1. Copyright 2009 John Wiley & Sons, Inc. Chapter 11 Project Control

2. Performance Technical problems Technical difficulties Quality problems Client wants changes Inter-functional complications Technological breakthroughs Intra-team conflict Market changes

3. Cost Difficulties may need more resources Scope may increase Bid was be too low Reporting was poor Budget was inadequate Correction not in time Input price changed

4. Time Difficulties took long to solve Initial estimates were optimistic Sequencing was incorrect Resources unavailable Preceding tasks were incomplete Change orders Governmental regulations were altered

5. Project Control The process of keeping the project on target and as close to plan as feasibly possible. Of course, this means you must first have a plan It also means you must have a way of detecting when a project is off the target

6. The Fundamental Purposes of Control 1. The regulation of results 2. The stewardship of organizational assets

7. Physical Asset Control Control over the use of physical assets Includes preventive and corrective maintenance Must also control inventory

8. Human Resource Control Want to make sure people are used wisely Employees need to be motivated to perform at their best Project manager may have to write performance appraisals

9. Financial Resource Control Financial resource control is tied in with the other types of control Project financial controls are very similar to general financial control The project may be answerable to another firm or division It is important the project manager manage financial assets properly This is known as due diligence

10. Three Types of Control Processes 1. Cybernetic control 2. Go/no-go control 3. Post control

11. Cybernetic Control A system is constantly monitored When a deviation is spotted, corrective action is taken Cybernetic controls are not common in projects Negative feedback loop

12. Go/No-go Controls Testing to see if some preset condition has been met Most of project management is go/no-go controls Use cannot be based on the calendar – Some will take place at milestones – Other will take place when work packages are completed – Still other will be on-going

13. Go/No-go Controls Continued Data to be collected will match the critical elements of the project plan Actual is compared to what was expected in the plan Regular reports are given to the project manager and senior management

14. Phase-Gated Processes Controls the project at various points throughout its life cycle Most commonly used for new product/service development projects Project must pass gate to continue funding

15. Post Control These are controls that are applied after-the-fact Their purpose is mainly for improving performance on future projects Often times, a final report is prepared comparing the plan with reality Sometimes called “lessons learned”

16. Post Control Report Sections 1. The project objectives 2. Milestones, checkpoints, and budgets 3. The final report on project results 4. Recommendations for performance and process improvement

17. 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…

18. Characteristics of a Good Control System Flexible Cost effective Useful Ethical Timely Accurate Simple Easy to maintain Can be changed Fully documented

19. Critical Ratio Control Charts Table 11-1

20. Benchmarking 1. Promoting the benefits of project management 2. Personnel 3. Methodology 4. Results of project management

21. Control as a Function of Management Control is usually exercised through people Control is exercised when monitoring flags a problem The control may come from any level of management The goal of the control is to get the project back on track

22. Human Response to Controls Cybernetic controls Go/no-go controls Post controls

23. Balance in a Control System Investment in control is subject to diminishing returns Too much control dampens innovation A control system should correct errors Corrections should be the smallest needed It should minimize its impact on people

24. Common Control System Problems 1. Placing too much weight on easy-to- measure factors 2. Emphasizing the short-run at the expense of the long-run 3. Ignoring changes to the environment or goals 4. Over-control by top management 5. “If it is not measured, it is not important”

25. Control of Creative Activities Creativity is hard to control Too much control will stifle creativity Three general approaches 1. Progress Review 2. Personnel Reassignment 3. Control of Input Resources

26. Control of Change and Scope Creep Controlling scope creep is the biggest problem that many project managers face Scope creep is not always bad However, if they are not managed, they cause havoc with project schedules and budgets

27. Formal Change Control System Review requests for changes Identify impacts Translate impacts to plan Evaluate cost and benefits Identify alternative changes Accept or reject Communicate Ensure implementation Report

28. Change Guidelines 1. All contracts specify how change will be handled 2. Any change requires a change order 3. Project manager must be consulted 4. Must be approved in writing 5. Master plan should reflect changes