Correct
Deviations

20
 SECTION 1
PROJECT MONITORING

21
Why do we monitor?

 Simply because we know that things

don’t always go according to plan (no
matter how much we prepare)
 To detect and react appropriately to
deviations and changes to plans.

22
What do we monitor?

Inputs Outputs

Time Progress

Money Cost

Resources Work Starts

Material Usage Work Completion

Tasks Engineering/Design Changes

Quality/Technical Performance Variation Order (VO)

23
When do we monitor?

 End of the project

 Continuously
 Regularly
 Logically
 While there is still time to react
 As soon as possible
 At task completion
 At pre-
pre-planned decision points (Milestones)
24
Where do we monitor?

 At Head Office?
 At the site Office?
 On the spot?
 Depends on situation and the “Whats
“Whats””

25
How do we monitor?
 Through meetings with clients, parties involved in
the project (contractors, suppliers, etc.)
 For schedules-
schedules-update CPA,PERT Charts, update
Gant Charts
 Using earned value analysis
 Calculate critical ratios
 Milestones
 Reports
 Test & Inspections
 Delivery or staggered delivery
26
 PMIS (Project Management information system)
Project Monitoring

 Designing the Monitoring System

 Data Collection & Reporting
– Data Collection
– Data Analysis
– Reporting & Reporting type
 Meetings

27
Designing the Monitoring System

 Identify special characteristics of

performance, cost, and time that need to be
controlled..
controlled
– performance characteristics should be set for
each level of detail in the project
 Real-time data should be collected and
Real-
compared against plans
plans..
– mechanisms to collect this data must be
designed
 Avoid tendency to focus on easily collected 28

data..
data
Cont’d

 One way of linking planning and control is to monitor

project progress on MSP Gantt chart
chart..
 The original Gantt chart provides the baseline, and every
time there is a change the Tracking Gantt chart is updated
to reflect the change
change..
 The second method is to use an Earned value Chart with
its pre
pre--established baseline
baseline.. Earned value integrates
resource, cost, and schedule measures to help the project
management team assess and measure project
performance and progress
progress..
 The third method is to monitor the critical chain buffers
(Problem areas where attention needs to be focused)
focused)..
29
Data Collection
 The foundation for monitoring & control is that,
timely information should be obtained about the
project at different times, during the period of
execution of the project
project..
 We can have rules & models to analyze and
interpret data
 But, the question is, Which data should be collected?
 The important data to be collected for project
monitoring & Control are
are::
– Cost
– Schedule
– Defects and
– Size 30
Cont…
 Collecting these data is a challenging
activity..
activity
 People resist providing these data about
their work, fearing that the data may be
used against them
them..
 These and other people
people--related issues must
be resolved to have success on data
collection..
collection
 We shall study how metrics are collected &
what tools are used to help in collecting
data..
data
31
Cost Data

 Tracking of cost should be a key activity during

monitoring.
 By monitoring costs , We can evaluate whether
the project is executing within budget.

32
Schedule Tracking

 MSP is used to track schedules

schedules..
 Every day, the project leader checks the
status of the project & updates the MSP
 A weekly project meeting is usually held to
discuss project schedule & other issues
 MSP features is used to determine which
activities are lagging, percentage of task done
& effect on the overall project
project..

33
Defect Data
 Defect Data is more important than
cost Data, because it has direct
relationship with construction Quality
Quality..
 The presence of defect can have
adverse effect in achieving the goal of
the project
project..
 Defect data are used for Managing the
Project..
Project

34
Size Measurement

 Size is an important measurement

 It has direct effect on productivity
 Quality metrics are expressed with
respect to Size.
 Size measurement are used to predict
& control of project.

35
Data Collecting Formats
 Frequency Counts (A simple tally of the occurrence
of an event –Complaints per month)
 Raw Numbers (Actual amount
amount--birr spend)
 Subjective numeric ratings (subjective estimates of some
quality offered by specialists in the topic, such as ordinal
rankings of performance)
 Indicators and surrogates ( when it is specially difficult to
find a direct measure of a variable , indicators or surrogates are
frequently used
used.. For Example, body temperature is an indicator of
infection and years of experience can be a surrogate for expertise)
 Verbal Characterizations (Other variables that are difficult to
measure such as team spirit or client
client--supplier cooperation may take
the form of verbal characterization) 36
Data Analysis

 Following the collection of data through

monitoring system, it is frequently necessary to
analyze or process data in some manner before
reporting it for control purposes
purposes..
 This may take the form of simple aggregation
of the data such as averaging the values or
something as complex as fitting statistical
distribution functions to the data to ascertain
relationships, effects and trends
trends..

37
Reporting Types

 After the data have been collected and

analyzed, they need to be reported in some
forms..
forms
 PMBOK suggested that routine performance
reports includes status report, progress report
and forecasts
forecasts..
 There are also many others possible report
formats, such as time/cost reports, variance
reports, update presentations and similar
documents..
documents
38
Cont’d

 Although everyone concerned with the project

should be tied into a reporting system in some
fashion, not everyone needs to receive the
same information
information..
 Reports are prepared and distributed as per the
authority and need of stakeholders
stakeholders..

