PROJECT

REVIEW AND
CONTROL
BY: MONIKA DOBRIYAL
PROJECT CONTROL : INTRODUCTION

Project controls are processes for gathering and analyzing project data
to keep costs and schedules on track. The functions of project controls
include initiating, planning, monitoring and controlling, communicating,
and closing out project costs and schedule. Ultimately, project controls
are iterative processes for measuring project status, forecasting likely
outcomes based on those measurements and then improving project
performance if those projected outcomes are unacceptable.
FUNCTIONS OF PROJECT CONTROL

The two main It ensures regular monitoring of performance.

functions of
project control
are: It motivates the project personnel to strive for achieving project objectives.

Apart from above Providing the information about the various activities of the project to the team members.
mentioned Assisting in the process of Project planning/ Control sessions.
primary functions, Formulating the project Schedule and work breakdown structure.
it also includes
some functions of Tracking and analysing project costs.
secondary nature: Documenting and Delivering Project status Information.
 The project control process involves five phases:
1. Initiating a project

2. Controlling a stage

3. Managing Stage boundaries

4. Managing change
PROJECT 5. Closing a project
CONTROL
PROCESS
1.Initiating a project: The primary task of project manager is to ensure that the scope of the project should
be decided before starting the initial stage. It is a critical stage and basically comprises of three main
activities:
a) Accepting the project
b) Preparation for the first stage
c) Seeking authority to proceed

2.Controlling a stage: In this step it is ensured that the project should be planned on day to day basis which
includes delivering the products, monitoring the progress, managing all the risk and risky tasks etc.

3.Managing stage boundaries: It is a mid way approach which not only reviews the current stage but also
confirms that it is completed as per specifications and proper planning has been done for the next stage.

4.Managing change: In this phase, the ongoing changes of the project are properly managed and
controlled in a systematic manner.
Change can take place at any moment of time and from any side but the things to be kept in mind are;
(a) Change should be captured at early stages and must be assessed properly.
(b) Changes should be accepted or not should always depend upon the time and circumstances.
PROJECT REVIEW : INTRODUCTION

Project Review is a process of examining and auditing

planned tasks, activities, procedures, events and other work
components of a project to identify whether the project’s
requirements can be fully addressed by the planned amount
of work and to determine what additional resources are
necessary to match the work with the requirements. It is an
attempt to align current working environment with the
requirements prior to the project implementation process
gets.
The purpose of the project review process is to provide a
team with a clear and unambiguous understanding of the
steps required to complete the project as per requirements.
 The elements of project evaluation are given below:
1. Economic Analysis: This is the major element of project evaluation
which assesses the net worth of a project. It also provides a means
to grade projects on the basis of well-organized distribution of
resources.
2. Social and Environmental Analysis: This element evaluates the
ELEMENTS OF result of the project on social environment which includes regional
PROJECT REVIEW growth, employment opportunities, natural ecosystems, pollution
etc.
3. Budget Analysis: The last element of this methodology is budget
analyses which provide decision makers with the relevant
information on various matters like sources of funds, cash flows
structure of capital, borrowings etc. so that the budgetary
implications can be assessed.
PROJECT REVIEW PROCESS
The project evaluation process includes the detection of service
delivery needs, pen down of options ,the gathering of appropriate data
on these options, detailed scrutiny of the options, and the selection of a
preferred alternative. This evaluation process will help in thinking in
thorough manner before implementing the project.
There are five steps involved in project evaluation process. These are:
1.Define the objectives and scope of projects.
2. Identity and select suitable alternatives.
3.Carry out various analyses.
4.Select the most preferred alternative.
5. Preparing project evaluation report.
 As discussed, project evaluation is an important task for completing the
project. Few methods, which are more frequently used, are there to
evaluate the project. These are:

METHODS OF 1.Simple rate of return (SRR)

2. Payback Period (PBP)
PROJECT REVIEW
3. Benefit Cost Ratio (BCR)
4. Net present Value (NPV) or Net Present Worth (NPW) and
5. Internal Rate of Return (IRR).
1. Simple Rate of Return: It is the most commonly used method in project evaluation and is also known as
accounting rate of return. SRR is the ratio of estimated accounting profit of a project to the average
investment made in the project. its formula is :

SR = Average Accounting Profit (from investment) after depreciation

2. Payback Period: It is an important method to determine whether the project should be undertaken or not. It
is the length of time required to pay for the project.
Payback period = Cost of Project
Annual cash Inflows
In this, the individual investments are ranked according to their relative payback period.

3. Benefit Cost Ratio: Benefit cost ratio (BCR) is the ratio of present worth of benefits to present worth of cost. It
takes into account the proportion of monetary gain which is realized by performing a project versus the
amount spent on the project to execute the same.
Benefit Cost Ratio = Sum of present worth of benefits
Sum of present worth of cost
4. Net Present Value: NPV of a project includes comparing the present amount invested with that of present
value of future cash receipts from the investment. It is the present value of net cash including salvage value
and excluding the amount of initial investment of the project.
NPV = Present value of benefits - Present value of cost

5. Internal Rate of Return: It is the discount rate used for project evaluation in capital budgeting that makes the
net present value of all cash flows from a particular project equal to zero. Higher the IRR of project the more
desirable it is to undertake the same. In case more than one project is there then the project with the highest
IRR would probably be considered the best and undertaken first.
IRR = ∑$!"# (Bn-Cn) / (1 + i)" = i.e. NVP = 0

Where, Bn = benefits derived from project annual

Cn = cost of project annually
n= number of years in project
i= interest rate.
THANK YOU