This document discusses project control and different types of control processes. It defines project control as keeping a project on target and as close to plan as possible. The three main types of control processes are cybernetic control, go/no-go control, and post control. Go/no-go controls involve testing if preset conditions have been met, while post controls are applied after a project to improve future performance. Effective control systems should be flexible, cost-effective, useful, timely, and accurate. Formal change control and clear change guidelines are also important aspects of project control.

1. Copyright 2009 John Wiley & Sons, Inc.
Chapter 11
Project Control

2. Performance
 Technical problems
 Technical difficulties
 Quality problems
 Client wants changes
 Inter-functional complications
 Technological breakthroughs
 Intra-team conflict
 Market changes

3. Cost
 Difficulties may need more resources
 Scope may increase
 Bid was be too low
 Reporting was poor
 Budget was inadequate
 Correction not in time
 Input price changed

4. Time
 Difficulties took long to solve
 Initial estimates were optimistic
 Sequencing was incorrect
 Resources unavailable
 Preceding tasks were incomplete
 Change orders
 Governmental regulations were altered

5. Project Control
 “The act of reducing the difference
between plan and reality”
 The process of keeping the project on target
and as close to plan as feasibly possible.
 Of course, this means you must first have a
plan
 It also means you must have a way of
detecting when a project is off the target

6. The Fundamental Purposes 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 action

7. Physical Asset Control
 Control over the use of physical assets
 Includes preventive and corrective
maintenance
 Must also control inventory

8. Human Resource Control
 Want to make sure people are used
wisely
 Employees need to be motivated to
perform at their best
 Project manager may have to write
performance appraisals

9. Financial Resource Control
 Financial resource control is tied in with the
other types of control
 Project financial controls are very similar to
general financial control
 The project may be answerable to another
firm or division
 It is important the project manager manage
financial assets properly

10. Three Types of Control Processes
1. Cybernetic control
2. Go/no-go control
3. Post control

11. Cybernetic Control
 A system is constantly monitored
 When a deviation is spotted, corrective
action is taken
 Cybernetic controls are not common in
projects

12. Go/No-go Controls
 Testing to see if some preset condition has
been met
 Most of project management is go/no-go
controls
 Use cannot be based on the calendar
– Some will take place at milestones
– Other will take place when work packages are
completed
– Still other will be on-going

13. Go/No-go Controls Continued
 Data to be collected will match the
critical elements of the project plan
 Actual is compared to what was
expected in the plan
 Regular reports are given to the project
manager and senior management

14. Phase-Gated Processes
 Controls the project at various points
throughout its life cycle
 Most commonly used for new
product/service development projects
 Project must pass gate to continue
funding

15. Post Control
 These are controls that are applied
after-the-fact
 Their purpose is mainly for improving
performance on future projects
 Often times, a final report is prepared
comparing the plan with reality
 Sometimes called “lessons learned”

16. Post Control Report Sections
1. The project objectives
2. Milestones, checkpoints, and budgets
3. The final report on project results
4. Recommendations for performance
and process improvement

17. The Design of Control Systems
 Who sets the standards?
 Are the standards realistic?
 Are the standards clear?
 Will they achieve the project goals?
 What should be monitored?
 How should they be monitored?
 Many more…

18. Characteristics of a Good Control
System
 Flexible
 Cost effective
 Useful
 Ethical
 Timely
 Accurate
 Simple
 Easy to maintain
 Can be changed
 Fully documented

19. Critical Ratio Control Charts
Table 11-1

20. Critical Ratio
Critical ratio = actual progress X budgeted cost
scheduled progress actual cost
Indices and ratios greater than 1.0 are favorable

21. Control as a Function of Management
 Control is usually exercised through people
 Control is exercised when monitoring face a
problem
 The control may come from any level of
management
 The goal of the control is to get the project
back on track

22. Balance in a Control System
 Too much control dampens innovation
 A control system should correct errors
 Corrections should be the smallest
needed
 It should minimize its impact on people

23. Common Control System
Problems
1. Placing too much weight on easy-to-
measure factors
2. Emphasizing the short-run at the expense
of the long-run
3. Ignoring changes to the environment or
goals
4. Over-control by top management
5. “If it is not measured, it is not important”

24. Control of Creative Activities
 Creativity is hard to control
 Too much control will suppress
creativity
 Three general approaches
1. Progress Review
2. Personnel Reassignment
3. Control of Input Resources

25. Formal Change Control System
 Review requests for changes
 Identify impacts
 Translate impacts to plan
 Evaluate cost and benefits
 Identify alternative changes
 Accept or reject
 Communicate
 Ensure implementation
 Report

26. Change Guidelines
1. All contracts specify how change will
be handled
2. Any change requires a change order
3. Project manager must be consulted
4. Must be approved in writing
5. Master plan should reflect changes