39
Cont’d

There are primarily three distinct types of reports

reports::
 Routine Report ( includes Status report , progress
report and forecast report )
 Exception Report (intended for special decision or
unexpected situation in which affected team members
and outside managers need to be aware of changes
and the change itself needs to be documented)
 Special Analysis report
report(( prepared to disseminate the
results of a special study in a project concerning a
particular opportunity or problem for the project
project.. It
can include the study of new material, capability of
new software and impact of new government
40
regulation)..
regulation)
Status Report

 Status reporting is a main mechanism for

providing visibility to senior management.
 It is used to ensure that project continues
to progress according to plan.
 To resolve any pending issues.
 It is given by Project Leader to his or her
superior & also to the customer.
 It can be on a weekly basis.

41
Cont…
 The status report contain:
 Customer complaint
 Milestone achieved this week
 Milestone missed this week & reason
 Milestone planned for next week
 Issues requiring clarification or attention
 Escalation, if any..
 Estimated work versus available time by milestone
 Number of requirement change
 Major changes from the plan
42
Meetings
 Meetings are one way of face to face
reporting
 These meetings can range from regular ,
highly formalized and structured
presentation/question/answer sessions to
informal off
off--the
the--cuff get together
together..
 Project review meetings ,regardless of the
format, are always important
important..
 Although such meetings are usually dreaded
because of their length, lack of actionable 43

conclusions, and general waste of time time..

Guidelines for Meetings

 Weekly progress report meeting should

rarely be held at all
all..
 Distribute a written agenda in advance of
the meetings
meetings.. The leadlead--time for distributing
the agenda should be sufficient to allow
attendees to prepare to deal with the
agenda items
items..
 If homeworks needs to be done before a
meeting by the attendees, check to be sure
they will be prepared, and above all make
44
sure you are prepared
prepared..
Cont’d

 If you are chairing a meeting, you should

take a time for preparation
preparation..
 Avoid attributing remarks to individuals in
the minutes
minutes..
 Although courtesy is always in order,
excessive formality at a project meeting is
not..
not
 If crisis arise and a meeting is deemed
necessary to deal with it, make sure the
meeting is restricted to that issue alone
alone..45
Meetings--Some Monitoring Issues
Meetings

 What Problems do you have and what is being done to

correct them?
 What problem do you anticipate in the future?
 Do you need any resources you do not have yet?
 Do you need information you do not have yet?
 Do you know anything that will give you schedule
difficulties?
 Any possibility your task will finish early /late?
 Will your task be completed under/over/on budget?

46
 SECTION 2
PROJECT CONTROL

47
Project Control: The Big Picture …

Given

Project is
Off-track

48
Project Control: The Big Picture …

Given

Project is
Off-track

Monitoring indicates that:

- Project is behind time-schedule, and/or
- Project has exceeded budget, and/or
- Quality of materials or finished work is below standard, and/or
49
- Productivity is lower than as planned, etc.
Project Control: The Big Picture …

Resources for
Given PC (the 4-M’s)

Project is
Off-track

50
Project Control: The Big Picture …

Resources for
Given PC (the 4-M’s)

Project is
Off-track

Resources available to the Project Manager for Project Control:

- Money
- Manpower (labor)
- Materials
- Machinery (Equipment) 51
Project Control: The Big Picture …

Resources for
Given PC (the 4-M’s)
Mechanism and
Elements of PC
Project is
Off-track
Adjust the resources

Adjust the project

characteristics: size,
scope, etc

52
 Project Control: The Big Picture …

Resources for
Given PC (the 4-M’s)
Mechanism and
Elements of PC
Project is
Off-track
Adjust the resources

Adjust the project

More labor? Better labor? characteristics: size,
resources
Better supervision? scope, etc
More materials? Better materials?
More equipment? Better equipment?
More money?
Reduce project size? Reduce project scope?
project 53
Terminate project?
Project Control: The Big Picture …

Resources for
Given PC (the 4-M’s)
Mechanism and
Elements of PC
Project is
Off-track
Adjust the resources

Adjust the project

characteristics: size,
scope, etc output

Project
brought back
Was the Project Control successful? How can we tell?
on-track 54
Project Control: The Big Picture …

Resources for
Given PC (the 4-M’s)
Elements and
Mechanism of PC
Project is
Off-track
Adjust the resources

Adjust the project

characteristics: size,
scope, etc output

Project
brought back
on-track 55
Designing the controlling system

 The primary Purpose is to correct errors, not

punish the guilty
 Investments in control subject to
diminishing returns (The cost of control increases
faster & faster while the degree of control
control--and its value
value--
increase more & more slowly)
 Must consider impact on creativity and
innovation
 Be careful not emphasize short-
short-run results
at the expense of long-
long-run objectives
 Dangers of across the board cuts 56
Primary Mechanism by which
PM exert Control

 Process Reviews
 Personnel Assignments
 Resource Allocations

57
 Part 1
How can we tell
when Project Control is
needed?

58
 Is Project Control is needed now?
How can we tell?

General Clues Specific Clues

Performance Cost Time “Primitive” Other

and Quality Indicators Indicators

59
How can we tell when Project Control is needed?

GENERAL CLUES (Meredith and Mantel, 2006

2006))

 Performance
- Unexpected technical problems arise
- Insufficient resources are unavailable when needed
- Quality or reliability problems occur
- Owner/Client requires changes in technical specifications
- Inter
Inter--functional complications and conflicts arise
- Market changes that increase/decrease the project’s value
60
How can we tell when Project Control is needed?

