Assignment 1. Coretta leases a workshop, in which she weaves rug.docx

Assignment
1. Coretta leases a workshop, in which she weaves rugs from
marsh grass she gathers (for free) from a nearby riverside. She
finds that if she works alone for a day, she can weave two rugs.
If she hires one additional worker, together they can weave 5
rugs in a day, each specializing in some of the tasks. Adding a
third worker also allows for more specialization, bringing
production up to 8 rugs. Adding a fourth worker adds only 2
rugs to production, because there are no more gains from
specialization to be had. Hiring a fifth worker adds only one
additional rug to daily production, because now the workshop
space is getting crowded.
a. What is the output in this example? What is the fixed input?
What is the variable input?
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Quantity of Labor (Number of Worker-Days)
Quantity of Output (Number of Rugs)
Marginal Return (product) to an Additional Worker-Day
(Number of Rugs)
Average Fixed Cost ($)
Average Variable Cost ($)
Average Total Cost ($)
Marginal Cost of Production ($ per Rug)
0
--

b. Find marginal product and complete column (2) and (3):
from 0 to 1 worker: _____
from 1 to 2 workers: _____
c. Suppose that rent for the workshop space costs Coretta $70
per day (whether she produces anything or not). Her cost for
labor (including the opportunity cost of “hiring” herself!) is $60
per worker per day. Complete columns (4) through (6) in the
table above, showing her average fixed, variable, and total costs
of producing various numbers of rugs .
d. Find marginal cost and complete column (7).
2.Suppose Heritage Corporation believes that its total variable
costs follow a cubic specification and so it estimates its average
variable costs using the following specification:
The regression analysis produces the following computer
output:
DEPENDENT VARIABLE:
AVC
RSQUARE
FRATIO

PVALUE ON F
OBSERVATIONS:
45
0.6145
33.47
0.0001
VARIABLE
PARAMETER
ESTIMATE
STANDARD
ERROR
TRATIO
PVALUE
INTERCEPT
175.0
25.00
6.00
0.0001
Q
4.15
0.80
4.00
0.0003
Q2
0.065
0.01
8.00
0.0001

a.Do the estimated coefficients have the required signs to yield
a-shaped AVC curve? Discuss the significance using the p-
values.
b.Heritage Corporation’s marginal cost function is
SMC = ___________________________________.
c.At what level of output does AVC reach a minimum? What is
the value of AVC at its minimum?
Qmin = ___________ AVCmin =
_______________________
d.Compute AVC and SMC when Heritage produces 8 units.
AVCQ=8 = _______
SMCQ =8 = _______
AVC a bQ cQ= + + 2
AVCabQcQ=++
2

C
H
A
P
T
E
R
1
7
E
X
E
C
U
T
I
O
N
A
N
D
C
O
N
T
R
O
L
D
u
r
i

n
g
execution, m
o
s
t
of the w
o
r
k
to deliver the project objectives (btuld the n
e
w
asset) is done,.
a
n
d
thus m
o
s
t
o
f
the expenditure m
a
d
e
.
T
h

e
stage starts with completion of detailed plaruiing a
n
d
design. A
t
the previous stage, sufficient design (front-end design) has b
e
e
n
d
o
n
e
to prove the con-
cept a
n
d
obtain financing. F
r
o
m
the detail design a
cost estimate wrresponding to the fourth line of
Tables 12.1 a
n
d
12.2 ("ControP') is developed. This design m

a
y
require three or four times as m
u
c
h
effort as the front-end design developed at the'previous stage,
but it is only d
o
n
e
after the project has
b
e
e
n
proved a
n
d
finance raised. W
o
r
k
c
a
n
n
o
w
begin. Resources are selected, a

n
d
they plan the detail
w
o
r
k
o
n
a
rolling -
w
a
v
e
basis. W
o
r
k
is authorized b
y
the project m
a
n
a
g
e
r
a
n
d

allocated to teams or
individuals. A
s
w
o
r
k
is done, progress is measured to ensure the desired results are
achieved, that
is, the n
e
w
asset is delivered within the constraints o
f
quality, cost, a
n
d
time, a
n
d
it will achieve the
required benefit. If there is a
shortfall, appropriate recovery action is taken. This m
a
y
m
e
a
n

