PM641- Paper 12: PROJECT CONTROL

1. PM641- Paper 12: PROJECT CONTROL • 1.0 INTRODUCTION • 2.0 PROJECT CONTROL - THE PROCESS • 3.0. TYPES OF PROJECT CONTROL METHODS • 4.0 BEHAVIOURAL ASPECTS OF CONTROLLING

2. Project Control - Introduction • "control is a critical part of the project management process". • planning & controlling interlinked: control is the act of reducing the difference between plan and reality • Plans can never be perfect so control is inevitable • Control identifies changes to plan that may require re-planning • Monitoring = measuring & reporting; Control includes this + doing something about reports • Control is a key activity during implementation but used in all phases Eg Concept phase, feasibility study is "a go/no-go control”

3. PROJECT CONTROL QUESTIONS • 1. What requires control ? • 2. Who controls a project ?

4. Who Controls? • Control is by those holding power to make decisions. • Responsibility for control for project elements must be clearly assigned • For PM to have effective control = having responsibility, authority and resolve • Many times cost & time planners = providers of information but not controllers.

5. WHAT IS CONTROLLED ?

6. What is controlled? TIME, COST & QUALITY/PERFORMANCE • Performance: • Unexpected technical problems • Client requires changes in specifications • Interfunctional complications • Costs • Initial estimates too low • Reporting was poor or untimely • Budgeting was inadequate • Input price changes occurred • Time • Initial time estimates incorrect • task sequencing incorrect • preceding tasks incomplete

7. What is controlled? SCOPE • Controlling scope = ensuring changes are brought in after thorough investigation and full awareness of their impact • Scope change = modification to scope as defined in approved WBS RISK • Controlling risk = “executing risk management plans in order to respond to risk events over the course of the project” • Risk are dynamic so risk management strategies continually monitored • Also respond to unplanned risks that occur TEAM • controlling team =“making sure that team motivation, enthusiasm, and direction are kept throughout the project”

8. Planning the Control Process

9. PROJECT CONTROL QUESTIONS • 3. What are the steps in the project control process ?

10. Project Control - The Steps • "we must: • decide at what points in the project we will try to exert control, what is to be controlled, • how it will be measured, • how much deviation from plan will be tolerated before we act, • what kind of interventions should be used, • and how to spot and correct deviations before they occur," • "Controlling - ensuring that the objectives are met by monitoring and measuring progress and taking corrective action when necessary"

12. Step 1 - Establish baselines • In effect, part of planning. Control needs planned benchmarks • Typical baselines: • cost (budgets), • time (schedules), • performance (specifications, quality plan). • Scope (WBS) • Changes to baselines only made after review & approval using change control system • Baseline plans updated as authorised changes occur. • All appropriate stakeholders notified of authorised changes

13. Step 2 - Monitor & measure performance • Project progress measured regularly to identify variances from plan • Collect accurate information related to baselines, eg: • % completed, • cost expended • quality tests, • scope change reports • Timely collection of this data is critical.

14. Step 3 - Compare performance to baselines • Contrast actual performance against planned performance -variance analysis • formulation of progress reports and forecasts to completion • Tools - earned value, S-curve cashflows, schedules. • Causes & effects analysed and understood

15. Step 4 - Take corrective action • Control is “more than just monitoring & reporting. Means evaluating consequences of deviations from plan & acting upon them • Once deviations identified then corrective action, if any, is taken. EG: • no action, if the variances are small. • replanning to recover the original plan • revising the plan to accept the current situation • in extreme situations, terminating the project • Causes of changes & reasons for selected corrective action should be documented

16. 5 basic options for corrective action (decreasing acceptability) i. Find Alternative Solution - Rearrange workload or do work in different order or alternative way whilst not impacting on TCQS ii. Compromise Cost - Put in more resources or effort, from existing resources (e.g. working overtime, increasing productivity); the input of new resources; rearranging existing resources (e.g. talented to critical area) iii. Compromise Time - Move milestone date: iv. Compromise Scope - Lower level of ambition: v. Abort Project: Difficult decision when project members commited to project. 'so much spent that project must be completed' is invalid. May be more effective to abort the project, learn from it and start afresh"

17. PROJECT CONTROL QUESTIONS • 5. You have been asked to set up a control system for a project. Before doing so, what should be the desirable characteristcs of such a system ?

18. Control of Change - Change Control System • Changes inevitable, so systematic process needed. • ‘Coping with changes = most important problem facing PM “ • Need Change Control System, ie configuration management • CCS = collection of formal, documented procedures that defines steps by which project documents may be changed. Includes paperwork, tracking systems, and approval levels • Integrated - eg if scope changed then changes may be required in time & cost.