GENERAL CLUES (Meredith and Mantel, 2006

2006))

 Cost
- Technical difficulties that require more resources
- Scope of work increases
- Bid amount (accepted for the contract award) is too low
- Reporting of the monitoring results are poor/late
- Project budgeting for contractor cash flows not done right
- Changes in market prices of the inputs
61
How can we tell when Project Control is needed?

GENERAL CLUES (Meredith and Mantel, 2006

2006))

 Time
- Technical difficulties require more time to solve
- Scope of work increases
- Unexpected utilities needing relocation
- Task sequencing not done right
- Required material, labor/equipment unavailable when
needed
- Key preceding tasks were not completed on time.
62
1. How can we tell when PC is needed?
SPECIFIC CLUES
planned
 “Primitive” indicators: Equipment-hours
actual

– More resources or less Total Man-hours

planned
actual
resources haven been used
than planned Amt of concrete used (tons)
planned
actual

0 500 1000 1500 2000

– Activities are taking long Amount input to date
than planned

– Cost of activity (or of

project to date) is higher
than expected

63
1. How can we tell when PC is needed?
SPECIFIC CLUES

 “Primitive” indicators:
– More resources or less resources planned
Equipment-hours
haven been used than planned actual
planned
Equipment-hours
actual
planned
Total Man-hours
actual
– Activities are taking long than Total Man-hours
planned
actual
planned Amt of concrete used (tons)
planned
Amt of concrete used (tons)
actual
planned
actual

0 500 1000 1500 2000

– Cost of activity (or of project to 0 500 1000 1500 2000
Amount
inputinput to date
date) is higher than expected Amount to date

64
1. How can we tell when PC is needed?
SPECIFIC CLUES
JAN FEB MAR APR MAY JUN

 “Primitive” indicators: planned

actual
Activity 1
– More resources or less resources
haven been used than planned
Activity 2

– Activities are taking long than

Activity 3
planned

NOW
– Cost of activity (or of project to
date) is higher than expected

Legend
planned

actual 65
1. How can we tell when PC is needed?
SPECIFIC CLUES

 “Primitive” indicators:
– More resources or less resources
haven been used than planned Program
(schedule)

– Activities are taking long than Progress

(actual)
planned $

– Cost of activity (or of project to 70%

Program
date) is higher than expected (schedule)
50%
Progress
(actual)

66
now time
1. How can we tell when PC is needed?

 So we know Project Control is needed (at time t)

particularly when:
- RVt is –ve
ve,,
- RIt < 1
- CVt is –ve
- CIt <1
- SVt is –ve
- SIt is < 1
- TVt is –ve
- TIt is < 1
67
 Part 2
Resources
for
Project Control

68
2. Resources for Project Control

 Money
 Machinery (Equipment)
 Materials and Supplies
 Manpower (Labor and Supervision)

69
Money as a PC Resource

 Not a direct resource

 Rather, used to influence the amounts
or quality of the other resources

70
Using Equipment for PC

 Often used to augment labor in order to

speed up project

 Can be expensive

 May involve renting or purchasing

71
Materials and Supplies as a PC Resource

 Increase in quality or quantity may be

necessary to enhance project control

 Improved inventory systems for

materials

72
Manpower as a PC Resource

 Project problems (time delays, excess costs,

poor performance, etc.) are partly due to the
human element (action or inaction)

 In using Manpower as a tool for project

control, PM encounters human emotions
(anger, fear, frustration, etc.)
73
 Part 3

Elements
of
Project Control

74
 Elements of Project Control

Resources--related
Resources Project--related
Project

75
3. Elements of Project Control
3A. Resource-
Resource-related

Re--allocate resources
Re

 Manpower--related control
Manpower

 Machinery--related control
Machinery

 Money--related control
Money

 Material--related control
Material
76
Elements of Project Control
3A. Resource-
Resource-related

Re--allocate resources
Re

 Manpower Also referred to as ”Human Resource Control”

- Lay-off/fire any under-performing staff
- Hire staff with needed skills
Machinery - Assign staff with specific skills to specific
activities

Money
Issues:
-PM may be seen as a “stern disciplinarian”
Materials - PM must avoid heavy handed actions,
- Fix problems without blaming people
77
Elements of Project Control
3A. Resource-
Resource-related

