Unit VII Assessment
International1
unitvii_chapter11presentation1.pptCopyright 2012 John Wiley & Sons, Inc.
Chapter 11
Project Control
11-*
Focus of Control
- Scope
- Cost
- Time
11-*
Scope
- Technical problems
- Technical difficulties
- Quality problems
- Client wants changes
- Interfunctional complications
- Technological breakthroughs
- Intrateam conflict
- Market changes
11-*
Cost
- Difficulties may need more resources
- Scope may increase
- Initial bid was too low
- Reporting was poor
- Budget was inadequate
- Correction not on time
- Input price changed
11-*
Time
- Difficulties took longer than planned to solve
- Initial estimates were optimistic
- Sequencing was incorrect
- Unavailable resources
- Preceding tasks were incomplete
- Change orders
- Governmental regulations were altered
11-*
The Fundamental Purposes of Control
The regulation of results through the alteration of activities
The stewardship of organizational assets
11-*
Physical Asset Control
- Control over the use of physical assets
- Includes preventive and corrective maintenance
- Must also control inventory
11-*
Human Resource Control
- Controlling and maintaining the growth of people
- People working on projects can gain a wide range of experience
- Measurement of human resource conservation is difficult
- Performance appraisals and other measures are not satisfactory devices
11-*
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
11-*
Three Types of Control Processes
- Cybernetic control
- Go/no-go control
- Post control
11-*
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
11-*
A Cybernetic Control System
Figure 11-2
11-*
Information Requirements for Cybernetic Controllers
- Must have a counteraction for every action
- Not possible for complex systems
Must define what characteristics of an output to control
Standards must be set
Sensors must be acquired
Measurements must be compared to a standard
Difference sent to the decision maker
11-*
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
Some will take place when work packages are completed
Others will be on-going
11-*
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
11-*
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
11-*
Postcontrol
- 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”
11-*
Postcontrol Report Sections
- The project objectives
- Milestones, gates, and budgets
- The final report on project results
- Recommendations for performance and process improvement
11-*
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…
11-*
Characteristics of a Good Control System
- Flexible
- Cost effective
- Useful
- Ethical
- Timely
- Accurate
- Simple
- Easy to maintain
- Fully documented
11-*
Critical Ratio Control Charts
Table 11-1
11-*
Benchmarking
- Promoting the benefits of project management
- Personnel
- Methodology
- Results of project management
- On-course improvement in project management practices
11-*
Control of Change and Scope Creep
- Uncertainty about the technology
- Increase in the knowledge base or sophistication
- Modification of the rules applying to the project
- Coping with changes is perceived as the most important problem facing project managers
11-*
Purpose of Formal Change Control System
- Review all changes
- Identify all task impacts
- Translate impacts into scope, cost, and schedule
- Evaluate the benefits and costs
11-*
Purpose of Formal Change Control System Continued
- Identify alternative changes
- Accept or reject
- Communicate
- Ensure implementation
- Report
11-*
Guidelines for an Effective Change Control Procedure
- Include change process in all agreements
- Issue a change order for all approved changes
- Project manager must be consulted
- Changes must be approved in writing
- Master plan must be amended
11-*
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
11-*
Human Response to Controls
- Cybernetic controls
Response tends to be positive
- Go/no-go controls
Response tends to be neutral or negative
- Post controls
See as a report card
Response depends on “grade”
11-*
Balance in a Control System
- Placing too much weight on easy-to-measure factors
- Emphasizing shorter-run results at the expense of longer-run objectives
- Ignoring changes in the environment or goals
- Overcontrol by the top management
- “If it is not measured, it is not important”
11-*
Control of Creative Activities
- Creativity is hard to control
- Too much control will stifle creativity
- Three general approaches
Process Review
Personnel Reassignment
Control of Input Resources
11-*
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
11-*
Change Guidelines
- All contracts specify how change will be handled
- Any change requires a change order
- Project manager must be consulted
- Must be approved in writing
- Master plan should reflect changes
÷
ø
ö
ç
è
æ
´
÷
÷
ø
ö
ç
ç
è
æ
=
cost
actual
cost
budgeted
progress
schedule
progress
actual
ratio
Critical
