Project Management Unit 12

Unit 12 Project Execution and Control

Structure:
12.1 Introduction
Objectives
12.2 Project Execution
Project manager’s responsibilities
Project team responsibilities
Issue of network, work to list, and work order form
12.3 Project Control Process
Identify output and performance objective
Performance monitoring for schedule and cost
Cost and schedule performance measure – Earned Value
Method (EVM)
Choose/implement corrective measures
12.4 Purpose of Project Execution and Control
12.5 Summary
12.6 Glossary
12.7 Terminal Questions
12.8 Answers
12.9 Case Study

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.
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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

12.2 Project Execution

At the time a project moves into the execution phase, the project team and
the necessary resources to carry out the project should be in place and
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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.

Fig. 12.1: Project Management Execution Phase

Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

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12.2.1 Project manager’s responsibilities

A project manager’s responsibilities do not stop once the planning of the
project is done. Because a project manager is responsible to internal and
external stakeholders, the project team, vendors, executive management,
etc, the visibility of the position is intensified. Many of these people will now
expect to see and discuss the resulting deliverables that were so
meticulously detailed in the planning phase. As a project manager, keeping
oneself from getting “down in the weeds,” especially on large projects, will
be important during project execution. This will allow the project manager to
focus their attention on enabling the project plans, processes, and managing
the expectations of customers and stakeholders.
Particular attention during project execution will need to be paid to keeping
interested parties up to date with project status, dealing with procurement
and contract administration issues, helping manage quality control, and
monitoring project risk. While the processes to control many of these
elements are discussed within the project control phase, it is still important
that the project manager be cognisant of the issues as the project is being
performed. Daily interaction and feedback from team members will be vital
to project success.
12.2.2 Project team responsibilities
The project team members are expected to assist in the management of the
project as well; albeit, at a more functional level. The critical project
management elements for the project team to provide assistance with
include:
 Performance monitoring: Implement an execution plan to measure the
actual performance as compared to planned performance. For example,
the actual project schedules will need to be reviewed periodically and
compared to baseline schedules in order to discern if the project is
performing according to plan. If the project is not performing according
to baseline, steps will be taken to get the project back on track. The
same monitoring and analysing should take place on budgets, quality,
risks, scope, etc.
 Provide project status: While the project manager is responsible for
relaying project status to parties outside the project team, the project
team is expected to report the status to the project manager. This

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includes communicating information both on a formal and an informal

basis.
12.2.3 Issue of network, work to list, and work order form
For execution of a large project, many-a-times three types of network are
prepared. These include:
 Critical path network: Critical path networks highlight which tasks are
critical for a project to stay on schedule and which can slide without
affecting the completion date of the project. This allows tasks to be
prioritised. This shows only critical path activities. This may be used by
senior level executives.
 Detailed network: This is the final network which has been arrived at
after the resource rescheduling process, satisfying resource constraints
and shows all activities including activities of critical path.
 Agency wise network: This network only shows the activities to be
executed by a particular agency. This provides easy accounting for
executing agency.
 Work-to List: Work-to list is a list prepared separately for each agency,
after resource scheduling process. It is a recommendation to the
concerned managers of the sequence and timing of work to be done —
a list to be worked upon. A work-to list is usually prepared to cover only
a few weeks ahead. However, it may cover the details of longer periods
as per the need. Table 12.1 depicts an example of work-to list.
Table 12.1: Work-to List
ID Activity Duration Resource Scheduled Scheduled
description staff Completion
1. ABC 2 US-4 15-03-08 17-3-08
S-2
. . . . . .
. . . . . .
. . . . . .

Source: US – Unskilled labour, S – Skilled labour

In addition to agency-wise network and work-to list, some organisations also

release work order form for executing agency. Table 12.2 depicts a work
order form.

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Table 12.2: Work Order Form

Work Order No:
Activity Description:
Scheduled Start Date: Scheduled Completion Date:
Actual Start Date: Actual Completion Date:
Date No. of Men Progress on Problem/Hold Anticipated Sign
Deployed Date (Days Up Completion of I/C
Work or %) Date

Besides giving complete account of resource allocation on a day-to-day

basis, the progress made and holds, if any, need to be stated. Work order
form acts as a history sheet. It can help in managing the future network.

Self Assessment Questions

1. The _____________ is an integral part of project management and is a
necessary task of the project manager.
2. ________________ is a list prepared separately for each agency after
resource scheduling process.
3. Work-to list is usually prepared to cover only a few weeks ahead.
(True/False)
4. ___________ networks highlight which tasks are critical for a project to
stay on schedule and which can slide without affecting the completion
date of the project.
5. ________________ is the final network which has been arrived at after
resource rescheduling process, satisfying resource constraints and
shows all activities.