Re--allocate resources
Re

Manpower Also referred to as ”Physical Asset Control”

- Decommission any under-performing equipment
- Bring in equipment with appropriate capabilities
 Machinery - Re-assign specific equipment to specific activities

Money

Materials
78
Elements of Project Control
3A. Resource-
Resource-related

Re--allocate resources
Re

Manpower Also referred to as ”Physical Asset Control”

- Decommission any under-performing equipment
- Bring in equipment with appropriate capabilities
 Machinery - Re-assign specific equipment to specific activities

Issues:
Money - Equipment decisions may involve some economic
analysis
- Equipment-based control easier than manpower-
Materials based control
- Some trade-off may exist between manpower and
equipment utilization.
79
Elements of Project Control
3A. Resource-
Resource-related

Re--allocate resources
Re

Manpower

Machinery
Also referred to as ”Financial Resource Control”
- How much money should be spent?
 Money - How should it be spent?
- PM assisted by:
- Project accountant
Materials - Project Finance Manager

80
Elements of Project Control
3A. Resource-
Resource-related

Re--allocate resources
Re

Manpower

Machinery

Money

 Materials - Discontinue use of sub-standard material

- Seek new sources of superior material

81
Elements of Project Control
3B. Project-
Project-related

 Options:

- Reduce project size?

- Reduce project scope?

- Terminate project?
82
 Part 4

Mechanisms
of
Project Control

83
Mechanisms of Project Control

Types of Mechanisms:

- Cybernetic

- Go/No
Go/No--go

- Post
Post--control

84
Types of Control Mechanisms

Cybernetic

- “Cyber” means “Steer” or helmsman

(Greek language)

- May be First-
First-, Second-
Second-, or Third-
Third-order

85
 Cybernetic control mechanisms

Monitoring mechanism (e.g. sensor)

Inputs Mechanism:
Process Outputs
- System output monitored by
sensor
Effector - Sensor measurements
and Comparator transmitted to Comparator
Decision-
- Measurements compared
maker
with predetermined standards
Standards
-- Deviation from standard
sent to decision-maker
-If deviation from standard is
too large, signal sent to
Effector
86
 Cybernetic control mechanisms

Monitoring mechanism (e.g. sensor)

Inputs Mechanism:
Process Outputs
- System output monitored by
sensor
Effector - Sensor measurements
and Comparator transmitted to Comparator
Decision-
- Measurements compared
maker
with predetermined standards
Standards
-- Deviation from standard
sent to decision-maker
This is a First-order cybernetic control
-If deviation from standard is
system. (Standards are fixed) too large, signal sent to
Example: Thermostat that keeps room Effector
87
temperature to 70F all year round.
 Cybernetic control mechanisms

Monitoring mechanism (e.g. sensor)

Inputs Mechanism:
Process Outputs
- Same as described for First-
order Cybernetic systems, but:
Effector
and Comparator - Standards are not fixed, but
Decision- the manner they change is
maker fixed.
Standards

Memory Pre-programmed Responses

This is a Second-order cybernetic control system (standards vary according to a fixed set of rules)

Examples: Thermostat that keeps room temperature to 70F in winter and 65F in summer,
88
Robot installations, Automated inventory systems, Automated record keeping systems
 Cybernetic control mechanisms

Monitoring mechanism (e.g. sensor)

Inputs Mechanism:
Process Outputs
- Same as described for First-
order Cybernetic systems, but:
Effector
and Comparator - Standards are not fixed but
Decision- are variable. Also, the manner
maker they change is variable because
Standards there is a consciousness
(human element) involved.
Consciousness Memory, Selection

This is a Third-order cybernetic control system (standards vary according to a variable set of
rules)

89
Examples: Most Project management systems.
Cybernetic control in Project Management

1. PM must clearly define “outputs” in terms of relevant

project characteristics
2. PM must establish standards for each characteristic
3. Monitoring mechanisms (sensors) must be established to
measure the characteristics at regular intervals
4. For each characteristic, the trigger point or maximum
deviation (difference between “attained level” and
“standard level”) should be established.
5. If triggered, appropriate action should be taken to minimize
the deviation between Attained Level and Standard Level
of performance. 90
“Go/No--go” Mechanisms of Project Control
“Go/No

 Testing to see if some specific precondition has been

achieved
 Yes/No (discrete)
 Control in most PM fall into this category (Cooper,
1994;; Meredith and Mantel, 2006
1994 2006))
 Example: Was Activity X completed within 6 months?
 Did Activity Y cost exceed its budget of $1
$1.5 million?
 Some engineering judgment is necessary in exercising
these types of controls. 91
Post--Control Types of Project Control
Post

 Also called: Post-

Post-performance control, Post-
Post-performance
review
 Is done after the activity or project is over
 Like a post-
post-mortem or report card
 Is it “Locking the barn door after the horse has
escaped”?
 Or is it “We need to learn from the past to avoid future
mistakes”?
 Generates lessons from current projects so that future
projects can be controlled better. 92
Desired characteristics of a project control mechanism

