The document discusses project control and outlines its key aspects: 1. It describes how project control is needed when monitoring indicates a project is behind schedule, over budget, or not meeting quality standards. 2. It identifies the key resources available for project control: money, manpower, materials, and machinery. 3. The elements of project control include re-allocating resources like staff, equipment, finances, and materials. It also involves adjusting the project's size or scope. 4. The mechanisms of project control include cybernetic control which uses feedback loops to monitor outputs, compare them to standards, and trigger corrective actions when needed.

1. Project Control

2. CLOSEOUT
DEVELOPMENT OPERATIONS
DESIGN,
PLANNING
FEASIBILITY
Actual Start of Project
Organization
Estimation
Planning
Finance
Evaluation
Monitoring & Control
Changes & Claims
Quality & Reviews
CLOSEOUT
Recall: The 5 Phases of Project Management
Project Control

3. Monitoring & Control: A Feedback Process
Correct
Deviations
Monitoring
1. Measurement
2. Performance Analysis)
Detect
deviations
Control
1. Actions
2. Revised Plans, Cash Flows, Schedules, etc.
Project Control

4. Project Control: The Big Picture …
Given
Project is
Off-track
Project Control

5. Project Control: The Big Picture …
Given
Project is
Off-track
Monitoring indicates that:
- Project is behind time-schedule, and/or
- Project has exceeded budget, and/or
- Quality of materials or finished work is below standard, and/or
- Productivity is lower than as planned, etc.
Project Control

6. Project Control: The Big Picture …
Given
Resources for
PC (the 4-M’s)
Project is
Off-track
Project Control

7. Project Control: The Big Picture …
Given
Resources for
PC (the 4-M’s)
Project is
Off-track
Resources available to the Project Manager for Project Control:
- Money
- Manpower (labor)
- Materials
- Machinery (Equipment)
Project Control

8. Project Control: The Big Picture …
Given
Mechanism and
Elements of PC
Resources for
PC (the 4-M’s)
Adjust the
resources
Adjust the project
characteristics:
size, scope, etc
Project is
Off-track
Project Control

9. Project Control: The Big Picture …
Given
Mechanism and
Elements of PC
Resources for
PC (the 4-M’s)
Adjust the
resources
Adjust the project
characteristics:
size, scope, etc
Project is
Off-track
More labor? Better labor?
Better supervision?
More materials? Better materials?
More equipment? Better equipment?
More money?
Reduce project size? Reduce project scope?
Terminate project?
resource
s
project
Project Control

10. Project Control: The Big Picture …
Given
Mechanism and
Elements of PC
output
Resources for
PC (the 4-M’s)
Project is
Off-track
Adjust the
resources
Adjust the project
characteristics:
size, scope, etc
Project
brought
back on-
track
Was the Project Control successful? How can we tell?
Project Control

11. Project Control: The Big Picture …
Given
Elements and
Mechanism of PC
output
Resources for
PC (the 4-M’s)
Project is
Off-track
Adjust the
resources
Adjust the project
characteristics:
size, scope, etc
Project
brought
back on-
track
Project Control

12. Outline of this Lecture:
1. How can we tell when PC is needed?
2. What resources are available for PC?
3. What are the elements of PC?
4. What is the mechanism of PC?
5. Some important issues in Project Control
Project Control

13. Part 1
How can we tell
when Project Control is
needed?

14. Specific Clues
General Clues
Is Project Control is needed now?
How can we tell?
“Primitive”
Indicators
Other
Indicators
Performance
and Quality
Cost Time

15. How can we tell when Project Control is needed?
 Performance
- Unexpected technical problems arise
- Insufficient resources are unavailable when needed
- Quality or reliability problems occur
- Owner/Client requires changes in technical specifications
- Inter-functional complications and conflicts arise
- Market changes that increase/decrease the project’s value
GENERAL CLUES (Meredith and Mantel, 2006)

16. How can we tell when Project Control is needed?
 Cost
- Technical difficulties that require more resources
- Scope of work increases
- Bid amount (accepted for the contract award) is too low
- Reporting of the monitoring results are poor/late
- Project budgeting for contractor cash flows not done right
- Changes in market prices of the inputs
GENERAL CLUES (Meredith and Mantel, 2006)

17. How can we tell when Project Control is needed?
 Time
- Technical difficulties require more time to solve
- Scope of work increases
- Unexpected utilities needing relocation
- Task sequencing not done right
- Required material, labor/equipment unavailable when
needed
- Key preceding tasks were not completed on time.
GENERAL CLUES (Meredith and Mantel, 2006)

