Copyright 2006 John Wiley & Sons, Inc. Inventory Management.
Copyright 2012 John Wiley & Sons, Inc. Chapter 11 Project Control.
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Transcript of Copyright 2012 John Wiley & Sons, Inc. Chapter 11 Project Control.
![Page 1: Copyright 2012 John Wiley & Sons, Inc. Chapter 11 Project Control.](https://reader036.fdocuments.us/reader036/viewer/2022062305/56649dc85503460f94abe754/html5/thumbnails/1.jpg)
Copyright 2012 John Wiley & Sons, Inc.
Chapter 11
Project Control
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Focus of Control
Scope Cost Time
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Scope
Technical problemsTechnical difficultiesQuality problemsClient wants changes Interfunctional complicationsTechnological breakthroughs Intrateam conflictMarket changes
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Cost
Difficulties may need more resourcesScope may increase Initial bid was too lowReporting was poorBudget was inadequateCorrection not on time Input price changed
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Time
Difficulties took longer than planned to solve
Initial estimates were optimisticSequencing was incorrectUnavailable resourcesPreceding tasks were incompleteChange ordersGovernmental regulations were altered
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The Fundamental Purposes of Control
1. The regulation of results through the alteration of activities
2. The stewardship of organizational assets
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Physical Asset Control
Control over the use of physical assets Includes preventive and corrective
maintenanceMust also control inventory
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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
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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
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Three Types of Control Processes
Cybernetic control Go/no-go control Post control
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Cybernetic Control
A system that is constantly monitoredWhen a deviation is spotted, corrective
action is takenCybernetic controls are not common in
projectsNegative feedback loop
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A Cybernetic Control System
Figure 11-2
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Information Requirements for Cybernetic Controllers
Must have a counteraction for every action
Not possible for complex systems1. Must define what characteristics of an
output to control2. Standards must be set3. Sensors must be acquired4. Measurements must be compared to a
standard5. Difference sent to the decision maker
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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
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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
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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
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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”
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Postcontrol Report Sections
The project objectives Milestones, gates, and budgets The final report on project results Recommendations for performance and
process improvement
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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…
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Characteristics of a Good Control System
FlexibleCost effectiveUsefulEthicalTimely
AccurateSimpleEasy to maintainFully documented
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Critical Ratio Control Charts
Table 11-1
cost actual
cost budgeted
progress schedule
progress actualratio Critical
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Benchmarking
Promoting the benefits of project management
Personnel Methodology Results of project management On-course improvement in project
management practices
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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
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Purpose of Formal Change Control System
Review all changes Identify all task impactsTranslate impacts into scope, cost, and
scheduleEvaluate the benefits and costs
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Purpose of Formal Change Control System Continued
Identify alternative changesAccept or rejectCommunicateEnsure implementationReport
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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
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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
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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”
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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”
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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
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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
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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