12.3 Project Control Process

Control of the project is exercised through formal and informal processes
exercised by the project manager, project team, and stakeholders. The
process of conducting reviews and monitoring reports exerts a degree of

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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

Fig. 12.2: System of Project Control

Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi
12.3.1 Identify output and performance objective
There are three basic performance objectives/standards for a project which
a manager is expected to control. These include time schedule (project
duration), project cost, and conformance to design specifications which
ensure quality.
Two common methods to evaluate these objectives are variance analysis
and earned value method. However, variance and earned value analysis are
not applied to the objective, quality, as there is difficulty in quantifying it. In
this case, the project manager may develop his or her own standards or
adopt available ones and tries to ensure that they are met.
12.3.2 Performance monitoring for schedule and cost
This tells who is to monitor the information and at what frequency. Normally,
for a moderate size project, a separate project monitoring cell is created for
collecting, analysing, and reporting information to all concerned for the
purpose of information and controlling the project. The task of the group
may include:
1. Monitor progress
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2. Calculate variance/earned value

3. Prepare variance/earned value report and other reports and send them
to all concerned
4. Present the report in review meeting
5. Compile the measures arrived at in the meeting to deal with variances
6. Follow up the implementation of suggested measures
Frequency of monitoring depends on nature, duration, and importance of
projects and the stakeholder’s need. Time between monitoring may vary
from continuous to several days. Table 12.3 depicts some typical examples.
Table 12.3: Some Examples of Time between Monitoring
Project Duration Between Monitoring
Combating fire Continuous
Flood rescue operation Hourly
Overhauling of plant and machinery Daily
Setting up an integrated steel plant Weekly/Fortnightly

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

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12.3.3 Cost and schedule performance measure – Earned Value

Method (EVM)
The Earned Value Method (EVM) 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. EVM uses the
following parameters to calculate these measures:
 Budgeted Cost of Work Schedule (BCWS): This is the budgeted cost
of work scheduled up to status date and calculated as:
BCWS =  (Budgeted cost of work/day × Scheduled days of work up to
status date for each activity)
 Budgeted Cost of Work Actually Performed (BCWP) or Earned
Value (EV): This is budgeted cost of work actually accomplished up to
the status date and calculated as:
BCWP =  (Budgeted cost of an activity x proportion of it actually
accomplished up to status date).
Where,
Proportion of an activity = (work completed in physical units)/(Total work
planned in physical units)
 Actual Cost of Work Performed (ACWP): This is the cumulative actual
cost of work performed up to the status date and calculated as:

ACWP =  (Actual cost of work performed for each activity up to status

date)
Using above parameters, performance measures can be calculated as:
Cost Variance = BCWP – ACWP …(1)
A negative cost variance means that the project is spending more than it
should.
Schedule variance (cost) = BCWP – BCWS …(2)
Negative schedule variance indicates that project is behind the
schedule.
Cost performance index (CPI) = BCWP/ACWP …(3)

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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

Fig. 12.3: Budgeted Cost of Work Scheduled

Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

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

Fig. 12.4: Spending Curves for BCWP, BCWS, and ACWP

Source: Mishra Rajendra (2012), Project Management: Excel Books, New Delhi

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Variances and cost of overrun

Vertical distance between point R2 and R3 (i.e. ACWP – BCWP) give the
cost variance (in this case overrun).

Cost of over-run (%) = ACWP – BCWP =×100

BCWP

Schedule variance and months behind schedule

Point R3 falls below point R1, indicating that the project is behind schedule.
Schedule variance in monetary unit is given by vertical distance R1R3 (i.e.
BCWS – BCWP) and months behind sis given by horizontal distance from
point R3 on BCWP curve to R4 on BCWS curve which is equal to (t2 – t1).
Above analysis of various spending (BCWS, BCWP, and ACWP), variances
and their plots is carried out on aggregate basis. Aggregate analysis simply
shows whether a project is under control or not with respect to cost and time
objective. However, it does not pinpoint the specific actionable areas for
bringing the project on track. For this reason, variance analysis needs to be
conducted on activity to activity basis, besides aggregate analysis.
Table 12.5 depicts a format for summarising the variance analysis for
activities.
Schedule performance measure using variance analysis
Variance is the deviation of actual value from the planned value of a
parameter. Variance analysis is used to calculate the variances of
parameters.
Table 12.5 Scheduled Times and Cost Variance for Activities
Project Description:
Activity Cumulative to Date Variances Remarks
BCWS BCWP ACWP Schedule Cost
A
B
C

Schedule Variance (time) is used to measure schedule performance of an

activity in terms of time and calculated as:
Schedule Variance = Plan time – actual time
Where, time can be measured in physical unit (days/months) or % complete.

