Project Monitoring and Control

5.

Project control, Project control cycle, project schedule control,

Project cost control, Project quality control

Er. Megh Bahadur KC

MSc CM
Project Control
 Project Control
Control – process and activities needed to correct if
any deviations from plan
Control the triple constraints with scope
❖ time (schedule)
❖ cost (budget, expenses etc.)
❖ performance (specifications, testing results, etc.) &
❖ Scope (quantity)
 Project Control Cycle

PLAN
Specifications
ACTION Project Schedule
Correct Project budget
deviations Resource plan
MONITOR
from plan Vendor contracts
Record status
RE-PLAN as Report progress
necessary Report cost
COMPARE
Actual status against
the
plan
-Schedule
-Cost
Project Control System
– Control system be such that effective and efficient feedback on
projects progress can be obtained

Well organized control system be designed, developed and

implemented for effective project management
Some Requirements of Good control System

❖ Thorough Planning
❖ Good Estimation of Time Cost Labour
❖ Clear Communication system
❖ Disciplined Budget & Authorization
❖ Periodic re-estimation of time and cost
❖ Timely accounting of physical progress & Expenditure
❖ Frequent comparison with planned performance
 Control Process
1. Setting Standards

2. Checking Performances

3. Correcting Errors

TYPES:
1. Pre-control 4. Revision the methods
2. Concurrent control
3. Post control
Control with Leadership Type

Top level Strategic Control

Manager CEO

Middle level Middle Management Control

Manager Leadership

Operational Control
Lowe level Operational Leadership
Managers
Sn. Item Project Planning Project Control

1 Action Anticipates(prepare, think it Initiates action

advance) for action

2 Goals Sets the goals & directions Guides the work towards the
goals

3 Resources Allocates the resources Ensures effective on-going

utilization of resources

4 Problems Anticipates the problems Corrects the problems

5 Motivation Motivates the participants to Rewards the achievements of

achieve the goals goals

6 Types of Process Proactive (intended to cause Reactive (to make work again)
change)
Five Stages of Project Control Process

1. Work Authorization

2. Monitoring and Reporting

3. Data Collection and Tally

4. Performance Analysis

5. Taking Corrective Actions

 1.Work Authorization

Upper Management Authorizes Project(Project

Release or Contract Release)

Project Manager Authorizes Developmental Work

(Work Order)

Functional Managers Authorize Work

(Work Order for Sections)

Work Sections Begins Work

2. Monitoring & Reporting
Collecting Data & Comparing

Balance required between too much data (costly and

may be ignored) and too little data(may not give accurate
project status)
Information Reporting

Reports in sufficient details and frequency

3. Data Collection and Tally
Data about actual costs and work progress
periodically collected and entered into project cost
and accounting system

Comparing and Generation of performance report on

period to period basis
4. Performance Analysis:
Cost and Schedule Analysis
Budgeted Cost of Work Scheduled(BCWS)
Budgeted Cost of Work Performed(BCWP)
Actual Cost of Work Performed(ACWP)

Technical Analysis(Specifications)
Performance Indices
Schedule Performance Index(SPI)
Cost Performance Index(CPI)
5. Taking Corrective Action
Given large Cost and Schedule Variance PM has two options
Either REVISE PROJECT PLAN & SCHEDULE
Or REDESIGN THE END ITEM(S)

TWO PRACTICAL CONSTRAINTS ALWAYS PRESENT:

Project must be finished by certain pre scheduled date
Resources for project execution strictly limited
Tips to control “CHANGES” during Project Control Process

❖ Continually Identify deviations as they occur;

❖ Reveal results of deviations in terms of their impact on costs
and duration and on other tasks;
❖ Permit managerial analysis, including investigations and
acceptance/rejection of alternative courses of action;
❖ Specify policy for minimizing conflicts;
❖ Communicate changes to all concerned with project;
❖ Insure that all changes are implemented; and
❖ Report periodically, a summary of all changes to date, and their
impact(s) on project.
Todays scenario of our Projects
Actual costs for executing a work
70% of projects are: package(Project) are compared with
•Over budget the corresponding budgeted costs to
•Behind schedule check whether the money spent in
executing the work Package(Project)
was more or less than planned.(Cost
52% of all projects finish at
189% of their initial budget Variance Analysis)
And some, after huge
investments of time and money,
are simply never complete
Does not indicate the amount of work performed
Does not tell what the future expenses are likely to be
 Project Control for Schedule & Budget
S – Curve
❖ Is one of the popular planning tools
❖ Graphically plots measure of cumulative progress on
vertical axis against time on horizontal axis
❖ Progressmade in terms of expenditure, quantity of works
or man-hour expended etc.
Project Control through TC
Project Control through TQC
Project Control through TQC
 Modern Techniques for Monitoring &
Controlling
Earned Value Analysis –
Enhancement over Traditional accounting measures(Planned
expenditure vs. actual costs)
EV goes one step further and examines actual accomplishment

A way of measuring overall performance (not individual task) is using an

aggregate performance measure - Earned Value

Earned value of work performed (value completed) for those tasks in

progress found by multiplying the estimated percent physical completion
of work for each task by the planned cost for those tasks. The result is
amount that should be spent on the task so far. This can be compared
with actual amount spent.

Performance Ratio(Indices)
Modern Techniques for Monitoring &
Controlling
Requirements of Good EVA
❖ Proper WBS Design
❖ Baseline Budget Control Accounts
❖ Baseline Schedule
❖ Work measurement by Control Account
work-hours, Rupees, units, etc.
❖ Good Project Management Practices

Importance of EVA
❖ Schedule Status Reporting
❖ Cost Status Reporting
❖ Forecasting
Estimated Cost at Completion
Possibilities on EVA
Critical Ratio

Sometimes, especially large projects, it may be

worthwhile calculating a set of critical ratios for all
project activities
The critical ratio is
actual progress x budgeted cost
scheduled progress actual cost
If ratio is 1 everything is probably on target
The further away form 1 the ratio is, the more we may need to
investigate
 Forecasting

Cost Trends/ Forecasts

Assumption 1: Remaining work shall progress at planned rate

Probable Completion value =(ACWP-BCWP)+ BAC(planned BCWS at completion)

Cost Trends/ Forecasts

Assumption 2: Remaining work shall progress at prevailing rate

Probable Completion value =Planned BCWS at Completion/Cost Performance Index

=BAC/CPI
Schedule Control: Updating Project Cycle
Some Problems of Project Control
1. Project cost is over emphasized as compared to delays and or
poor workmanship;
2. Control Procedures are resisted or not fully complied with;
3. Project progress inaccurately or partially reported;
4. Personal Bias or Self Appraisals for project control;
5. PM’s beliefs: “With time problems will get automatically
resolved.”
In organizations where one PM looks after several projects, there
may be tendency to offset poor performance of one project
against good performance of other projects

Information reporting and accounting mechanisms may be

misleading. Example: Evaluating EV(BCWP) of open work
package is subjective and can suggest more work than actually
suggested
Minimizing Control Problems
❖ Upper management, functional and Project Managers to
actively support control process;
❖ Project staff to be shown relevance of control process, benefits
to the project;
❖ Most important: System must be objective, impersonal, and
uniformly applied to all people, task and functional areas.