 Flexible – PC should be able to react to changes in system

performance
 Cost--effective – Value of PC should exceed cost of PC
Cost
 Useful – Must really satisfy the needs of project, not the
whims of the PM
 Timely – Be able to react quickly before the problem
overwhelms the project
 Simple –Easy to understand and operate
 Adjustable – Capable of being adjusted to reflect changing
priorities
 Documented – so that training is possible 93
Some Interesting Issues in Project Control

 Flexibility
 Trade--offs
Trade
 Some things to watch out for
 Impediments to Project acceleration
 Cost--only and time-
Cost time-only actions to control
projects

94
Some Interesting Issues in Project Control

Value of Flexibility in Project Planning

 Flexibility is primary defense against risk

 Planning too tightly may highly complicate control

 Flexibility in construction is key during control

 Want adequate float and contingency to change plans if

needed
 Be careful on value engineering that limits flexibility!

95
Some Interesting Issues in Project Control

Trade-offs between Performance Measures

Trade-
during Project Control

 Can sometimes only correct for one

performance measure at a time
– Time
– Cost
– Quality
 Need to understand tradeoffs and triage
– Pick where to make tradeoffs (e.g. non-
non-critical
activities)
96
Some Interesting Issues in Project Control

Time--only or Cost-
Time Cost-Only Control Actions

 Sometimes, reduce time without increasing cost

– Change operating methods and process to increase
work efficiency and product quality
– Outsourcing

 Sometimes, reduce cost without increasing time

– Outsourcing
– Substitute with less expensive but acceptable
materials or equipment

97
 Part 5

Project Control Process

98
 The Project Control Cycle
1. Setting a Goal

4. Taking Action 2. Measuring

and Recycling Progress
the Process

109

3. Comparing Actual
with Planned
 The Project S-
S-Curve
Cumulative Cost
($ in thousands)

60

40 $10,000 Negative Var

Cumulative
20 Budgeted Cost
Cumulative
Actual Cost
5 10 15 20 25 30 35 40 45 50 13--
13

Elapsed Time (in weeks) 100

What is a baseline?
 It makes the plan difficult to change
 It is an anchor point for measuring
performance against plan
– Planned cost
– Planned schedule
– Planned scope

101
Baseline and Tracking Gantt Charts

FIGURE 13.1
13––102
13
 Part6
Project Control Areas

103
Project Control Areas
6.A -Integrated Change Control
6.B -Scope Control
6.C -Schedule Control
6.D -Cost Control
6.E -Quality Control
6.F
.F-- Communication control
6.G -Performance Control
6.H -Risk Monitoring & Control
6.I
.I-- Procurements Control
104
6.J -Control of Stakeholders Engagement
Part6
Part6A-Integrated Change Control

105
Integrated Change Control

 Integrated change control involves

identifying, evaluating, and managing
changes throughout the project life cycle

 Three main objectives of change control:

– Influence the factors that create
changes to ensure they are beneficial
– Determine that a change has occurred
– Manage actual changes when and as 106

they occur
Integrated Change Control
Process

107
Change Control Boards
(CCBs)
 A formal group of people responsible
for approving or rejecting changes on
a project
 CCBs provide guidelines for preparing
change requests, evaluate change
requests, and manage the
implementation of approved changes
 Includes stakeholders from the entire 108

organization
Part 6B-Scope Control

109
 Scope Management
Processes
Concept Developing Executing Controlling

2. Define
Scope
4. Verify 5. Control
1. Collect Scope Scope
Requirements
3. Create
WBS

WBS = Work Breakdown Structure

110
Scope Verification

 Scope verification involves formal

acceptance of the completed project scope
by the stakeholders
 Acceptance is often achieved by a customer
inspection and then sign sign--off on key
deliverables

111
What Went Wrong?

 A project scope that is too broad and

grandiose can cause severe problems
– In 2001, McDonald’s fast-
fast-food chain initiated a
project to create an intranet that would connect
its headquarters with all of its restaurants to
provide detailed operational information in real
time; after spending $170 million on consultants
and initial implementation planning, McDonald’s
realized that the project was too much to
handle and terminated it.
112
Scope Control

 Scope control involves controlling changes to the project

scope
 Goals of scope control are to
to::
– Influence the factors that cause scope changes
– Assure changes are processed according to procedures
developed as part of integrated change control
– Manage changes when they occur
 Tools for performing scope control include a change control
system and configuration management (it is the set of
characteristics that define a final product or deliverables
deliverables.. This includes all
functional (speed, safety
safety……) and physical specifications ( color, size …))

113
Best Practices for Avoiding Scope
Problems
1. Keep the scope realistic: Don’t make projects so large that
they can’t be completed; break large projects down into a
series of smaller ones
2. Involve users in project scope management: Assign key users
to the project team and give them ownership of requirements
definition and scope verification
3. Use off-
off-the
the--latest technology whenever possible: Many
Engineers enjoy using the latest and greatest technology,
but business needs, not technology trends, must take priority
4. Follow good project management processes:
processes: As described in
this presentation and others, there are well-
well-defined processes
for managing project scope and others aspects of projects
114
Part 6C-Schedule Control

