Chapter 5

Project Management Planning,

implementation and Control
5.1. Project planning
5.2. Project organization
5.3. Project Implementation
5.4. Project Monitoring and Control
 5.1. Project Planning

Planning and Project Planning

Plan and Planning

An Old Adage:

Fail to Plan . . .
and You Plan to Fail!
 Plan and Planning

 A plan is a set of decisions made on actions to be

taken to reach a goal.
 Plan is coherent set of operations designed to meet a
given goal.
 It is determined with sufficient clarity that may be acted
upon.
 It is the product of the process of planning.
 A plan can be a very formal document, or it can
simply be the clear understanding of the actions
you are going to undertake.
 Planning is an active process and it is opposite of simply
allowing events to unfold.

 Both plan and planning is a never-ending activity.

 Your plan will be shaped and reshaped by new forces and new
information you discover as you proceed with your action.

 Planning involves vision, discovery, decision-making and

action.

 It is a purposeful way of looking at the future with the intent

to shape it.
 Project plan?

Meaning
The project plan is a consistent, coherent, formal and
approved document that guides both project
execution and project control.

 A project plan may be summary or detailed.

 "A statement of how and when a project's

objectives are to be achieved, by showing the
major products, milestones, activities and
resources required on the project”.
Project Plan. What it is and is not ?

Initiate Plan Execute Control Close

Project Plan means devising and

maintaining a workable scheme to
accomplish the business/ service/
development need that the project was
undertaken to address.
• Project Plan is the work plan, not the work.
• Project Plan is a definition of needed work and
resources
 The Project Plan

 PMBOK Definition: The project

management plan defines how the project
is executed, monitored and controlled,
and closed.

 PMBOK Glossary Definition: a project plan

is a “formal, approved document that
defines how the project is executed,
monitored and controlled.

 It may be summary or detailed and may be

composed of one or more subsidiary
management plans and other planning
documents.”
 The Project Plan

Planning processes performed to define and mature

the project scope, develop the project
management plan, and identify and schedule
the project activities within the project

• The plan addresses the following questions in the

following sections:
 What is to be done?Project Scope
 Who’s authority? Authorization/Chartering
 How it is to done? Integrated Management Plan
 What time and dollars are needed? Resource
Estimates (Baseline)
 The Project Plan’s Key Elements
What makes up a project plan?

Threaded within the document, major contents of

the plan, include:
1. Project Authorization or Charter
2. Scope Statement
3. Work Breakdown Structure, WBS
Project Schedule Network Diagram
4. Project Management Approach
5. Integrated Management Control Plan
Scope Management Plan
Schedule (Management Plan)
Cost (Budget) Management Plan
Quality Management Plan
Staffing (HR) Management Plan
Communication Management Plan
Risk Management Plan
Risk Register
6. Procurement (and Contract) Management Plan
7. Performance (Measures) Baseline
Schedule Estimates
Major Milestones
Cost Estimates
Cost Baseline
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 5.2. Project Structure

 Once management approves a project then the

question becomes, how will the project be
implemented?

 There are three different project management

structures used by firms to implement projects:
functional organization, dedicated project
teams, and matrix structure.
 1. Departmental Project Management

Division Manager

Department X Department Y Department Z

Project Leaders Project Leaders Project Leaders

Section Level Section Level Section Level

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 2. Pure Project Structure
General Manager

Project A Project B Project C

Manager Manager Manager

ENG. MFG. ENG. MFG. ENG. MFG.

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 3. The Matrix Management
Structure
General
Manager

Engineering Operations Finance Others

Functional Responsibility

Project Mgr. Project Responsibility

X

Project Mgr.
Y
Project Mgr.
Z

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Modification of the Matrix Structure (With a Director of Project
Management)

General Manager

Director: Director: Director: Director:

Project Mgmt. Engineering Manufacturing Finance/Admin.

Project Mgr. X

Project Mgr. Y

Project Mgr. Z

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 5.3. Project
Implementation
 Process whereby “project inputs are
converted to project outputs”.
 May be looked at as:
 Putting in action the activities of the project.
 Putting into practice what was proposed in the
project document (i.e. transforming the
project proposal into the actual project.)
 Management of the project or executing the
project intentions.

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 Project Implementation (cont.)

 Implementation usually done by implementing

agency (organization) that prepared the project
and received funding for it.

 Other organizations that participate in the

implementation of the project by way of
collaboration, say by according good working
relationship, extending technical advice or
seconding their staff to the project are referred to
as co-operating agencies.

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 5.4. Project Monitoring and Control

 Project Monitoring: Collecting,

recording, and reporting information
concerning any and all aspects of
project performance that the project
manager or others wish to know.

