Project Execution and Control

Topics to study
Project Execution

- Project managers responsibilities - Project team responsibilities - Issue of network, work to list, and work order form 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 Purpose of Project Execution and Control

Project Execution
In project execution, the project manager plans to commence the

project. He organises a meeting 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

Project managers responsibilities Project manager is responsible to internal and external stakeholders, the project team, vendors, executive management Particular attention will need to be paid to keeping interested parties up to date with project status, dealing with procurement & contract administration issues, managing quality control, & monitoring project risk. Project team responsibilities Performance monitoring Provide project status

Issue of network, work to list, and work order form

Critical path network: It highlights which tasks are critical for a project to stay on schedule and which can slide without affecting the completion date of the project. It allows tasks to be prioritised & shows only critical path activities. This may be used by senior level executives. Detailed network: It is the final network which has been arrived 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. 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 work-to list is usually prepared to cover only a few weeks ahead.

Project Control Process

Identify output and performance objective Three basic performance objectives 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. Performance monitoring for schedule and cost 1. Monitor progress 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

Cost and schedule performance measure Earned Value Method

Budgeted Cost of Work Schedule (BCWS): It is the budgeted cost of work scheduled up to status date and calculated as: BCWS = S (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): It is budgeted cost of work actually accomplished up to the status date and calculated as: BCWP = S (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): It is the cumulative actual cost of work performed up to the status date and calculated as: ACWP = S (Actual cost of work performed for each activity up to status date)

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) 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