115
 Schedule Control

Schedule control is concerned with

a) influencing the factors that create
schedule changes to ensure that
changes are agreed upon,
b) determining that the schedule has
changed, and
c) managing the actual changes when and
as they occur. Schedule control must be
thoroughly integrated with the other
control processes, as described. 116
Inputs to Schedule Control

 Project schedule:
The approved project schedule, called the
schedule baseline (which must be feasible
technically and in terms of resources), is
a component of the project plan
described. It provides the basis for
measuring and reporting schedule
performance.
117
Inputs to Schedule Control

 Performance reports:
The report has to state which planned
dated have been met and which have
not.
Performance reports may also alert the
project team to issues that may cause
problems in the future.
118
Cont’d
 Change requests:
Change requests may occur in many
forms-oral or written, direct or indirect,
externally or internally initiated, and
legally mandated or optional. Changes
may require extending the schedule or
may allow accelerating.

119
Milestone Analysis
Milestones are events or stages of the
project that represent a significant
accomplishment.
Milestones
 show completion of an important steps
 signal the team and suppliers
 can motivate the team
 offer re-evaluation points
 help coordinate schedules 13--
13
120

 identify key review gates

 delineate work packages
 Tools and Techniques for Schedule
Control
 Schedule Change Control System
It defines the procedures by which the
project Schedule may be changed changed... It
includes the paperwork, tracking systems,
and approval levels necessary for
authorizing changes
changes..
 Performance Measurement
It helps to assess the magnitude of any
variations which do occur
occur.. 121
Cont’d

 Performance measurement
Decide if the Schedule variation requires
corrective action.
 Additional Planning

Revised activity duration

 Tools

Project Management Software (MS Project,

Primavera etc..) 122
Output from Schedule Control

 Schedule update
Any modification to the schedule
information
Re-baselining is needed to provide
realistic data to measure performance
 Corrective measure

123
 Controlling Changes to the
Project Schedule
 Perform reality checks on schedules
 Allow for contingencies??
 Don’t plan for everyone to work at 100
100%%
capacity all the time
 Hold progress meetings with stakeholders
and be clear and honest in communicating
schedule issues
124
Part 6D-Cost Control

125
Cost Control
Cost Control is concerned with
(a) Influencing the factors which
create changes to the cost baseline to
ensure that changes are beneficial.
(b) Determining that the cost baseline
has changed
(c) Managing the actual changes
when and as they occur

126
Cont’d
Cost Control includes:
 Monitoring cost performances to detect
variances from plan.
 Ensuring that all appropriate changes are
recorded accurately in the cost baseline
 Preventing incorrect, inappropriate, or
unauthorized changes from being included
in the cost baseline.
 Informing appropriate stakeholders of
authorized changes. 127
 Inputs to Cost Control
 Cost Baseline
 Performance Reports
Provide information about cost
performance such as which budgets have
been met and which have not
not.. It also
alerts the project team to issues which
may cause problems in the future
future..

128
Cont’d
 Change Requests
These may occur in many forms forms--oral or
written, direct or indirect, externally or
internally initiated, and legally
mandated or optional
optional.. These may
require increasing the budget or
may allow decreasing it it..

129
 Tools and Techniques for Cost
Control

 Cost Change Control System

It defines the procedures by which the
cost baseline may be changed. It
includes the paperwork, tracking systems,
and approval levels necessary for
authorizing changes.

130
 Cont’d
 Performance Measurement
Performance measurement techniques help to
assess the magnitude of any variances that will
invariably occur. The earned value technique
(EVT) compares the cumulative value of the
budgeted cost of work performed (earned) at the
original allocated budget amount to both the
budgeted cost of work scheduled (planned) and
to the actual cost of work performed (actual).
This technique is especially useful for cost
131
control, resource management, and production.
Outputs from Cost Control

 Revised Cost Estimates

 Budget Updates
 Corrective Action
 Estimate at Completion
It is a forecast of total project costs
based on project performance.
 Lessons Learned
132
Part 6E-Quality Control

133
Working with process or systems

 “Anything that can go wrong will go wrong” –

Murphy’s law
 How to nullify Murphy’s law and improve the process under
consideration?
 One possibility: statistical control by monitoring and
adjustment
 Synergistic control: statistical process control and
engineering process control
 Speaking statisticaly – probability to have absolutely stable
production process is ZERO
 “Change alone is unchanging”
Heraklietos
134
QUALITY PLANNING QUALITY
QUALITY CONTROL
Who is customer? IMPROVEMENT
Evaluate, compare, act
What do they need? Establish infrastructure

Who is customer?
What Level of Quality do they need?
Are they purchasing to Some Quality Specification?
Any Safety Considerations?
Future Litigation?
Ethical Issues?