doing
nothing because the variances are small, replanning the w
o
r
k
to recover the original plan, or revising
the plan to accept the current situation. I
n
extremis, it m
a
y
m
e
a
n
ternunating the project.
In this chapter, I
describe the m
a
n
a
g
e
m
e
n
t
o
f
the execution stage. I

start b
y
explaining i
m
p
l
e
m
e
n
-
tation planning, including the selection o
f
resources a
n
d
allocation o
f
work. I
then describe control,
including the requirements for effective control, h
o
w
to monitor progress a
n
d
analyze variances to
forecast completion, and h

o
w
to take action to respond to deviations f
r
o
m
plan.
77, 7
I
M
P
L
E
M
E
N
T
A
T
I
O
N
P
L
A
N
N
I
N
G
A
s

s
i
g
n
i
n
g
R
e
s
o
u
r
c
e
s
t
o
t
h
e
Project
O
n
e
o
f
the recurrent questions of project m
a
n
a
g
e
m

e
n
t
is, D
o
y
o
u
assign w
o
r
k
to people or people to
w
o
r
k
?
I
n
o
n
e
approach, assigning w
o
r
k
to people, y
o
u
f

o
r
m
a
project team; they decide h
o
w
best to
achieve the projects objectives, a
n
d
assign w
o
r
k
to themselves. T
h
e
risk is y
o
u
will find the skills of
the people in the t
e
a
m
are inappropriate for the w
o
r

k
y
o
u
have to do. I
n
the other approach, assign-
ingpeople to work, y
o
u
define the scope o
f
w
o
r
k
a
n
d
then f
o
r
m
a
project t
e
a
m
of appropriate skills.
T

h
e
risk is that the project m
a
n
a
g
e
r
will not b
e
a
technical expert, a
n
d
s
o
will b
e
dictating to experts
h
o
w
they should undertake the task.
T
o
o
v
e
r
c

o
m
e
this d
i
l
e
m
m
a
,
y
o
u
develop the definition o
f
the w
o
r
k
a
n
d
the organization in paral-
lel d
o
w
n
the b
r
e

a
k
d
o
w
n
structure. During the concept stage, y
o
u
define the areas o
f
w
o
r
k
and the
functional areas o
f
the organization involved. D
u
r
i
n
g
the feasibility stage, y
o
u
w
o
r
k

with funcrional
managers to develop the milestone plan a
n
d
responsibility chart at the strategic level. F
r
o
m
the
responsibility chart, y
o
u
determine the skill types required and f
o
r
m
a
team. T
h
e
t
e
a
m
m
e
m
b
e
r
s

determine h
o
w
they think the w
o
r
k
should b
e
d
o
n
e
a
n
d
so define the w
o
r
k
at the activity level. T
h
e
project m
a
n
a
g
e
r

and w
o
r
k-package m
a
n
a
g
e
r
agree a
n
d
authorize the w
o
r
k
a
n
d
assign it to the team.
H
e
n
c
e
,
the people to d
o
the w

o
r
k
are selected f
r
o
m
a
resource pool, w
h
i
c
h
is identified b
y
plamiing
2
8
8
P
R
O
C
E
S
S

o
g
T
h
e
process o
f
resourcing a
project includes the following steps:
1
.
Identify w
h
a
t
is to b
e
achieved through the milestone plan.
2
.
Identify the skills a
n
d
skill types required to d
o
the w

o
r
k
to achieve e
a
c
h
milestone through the
responsibility chart. T
h
e
skills required include technical, craft, professional, a
n
d
functional
skills, or managerial k
n
o
w
l
e
d
g
e
.
3
.
Identify the p
e

o
p
l
e
available through discussion with the resource providers. It is
important to
obtain people with the correct skills. T
h
e
r
e
is a
danger, especially with a
fixed project t
e
a
m
,
o
f
selecting s
o
m
e
b
o
d
y
to d
o
w

