PROJECT CONTROLProject Control DefinedControl Can Be ComplicatedTwo Fundamental Purposes of Project ControlAsset Conservation Has Three AspectsPurpose of ControlThree Types of ControlsA Cybernetic Control System, Figure 11-1Typical Paths for Correction of Deviation, Figure 11-2A 2nd-Order Feedback System, Figure 11-3A 3rd-Order Feedback System, Figure 11-4More on Go-No Go ControlsSample Project Status Report, Figure 11-5Components of Post Control ProcessSome Desirable Control System FeaturesCritical RatioCritical Ratio Control Limits, Figure 11-8Cost Control Chart, Figure 11-9Effective Control Systems Must be BalancedA Question of BalanceControl of Creative ActivitiesControlling Changes and Scope CreepFive Principles of a Formal Change ProgramChanges and Change ControlBusiness ChangesTechnical Changes11-1PROJECT CONTROLProject Control DefinedTypes of Control SystemsNeed for Balance in Control SystemsControl of Creative EffortsChanges and Change Control11-2Project Control DefinedCONTROL: The act of reducing the difference between plan and realityThe last element in the plan-implement-monitor-control cycleUses the information from the monitoring process to get and keep a project on track11-3Control Can Be ComplicatedPerformance, cost, and schedule issues all have a human elementSymptoms are obvious, but root causes never are“Messes” vs. “problems”Hard to separate random events from systemic difficulties11-4Two Fundamental Purposes of Project ControlRegulate project results through alteration of activitiesEfficiently use and protect organizational assets11-5Asset Conservation Has Three AspectsPhysical AssetsMaintenance, inventories, security protectionHuman ResourcesManaging acquisition, development and performance of peopleFinancial ResourcesBudgets, audits, financial ratio analysesThe concept of “due diligence”11-6Purpose of ControlTo make the actual meet the planThe Process1. Identify key performance areas2. Set standards3. Measure performance4. Compare5. Take corrective action11-7Three Types of ControlsCybernetic controls“Steering”Key feature: automatic operationGo-no go controlsMost common project controlTest that predetermined specifications have been metPost controlsAfter the fact11-8A Cybernetic Control System, Figure 11-111-9Typical Paths for Correction of Deviation, Figure 11-211-10A 2nd-Order Feedback System, Figure 11-311-11A 3rd-Order Feedback System, Figure 11-411-12More on Go-No Go ControlsBased on project plans, budgets, schedulesCan be periodic or milestone-drivenBoth are essential“Phase-gated” criteria are hurdles that must be passed to go to next project stageCommon terms: “exit criteria,” “milestone decisions,” “system maturity models”11-13Sample Project Status Report, Figure 11-511-14Components of Post Control ProcessBenefits future projects more than the present oneSee Project Auditing in Chapter 12Four partsProject objectivesMilestones, checkpoints, budgetsFinal report on project resultsRecommendations11-15Some Desirable Control System FeaturesFlexible, able to adapt to unforeseen eventsCost effective (control value > control cost)Useful and ethicalAccurate, precise, timelySimple and maintainableFully documented11-16Critical RatioCritical ratio = actual progress X budgeted cost scheduled progress actual cost I.e., CSI = SPI X CPI, as in Chapter 10Indices and ratios greater than 1.0 are favorable11-17Critical Ratio Control Limits, Figure 11-811-18Cost Control Chart, Figure 11-911-19Effective Control Systems Must be BalancedBalance meansMeasuring both tangibles and intangiblesLooking at both long-term and shortKeeping flexibility in the systemAddressing human factorsFocusing on correction, not punishmentOptimizing control, not maximizing it11-20A Question of BalanceToo little control?Too much control?$Amount of ControlCControlCMistakes11-21Control of Creative ActivitiesControlling “knowledge work” is difficultThree toolsProgress reviewsReassigning peopleControl of resource inputs11-22Controlling Changes and Scope CreepChanges can drive higher costs and stretched out schedulesSo controlling them is an essential project management taskA formal change system is a must for project control11-23Five Principles of a Formal Change ProgramAll contracts specify formal change processAll changes require formal change orderAll change orders approved in writing by client and project organizationProject manager is always consultedThe approved change order becomes part of the master plan11-24Changes and Change ControlRemember the last step of the control process: Take corrective action, so that the actual matches the planTwo Types: Business and Technical Changes11-25Business Changes Business-relatedDriven by such things as:Spec reliefDeliverables changesFunding shiftsSchedule changesActs of GodSubcontractor changes11-26Technical Changes Technological issues, such as:New technologiesLaws of physicsCompetitor responseChanges in client requirements (real or