18. 1. How can we tell when PC is needed?
 “Primitive” indicators:
– More resources or less
resources haven been used
than planned
– Activities are taking long
than planned
– Cost of activity (or of
project to date) is higher
than expected
actual
actual
actual
planned
planned
planned
0 500 1000 1500 2000
Amt of concrete used (tons)
Total Man-hours
Equipment-hours
Amount input to date
SPECIFIC CLUES

19. 1. How can we tell when PC is needed?
 “Primitive” indicators:
– More resources or less resources
haven been used than planned
– Activities are taking long than
planned
– Cost of activity (or of project to
date) is higher than expected
actual
actual
actual
planned
planned
planned
0 500 1000 1500 2000
Amt of concrete used (tons)
Total Man-hours
Equipment-hours
Amount input to date
SPECIFIC CLUES

20. 1. How can we tell when PC is needed?
 “Primitive” indicators:
– More resources or less resources
haven been used than planned
– Activities are taking long than
planned
– Cost of activity (or of project to
date) is higher than expected
JAN FEB MAR APR MAY JUN
Activity 1
Activity 2
Activity 3
planned
actual
NOW
Legend
planned
actual
SPECIFIC CLUES

21. 1. How can we tell when PC is needed?
Program
(schedule)
Progress
(actual)
Program
(schedule)
Progress
(actual)
now time
50%
70%
 “Primitive” indicators:
– More resources or less resources
haven been used than planned
– Activities are taking long than
planned
– Cost of activity (or of project to
date) is higher than expected
$
SPECIFIC CLUES

22. 1. How can we tell when PC is needed?
Why are they “primitive”?
- May be biased.
- Do not consider that progress may be
overestimated or underestimated due to:
- execution of unscheduled work done, or
- execution of more work of low value and less work of high
value
SPECIFIC CLUES

23. 1. How can we tell when PC is needed?
Work
Schedule
(WS)
Work
Performed
(WP)
Budgeted Cost (BC)
Actual Cost (AC)
BCWS BCWP
ACWS ACWP
Used for plotting the
Program S-curve
Used for plotting the
Progress S-curve
Used for plotting
the EVA S-curve
SPECIFIC CLUES

24. 1. How can we tell when PC is needed?
$max
t
BCWS
ACWP
BCWP
Time
SCHEDULE VARIANCE
COST VARIANCE
RESOURCE FLOW VARIANCE
TIME VARIANCE
tmax
ACWPt
BCWSt
BCWPt
t-p
now
SPECIFIC CLUES

25. 1. How can we tell when PC is needed?
 So we know Project Control is needed (at time t)
particularly when:
- RVt is –ve,
- RIt < 1
- CVt is –ve
- CIt <1
- SVt is –ve
- SIt is < 1
- TVt is –ve
- TIt is < 1

26. Part 2
Resources
for
Project Control

27. 2. Resources for Project Control
 Money
 Machinery (Equipment)
 Materials and Supplies
 Manpower (Labor and Supervision)

28. Money as a PC Resource
 Not a direct resource
 Rather, used to influence the amounts
or quality of the other resources

29. Using Equipment for PC
 Often used to augment labor in order to
speed up project
 Can be expensive
 May involve renting or purchasing

30. Materials and Supplies as a PC Resource
 Increase in quality or quantity may be
necessary to enhance project control
 Improved inventory systems for materials

31. Manpower as a PC Resource
 Project problems (time delays, excess costs,
poor performance, etc.) are partly due to the
human element (action or inaction)
 In using Manpower as a tool for project
control, PM encounters human emotions
(anger, fear, frustration, etc.)

32. Part 3
Elements
of
Project Control

33. Project-related
Resources-related
Elements of Project Control

34. 3. Elements of Project Control
 Manpower-related control
 Machinery-related control
 Money-related control
 Material-related control
3A. Resource-related
Re-allocate resources

35. Elements of Project Control
 Manpower
Machinery
Money
Materials
3A. Resource-related
Re-allocate resources
Also referred to as ”Human Resource Control”
- Lay-off/fire any under-performing staff
- Hire staff with needed skills
- Assign staff with specific skills to specific
activities
Issues:
-PM may be seen as a “stern disciplinarian”
- PM must avoid heavy handed actions,
- Fix problems without blaming people

36. Elements of Project Control
Manpower
 Machinery
Money
Materials
3A. Resource-related
Re-allocate resources
Also referred to as ”Physical Asset Control”
- Decommission any under-performing equipment
- Bring in equipment with appropriate capabilities
- Re-assign specific equipment to specific activities

37. Elements of Project Control
Manpower
 Machinery
Money
Materials
3A. Resource-related
Re-allocate resources
Also referred to as ”Physical Asset Control”
- Decommission any under-performing equipment
- Bring in equipment with appropriate capabilities
- Re-assign specific equipment to specific activities
Issues:
- Equipment decisions may involve some economic
analysis
- Equipment-based control easier than manpower-
based control
- Some trade-off may exist between manpower and
equipment utilization.

