PROJECT EVALUATION & MONITORING

C H A P T E R FOUR

Project Control

By: Mohammed Getahun (MSc, Assistant Professor) in

Accounting & Finance
Project control

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 Monitor and Control

» During all of the phases and the process groups, regular

monitoring and controls are required. These include:
Scope change management
Change of Management
Quality control
Time Management
Budget Management
Risk management
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 Activities in this group are

Activities in this group are:

Monitor and control project work
Integrated change control
Scope verification
Scope control
Schedule control
Cost control
Perform quality control
Manage project team
Performance Monitoring
Manage stakeholders
Risk monitoring and control
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 Progress Vs. Plan

Cost
Schedule
Scope
Stakeholder satisfaction
 Changes
 To the progress measurement baseline
 To the description of the product of the project.

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 Baseline Development

Doubt is not a pleasant condition, but certainty is

absurd. Voltaire
Four major baseline
1.Scope baseline= product description
2.Stakeholder satisfaction baseline =project success
criteria
3.Cost baseline = budget
 accrual- based
 cash – based
4. Schedule baseline = schedule
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 The Purpose of Project Control

The purpose of the project control or implementation

phase is:
 To observe the work in progress.
 To ensure that it follows the plan sufficiently closely.
 To understand the underlying problems when it does not.
 To take appropriate action when necessary.

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 Benefits of Project Controls

Increased project predictability for cost and completion date

Increased visibility into the financial health of the project at all
stages
Ability to mitigate project scope creep
Meaningful benchmarking data for future projects via well-
structured projects
Increased margins when working in a fixed-price environment
Improved reputation for properly managing and controlling projects
Competitive advantage over organizations with less mature project
management capabilities
Increased job satisfaction for project team members
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 The Purpose of Project Control

To make the actual meet the plan

The Process
1. Identify key performance areas
2. Set standards
3. Measure performance
4. Compare
5. Take corrective action

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Project control cycles

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Three Types of Controls

Decisions must be made concerning:

 At what points in the project will control be
exerted
 What is to be controlled
 How it will be measured
 How much deviation will be tolerated
 How to spot and correct potential deviations
before they occur

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 Three Types of Controls process

No matter what the purpose in controlling a project

there are three basic types of control mechanisms that
can be used:
 Cybernetic control
 Go/no-go control:
 Post control:

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 1. Cybernetic control

Cybernetic control is a first, but less common control mechanism

that is rarely directly applicable to projects.
A project has inputs and outputs
A project has inputs and outputs. The outputs can be in the form of
milestones that have to be met
Cybernetic controls focus on the outputs.
If these milestones or outputs do not measure up to the set
standards, then the situation is investigated to see if there is a
sufficient cause to change patterns of activity

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 2. Go/No-go Controls

Take the form of testing to see if some specific

precondition has been met
Most of the control in project management falls into
this category
This type of control can be used on almost every aspect
of a project
Must exercise judgment in the use of go/no-go controls
Go/no-go controls operate only when and if the
controller uses them
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 Information Requirements for Go/no-go Controls

 The project proposal, plans specifications,

schedules and budgets contain all the
information needed to apply go/no-go controls to
the project
 Milestones are the key events that serve as a
focus for ongoing control activity
 These milestones are the project’s deliverables in
the form of in-process output or final output
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 Post control

Post controls are applied after the fact

Directed toward improving the chances for future
projects to meet their goals
It is applied through a relatively formal document that
contains four distinct sections:
 The project objectives
 Milestones, checkpoints, and budgets
 The final report on project
 Recommendations for performance and
process improvement
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 Characteristics of a Control System

A good control system:

Should be flexible
Should be cost effective
Must be truly useful
Must satisfy the real needs of the project
Must operate in a timely manner
Sensors and monitors should be sufficiently
accurate and precise to control the project within the
limits that are functional for the client and parent
organization
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 Characteristics of a Control System

A good control system (cont.):

Should be as simple as possible
Should be easy to maintain
Should be capable of being extended or otherwise
altered
Should be fully documented when installed
 The documentation should include a complete
training program in system operation

