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MGT/437 – Project Management © Westbrook Stevens /23/2015 How to Collect Data After data collection has been completed, reports on progress should be generated. Include: project status reports, time/cost reports, and variance reports Causes and effects should be identified and trends noted Plans, charts and tables should be updated on a timely basis Chapter 10-9
MGT/437 – Project Management © Westbrook Stevens /23/2015 Information Flow for the Planning - Monitoring - Controlling Cycle Chapter 10-4
MGT/437 – Project Management © Westbrook Stevens /23/2015 Information Needs and the Reporting Process Must contain data relevant to the control of specific tasks that are being carried out according to a specific schedule The frequency of reporting should be great enough to allow control to be exerted during or before the period in which the task is scheduled for completion The timing of reports should generally correspond to the timing of project milestones Chapter 10-16
MGT/437 – Project Management © Westbrook Stevens /23/2015 Information Needs and the Reporting Process The nature of the monitoring system should be consistent with the logic of the planning, budgeting, and scheduling systems The primary objective is to ensure achievement of the project plan through control The scheduling and resource usage columns of the project action plan will serve as the key to the design of project reports Chapter 10-17
MGT/437 – Project Management © Westbrook Stevens /23/2015 Information Needs and the Reporting Process Benefits of detailed, timely reports delivered to the proper people: Mutual understanding of the goals of the project Awareness of the progress of parallel activities More realistic planning for the needs of all groups Understanding the relationships of individual tasks to one another and the overall project Early warning signals of potential problems and delays Faster management action in response to unacceptable or inappropriate work Higher visibility to top management Chapter 10-18
MGT/437 – Project Management © Westbrook Stevens /23/2015 Report Types For the purposes of project management, we can consider three distinct types of reports: Routine those issued on a regular basis Exception Special analysis Chapter 10-19
MGT/437 – Project Management © Westbrook Stevens /23/2015 Report Types, Exception Reports 1. Directly oriented to project management decision making and should be distributed to the team members who will have a prime responsibility for decisions 2. Used when a decision is made on an exception basis and it is desirable to inform other managers as well as to document the decision Chapter 10-20
MGT/437 – Project Management © Westbrook Stevens /23/2015 Report Types -- Special Analysis Reports Used to disseminate the results of special studies conducted as a part of the project Used in response to special problems that arise during the project Cover matters that may be of interest to other project managers, or make use of analytic methods that might be helpful on other projects Chapter 10-21
MGT/437 – Project Management © Westbrook Stevens /23/2015 Common Reporting Problems 1. There is usually too much detail, both in the reports themselves and the input being solicited from workers 2. Poor interface between the project information system and the parent firm’s information system 3. Poor correspondence between the planning and the monitoring systems Chapter 10-24
MGT/437 – Project Management © Westbrook Stevens /23/2015 Milestone Reporting Serve to keep all parties up to date on what has been accomplished If accomplishments are inadequate or late, these reports serve as starting points for remedial planning Chapter 10-34
MGT/437 – Project Management © Westbrook Stevens /23/2015 Project Control Control is the last element in the implementation cycle of planning- monitoring-controlling Control is focused on three elements of a project Performance Cost Time Chapter 11-1
MGT/437 – Project Management © Westbrook Stevens /23/2015 Controlling Performance Unexpected technical problems arise Insufficient resources are available when needed Insurmountable technical difficulties are present Quality or reliability problems occur Client requires changes in specifications Interfunctional complications arise Technological breakthroughs affect the project Chapter 11-2
MGT/437 – Project Management © Westbrook Stevens /23/2015 Controlling Cost Technical difficulties require more resources The scope of the work increase Initial bids were too low Reporting was poor or untimely Budgeting was inadequate Corrective control was not exercised in time Input price changes occurred Chapter 11-3
MGT/437 – Project Management © Westbrook Stevens /23/2015 Controlling Time Technical difficulties took longer than planned to resolve Initial time estimates were optimistic Task sequencing was incorrect Required inputs of material, personnel, or equipment were unavailable when needed Necessary preceding tasks were incomplete Customer generated change orders required rework Governmental regulations were altered Chapter 11-4
MGT/437 – Project Management © Westbrook Stevens /23/2015 Purposes of Control The project manager must guard the physical assets of the organization, its human resources, and its financial resources Chapter 11-5
MGT/437 – Project Management © Westbrook Stevens /23/2015 Physical Asset Control Concerned with asset maintenance, whether preventive or corrective Preventative Maintenance Physical inventory Chapter 11-6
MGT/437 – Project Management © Westbrook Stevens /23/2015 Three Types of Control Processes Two basic types of control mechanisms Go/no-go control Post control Cybernetic control is a third, but less common control mechanism rarely directly applicable to projects. Chapter 11-11
MGT/437 – Project Management © Westbrook Stevens /23/2015 Go/No-go Controls Testing to see if some specific precondition has been met Most of the control falls into this category Can be used on almost every aspect of a project Operate only when and if the controller uses them Chapter 11-12
MGT/437 – Project Management © Westbrook Stevens /23/2015 Information Requirements for Go/no-go 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 Chapter 11-13
