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Mb0049 Unit 12-Slm
Mb0049 Unit 12-Slm
12.1 Introduction
In the previous unit, we dealt with the concepts of performance
measurement, productivity, project performance evaluation, benefits and
challenges of performance measurement and evaluation, and controlling the
projects. In this unit, we will deal with project execution, project control
process, and purpose of project execution and control.
Performance measurement and evaluation are important aspects in any
project management process. Performance measurement is the ongoing,
regular collection of information for monitoring how a project, policy, or
strategy is doing.
On the other hand, evaluation involves comparisons of performance with the
objectives of the information organisation in order to determine the change
in performance over a given period or to see whether the change is in the
right direction or not and if so then to what extent.
Sikkim Manipal University Page No. 277
Project Management Unit 12
In this unit, you will study about the project execution and control phase of a
project life cycle. Project execution (or implementation) is the phase in which
the plan designed in the prior phases is put into action. The purpose of
project execution is to deliver the project expected results (deliverable and
other direct outputs). Typically, this is the longest phase of the project
management lifecycle, where most resources are applied. During the project
execution, the execution team utilises all the schedules, procedures, and
templates that were prepared and anticipated during prior phases. The
completion of start-up activities ensures that all elements are in place and
project is ready to take-off. Project execution converts the plan into tangible
asset, fulfilling a set of objectives. However, in real life, this transition from
plan to tangible asset is not smooth.
In the standard division of project management discipline, this phase is
called "project execution and control"; the term "control" is included here
because execution is not a blind implementation of what was written in
advance but a watchful process where doing things goes along with
understanding what is being done, and re-do it or do it differently when the
action does not fully respond to what was meant for. This "control" is an
integral part of project management and is a necessary task of the project
manager.
As per Fayol, to control means “seeing that everything occurs in conformity
with established rules and expressed command”. In the context of project
management, the project control may be defined as “taking corrective
measures to resolve deviation or discrepancies between plan (where one
should be) and performance (where one is)”. The task of a project manager
is to periodically monitor the performance, calculate the deviations, and
make adjustment in input, process, or plan so as to resolve the deviation
and bring back the project to the desired state.
Objectives:
After studying this unit, you should be able to:
describe the introduction of project execution phase
identify the key elements of a project control system
understand the roles of a project manager
outline the responsibilities of project teams
ready to perform project activities. The project plan should have been
completed and base-lined by this time as well. The project team and
specifically the project manager’s focus now shifts from planning the project
efforts to participating, observing, and analysing the work being done. Once
all essentials are in place, the project manager plans to commence the
project. He or she organises a meeting called 'kick-off meeting or event' of
all concerned to mainly announce the start of the project. He or she takes
the opportunity to present the main features of the project, project
objectives, organisation, etc. Purpose of the meeting is to ensure that:
Team members understand the features of the project
Team members understand the project objectives
All issues and apprehensions are clarified, so that each starts the project
with a clear mind
Each member understands his/her role, authority, and responsibility
Figure 12.1 depicts where in the project management the execution phase
occurs.
control over the project. This discussion will, however, focus on the formal
processes of control established by the project plan. As a project has a lot of
associated uncertainties, project control is essential. Figure 12.2 depicts the
system of project control.
INPUT
RESOURCE:
Man
M/c
Material
Equipment
PLAN
Scope of Work
Schedule
Cost budget
Quality Specs Obtain:
Variance = Plan – Performance
Forecast
Table 12.4 depicts the format to record the performance data regarding
schedule and cost.
Table 12.4: Performance Monitoring Form
Performance Monitoring Form
Activity Description:
Scheduled Start Date: Scheduled Completion Date:
Budgeted Cost: Actual cost:
Status Men Actual cost Activity Fulfillment Problem/Hold-
date deployed (`) (Days of Work or up
(man-days) %)
Plan Actual Plan Actual Plan Actual
CPI less than one, indicates that the project is spending more than the
schedule and is unfavourable.
Schedule performance index (SPI) = BCWP/BCWS …(4)
SPI less than one suggests that the work performed is less than the
schedule and is naturally unfavourable.