o
r
k
because h
e
or s
h
e
is available, not because h
e
or s
h
e
has the right
skills; or that the resource provider m
a
y
try to provide their least c
o
m
p
e
t
e
n
t
people, a
n
d

retain
their best individuals within their o
w
n
sphere. A
leading engineering c
o
m
p
a
n
y
in the United
K
i
n
g
d
o
m
has a
c
o
m
m
i
t
t
e
e
with responsibility for scamiing the functional organization to
identify

the best people to w
o
r
k
o
n
projects (Turner et al., 2008). T
h
e
r
e
are three reasons to ensure the
best people are identified to w
o
r
k
o
n
projects: for the sake o
f
the organizaflon, s
o
g
o
o
d
people are
developed to w
o
r

k
o
n
a
n
d
m
a
n
a
g
e
projects; for the sake o
f
their career development; a
n
d
to stop
selfish fitnctional m
a
n
a
g
e
r
s
f
r
o
m
holding g
o

o
d
people in dead-end functional jobs. Y
o
u
should
take account o
f
people's true availability. A
person m
a
y
only b
e
available to a
project part-time
a
n
d
b
e
retained for the remainder o
f
her or his time o
n
n
o
r
m

a
l
duties.
4
.
Assess the c
o
m
p
e
t
e
n
c
e
o
f
the people available to identify a
n
y
shortfall in skills. E
v
e
n
after the
selection o
f
people with the correct skills, there m
a
y

not b
e
a
perfect m
a
t
c
h
to requirements.
Figure 17.1 illustrates h
o
w
this c
a
n
b
e
plotted. Y
o
u
plot the competencies required to undertake
the project against s
o
m
e
c
o
m
p
e

t
e
n
c
y
m
o
d
e
l
.
This m
a
y
b
e
khe P
M
I
P
M
B
o
K
(Projeck M
a
n
a
g
e
m
e
n

t
Institute, 2013), t
h
e
I
P
M
A
I
C
B
(International P
r
o
j
e
c
t
M
a
n
a
g
e
m
e
n
t
A
s
s
o
c
i

a
t
i
o
n
,
2
0
0
5
)
or national
equivalent (Association for Project M
a
n
a
g
e
m
e
n
t
,
2008), or the c
o
m
p
a
n
y
'
s
o
w

n
c
o
m
p
e
t
e
n
c
e
m
o
d
e
l
for project m
a
n
a
g
e
r
s
(Turner et al., 2008). Y
o
u
then plot the competencies o
f
the c
h

o
s
e
n
t
e
a
m
m
e
m
b
e
r
s
.
Figure 1
7
1
s
h
o
w
s
that t
e
a
m
m
e
m
b
e

r
1
covers a
r
o
u
n
d
one-half o
f
the required
c
o
m
p
e
t
e
n
c
e
a
n
d
t
e
a
m
m
e
m
b
e

r
2
m
o
s
t
o
f
the rest. T
h
e
y
h
a
v
e
a
small area o
f
overlap, but there is
also a
small area w
h
e
r
e
neither o
f
t
h
e

m
m
e
e
t
s
the need. T
h
i
s
c
a
n
b
e
o
v
e
r
c
o
m
e
b
y
appointing a
third person to the t
e
a
m
or b
y
giving the t

w
o
t
e
a
m
m
e
m
b
e
r
s
training.
5
.
Identify a
n
y
trdining regLaired to o
v
e
r
c
o
m
e
the deficiency in skillleveIs. Training m
a
y
b

e
in
the f
o
r
m
o
f
o
p
e
n
or b
e
s
p
o
k
e
courses, o
r
on-the-job coaching. I
n
Fig. 17.1, t
e
a
m
m
e
m
b

e
r
1
c
a
n
Competency pro&le
T
e
a
m
m
e
m
b
e
r
1
T
e
a
m
m
e
m
b
e
r
i
can
~

m
M
l
&
2
~
T
e
a
m
m
e
m
b
e
r
2
can
~
T
M
l
&
2
aid the development
~
short-
s

aid the development
exceed
~
of team m
e
m
b
e
r
2
~
fall
~
of team m
e
m
b
e
r
1
~
need
~

