Project Controls Tools and Techniques

P ROJECT C ONTROLS
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ANANTH NATARAJAN
PMI
PROCESSES
• 5 Process Groups
• 10 Knowledge Areas
1. Project Integration Management
2. Project Scope Management
3. Project Time Management
4. Project Cost Management
5. Project Quality Management
6. Project Human Resource Management
7. Project Communications Management
8. Project Risk Management
9. Project Procurement Management
10. Project Stakeholder Management
CONFIDENTIAL - DO NOT DUPLICATE OR DISTRIBUTE WITHOUT WRITTEN PERMISSION FROM PROBLOCH LLC
PROCESS GROUPS
E P C P ROJECT F LOW
Project Selection, benefit Project scope, budget,

Opportunity identification
quantification schedule definition
Project FEED -Detailed

Opportunity
definition/ Engineering & FID
appraisal
selection Planning
PROJECT RISK
• Project risk is defined by the Project Management Institute (PMI) as, "an
uncertain event or condition that, if it occurs, has a positive or negative
effect on a project’s objectives.” - PMI
RISK – DEVIATION FROM BASELINE
“Ignorance” or “Knightian • Unforeseen outcomes not present in

Uncertainty” known distributional information
• Possible deviations from baseline

Strict uncertainty whose probability is unknown
• Probability (quantifiable) of deviation

Uncertainty from baseline
• Probability (quantifiable) of
Risk (subset of Uncertainty) undesirable deviation from baseline
Hubbard (2009)
P ROJECT C ONTROL S YSTEM
Plan Control
schedule,
Initiate Execute
cost , scope,
quality
Project
Closing
Monitoring processes
M on
Delivery Processes
Yes
itor
Deviation
vs plan
WALTER A.
SHEWHART
• 1891 – March 11, 1967
• Originator of Statistical Quality Control
• Process quality control
• American physicist, engineer and statistician
• Causes of variation:
• "assignable cause"
• "chance cause”
• Shewhart cycle (PDCA cycle)
W. EDWARDS DEMING
• 1900 –, 1993
• Quality guru
• Engineer, statistician, professor, author, lecturer, and management consultant.
• Japanese Union of Scientists and Engineers (JUSE) Deming Prize
KAORU ISHIKAWA
• 1915 –1989
• Engineer, Naval Officer, Professor
• Important to the Japanese Quality revolution
• Union of Japanese Scientists and Engineers (JUSE)
• Continuous improvement (kaizen)
• Quality circle
• Pareto chart
• Ishikawa Diagram
JOSEPH M. JURAN
• 1904 –2008
• Management consultant and an Engineer,
• specialized in Quality management pioneer
• Quality Management Theory
• Pareto principle
• Quality Trilogy
SEVEN BASIC
TOOLS OF QUALITY
• Cause-and-effect diagram ("fishbone diagram" or

Ishikawa diagram)
• Check sheet
• Control chart
• Histogram
• Pareto chart
• Scatter diagram
• Stratification
ISHIKAWA
DIAGRAM
• Cause-and-effect diagram
("fishbone diagram" or Ishikawa
diagram
• Developed by Kaoru Ishikawa
• Shows potential causes of a
specific event
• Quality defect prevention
• Each cause for imperfection is a
source of variation
CHECK SHEET
• Used to collect data in real time at

data generation location
• Quantitative or qualitative.
• Quantitative - tally sheet
HISTOGRAM
• High Average Overruns
• Significant number of Outliers

(extreme overruns)
• Non-normal distribution
• Seen in all Project Classes in

different sectors
CONTROL
CHART
• Developed by Kaoru
Ishikawa
• Shows potential causes of a
specific event
• Quality defect prevention
• Each cause for imperfection
is a source of variation
PARETO
CHART
Pareto principle - 80% of
consequences come from 20%
of causes (the "vital few").
Power law distribution (also
known as a Pareto distribution)
Frequency & cumulative
distribution in 2 vertical axes
Identify factors that contribute
the most
STRATIFICATION
Nothing materially
unique about fat-
tail outlier projects
Cost & schedule

overruns
divergence with
outliers
PLAN-DO-
STUDY-ACT Plan
(PDSA)
CYCLE
• Continuous Improvement
over time
Act Do
• Planning the work,
• Do or trial run of work,
• Observe or study the
Check/
results,
Study
• Act on what is learned.
JURAN’S
QUALITY
TRILOGY
Developed and written by Joseph M. Juran Quality
Planning
Quality Management -three Processes
• Quality Planning : understand customer,

needs, product/service processes
Quality
• Quality Control: implement processes Management
and specifications , monitoring, auditing
• Quality Improvement: identify

opportunities and implement
Quality Quality
performance
Control Improvement
PROCESS VS PROJECT
PROCESS PROJECT
• Repetitive • Non-repetitive
• Isolatable to single entity • Unique result
• New organizational • Time-bound
configurations • Difficult to measure
• Length
MATRIX ORGANIZATION
META ORGANIZATIONS
• Networks of autonomous legally separate “firms or individuals not

bound by authority” but “characterized by a system-level goal” (Gulati, et
al., 2012)
• Supply-chains are meta-organizations (Gulati, et al., 2012).
• Megaprojects are meta-organizations (Lundrigan, et al., 2015),
IMPOSSIBILITY OF DETERMINISTIC
PLANNING
Herbert Simon Horst Rittel