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 Control Systems

All control systems use feedback as a control process

The control of performance, cost, and time usually require
different input data:
 Performance- engineering change notices, test results,
quality checks, rework tickets, scrap rates
 Cost- budgets to actual cash flows, purchase orders,
income reports, labor hour charges, accounting variance
reports
 Schedule- benchmark reports, status reports, PERT/CPM
networks, earned value graphs, Gantt charts, WBS, and
action plans
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 Project Control Tools

Some of the most important tools available for the

project manager to use in controlling the project are
variance analysis and trend projection

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 Project Controlling Tools

 Our controlling tools of choice must support the comparison

between planned and real life actions, as well as, between
expected and actual results.
 There are two types of tools or project management metrics for
measuring / controlling the work progress of individual work
packages or of a whole sub-project or project
 Our presentation includes milestone trend analysis and earned
value analysis (earned value management) using indices such as
cost performance index, schedule performance index, cost
variance, and schedule variance.

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 Controlling Tools for Individual Work Packages

1. Measuring Quantities: We measure the progress of a work package in terms

of completed parts of the same kind, for example: completed ground area of a
building (in sq.), laid cable (in m), number of doors, windows, etc. installed,
number of sockets manufactured (in pieces), etc.
2. 0 – 50% - 100% Method: In case a work package has a result that we cannot
express in terms of equal parts we indicate the work progress by
 0% for “not yet started”,
 50% for “started, but not yet completed”,
 100% for “completed”.
3. Estimation of the Necessary Remaining Effort and Duration:
 If 0 – 50% - 100% method would be too inaccurate.
 we usually would ask the work package expert for the rate of completion.
 Additionally, we recommend asking for the portion of work that still has to
be accomplished, in terms of estimated necessary remaining effort and
duration.
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 Controlling Tools for the Whole Project

(4) The "Simple" Tools: We have a work breakdown structure

(WBS), network diagram and Gantt chart, and an accumulated cost
plan of our project. Let us start with the WBS. Twelve weeks into a
project and applying the 0%-50%-100% method, we obtain a
diagram like this:

 Work packages 1.1, 1.2, 2.1.1 and 2.2.2 are complete, 2.1.2 and
2.2.1 started but not yet complete, and 2.1.3, 3.1 and 3.2 not yet
started. 23
 Project control tool: Network diagram

The same 0%-50%-100% method together with the network

diagram yields information about the status of the work progress
regarding the logical sequence of work packages:

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 Project control tool: Gantt chart

If we want to know our project status in terms of schedule we use the Gantt chart.
A blue bar for each work package indicates its planned time and a red bar below it
its actual time.

For example, work package 1.1 was started on time, but it took one week longer
to complete it; work package 1.2 was started one week later and finished one
week later, etc. So, as of twelve weeks into our project, it seems to be one week
behind schedule. 25
 5. Earned Value Analysis (EVA) or Earned Value
Management

 As another widely used project controlling tool, Earned Value

Analysis helps to control cost and schedule in larger projects or
sub-projects. The following picture shows a snapshot of EVA in a
small project.

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 ….cont’d
To calculate Cost Performance Index (CPI) and Schedule Performance Index (SPI)
with the following formulas:

In our example, we obtain CPI = 0.609 and SPI = 0.778 indicating
that we are over budget and behind schedule. Earlier presentations
refer to
 Cost Variance CV = BCWP – ACWP = EV – AC
 Schedule Variance SV = BCWP – BCWS = EV – PV

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 Use of Logframe for project control

ΦThis tool offers an explanation of the basic logical

project framework (log frame)used in relation to
planning, designing, implementing, monitoring and
evaluating anti-trafficking and other projects.
ΦWhat is logframe?
ΦA log frame is a tool for improving the planning,
implementation,management,monitoring and evaluation
of projects. The log frame i s a way of s structuring the
main elements in a project and highlighting the logical
linkages between them.
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 Use of Logfram for project control

If activities are implemented, will outputs be

produced?
If outputs are produced, will outcomes result?
If outcomes result, will the objectives be achieved?
Will the objectives achieved contribute to the larger
goal?

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 By:Mohammed G (Msc,
Assistant professor), Jimma
30

University
PUT THIS KNOWLEDGE TO WORK!