MGT/437 – Project Management © Westbrook Stevens /23/2015 Postcontrol Applied after the fact Directed toward improving the chances for future projects to meet their goals Applied through a relatively formal document The project objectives Milestones, checkpoints, and budgets The final report on project Recommendations for performance and process improvement Chapter 11-14
MGT/437 – Project Management © Westbrook Stevens /23/2015 Characteristics of a 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 Chapter 11-15
MGT/437 – Project Management © Westbrook Stevens /23/2015 Characteristics of a Control System 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 Chapter 11-16
MGT/437 – Project Management © Westbrook Stevens /23/2015 Control Systems 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, absenteeism, 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 Chapter 11-17
MGT/437 – Project Management © Westbrook Stevens /23/2015 Control Tools Trend projection Chapter 11-19
MGT/437 – Project Management © Westbrook Stevens /23/2015 Critical Ratio Control Charts Two parts: The ratio of actual progress to scheduled progress The ratio of budgeted cost to actual cost Measure of the general health of the project By combining two ratios, it weighs them equally, allowing a “bad” ratio to be offset by a “good” ratio Chapter 11-20
MGT/437 – Project Management © Westbrook Stevens /23/2015 Critical Ratio Chapter Task Number Critcal Ratio Actual Cost Budgeted Cost Scheduled Progress Actual Progress 1(2 / 3) X(6 / 4) = 1.0 2(2 / 3) X(6 / 6) =.67 3(3 / 3) X(4 / 6) =.67 4(3 / 2) X(6 / 6) = 1.5 5(3 / 3) X(6 / 4) = 1.5
MGT/437 – Project Management © Westbrook Stevens /23/2015 Critical Ratio Control Chart Chapter 11-22
MGT/437 – Project Management © Westbrook Stevens /23/2015 Benchmarking A recent addition to the arsenal of of project control tools is benchmarking Benchmarking makes comparisons to “best in class” practices across organizations Some successful organizations have been benchmarked on their best practices and key success factors for projects being conducted in functional organizations Chapter 11-23
MGT/437 – Project Management © Westbrook Stevens /23/2015 Best Practices and Keys to Success There were four major areas found to help projects in functional organizations: Promoting the benefits of project management Personnel pay for project management skills and high risk projects through bonuses, stock options, and other incentives Methodology Results of project management Chapter 11-24
MGT/437 – Project Management © Westbrook Stevens /23/2015 Control as a Function of Management The purpose of controlling is always the same: to bring the actual schedule, budget, and deliverables of the project into reasonably close congruence with the planned schedule, budget, and deliverables The job of the project manager is to set controls that will encourage those behaviors that are deemed desirable and discourage those that are not Chapter 11-25
MGT/437 – Project Management © Westbrook Stevens /23/2015 Cybernetic Controls Human response to steering controls tends to be positive Steering controls are usually viewed as helpful rather than a source of unwelcome pressure Response to steering controls also depends on the acceptance that the goals of the control system are appropriate Chapter 11-26
MGT/437 – Project Management © Westbrook Stevens /23/2015 Go/No-go Controls Response to go/no-go controls tends to be neutral or negative “Barely good enough” results are just as acceptable as “perfect” results The system makes it difficult for the worker to take pride in high quality work because the system does not recognize gradations of quality The fact that this kind of control emphasizes “good enough” performance is no excuse for the nonchalant application of careless standards Chapter 11-27
MGT/437 – Project Management © Westbrook Stevens /23/2015 Postcontrols Postcontrols are seen as much the same as a report card They may serve as the basis for reward or punishment, but they are received too late to change current performance Because postcontrols are placed on the process of conducting a project, they may be applied to such areas as: communication, cooperation, quality of project management, and the nature of interaction with the client Chapter 11-28
MGT/437 – Project Management © Westbrook Stevens /23/2015 Balance in a Control System General features of a balanced control system: Built with cognizance of the fact that investment in control is subject to sharply diminishing returns Recognizes that as control increases past some point, innovative activity is more and more damped, and then finally shut off completely Directed toward the correction of error rather than toward punishment Exerts control only to the degree required to achieve its objectives Utilizes the lowest degree of hassle consistent with accomplishing its goals Chapter 11-29
MGT/437 – Project Management © Westbrook Stevens /23/2015 Control of Creative Activities The more creativity involved, the greater the degree of uncertainty surrounding outcomes Too much control tends to inhibit creativity Control is not necessarily the enemy of creativity, nor does creative activity imply complete uncertainty of There are three general approaches to control creative projects: Progress review Personnel reassignment Control of input resources Chapter 11-30
MGT/437 – Project Management © Westbrook Stevens /23/2015 Progress Review The progress review focuses on the process of reaching outcomes rather than on the outcomes per se The process is controllable even if the precise results are not Control should be instituted at each project milestone The object of control is to ensure that the research design is sound and is being carried out as planned or amended Chapter 11-31
MGT/437 – Project Management © Westbrook Stevens /23/2015 Personnel Reassignment This type of control is straightforward - individuals who are productive are kept Those who are not, are moved to other jobs or to other organizations While it is not difficult to identify those who fall in the top and bottom quartiles, it is usually quite hard to make clear distinctions between the people in the middle quartiles Chapter 11-32
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