Henri Poincaré Bounded rationality Wicked problems
Chaos theory satisfice not optimize
Russel Ackoff
Messy Problems
HEURISTICS & BIASES
• Judgment biases and their effects

• Prospect Theory
• Planning fallacy
• Optimism Bias
COGNITIVE
BIASES
• Optimism Bias
• Inconsistencies and inadequate

consideration of predictability
• Ignoring distributional data
• “Parkinson’s Law” work expands to fill

the allocated capacity (Parkinson,
1955)
• “Students’ Syndrome” work is

procrastinated to the last moment
(Goldratt, 1997)
Empower
PROJECT
MANAGER
“Project Manager is the person assigned
by the performing organization to lead the
team that is responsible for achieving the
project objectives” Leadership
“Project management is the use of
specific knowledge, skills, tools and
techniques to deliver something of value
to people.
– PMI PMBOK Guide sixth edition Management
REFERENCE CLASS
FORECASTING
• RCF uplifts cost or schedule forecasts by

referring to past track records
1. Constancy of purpose toward improvement of product and service,
SYSTEM OF 2. Leadership for change
PROFOUND 3. Build quality into system; not rely on inspection
KNOWLEDGE- 4. Don’t award contract on cost alone. Instead, minimize total cost.
Relationships over quotation
DEMING 5. Improve constantly and forever to improve quality and productivity, and
1. Appreciation of a system: understanding constantly decrease costs.
the overall processes involving suppliers, 6. Institute training on the job
producers, and customers of goods and
7. Institute leadership
services;
8. Eliminate fear
2. Knowledge of variation: the range and
9. Break down departmental/cross-company barriers
causes of variation in quality, and use of
statistical sampling in measurements; 10. Eliminate slogans, exhortations, targets; substitute leadership
3. Theory of knowledge: the concepts 11. Pride of workmanship. The responsibility to quality over sheer numbers.
explaining knowledge and the limits of 12. Inspired Management. Leadership.
what can be known. 13. Institutionalized vigorous program of education & self-improvement.
4. Knowledge of psychology: concepts of 14. Transformation is everybody's job
human nature.
M EGAPROJECT G OVERNANCE/ C ONTROL -
CONSIDERATIONS
• Quantitative statistical measures that inform control systems (Macintosh & Quattrone,
2010) are socially constructed epistemological entities.
• They may not be the suitably representative and can be amenable to deliberate
manipulation (Porter, 1994). T
• Inadequacy of diagnostic control due to complexity, multirationality and contingent
factors, makes project goal attainment more understandable as “drift” (as described by
(Macintosh & Quattrone, 2010)).
• Megaproject governance requires flexibility, commitment and initiative to manage
complex, changing situations, across long time horizons, involving multiple internal and
external stakeholders (Arena & Molloy, 2010, p. 9)
BALANCE IN M EGAPROJECT G OVERNANCE
S YSTEMS
• Centralized control of project meta-organizations can

generate conflict between control and stakeholder
commitment, but both are critical to success (Marrewijk,
2005).
• Both control and collaborative structures are important
(Sundaramurthy & Lewis, 2003)
• The concepts of equilibrium and balance have always
been important to the evolution and practice of
governance and control systems (Quattrone, 2017),
• Tensions may even benefit control and reporting
systems (Quattrone, et al., 2016)
PROJECT RISK
• Everyone is responsible for project performance

• Entire Project Team
• Entire Company
• Entire project network- all companies
DEMING QUOTES
• You cannot manage what you cannot measure
• Without data you are just another person with an
opinion
• If you cannot describe what you are doing as a
process, you don’t know what you are doing
• Leader is a coach not a judge
• Quality is pride in workmanship

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P ROJECT C ONTROLS

cybereum.io | cybereum.eth | cybereum.ai

Project Selection, benefit Project scope, budget,

quantification schedule definition

Project FEED -Detailed

“Ignorance” or “Knightian • Unforeseen outcomes not present in

• Possible deviations from baseline

• Probability (quantifiable) of deviation

• Engineer, statistician, professor, author, lecturer, and management consultant.

• Japanese Union of Scientists and Engineers (JUSE) Deming Prize

• Cause-and-effect diagram ("fishbone diagram" or

• Used to collect data in real time at

• Significant number of Outliers

• Seen in all Project Classes in

Cost & schedule

• Quality Planning : understand customer,

• Quality Improvement: identify

• Networks of autonomous legally separate “firms or individuals not

Herbert Simon Horst Rittel

• Judgment biases and their effects

• Inconsistencies and inadequate

• Ignoring distributional data

• “Parkinson’s Law” work expands to fill

• “Students’ Syndrome” work is

– PMI PMBOK Guide sixth edition Management

• RCF uplifts cost or schedule forecasts by

• Centralized control of project meta-organizations can

• Everyone is responsible for project performance

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