Unit 07

Project Control

Srawan Kumar KC
Lecturer (IT), KUSOM
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Learning Objectives :

Identify the elements of a control system appropriate to

a particular project.

Determine the key performance measures that will be

controlled by the system.

Select appropriate tools and techniques to enable such

control.

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7.1 Control System :
Given that many projects do run late, over budget or
otherwise fail to deliver to customer/stakeholder
requirements.

It happened very gradually, with days being lost and

money spent.

The only way that we can deal with this is by having

systems that will detect such occurrences.

And allow the project manager the opportunity to initiate

correct actions to bring the project back on track.

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Control System :
The alternative is to provide control at different levels.

The basic requirements for a control system are:

a) What do you measure or intend to measure

b) When do you measure
c) Defining limit of variation
d) Feedback and make it acceptable
e) Take the corrective action
f) Document for future
g) Make the progress visible.
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Control System :
Measurement Characteristics :

The most important aspects that need controlling are

those that form part of our strategy typically time,
cost and quality.

A crucial part of control is when to measure.

Imagine that you are driving a car. This is a good example of a

control system. You are sensing characteristics of the
environment around you (e.g. seeing a corner ahead) and,
based on that sensing, making changes to speed and
direction to keep the car on the road and away from other
cars.
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Control System :
Measurement Characteristics :

Two issues are as important in project management

the timing of your observation and speed of
reaction to the situation.

Time delay in receiving information or implementing

action is a killer for any control system. .

The measurement of a key characteristic can take place

at the input, in-process, or output.

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Control System :
Measurement Characteristics :

In assessing the quality of a construction project, these

would include:

Inputs: designs, suitably qualied labour, defect-free

correctly ordered materials

In-process: use of appropriate work methods, checks

of work carried out

Output: number of defects in the nal result,

customer/user sign-off.
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Control System :
Defining Limit of Variations :

Dene limits to the variation of the performance.

For some organisations, a 1 per cent deviation from cost

targets would be tolerated, while a days delay would be
unacceptable.

Others would state their objectives differently.

In reality any negative deviation (activities running

over time/cost or failing to meet quality), should trigger
further monitoring.

To ensure that we can keep track of what is happening.

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Control System :
Feedback :

The output data are interpreted and then fed back.

On receipt of this information, adjustments are made to

the process.

By using this kind of feedback control system, the

performance of the process can be guided by the
application of corrective actions.

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Control System :
Corrective Action :

First part of the control system is finding the

deviation from what you expected to be happening.

Then the issue arises of what to do about it. In some

cases, it is clear what action needs to be taken.

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Instable System Stable System
Control System :
Corrective Action :

First part of the control system is finding the

deviation from what you expected to be happening.

Although there is a single event being carried out, it is

the product of many interlinked smaller events.

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Control System :
Corrective Action :

Like the moving of the ball on the tray, can have their
progress monitored and appropriate corrective actions
applied to keep them on track.

a) Gather and process those data

b) Work breakdown structure
c) Feedback and Feedforward
d) Gant Chart
e) Risk Management

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7.2 Control of Major Constraints :
Major constraints that needs to be controlled are :

a) Time and Cost

b) Quality

a) Time and Cost :

The attributes of cost and time are interlinked.

The need is for practical tools that will identify when

corrective actions are required and what they should be.

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Control of Major Constraints :
a) Time and Cost :

The role of the project manager in cost control may be

stated as :

Setting up the cost control system

Allocating responsibilities for analysis of nancial data
Ensuring costs are allocated properly
Ensuring costs are incurred in the genuine pursuit of
project activities
Checking other projects are not using your budget.
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Control of Major Constraints :
a) Time and Cost :

The earned value concept is one attempt to make the

measure more meaningful.

EV method is very popular method of monitoring and

control of time and cost.

EV is built on principle that every progress earns value to

the project.

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Control of Major Constraints :
Earned Value :

Passing of time and spending money does not earn the

value.

