CONTENTS

Introduction
Project Time Control
Cost planning
Project Cost Control
By: Mengesha F.
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 Project Monitoring is the set of procedures and management
practices used to collect information about the performance
achieved or forecasted in a
project, based on a set of performance metrics.

 Performance Analysis: The process of determining performance

variances based on monitored or forecasted performance.

 Project Control: is the establishment of a system to measure

report, and forecast deviations in the project scope, budget, and
schedule.

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 Project control is distinguished from project planning:
1) project control yields a set of designs, decisions, and
actions, whereas project planning yields a design and
2) project control is a real time process during the
implementation not before the implementation begins.
 Project control involves the control of triple constraints
 Time (schedule)
 Cost (budget, expenses, etc)
 Performance (specifications, testing results, etc.)

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 There are two types of control patterns, “real-time” and “trend
control”.
 Real-time Control is achieved by comparing the actual value of a
performance to its planned value. Control limits are set to assess
the severity of deviations. Deviations that are larger than a
predetermined limit trigger corrective actions.
 Trend Control is achieved based on forecasts of future
performance measure. Actual values are used to extrapolate future
trend of the performance measure, to detect deviations before they
occur. Forecasts of future deviations trigger preventive actions
designed to minimise future problems.

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 Schedule Control is concerned with:
a) Influencing the factors that create schedule changes to
ensure that changes are agreed up on.
b) Determining that the schedule has changed,
c) Managing the actual changes when and as they occur.
 Schedule control must be thoroughly integrated with the other
control process, integrated change control.

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 Project Schedule:
 Include the planned start and expected finish dates for each
activities.
 The project schedule may be presented in summary form (the
master schedule), or in detail. Although it can be presented in
tabular form, it is more often presented graphically.
 The approved project schedule is called the schedule baseline ,
which must feasible technically and interims of resource
 It is the base for measuring and reporting schedule
performance.

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 Performance Reports

 involves collecting and disseminating performance information

to provide stakeholders with information about how resources
are being used to achieve project objectives.
 Performance reports provide information on schedule
performance, such as which planned dates have been met and
which have not.
 Performance reports may also alert the project team to issues
that may cause problems in the future.

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 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 it.

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 Schedule Management Plan
 A schedule management plan defines how changes to the
schedule will be managed.
 It may be formal or informal, highly detailed or broadly framed,
based on the needs of the project.
 It is a subsidiary element of the overall project plan
 Progress Monitoring Curves
 The progress monitoring curves are part of the performance
reports.
 Progress monitoring is evaluating actual project progress
compared to the baseline.

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 Schedule Change Control System
 A schedule change control system defines the procedures by
which the project schedule may be changed.
 It includes the paper work, tracking systems, and approval
levels necessary for authorizing changes.
 Schedule change control should be integrated with the
integrated change control system.

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 Performance Measurement
 Performance measurement techniques help to assess the
magnitude of any variations that do occur.
 An important part of schedule control is to decide if the
schedule variation requires corrective action.
 E.g. , a major delay on a noncritical activity may have little effect on
the overall project, while a much shorter delay on a critical or near-
critical activity may require immediate action.

 Additional Planning
 Prospective changes may require new or revised activity
duration estimates, modified activity sequences, or analysis
of alternative schedules.

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 Project Management Software
 is widely used to assist with schedule development.
 These products automate the calculation of the mathematical
analysis and resource leveling, and thus allow for rapid
consideration of many schedule alternatives.
 The ability to track planned dates versus actual dates and to
forecast the effects of schedule changes, real or potential, makes
it a useful tool for schedule control.

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 Variance Analysis

 Comparing target dates with the actual/forecast start and finish

dates provides useful information for the detection of
deviations and for the implementation of corrective solutions
in case of delays.

 The float variance is also an essential planning component to

evaluate project time-performance.

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 Schedule Updates
 is any modification to the schedule information.
 Revisions are a special category of schedule updates. Revisions are
changes to the schedule start and finish dates in the approved
project schedule. These changes are generally incorporated in
response to scope changes or changes to estimates.
 In some cases, schedule delays may be so severe that rebaselining is
needed to provide realistic data to measure performance.
 Rebaselining should only be used as a last resort in controlling the
schedule; new target schedules should be the normal mode of
schedule revision.

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 Corrective Action
 is anything done to bring expected future schedule performance
in line with the project plan.
 involves expediting special actions taken to ensure completion
of an activity on time or with the least possible delay.
 Frequently requires root cause analysis to identify the cause of
the variation, and schedule recovery can be planned and
executed for activities delineated later in the schedule and need
not only address the activity causing the deviation.

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 Lessons Learned
 The causes of variances, the reasoning behind the corrective
action chosen, and other types of lessons learned from schedule
control should be documented, so that they become part of the
historical database for both this project and other projects of the
performing organization.

