Management Control of Projects

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Management Control of Projects

  1. 1. MANAGEMENT CONTROL OF EP JOHN PROJECTS 11397044
  2. 2. A PROJECT IS A•COMPLEX•NON-ROUTINE•ONE-TIME EFFORTIT IS LIMITED BY•TIME•BUDGET•RESOURCES•PERFORMANCE SPECIFICATIONS
  3. 3. MAJOR CHARACTERISTICSOF PROJECTS ARE•DEFINED OBJECTIVES•LIFE SPAN WITH BEGINNING AND END•INVOLVES SEVERAL DEPARTMENTS ANDPROFESSIONALS•IT HAVEN’T BEEN DONE BEFORE•HAS SPECIFIC TIME, COST ANDPERFORMANCE REQUIREMENTS
  4. 4. MANAGEMENT CONTROL OF PROJECTS • PROJECTS – A SET OF ACTIVITIES, WHICH ARE CARRIED OUT WITH A DESIRED END RESULT. • PROJECT GOES THROUGH PHASES OF – PLANNING – IMPLEMENTING – EVALUATION • IT FOLLOWS A SET OF BUDGETED ACTIVITIES WHICH ARE SCHEMATICALLY SCHEDULED.
  5. 5. MANAGEMENT CONTROL OF PROJECTS • AN UNCONTROLLED PROJECT WOULD RESULT IN LOSS OF RESOURCES BOTH IN TERMS OF TIME AND MONEY • COSTS INCREASE EXPONENTIALLY WITH A LINEAR INCREASE IN THE DEGREE OF CONTROL. • KEY ISSUES IN CONTROL OF A PROJECT ARE – TIME, COST AND QUALITY OF WORK
  6. 6. MANAGEMENT CONTROL OF PROJECTS • OPTIMIUM TIME OF A PROJECT – IT SHOULD ENSURE THAT THE BEST POSSIBLE WORK IS CARRIED OUT IN THE SPECIFIED TIME. • THE WAY CONTROL IS EXERCISED SHOULD GENERATE, – POSITIVE PARTICIPATION – GOAL SEEKING
  7. 7. TYPES OF CONTROL OF PROJECTS• CYBERNETIC CONTROL – IS A CLOSE LOOP CONTROL WHERE THE PERFORMANCE IS MEASURED AGAINST A SET STANDARD THROUGH AN ASSESSOR AND DETECTOR TOOL• FIRST ORDER – SETS HIGHLY RIGID SYSTEM• SECOND ORDER – ALLOW FEW CHANGES• THIRD ORDER – CHANGE TIME TO TIME
  8. 8. TYPES OF CONTROL OF PROJECTS • GO/NO-GO CONTROL – COST AND TIME OVERRUNS ARE PERIODICALLY DETERMINED AND PROJECT COMPLETED IN SPECIFIC TIME. • POST PERFORMANCE CONTROL – REVIEWS THAT ARE CARRIED OUT AFTER THE PROJECT, MORE IMPORTANCE GIVEN AT THE INITIAL STAGE.
  9. 9. PROCESS CONTROL IN PROJECTS • CONTROL OF PHYSICAL ASSETS – INVOLVES THE SCHEDULING, MAINTENANCE AND REAPIR OF PHYSICAL ASSETS (BOTH PREVENTIVE AND CORRECTIVE CONTROL). • CONTROL OF HUMAN RESOURCES – HUMAN RESOURCE ACCOUNTING. • CONTROL OF FINANCIAL RESOURCES – INVOLVES – WORKING CAPITAL MANAGEMENT – BUDGETING – CAPITAL INVESTMENT DECISIONS AND CONTROLS
  10. 10. PHASES OF PROJECT CONTROL• PROJECT PLANNING – THE PROCESS OF DEVELOPING THE BASIS OF MANAGING THE PROJECT INCLUDING THE PLANNING OBJECTIVES, PROCEDURES, ORGANISATION, ROUTINES, FINANCE AND OTHER ACTIVITIES. – TECHNICAL LEVEL – OPERATIONAL LEVEL THE FINAL PLAN – CONSISTS OF, – SCOPE – SCHEDULE – COST (TEC+OPC)– CPM – REDUCES PROJECT DURATION AT AN INCREASED COST.– PERT – PROBLEM OF UNCERTAIN ACTIVITY TIMES.
  11. 11. PHASES OF PROJECT CONTROL• PROJECT EXECUTION – TROUBLE REPORTS – EMPHASISE THE PROBLEMS THAT HAVE ALREADY OCCURRED OR ANTICIPATED TO OCCUR. CRITICAL PROBLEMS ARE IDENTIFIED AND HIGHLIGHTED. – PROGRESS REPORTS – INVOLVES THE COMPARISON OF ACTUAL AND PLANNED SCHEDULES AND COSTS FOR THE WORK CARRIED OUT, ALSO CONTAIN OVERHEAD ACTIVITIES THAT ARE NOT DIRECTLY RELATED TO WORK. – FINANCIAL REPORTS – IT PROJECTS COST ACCURATELY WHERE COST REIMBURSEMENTS ARE MADE, IT GIVES A CLEAR PICTURE OF HOW THE FINANCIAL RESOURCES ARE BEING SPENT.

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