Figure 12.3 depicts the plot of BCWS versus time. This curve shows the
cumulative spending planned for a project and referred to as baseline plan
and also referred to as the S-curve.
Cumulative BCWS
Time
Figure 12.4 depicts the plots of three spending BCWS, ACWP, and BCWP
for a typical project. It helps to calculate the cost as well as schedule
variances, and hence, is quite useful in controlling the project.
A C WP
B C WS
Cumulative spending
CV
SV
B C WP Legend:
C V - Cost varience
S V - Schedule varience
Monitoring date
t1 t2
Time
The variance report may be presented in tabular form or graphical form. The
data can be provided for the current period as well as on cumulative basis
for an activity. Table 12.6 depicts the format of tabular form.
Graphical report may include Gantt chart, milestone chart, and network
diagram. Here, the progress of any activity may be depicted by drawing
another line or bar (usually in different colour) over the line or bar indicating
the activity in plan. Difference in the length of these two lines shows whether
the activity is lagging, leading, or on schedule.
Table 12.6: Tabular Form to Show Schedule Variance (Time)
Activity Unit of measure (physical unit or percent) Schedule Duration Variance
Plan Actual
Activity
How can a project manager manage the Project Schedule if team
members don’t accurately report when they are behind?
12.5 Summary
Let us recapitulate the important concepts discussed in this unit:
Project execution converts the plan into tangible asset, fulfilling a set of
objectives. This conversion is seldom smooth and needs mid course
correction, provided by project control.
12.6 Glossary
Cost variance: It is defined as the difference of budgeted cost and actual
cost of work performed.
Earned value: This is budgeted cost of work actually accomplished up to
the status date.
Earned value method: The Earned Value Method (EVM) allows the
calculations of cost and schedule performance measures including cost
variance, schedule variance, cost, and time over-runs for a project.
Project control: Project control may be defined as “taking corrective
measures to resolve deviation between planned (where one should be?)
and actual (where one is?)”.
Schedule variance (cost): It is the difference of budgeted cost of work
performed and budgeted cost of work scheduled.
Schedule variance (time): It is the difference between the schedule time
and the actual time.
Variance: It is the deviation of actual value from the planned value of any
parameter.
12.8 Answers
Terminal Questions
1. A Kick-off meeting is organised to announce the commencement of the
project. For more details, refer to section 12.2.
2. In order to achieve the project objectives, it is necessary to control the
project activities by establishing certain performance standards and
project monitoring. For more details, refer to section 12.3.
3. The key elements of project control are identification of objectives,
project monitoring, etc. For more details, refer to section 12.3.
4. It is a useful tool that allows the calculations of cost and schedule
performance measures including cost variance, schedule variance, cost,
and time over-runs for a project. For more details, refer to section 12.3.3.
that they are developing. Other companies have also reported the
effectiveness of the framework in simplifying decision making regarding
environmental, health, and safety issues around nanomaterials.
1. What are the key goals of implementing nanotechnology by EDF. What
factors lead to development of Nano Risk Framework released by
DuPont and Environmental Defense Fund?
Hint: Development of nanoscale materials and develop a tool to share
information with stakeholders.
2. Give proponents in favour of the EDF and DuPont partnership?
Hint: Goals achieved in less time, positive feedback.
Source: http://www.gemi.org/resources/GEMI-EDF%20Guide.pdf
References:
Clements/Gido, Effective Project Management, Publication: Thomson.
Gray, C. F. and Larson, E. W. Project Management, Publication: Tata
McGraw Hill.
Lock, D. Project Management, Ninth Edition, Publication: Gower.
Nagarajan, K. Project Management, Third Edition, Publication: New Age
International.
Chandra, P Projects-Planning, Selection, Financing, Implementation,
and Review, Sixth Edition, Publication: Tata McGraw Hill.
Rao, P.C.K. Project Management and Control, Publication: Sultan
Chand & Sons.
Desai, V. Project Management, Second Revised Edition, Publication:
Himalaya Publishing House.
E-References:
www.projectsmart.co.uk. retrieved on 13/02/2010
www.projectmanagement.com. retrieved on 14/02/2010
www.pmearth.com. retrieved on 15/02/2010