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 Monitoring Has Several Uses:

 The primary use is project control

 Ensuring that decision-makers have timely
information enabling effective control over the
project
 Project Monitoring has secondary uses
 Project auditing
 “Lessons learned”
 Reporting to client and senior management

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 The Planning-Monitoring-Controlling Cycle

 Effective monitoring and control begins with

good project planning
 What are the critical areas?
 How and when can progress be measured?
 Who gathers and reports information, to whom?
 The plan-monitor-control cycle continues
through the entire project.
1. Start with the key factors to be controlled
2. Develop measurement systems
3. Collecting Data:
4. Reporting on Data Collected

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 Designing the Monitoring System

1. Start with the key factors to be controlled

 Pareto analysis: a relatively few activities
determine most of the project’s success.
 Use the project plan to identify items to be
monitored
 Although other areas might be added also

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 Cont’d…

2. Develop measurement systems

 Measure results(0utputs) not activity
and inputs
 Extract performance, time and cost goals
from project plans
 Avoid tendency to focus on that which is
easily measurable.

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 Cont’d…

3. Collecting Data: Most data falls into one

of five categories, as follows (with
examples)
 Frequency counts: tally of occurrences . . .
 Raw numbers: dates, dollars, percents,
 Subjective ratings: numerical ranking, red-
yellow-green assessments . . .
 Indicators: surrogate measures of merit . . .
 Verbal measurement: oral or written
characterizations . . .

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 Cont’d…

4. Reporting on Data Collected: To turn data

into information, it must be contextualized:
 Reporting must be timely
 Data must be analyzed
 Trends: Getting better or worse?
 Comparables: Performance compared to specs,
past performance, standard hours, etc.
 Statistical analysis
 Causation and correction

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 Project Control

 Control is the last element in the

implementation cycle of planning-monitoring-
controlling
 Control is focused on three elements of a
project
 Performance
 Cost
 Time

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 The Project Control Process
 Control
 The process of comparing actual performance against plan to
identify deviations, evaluate courses of action, and take
appropriate corrective action.
 Project Control Steps
1. Setting a baseline plan.
2. Measuring progress and performance.
3. Comparing plan against actual.
4. Taking action.

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 Controlling Performance
 There are several things that can cause a
project’s performance to require control:
 Unexpected technical problems arise
 Insufficient resources are available when needed
 impossible technical difficulties are present
 Quality or reliability problems occur
 Client requires changes in specifications
 Inter-functional complications arise
 Technological breakthroughs affect the project

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 Controlling Cost
 There are several things that can cause a
project’s cost to require control:
 Technical difficulties require more resources
 The scope of the work increase
 Initial bids were too low
 Reporting was poor or untimely
 Budgeting was inadequate
 Corrective control was not exercised in time
 Input price changes occurred

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 Controlling Time
 There are several things that can cause a project’s
schedule to require control:
 Technical difficulties took longer than planned to
resolve
 Initial time estimates were optimistic
 Task sequencing was incorrect
 Required inputs of material, personnel, or equipment
were unavailable when needed
 Necessary preceding tasks were incomplete
 Customer generated change orders required rework
 Governmental regulations were altered

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 Purposes of Control
 There are two fundamental objectives of control:
1. The regulation of results through the alteration of
activities
2. The stewardship of organizational assets
 The project manager needs to be equally
attentive to both regulation and conservation
 The project manager must guard
 the physical assets of the organization,
 its human resources, and
 its financial resources

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 Physical Asset Control
 Requires control of the use of physical assets
 Concerned with asset maintenance, whether preventive
or corrective
 Also the timing of maintenance or replacement as well
as the quality of maintenance
 Setting up maintenance schedules in such a way as to
keep the equipment in operating condition while
minimizing interference to ongoing work
 Physical inventory whether equipment or material
must also be controlled

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 Human Resource Control

 Stewardship of human resources requires

controlling and maintaining the growth
and development of people
 Projects provide fertile ground for
cultivating people
 Because projects are unique, it is possible
for people working on projects to gain a
wide range of experience in a reasonably
short period of time

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 Financial Resource Control
 The techniques of financial control, both
conservation and regulation, are well known:
 Current asset controls
 Project budgets
 Capital investment controls
 These controls are exercised through a series
of analyses and audits conducted by the
accounting/controller function

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 Financial Resource Control

 Representation of the accounting/controlling

function on the project team is mandatory
 The parent organization is responsible for the
conservation and proper use of resources
owned by the client or charged to the client
 Due diligence requires that the organization
proposing a project conduct a reasonable
investigation, verification, and disclosure of all
material facts relevant to the firm’s ability to
conduct the project
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 In Sum, Control is directed to performance,
cost, and time
 The two fundamental purposes of control are to
regulate results through altering activity and to
conserve the organization’s physical, human,
and financial assets.

END
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