EV is used for complex projects where warning of problems

and an ability to predict nal costs and times at completion
is required.

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Control of Major Constraints :
Earned Value :

Three array of measurements :

Actual spend (Actual cost of work performed)
Planned spend (Budgeted cost of work scheduled)
Earned value (Budgeted cost of work performed)

Cost Performance Index (CPI) = Earned value / Actual spend

Schedule Performance Index (SPI) = Earned value / Planned spend

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Control of Major Constraints :
Earned Value :

The estimated cost and time is calculated from CPI & SPI
respectively.

Estimated cost at completion

= Original budget / Cost Performance Index (CPI)

Estimated time of completion

= Original time estimate / SPI

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Control of Major Constraints :
Earned Value Analysis :
Each of the activities will run sequentially, one after another.
Activity Time (in weeks) Budget (in thousands NRs)
A 2 6
B 1 9
C 3 16
D 2 19
E 1 14
F 2 16
Total 11 80

a) Suppose at the end of 9 weeks, it is observed that activities A, B, C and

D were complete and actual amount spent was Rs. 55,000. Calculate
estimated cost and time at completion using Earned Value (EV) method.
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Control of Major Constraints :
Earned Value Analysis :
So now we have,

Actual spend = 55,000 (Actual cost of work performed)

Target was to have completed five activities during this

time therefore the planned spend (Budgeted cost of work
scheduled) should be:

Planned spend = 6000 + 9000 + 16000 + 19000 + 14000

= 64,000

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Control of Major Constraints :
Earned Value Analysis :
So now we have,

Value is earned by the completion of the activities. In this

case it would be the sum of the budgets for the completed
activities A - D (Budgeted cost of work performed) should
be:

Earned value = 6000 + 9000 + 16000 + 19000

= 50,000

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Control of Major Constraints :
Earned Value :

Cost Performance Index (CPI) = Earned value / Actual spend

= 50,000 / 55,000
= 0.909
If CPI <1.0 : Over running by cost

Schedule Performance Index (CPI) = Earned value / Planned spend

= 50,000 / 64,000
= 0.781
If SPI <1.0 : Running Late
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Control of Major Constraints :
Earned Value :

The cost and time is calculated from CPI & SPI respectively.

Estimated cost at completion

= Original budget / Cost Performance Index (CPI)

= 80000/ 0.90 = 88008.88 (NRs)

Estimated time of completion

= Original time estimate / SPI

= 11 / 0.781 = 14.09 (weeks)
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Control of Major Constraints :
Earned Value :

The cost and time variance is calculated as below :

Cost variance : = Earned value Actual spent

= 50000 55000 = - 5000

Since the Cost variance is negative, this means the project is

over-budget.

Time variance : = Earned value Planned spent

= 50000 64000 = - 14000

Since Time variance is negative, this means the project is

behind schedule.
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Control of Major Constraints :
Earned Value :
Observation at the end of 4 weeks:

Cost variance - 5000

Time variance - 14000

Estimated cost at Exceed by Beyond the limit
88008.88
completion 8008.88 of 5%
Estimated time at Delayed by Beyond the limit
14.09
completion 3.09 weeks of 10%
Action Suggested :

Cost and time variances are unacceptable , requires immediate rectification

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Control of Major Constraints :
Strength of EV Analysis :

No complicated quantitative techniques are required

It has predictive ability

It focus on work achievement rather than simple time and

cost parameters

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Control of Major Constraints :
Weakness of EV Analysis :

It is difficult to use in very complex project

It does not take care of quality factor

The predictions cannot be accurate

The predictions are not based on probability

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7.2 Control of Major Constraints :
b) Quality:

Why quality in projects?

Because every project has customers.

In revenue project quality is a formal commitment

whereas in change projects quality is the expectation
of the stakeholders.

Quality build the image , image builds the market in

revenue project.

Quality becomes the core competency in change project.