38. Elements of Project Control
Manpower
Machinery
 Money
Materials
3A. Resource-related
Re-allocate resources
Also referred to as ”Financial Resource Control”
- How much money should be spent?
- How should it be spent?
- PM assisted by:
- Project accountant
- Project Finance Manager

39. Elements of Project Control
Manpower
Machinery
Money
 Materials
3A. Resource-related
Re-allocate resources
- Discontinue use of sub-standard material
- Seek new sources of superior material

40. Elements of Project Control
 Options:
- Reduce project size?
- Reduce project scope?
- Terminate project?
3B. Project-related

41. Part 4
Mechanisms
of
Project Control

42. Mechanisms of Project Control
Types of Mechanisms:
- Cybernetic
- Go/No-go
- Post-control

43. Types of Control Mechanisms
Cybernetic
- “Cyber” means “Steer” or helmsman
(Greek language)
- May be First-, Second-, or Third-order

44. Cybernetic control mechanisms
Process
Comparator
Standards
Effector
and
Decision-
maker
Outputs
Inputs Mechanism:
- System output monitored by
sensor
- Sensor measurements
transmitted to Comparator
- Measurements compared
with predetermined standards
-- Deviation from standard
sent to decision-maker
-If deviation from standard is
too large, signal sent to
Effector
Monitoring mechanism (e.g.
sensor)

45. Cybernetic control mechanisms
Process
Comparator
Standards
Effector
and
Decision-
maker
Outputs
Inputs Mechanism:
- System output monitored by
sensor
- Sensor measurements
transmitted to Comparator
- Measurements compared
with predetermined standards
-- Deviation from standard
sent to decision-maker
-If deviation from standard is
too large, signal sent to
Effector
Monitoring mechanism (e.g.
sensor)
This is a First-order cybernetic control
system. (Standards are fixed)
Example: Thermostat that keeps room
temperature to 70F all year round.

46. Cybernetic control mechanisms
Process
Comparator
Standards
Effector
and
Decision-
maker
Outputs
Inputs Mechanism:
- Same as described for First-
order Cybernetic systems, but:
- Standards are not fixed, but
the manner they change is
fixed.
Monitoring mechanism (e.g.
sensor)
This is a Second-order cybernetic control system (standards vary according to a fixed set of rules)
Examples: Thermostat that keeps room temperature to 70F in winter and 65F in summer,
Robot installations, Automated inventory systems, Automated record keeping systems
Memory Pre-programmed Responses

47. Cybernetic control mechanisms
Process
Comparator
Standards
Effector
and
Decision-
maker
Outputs
Inputs Mechanism:
- Same as described for First-
order Cybernetic systems, but:
- Standards are not fixed but
are variable. Also, the manner
they change is variable because
there is a consciousness
(human element) involved.
Monitoring mechanism (e.g.
sensor)
This is a Third-order cybernetic control system (standards vary according to a variable set of
rules)
Examples: Most Project management systems.
Consciousness Memory, Selection

48. Cybernetic control in Project Management
1. PM must clearly define “outputs” in terms of relevant
project characteristics
2. PM must establish standards for each characteristic
3. Monitoring mechanisms (sensors) must be established to
measure the characteristics at regular intervals
4. For each characteristic, the trigger point or maximum
deviation (difference between “attained level” and
“standard level”) should be established.
5. If triggered, appropriate action should be taken to
minimize the deviation between Attained Level and
Standard Level of performance.

49. “Go/No-go” Mechanisms of Project Control
 Testing to see if some specific precondition has been
achieved
 Yes/No (discrete)
 Control in most PM fall into this category (Cooper,
1994; Meredith and Mantel, 2006)
 Example: Was Activity X completed within 6 months?
 Did Activity Y cost exceed its budget of $1.5 million?
 Some engineering judgment is necessary in exercising
these types of controls.

