Chapter 11: Project Control

Scope Cost
The Fundamental Purposes of Control • Technical problems • Difficulties may need more resources
1. The regulation of results • Technical difficulties • Scope may increase
through the alteration of • Quality problems • Initial bid was too low
activities • Client wants changes • Reporting was poor
2. The stewardship of • Inter-functional complications • Budget was inadequate
organizational assets • Technological breakthroughs • Correction not on time
• Intrateam conflict • Input price changed
• Market changes
Focus of Control
• Scope • Control
• Cost • “the maintenance of ethical, goal-directed behavior”
• Time • Necessary and an inherent part of life in an organization
• The PM job is to set controls that will encourage behaviors\
results that are desirable and discourage those that are not
Time
• People respond to goal-directedness of control systems:
• Difficulties took longer than planned to solve
• active and passive participation and goal seeking
• Initial estimates were optimistic
• passive participation to avoid loss
• Sequencing was incorrect
• active, but negative participation and resistance
• Unavailable resources
• Preceding tasks were incomplete
• Change orders
• Governmental regulations were altered
Physical Asset Control
• Control over the use of physical assets
• Includes preventive and corrective maintenance
• Must also control inventory Characteristics of a Good Control System
• Flexible • Accurate
Human Resource Control • Cost effective • Simple
• Controlling and maintaining the growth of people • Useful • Easy to maintain
• People working on projects can gain a wide range of • Ethical • Fully documented
experience • Timely
• Measurement of human resource conservation is
difficult
• Performance appraisals and other measures are not
satisfactory devices
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
Three Types of Control Processes
• Cybernetic control
• Go/no-go control
• Post control
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
Correcting Deviation from Performance Standard
Information Requirements for Cybernetic Controllers Go/No-go Controls
• Must have a counteraction for every action
• Not possible for complex systems • Testing to see if some preset condition has
1. Must define what characteristics of an output to control been met
2. Standards must be set • Most of project management is go/no-go
3. Sensors must be acquired controls
4. Measurements must be compared to a standard • Use cannot be based on the calendar
5. Difference sent to the decision maker
• Some will take place at milestones
• Some will take place when work
Phase-Gated Processes packages are completed
• Controls the project at various points throughout its life • Others will be on-going
cycle • Data to be collected will match the critical
• Most commonly used for new product/service elements of the project plan
development projects • Actual is compared to what was expected
• Project must pass gate to continue funding in the plan
• Regular reports are given to the project
manager and senior management
Post-control
• 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”
• Can be thought of as a report card
Postcontrol Report Sections
• The project objectives
• Milestones, gates, and budgets
• The final report on project results
• Recommendations for performance and
process improvement

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…PTO
Trend Projection
Integrated scope/cost/time charts
 Critical Ratio Control Charts
• Made up of two parts:
• Ratio of actual progress to scheduled progress
• Ratio of budgeted cost to actual cost
• Caeteris paribus (H.W)

 actual progress   budgeted cost 

Critical ratio      
 schedule progress   actual cost 
Cost Control Chart
Benchmarking
making comparisons to “best in class” practices
across organizations

Benchmarking Best Practices

1. Promoting the benefits of project
management
2. Personnel
3. Methodology
4. Results of project management
5. On-course improvement in project
management practices

H.W. Wha is PMBOK? What is its usage?

 • Sprint Review Scrum Events for Project Control
• Entire team participates
• Demonstrate product functionality
• Obtain feedback from key stakeholders Purpose of Formal Change Control System
• Sprint Retrospective • Review all changes
• Held between sprint review and next sprint planning • Identify all task impacts
meeting • Translate impacts into scope, cost, and schedule
• Identifies opportunities for improvement in processes, • Evaluate the benefits and costs
velocity, efficiency, relationships, tools … • Identify alternative changes
• Accept or reject
H.W. Project • Communicate
Control of Change and Scope Creep scope creep?
• Uncertainty about the technology • Ensure implementation
• Increase in the knowledge base or sophistication • Report
• Modification of the rules applying to the project
• Coping with changes is perceived as the most
important problem facing project managers Controlling Creative Activities
• Creativity is hard to control
Guidelines for an Effective Change Control Procedure • Too much control will stifle creativity
• Include change process in all agreements • Three general approaches
• Issue a change order for all approved changes • Process Review
• Project manager must be consulted • Personnel Reassignment
• Changes must be approved in writing • Control of Input Resources
• Master plan must be amended