MULTIPROJECT CONTROL

- Robert A. Howell

Presented By:Anubhav VanmaliSharadkumar R BhattSiddharth Anand

Symbiosis Institute of Business Management, Bangalore

What’s in store? Introduction to a system which has been in the

process of development and refinement for six years at a large electronics corporation, and which has been implemented in two of the company’s divisions

On implementation, no. of projects in serious trouble dropped from 1 in 3 to ZERO in a little over two years in

Div.I from 1 in 3 to 1 in 20 in a two year period in Div.II

Introduction The integration of cost, schedule, and

performance control for a project is still in a state of development

Increasingly important because of:Explosion of contract-oriented businessesProliferation of company-sponsored R & DDemand for wider range of productsTechnological growth

Considerations by Executives1. Necessity of managing a large no. of

unique projects2. Need to deal with projects of varied

sizes, complexities and costs3. Lack of a formal requirement that the

cost, schedule, and technical performance status for a given program be presented to top management simultaneously

4. Existence of an undesirable number of programs which were in serious difficulty

Management’s Requirements

A Multiproject control system to:Encourage managers take more

responsibilitySet higher but realistic goalsMake better use of periodic formal reviewsPermit top executives to substitute for each

other in reviewsHelp the managers, at both the project and

top executive levels, to run the business instead of being run by it.

Individual Project Control Management requires that every project

have a written program plan This plan should explicitly define:

The objectivesThe approachThe commitments

The Program PlanMust be complete, but not elaboratePrecise, but not nit-pickingThorough, but not constrained by a rigorous

format

Unique Reporting System The “heart” of the multiproject control system

is the Program Status Report Designed to:

Present data on cost, schedule, and technical status for a project

Provides: Summary description of the project Summary schedule Key project dates Cumulative cost curve Data on lead personnel assigned

The section titled “Essential Element of Information”

Example Of A Program Status Report

Image to be added

Essential Element Of Information Triangles denoting scheduled beginning and

completion dates are left hollow until the event is completed

A circle surrounding a triangle indicates that customer delivery is required

Project Manager’s Yes/No responses Colour Codes:

Green : Performance in accordance with objectives Yellow: A qualified answer, warns of serious trouble Red :“Out-of-control” situations (cost overruns/

schedule delinquency/ technical problems) Yellow & Red require an explanation under “Program

Highlights”

Overseeing Many Projects Every project is reported each month A new project when first reported is first

added to an active file and to summary project status board.

Project Status Board Each project is identified by name,

value, customer, starting date and scheduled completion date.

Black triangle denotes date of formal approval of project plan.

Black Vertical lines denote the beginning and end of the projects

Colour codes indicators are used for technical, schedule, cost and funding status.

Black bullet indicates the review meeting.

Image required Exhibit 2

Summary of Status Boards Identify all active projects Show when a project has started and

scheduled to be completed. Indicates whether a program plan has

been approved. Tells whether project reviews are taking

place. Presents chronological evaluation of the

monthly technical, schedule, cost and fundamental status of each project.

Method of Implementation First, management put the emphasis on

ensuring that a monthly program status report had been submitted for every ongoing project.

Initially several project managers expressed hostility towards the approach.

Gradually all the project managements were telling the top management where they thought they stood in terms of essential elements

Management recognize the need for long term planning

Success in Practice In 1962 the system was introduced. In initial 8 months

All projects in Red reduced from 33% to 11%

Increase in the number of yellow projects indicating that criticalness of the project has been reduced.

In September 1964, 77% of the project were in green and 23% in yellow and there were no Red.

Increased Understanding Managers will accept responsibility for

their projects when the authority to manage them is clearly delegated

All projects in green would indicate that the standards are not stringent.

Project heads who are bullish and who is bearish are recognized and overoptimism and pessimism is eliminated.

Management control process formal planning does not have to come before the reporting and control aspects of the system.

Conclusion The system is not complicated nor

computerized and it does not cost large amount of money to operate.

The system encourages managers to accept full responsibility for the outcome of the respective projects

Top management is now able to review quickly a large number of projects and apply its energy to one those need most attention

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