135
QUALITY PLANNING QUALITY
QUALITY CONTROL
Who is customer? IMPROVEMENT
Evaluate, compare, act
What do they need? Establish infrastructure

QUALITY CONTROL
Inspection
 Destructive
 Non-destructive
 Sampling
Process Control
 Monitoring Process (relates to inspection)
 Feedback Control
 Statistical Process Control (knowing when the
process is out of control)
Correction
 Knowing what to correct when process is out of
control
136
Control Quality

 It is the process of monitoring and recording results

of executing the quality activities to assess
performance and recommend necessary changes.
 The key benefits of this process includes:
1) Identifying the causes of poor process or product
quality and recommending and/or taking action to
eliminate them
2) Validating that project deliverables and work meet
the requirements specified by key stakeholders
necessary for final acceptance

137
Inputs To Quality Control

 Work results : including both

product results and process results
 The quality management plan
 Operational definitions
 Checklists

138
Problem
Solving
Steps

Plan
Do
Study
Act

Link
these
Two in
Quality
Circle

139
Outputs for Quality Control

 Quality improvement ( previously described)

 Acceptance decisions
decisions,, where the inspected
items will either be accepted or rejected and
those rejected may be reworked
 Rework,, which is an action taken to bring
Rework
defects or nonconforming items into
compliance with requirements and
specifications.. Rework is a frequent cause of
specifications
project over--runs
over and the project
management team must make an effort to
minimize it .
140
Cont’d

 Completed Checklists
Checklists,, which become a part
of a project record when they are used
 Process Adjustments
Adjustments,, which involves
immediate corrective or preventive action
as a result of quality control
measurements.. In
measurements some cases the
adjustment may need to be handled
according to procedures for overall change
control..
control
141
Quality Assurance

 Quality is achieved through the

complex interaction of team members
experience,, organizational policy
experience policy,, work
standards,, defined processes
standards processes,, training
training,,
tools human resource behaviors and
the best organization’s culture and
project management maturity
maturity..

142
Part 6F-Communication control

143
Control Communications

 It is the process of monitoring and

controlling communications throughout
the entire project life cycle to ensure
the information needs of the project
stakeholders are met. The key benefit
of this process is that it ensures an
optimal information flow among all
communication participants, at any
moment in time. 144
Cont’d
 Control Communications process involves the
activities that are required for information and
communications to be monitored, acted upon, and
released to stakeholders
stakeholders.. Project communications
come from multiple sources and may vary significantly
in their format, level of detail, degree of formality and
confidentiality.. Project communications may include
confidentiality
but are not limited toto::
• Deliverables status,
• Schedule progress, and
• Costs incurred.
145
Part 6G-Performance Control

146
 Construction Contract Performance
Contract
Award

Monitor Performance Daily

Contractor’s Progress Schedule

Govt Monthly Progress Report Govt. Monthly Progress Report

Ktr Monthly Progress Report Ktr Monthly Progress Report

Negative Factors: Satisfactory Performance

Govt. and Ktr Progress Report Greater than 5% a part Contract continues to Scheduled
Govt. Progress Report indicates >10% behind schedule Completion Date

Delay within Ktr Control Delay out of Ktr Control

Non-Receipt of Materials, Ktr’s Fault Non-Receipt of Materials,Not Ktr’s Fault

Sub-Ktr Management Govt. Caused Delays
Poor Scheduling, Etc…. Acts of God (Weather)
Letter of Unsatisfactory Adjust Schedule for Continue to successful
Concern Response Incurred Delays Contract completion
Satisfactory
Response w/ Second Letter of Concern
Corrective Actions
Satisfactory
Unsatisfactory Response
Continue / Monitor Performance Response w/
Corrective Actions
Meeting
Unsatisfactory Response Continue /
w / Ktr Management
Closely Monitor Performance
Cure Notice Show Cause Notice
(Minimum 10 days) (Minimum 3 days) Terminate 147
All decision point determinations will depend upon the gravity of that situation, overall performance,
contributing factors outside the control of the prime contractor and contractor business size status.
Part 6H-Risk Monitoring & Control

148
 Cost
overrun

Risks
Poor
Quality
Project
Constraints Delays

149
What is a Risk?

Unknown

Unexpected
endeavor
Risk
action
Undesirable

Unpredictable

150
 Types of Risks in Construction

Physical
Acts Financial
of &
God Economic

Risks

Political
Const.
&
Related
Environ.
Design

151
 Types of Risks in Construction

Physical
Acts Financial
of & Acts of God
God Economic
 Flood
 Earthquake
Risks  Landslide
 Fire
 Wind damage
Political
Const.
&
Related
Environ.
Design

152
 Types of Risks in Construction

Physical
Acts Financial
of & Physical
God Economic
 Damage to structure
 Damage to
equipment
Risks
 Labor injuries
 Fire
Political
&
Const.  Theft
Related
Environ.
Design

153
 Types of Risks in Construction

Physical
Acts Financial
of & Financial &
Economic
God Economic
 Inflation
 Availability of funds
Risks
 Exchange rate
fluctuations
Political
Const.
 Financial default
&
Related
Environ.
Design