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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

Forecast: Once the current status of the project in terms of variances is

known, the next task is to make forecast about the project at completion.
The forecast is an estimate of the future based on current progress and
other factors (risks, resource availability, etc)

Activity
How can a project manager manage the Project Schedule if team
members don’t accurately report when they are behind?

12.3.4 Choose/implement corrective measures

The findings about variance and forecast are compiled in the form of report.
The report is circulated to all concerned and discussed in a review meeting.
Various options including re-planning, reallocating resources or changing
the way the project is managed, etc are discussed to resolve the variances.
Of these, a set of options are chosen. Plan to implement these options are
drawn and executing agencies are identified. The progresses of such plans
are monitored in the review meeting.

Self Assessment Questions

6. Two common methods to evaluate the performance objectives are
variance analysis and _______________ method.

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7. The _____________ 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.
8. Frequency of monitoring depends on nature, duration, and importance
of projects and stakeholders need. (True/False)
9. Schedule Variance =Plan time – actual time. (True/False)
10. The variance report may be presented in tabular form or _______ form.
11. The ___________ is an estimate of the future based on current
progress and other factors.
12. The report is circulated to all concerned and discussed in a _________

12.4 Purpose of Project Execution and Control

The purpose of project execution and control is to develop the product or
service that the project was commissioned to deliver. Typically, this is the
longest phase of the project management lifecycle, where most resources
are applied.
Project execution and control utilises all the plans, schedules, procedures,
and templates that were prepared and anticipated during prior phases.
Unanticipated events and situations will inevitably be encountered, and the
project manager and project team will be taxed to capacity to deal with them
while minimising the impact on the project’s CSSQ (Cost, Scope, Schedule,
and Quality).
The conclusion of the phase arrives when the product of the project is fully
developed, tested, accepted, implemented, and transitioned to the
performing organisation. Accurate records need to be kept throughout this
phase. They serve as input to the final phase, project closeout.

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.

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 Project control may be defined as “taking corrective measures to resolve

deviation between plan and actual”. Activities associated with project
control include monitoring the performance, calculating variances,
forecasting future state, and making adjustment into input, processor
plan so as to bring the project to a desired state.
 Two methods, i.e., variance analysis and earned value method are used
to calculate variances of cost and schedule.

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.

12.7 Terminal Questions

1. Discuss kick-off meeting.
2. What is project control?
3. Discuss the various elements of project control.
4. Discuss the earned value method to calculate cost and schedule
performance measures.

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12.8 Answers

Self Assessment Questions

1. Control
2. Work-to list
3. True
4. Critical path
5. Detailed network
6. Earned value
7. Earned Value Method (EVM)
8. True
9. True
10. Graphical
11. Forecast
12. Review meeting

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.

12.9 Case Study

Building a Project Team

DuPont and Environmental Defense Fund
Framework for Responsible Nanotechnology
Nanotechnology holds great promise for new applications in materials,
energy, medicine, and other fields, but more needs to be known about the
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potential risks. In 2005, DuPont and Environmental Defense Fund partnered

to ensure the responsible development of nanoscale materials and develop
a tool to share information with stakeholders. The project also aimed at
facilitating public understanding of the new technology and providing an
input for future government policy.

Tackling a project of such scope and complexity required a wide range of

expertise. The partnership brought together a multidisciplinary team from
both organisations, with experience in relevant branches of science, law,
and business. The team solicited input from stakeholders including large
and small companies, government agencies, universities, and public interest
groups. Based on discussion, analysis, interviews, and research, a Nano
Risk Framework was released by DuPont and Environmental Defense Fund
in 2007. DuPont pilot tested the framework on several materials and
applications to ensure that the approach is flexible, practical, affordable, and
effective. Since launching the Framework, the partnership has presented to
government and industry audiences and worked with other companies to
implement the Framework in their own operations.
Environmental Defense Fund considered DuPont to be an optimal partner
for the project considering the company’s research and technology
capabilities, commitment to product stewardship, powerful marketplace
position, role in the value chain as a potential purchaser and seller of
nanoscale materials, global reach, reputation, and outlook toward
nanotechnology policy. DuPont and Environmental Defense Fund have
collaborated on several other projects for over 20 years.
The partnership was extremely effective – the project goals were achieved
in less time than originally planned, and the feedback has been
overwhelmingly positive. Using the Framework has greatly enhanced
DuPont’s interactions with regulatory agencies over the nanoscale materials

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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

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