'
~
'
~
~
'
~
~
~
~
:
~
.
.
~
~
.
~
~
~
C
o
m
p
e
t
e
n
c

y
Competency profile
requirements
T
e
a
m
m
e
m
b
e
r
2
of project
'ledhnical competencies
tiehaviorai competencies
Contextual competencies
C
o
m
p
e
t
e
n
c
y
dimensions
F

I
G
U
I
t
~
17.1
Matching the competence of team members to the needs of the
project schedule.
E
X
E
C
U
T
I
O
N
A
N
D
C
O
N
T
R
O
L
2
8
9

provide on-the-job g
u
i
d
a
n
c
e
to t
e
a
m
m
e
m
b
e
r
2
w
h
e
r
e
his o
r
her c
o
m
p
e
t
e

n
c
e
is greater a
n
d
vice versa.
6
.
Negotiate with the resousce providers. T
h
r
o
u
g
h
o
u
t
this process, y
o
u
m
u
s
t
negotiate with the
line m
a
n

a
g
e
r
s
o
f
the people-
w
h
o
will d
o
the w
o
r
k
,
s
o
they willingly release their people. If the
resource providers will n
o
t
cooperate, .the m
a
n
a
g
e
r

c
a
n
bring pressure to beaz via the sponsor.
H
o
w
e
v
e
r
,
e
v
e
n
then they m
a
y
not cooperate a
n
d
m
a
y
block their people w
o
r
k
i
n
g

o
n
the project,
s
o
it is best to w
i
n
the resource providers' support. This c
a
n
b
e
d
o
n
e
b
y
gaining their c
o
m
m
i
t
m
e
n
t
to the projects goals, a
n

d
b
y
helping t
h
e
m
understand h
o
w
the project is o
f
benefit to t
h
e
m
,
7. E
n
s
u
r
e
appropriate facilities a
n
d
e
q
u
i

p
m
e
n
t
are available. Facilities m
a
y
include office space,
meeting r
o
o
m
s
,
security arrangements, a
n
d
transport. E
q
u
i
p
m
e
n
t
m
a
y
include computers, c

o
m
-
puter software (including w
o
r
d
processing, spreadsheets, a
n
d
project m
a
n
a
g
e
m
e
n
t
information
systems), telephone, Internet access, a
n
d
e-mail.
P
l
a
n
n
i

n
g
a
n
d
S
c
h
e
d
u
l
i
n
g
Activities
H
a
v
i
n
g
identified the people to d
o
the w
o
r
k
,
the t
e
a

m
c
a
n
then define the details o
f
the w
o
r
k
to b
e
d
o
n
e
a
n
d
assign w
o
r
k
to themselves for execution. T
h
e
detail w
o
r
k

should b
e
planned o
n
a
roliing-
w
a
v
e
basis, as it is only w
h
e
n
y
o
u
are about to stazt the w
o
r
k
that y
o
u
h
a
v
e
all the information

required to plan activities in detail, I
n
this w
a
y
,
y
o
u
c
a
n
also allow people to plan their o
w
n
w
o
r
k
.
I
did suggest in Sec. 8.4 that y
o
u
c
a
n
create a
preliminary activity definition through w
o
r

k-package
s
c
o
p
e
statements for early estimating.
T
h
e
r
e
are five steps in planning a
n
d
scheduling activities:
1
.
Define activities required to reach a
milestone. W
h
e
n
selecting activities, the t
e
a
m
should c
h

o
o
s
e
o
n
e
s
that are controllable; that is, they should
•
P
r
o
d
u
c
e
a
measurable result. It m
u
s
t
b
e
possible t
o
d
e
t
e
r
m

i
n
e
w
h
e
n
a
n
activity is finished. It
is n
o
g
o
o
d
dividing a
w
o
r
k
p
a
c
k
a
g
e
into five activities, e
a
c
h
equal to 2

0
percent o
f
the w
o
r
k
.
In those circumstances the last activity often takes 8
0
percent o
f
the effort.
•
H
a
v
e
average duration roughly equal to the fr
e
q
u
e
n
c
y
o
f
review (3ec. 9.1).