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Control of Major Constraints :
b) Quality:

Quality control in conformance Vs performance approach:

In conformance quality control is more formalised and

frequent.

In performance quality control is formalised but with

incentives for improvement.

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Control of Major Constraints :
b) Quality:

The quality measurement can be quantitative and

qualitative :

The technical specification can be measured -

quantitative

The degree of satisfaction - qualitative

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Control of Major Constraints :
b) Quality:

How to monitor the quality in Revenue project

The quality standard is set as per agreement with

customer.

The process measurement of quality is set by

management.

The M & E schedule can be jointly set.

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Control of Major Constraints :
b) Quality:

How to monitor the quality in Change project

The quality standard is set by management.

The process control will be self control.

The flexibility in design and features is maintained till the

green signal is received for commercial launch.

The cost and time factors are kept flexible because the
project is for long term benefit.

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7.3 Resource Leveling :
Resource leveling defined as :

a "technique in which start and finish dates are

adjusted based on resource constraints with the goal of
balancing demand for resources with the available
supply".

Help balance project needs with resource supplies.

Often increase critical path length.

Provide some room for schedule compression.

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Resource Leveling :
a) Human Resource leveling :

Activity Duration Predecessors

A 2 -
B 2 -
C 1 A, B
D 1 -
E 3 C, D

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Resource Leveling :
a) Human Resource leveling :

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Resource Leveling :
a) Human Resource leveling :

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Resource Leveling :
b) Resource leveling :

Activity Duration Predecessors

A 2 -
B 3 A
C 4 B
D 4 B
E 2 B
F 2 C
G 3 F
H 3 E
I 1 D, G, H

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Resource Leveling :
b) Resource leveling :

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Resource Leveling :
b) Resource leveling :

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Resource Leveling :
c) Cost Resource leveling :

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Resource Leveling :
c) Cost Resource leveling :

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7.4 Visual Control :
Why make visible :

Visibility makes the people more conscious.

If you can see what is happening you can control it.

The construction project has one great advantage in

terms of control you can see what is happening.

Or at least a trained person could determine whether

progress was being made.

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Visual Control :
Visibility can be improved by many creative techniques :

a) The Gantt Chart - progress in the Gantt chart

b) Digital Dashboards - displaying information and

colours

c) Other tools

Beach ball techniques

Real time control techniques
Stage gate control
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Visual Control :
Beach ball techniques :

Make sure that the resources was best used.

Person was not kept waiting or disturbed during the work.

Critical resources or people performing critical tasks by

placing a bright orange beach ball on the desk of that
person.

This is to made the tasks highly visible, and indicated

that that person must not be interrupted until the task
was complete.
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Visual Control :
Real time techniques :

Control information can be reported as it happens.

This data is fed to a project office then processed, and

the results fed back to the users immediately.

This gives the opportunity for small corrective

measures to be applied, either where activities are
running ahead of time or where they are running late.

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Visual Control :
Stage gate control :

Use of gateways: Gate ways are vital check points

where some major M & E activities are taken.

Use of check-points or gates between the phases

provides the most basic opportunity to review
progress.

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Visual Control :
Stage gate control :

More importantly, you do not have to wait until the

project budget or time allowance expires to nd out that
there is a fundamental problem.

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7.5 Monitoring Technical Performance :

A process by which project management can measure

the risks in a given project.

Provide insight as to the parameters of the specific

design elements of the project.

Define the measures of performance and acceptable

variables during project implementation.

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Monitoring Technical Performance :

To ensure that projected performance values, within

tolerable variance ranges.

The actual performance is tracked and compared by

project management.

These constant comparisons mean that corrective or

preventative action can be taken early in the project,
preventing failure or delays later in the project
timeline.

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Monitoring Technical Performance :

Few steps for monitoring Technical Performance.

Prototyping - early sample or model

Modular production - subdivides into smaller parts

Process control - mechanisms and process for

maintaining the output

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Reading Assignments :

CASE : Southwestern University Stadium Construction

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END

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