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 Progress Curves Updates
 A progress curve update is any modification to progress
information caused by a modification in the project schedule,
the WBS, or both.
 Appropriate stakeholders must be notified as needed.
 Progress curves updates may or may not require adjustments to
other aspects of the project plan.

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 The early detection of actual or potential cost overruns in field
construction activities is vital.
 It provides the opportunity to initiate remedial action and
increases the chance of eliminating such overruns or minimizing
their impact.
Cost overruns increase project costs and
diminish profits

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 Project Cost Management includes the processes required to
ensure that the project is completed within the approved budget.

Determining what Developing Allocating the Controlling

resources estimate of the overall cost changes to
(Peoples, costs of the estimates to the project
Materials, resources individual work budget.
Equipments) and needed to packages to
what quantities of completed establish a cost
each should be project baseline for
used to perform activities measuring project
project activities. performance.
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 Cost control is concerned with:

a) Influencing the factors which create changes to the cost

baseline to ensure that changes is beneficial,

b) Determining that the cost baseline has changed, and

c) Managing the actual changes when and as they occur.

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 Cost control includes:
Monitoring cost performance 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.
includes searching out the “whys” of variances.
It must be thoroughly integrated with the other control
processes (scope change control, schedule control, quality
control, and others.

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 Cost Baseline

A time phased based budget that will be used to measure or

monitor cost performance on the project.

It is developed by summing estimated costs by period and is

usually displayed in the form of S-curve.

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 Performance Reports
Provides information on project scope and cost performances,
such as which budgets have been met and which have not.
Reports should provide the kinds of information and the levels
of detail required by various stakeholders, as documented in
communication management plans.
Common formats for performance reports include; bar chart
(Gantt chart)s, S-curve, histograms, and tables.

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 Work Execute In previous Work Executing this
Total work Executed
Planned % months reporting period
Value as %
Contract up to the
Description of total
Amount reporting
work
month Amount % Amount % Amount %

Sub Structure
Excavation Work 646,447.50 7.72 100 471,264.46 72.90 21,200.00 3.28 492,464.46 76.18
Concrete Work 1,883,660.94 22.50 99 891,094.58 47.31 32,000.00 1.70 923,094.58 49.01
Masonry 522,352.40 6.24 100 205,564.40 39.35 50,000.00 9.57 255,564.40 48.93
Sub Total 3,052,460.84 36.46 1,567,923.44 51.37 103,200.00 3.38 1,671,123.44 54.75
Super Structure -
Concrete Work 3,650,491.41 43.61 99 32,832.18 0.90 55,000.00 1.51 87,832.18 2.41
Block work 1,668,470.00 19.93 100 0.00 0.00 432,134.00 25.90 432,134.00 25.90
Sanitary 1,739,901.50 20.78 0 0.00 0.00 - - - -
Installation
Electrical 2,536,087.00 30.29 0 13,142.52 0.52 - - 13,142.52 0.52
Installation
Sub Total 5,318,961.41 63.54 45,974.70 0.86 487,134.00 9.16 533,108.70 10.02
8,371,422.25 100.00 1,613,898.14 19.28 590,334.00 7.05 2,204,232.14 26.33
Total
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 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 increasing the budget or may allow
decreasing it.
 Cost Management Plan
Describes how cost variances will be managed.
May be formal or informal, highly detailed or broadly framed,
based on the needs of the project stakeholders.

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 Cost Change Control System
defines the procedures by which the cost baseline may be
changed.
It includes the paperwork, tracking systems, and approval levels
necessary for authorizing changes.
 Performance Measurement
A technique which helps to assess the magnitude of any variations
which do occur.
Earned value analysis, is especially useful for cost control.
 An important part of cost control is to determine what is causing
the variance and to decide if the variance requires corrective action.

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 Additional Planning
Prospective changes may require new or revised cost estimates or
analysis of alternative approaches.
 Computerized Tools
Computerized tools such as project management software and
spreadsheets are often used to track planned costs vs. actual costs,
and to forecast the effects of cost changes.

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 Revised Cost Estimates
Revised cost estimates are modifications to the cost information
used to manage the project. Appropriate stakeholders must be
notified as needed.
 Budget Updates
Budget updates are changes to an approved cost baseline.
In some cases, cost variances maybe so severe that “rebaselining”
is needed in order to provide a realistic measure of performance.
 Corrective Action
Corrective action is anything done to bring expected future project
performance into line with the project plan.

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 Estimate At Completion …(see on EVM portion)
An estimate at completion (EAC) is a forecast of total project costs
based on project performance.
will provide the project management team with a signal if the EAC
forecasts go beyond acceptable tolerances.
 Lessons Learned
The causes of variances, the reasoning behind the corrective action
chosen, and other types of lessons learned from cost control should
be documented so that they become part of the historical database
for both this project and other projects of the performing
organization.

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 Thank you!!!

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