19. Change control system - Process Principles • continually review requested changes • identify all impacts & consequent effect on cost, time, performance • evaluate costs and benefits of requested changes • identify alternative actions that might accomplish same ends • accept or reject changes • communicate changes to all concerned parties • ensure that the changes are implemented properly • prepare monthly change reports

20. Change control system - Process Principles • All contracts & agreements must set out change requests procedures • Changes should be on Change Order form, describing change & impact • Changes approved in writing by a designated person. • PM must be consulted on all desired changes prior to approval • Once change order approved, project plans should be amended

21. 1. Promote change culture on team anticipate change treat change in systemic manner encourage beneficial change discourage detrimental change 2. Recognise Change: notify/identify change early document & communicate change establish baseline plans maintain responsibility of change 3. Evaluate Change distinguish required & elective change determine impact on project outcome consider most practical corrective action decide quickly 4. Implement Change Document impact of change, e.g., time, cost obtain authorisation for change monitor progress of implementation identify deviation from plan & expectations 5. Continuously Improve for lessons learned: Analyse cause of changes maintain change log improve change management process 5 principles for effective change management

22. Characteristics of an Effective Project Control System • Understandable - By those using it . Presented in easy to read format • Acceptable - Members must believe in need for system & not regard reporting as unpleasant or tedious • Timeliness - Anticipate and report deviations on a timely basis • Guidance - it should indicate the nature of corrective action required • Economical to Operate - the controls system must be worth the cost • Simple - It should be simple to operate • Critical Control Points - Must focus on critical points e.g. cost, time. Should deal only with relevant data & information overload avoided. • Accurate - the information must be accurate and reliable • Responsive - Should focus on response. If data do not result in action, systems is ineffective

23. 3 TYPES OF PROJECT CONTROL METHODSPre-Action/Prevention Control • Control can be proactive - preventive action in anticipation of problems • Prevent deviations before work begins by establishing conditions that will make deviations difficult to occur. • Eg stipulate all consultants must be quality accredited = controlling quality of inputs & reducing potential of poor performance.

24. 3 TYPES OF PROJECT CONTROL METHODSConcurrent Controls These occur after activities commenced. 2 types; Steering Controls • Detect deviations after work began but before completed, • keeps activities on track. Adjustments to deviations done quickly. • Corrective action while project is still viable • Eg supervision of operatives & give advice when problems arise Go/No-Go Controls • So set critical go/no-go points at which progress is assessed. • Screening device in which specific preconditions are checked • Can be used on almost every aspect of a project • Problems to be detected & dealt with before project goes too astray • Development/Implementation - major control go/no-go point

25. 3 TYPES OF PROJECT CONTROL METHODSPost-Action Controls • These focus on end-results of a project • Deviations identified, causes determined. Used for future projects • Document: • Project Objectives - description of the project objectives. • Milestones, & Budgets - Comparison between plan and actual • Final Report on Project Results - Significant deviations, good and bad, described & explained. • Recommendations - Regarding how process of future projects can be improved

26. BEHAVIOURAL ASPECTS OF CONTROLLING • “difficult to control without appearing to ‘butt-in’ on efforts of members. If people feel overmanaged, they ownership for their work” • Members must realise purpose of control is not to wield a stick, to apportion blame, or to punish the guilty • Purpose is to control work, not workers - “the objective is to get the work done, not make workers ‘toe the line’” • Any feedback should be task-related, clearly justified, unemotional • Most people accept need for control - eg pilot & air traffic control • Good communications management is a prerequisite for project • Control is performed through people who vary in personality, skills & motivation. PM must possess interpersonal skills if control effective. • PMs may have difficulty in controlling project because of companionship created

27. BEHAVIOURAL ASPECTS OF CONTROLLING • Control systems can fail because of human factors: • Resistance to comply fully to the demands of the control system • Manifest antagonism • Providing information which is erroneous, hides real facts; reports only what is literally requested • Lack of trust between the participants • PM can manage of people within control process : • Use LRC to understand relationships of project members • Be a strong advocate for project and interact frequently with project members to build trust. • Discover & utilise "informal" organisation to influence morale & loyalty • Develop communication with people who can provide greater insight into project's progress

28. PM641- Paper 13: PROJECT CONTROL • 1.0 INTRODUCTION • 2.0 PROJECT CONTROL - THE PROCESS • 3.0. TYPES OF PROJECT CONTROL METHODS • 4.0 BEHAVIOURAL ASPECTS OF CONTROLLING