50. Post-Control Types of Project Control
 Also called: Post-performance control, Post-performance
review
 Is done after the activity or project is over
 Like a post-mortem or report card
 Is it “Locking the barn door after the horse has
escaped”?
 Or is it “We need to learn from the past to avoid future
mistakes”?
 Generates lessons from current projects so that future
projects can be controlled better.

51. Desired characteristics of a project control mechanism
 Flexible – PC should be able to react to changes in system
performance
 Cost-effective – Value of PC should exceed cost of PC
 Useful – Must really satisfy the needs of project, not the
whims of the PM
 Timely – Be able to react quickly before the problem
overwhelms the project
 Simple –Easy to understand and operate
 Adjustable – Capable of being adjusted to reflect changing
priorities
 Documented – so that training is possible

52. Some Interesting Issues in Project Control
 Flexibility
 Trade-offs
 Some things to watch out for
 Impediments to Project acceleration
 Cost-only and time-only actions to control
projects

53. Value of Flexibility in Project Planning
 Flexibility is primary defense against risk
 Planning too tightly may highly complicate control
 Flexibility in construction is key during control
 Want adequate float and contingency to change plans if
needed
 Be careful on value engineering that limits flexibility!
Some Interesting Issues in Project Control

54. Trade-offs between Performance Measures during
Project Control
 Can sometimes only correct for one
performance measure at a time
– Time
– Cost
– Quality
 Need to understand tradeoffs and triage
– Pick where to make tradeoffs (e.g. non-critical
activities)
Some Interesting Issues in Project Control

55. Tradeoffs
Time Quality
$
Acceleration  $
(Overtime, shift work,
Rework, higher-end
equipment, better crews etc.)
Less $  Low progress
Resource reduction
Selection of poor quality workers
Default of contractor/subs
Quality problems result from
overtime, shift work, new hires
Quality level impacts speed of work,
Level of rework
Need for rework imposes
high expenses
High quality needs can lead
to costly miscalculations
on labor time
Trying to save $
Can lead to substitution,
lower quality
workmanship
Slow progress  $
Delayed occupation,
Higher interest on
const. loan
Loss of tenants
Opportunity cost
Some Interesting Issues in Project Control

56. Trade-offs: The Time-Quality-Money Triage
 In many cases, the best we can do is to pick
the areas where tradeoffs do the least harm
e.g.
– Move resources from non-critical activities
– Accelerate only critical activities
– Sacrifice quality on non-critical items that can
be remedied after substantial completion
Some Interesting Issues in Project Control

57. Some things to watch out for:
Overreacting/Improvisation, etc.)
 When trying to correct, often bump up against other limiting
factors
– Space constraints/Hiring time/Morale/Coordination
difficulties
 Improvisation dangerous (working w/o planning)
– Often can lead to “Snowballing” (increased problems at a
rapidly accelerating rate)
– Confusion, discoordination, cascading unanticipated
effects, suboptimal work efficiency, lack of morale
– Breaking “Job rhythm” and learning curves can really
inhibit productivity!
Some Interesting Issues in Project Control

58. Controlling the Time Schedule – Project Crashing
– Adding new project resources
– Changing the “production function” (Change the
technology)
– Change operation conditions by altering the
precedence, sequence, or timing of work
 Fast-track, activity overlapping
 Overtime
 Shift work
– Changes in the tools, methods, operating conditions
– Work in more sheltered location
Some Interesting Issues in Project Control

59. Impediments to Project Acceleration
 Human resources
– Multiple-shift work
Environmental/safety issues, High cost, Neighborhood objections
– Overtime/extended workdays
Fatigue, Lower morale, Rework
– Increasing # of workers
Training (takes time of most experienced!), Space constraints, Hiring time
 Technology
– Using more, larger or more efficient equipment
Training/learning curve, Procurement time, Space constraints
– Using faster-installing materials
Procurement, Submittals for owner approval
– Alternate construction methods
Skill set, Learning curve, Unknown side-effects
Some Interesting Issues in Project Control

60. Impediments to Project Acceleration
 Human resources
– Multiple-shift work
Environmental/safety issues, High cost, Neighborhood objections
– Overtime/extended workdays
Fatigue, Lower morale, Rework
– Increasing # of workers
Training (takes time of most experienced!), Space constraints, Hiring time
 Technology
– Using more, larger or more efficient equipment
Training/learning curve, Procurement time, Space constraints
– Using faster-installing materials
Procurement, Submittals for owner approval
– Alternate construction methods
Skill set, Learning curve, Unknown side-effects
Some Interesting Issues in Project Control