154
 Types of Risks in Construction

Physical
Acts Financial
of & Political &
Economic
God Environmental
 Changes in laws
and regulations
Risks  Requirement for
permits
 Law & order
Political
Const.
&  Pollution and safety
Related
Environ.
rules
Design

155
 Types of Risks in Construction

Physical
Acts Financial
of & Design
God Economic
 Incomplete design
scope
 Defective design
Risks
 Errors & omissions
 Inadequate
Political
Const.
specifications
&
Related
Environ.
Design

156
 Types of Risks in Construction

Physical
Acts Financial
of & Construction
Economic
God Related
 Labor disputes
 Labor productivity
Risks  Different site
conditions

Political
 Design changes
Const.
&
Environ.
Related  Equipment failure
Design

157
 Risk Performance and control

Risk Response Methods

Terminate Transfer Tolerate Treat

• The options available to address risks will be based on one or more of

the ‘4Ts’ risk response actions: Terminate(Elimination), Transfer ,
Tolerate (Retention), Treat (Reduction).

158
 Risk Response

Risk Response Methods

Terminate Transfer Tolerate Treat

Risk Termination/Elimination Practices

 Tendering a very high bid
 Placing conditions on the bid
 Pre-contract negotiations as to which party takes certain risks
 Not bidding on the high risk portion of the contract

159
 Risk Response

Risk Response Methods

Terminate Transfer Tolerate Treat

Risk Transfer
 Two basic forms.
 (a) The activity responsible for the risk may be transferred, i.e.
hire a subcontractor to work on a hazardous process
 (b) The activity may be retained, but the financial risk
transferred, i.e. methods such as insurance.
160
 Risk Response
Risk Response Methods

Terminate Transfer Tolerate Treat

Risk Tolerate/ Retention

 Handling risks by the company who is undertaking the project.
 Two retention methods, active and passive.
 Active retention is a deliberate management strategy after a
conscious evaluation of the possible losses and costs of
alternative ways of handling risks.
 Passive retention occurs through negligence, ignorance or
absence of decision.

161
 Risk Response

Risk Response Methods

Terminate Transfer Tolerate Treat

Risk Treat/Reduction
 Continuous effort.
 Related with improvements of a company’s physical, procedural,
educational, and training devices.
 Improving housekeeping, maintenance, first aid procedures and
security.
 Education and training within every department . 162
Part 6-I-Procurements Control

163
Why Procurement Management?

 Most of all projects will need to acquire

some resources from outside
 Not understanding the different ways to
contract could result in unnecessary risk
for the project

164
 Control Procurements
Tools & Techniques
 Contract change control
Procurement system
Documents Procurement
 Procurement performance
Project review Documentation
Management Plan Inputs Outputs Organizational
 Inspections and audits
Contract Process Assets
 Performance reporting Updates
Performance
 Payment systems Change Requests
Reports
 Claims administration Project Management
Approved Change
Requests  Records management Plan Updates
system
Work Performance
Information

Plan Conduct Control Close

Procurements Procurements Procurements Procurements
165
Part 6-
6-K- Stakeholders Engagements
Control

166
Control Stakeholders engagement

It is the process of monitoring overall

project stakeholder relationship and
adjusting strategies and plans for
engaging stakeholders
 Inputs for control stakeholders
Engagement :Project Management
Plan, Issue logs , work performance
data , and project document
document..
167
Control Stakeholders engagement

 Tools and Techniques

Techniques:: Information
management systems, Expert
judgment, meetings
meetings..
 Output of Stakeholders Control::
Control
Work performance information,
change requests, project management
plan updates, project document
updates and organizational process
assets updates
updates.. 168
 To be a good PC Team
A. Motivation
- based on recognition, commendation, recommendation,
repeat business, reward
B. Communication
- must be team-
team-wide, involving all partners, as well as
thorough, honest, and complete
C. Commitment
- to the project, to the process, to all the partners, and
to the promised result
169
Good PC Team (Cont’d)

D. Expectations
- realistic, reasonable, communicated, understood, and
accepted
E. Ability - adequate, understood, and consistent
F. Involvement - total, all-
all-party, and consistent
G. Feedback
- thorough, understandable, and complete
Follow--up - complete and consistent, as well as long
Follow
term
170
Project monitoring & control Tips

 Project Monitoring and Control must be planned in advance of

project work commencing
commencing..
 The Project Manager, project team, and other stakeholders must
identify what will be measured
measured,, how progress will be measured
measured,,
and when the monitoring cycle will occur
occur..
 The Project Manager must actually implement the plan, though,
and follow through to identify new risks and continue the
iterative process of project plan refinement through change
requests.. To maximize impact for successful completion, project
requests
monitoring and control must be planned for and implemented
consistently..
consistently
 There is no guarantee for success in every project
project.. But better
planning, preparation, monitoring and application of plans can
result in smoother sailing along the way
way..
171
172