2
.
Ratify the p
e
o
p
l
e
involved. T
h
e
people to d
o
the w
o
r
k
h
a
v
e
b
e
e
n
c
h
o
s
e
n

as described above.
H
o
w
e
v
e
r
,
o
n
c
e
the activities have been~defined, it m
a
y
b
e
necessary to review the t
e
a
m
to ensure
it contains all the necessary skills a
n
d
n
o
redundant skills (Fig. 17.1).
3
.

Define roles a
n
d
responsibilities. T
h
e
involvement o
f
e
a
c
h
t
e
a
m
m
e
m
b
e
r
i
n
the activities is then
identified. A
responsibility chart c
a
n
b
e

a
useful tool for this (Fig. 9.6).
4
.
Estimate w
o
r
k
content a
n
d
durations. T
h
e
w
o
r
k
content a
n
d
durations are estimated b
y
applying
the processes u
s
e
d
o

n
the w
o
r
k-package level.
5
.
Schedule; the activities within the w
o
r
k
p
a
c
k
a
g
e
.
Finally the activitres are scheduled within the
w
o
r
k
p
a
c
k
a
g
e
to deliver the milestone o

n
time. This c
a
n
b
e
d
o
n
e
manually, or b
y
building the
activities into a
nested n
e
t
w
o
r
k
(Fig. 17.2) or bar chart (Fig. 17.3).
If y
o
u
adopt rolling-
w
a
v

e
planning, estimates o
f
w
o
r
k
content a
n
d
duration at the activity level
will b
e
m
a
d
e
at a
later stage than those at the w
o
r
k-package level, after sanction has b
e
e
n
obtained.
S
o
m
e

people aze uncomfortable with this, fearing that the aceivity
esfimates will turn out to b
e
dif-
ferent f
r
o
m
—
u
s
u
a
l
l
y
higher t
h
a
n
—
t
h
e
w
o
r
k-package estimates.
W
h
a
t

should h
a
p
p
e
n
,
o
f
course, is that the r
a
n
g
e
o
f
possible outturns for the total project. after
activity estimating s
h
o
u
l
d
fall within t
h
e
r
a
n
g
e
after w

o
r
k
-
p
a
c
k
a
g
e
e
s
t
i
m
a
t
i
n
g
(
F
i
g
.
15.2).
If tha estimates consistently fall outside the range o
f
those prepared at the w
o
r
k-package level, then

the esrimating data used for the latter n
e
e
d
to b
e
i
m
p
r
o
v
e
d
.
It is therefore important to feed the results
b
a
c
k
to the estimators s
o
that they c
a
n
i
m
p
r
o
v

e
their data.
If it is not possible to schedule the activities to deliver the
milestone o
n
rime (subject to the allowable
error), then the delay to the plan m
u
s
t
b
e
subjected to c
h
a
n
g
e
control. T
h
e
c
h
a
n
g
e
can b
e
to declaze a

variance b
e
t
w
e
e
n
the current schedule a
n
d
the baseline, or if the delay is severe, to update the baseline.
._:__
2
9
0
PROCESS
F
I
G
U
R
E
1
7
.
2
N

e
s
t
e
d
networks.
Allocating W
o
r
kWh
e
n
w
o
r
k
is being done, it is allocated to the team via w
o
r
k-to lists, A
work- to list is a
list of
activities to'which a person or resource is assigned. T
h
e
activities m
a
y
be listed b
y

1. W
o
r
k
packrige. T
h
e
persons or resources are given the activity schedules for all w
o
r
k
packages o
n
which they are working, as a
responsibility chart or estimating sheet.
2. Time period. T
h
e
y
are given a listing of the activities they are assigned to for a
given period of
time f
r
o
m
all w
o

r
k
packages they are working on. T
h
e
period is typically the current control
period and o
n
e
or t
w
o
periods into the future. T
h
e
w
o
r
k-to list contains
•
All activities stazted but not fuiished
•
All activities due to start in the period
T
h
e
w
o
r
k-to list m

a
y
b
e
in the f
o
r
m
of a
responsibility chart (Fig. 9,6) or output f
r
o
m
a computer
system (Table 17.1). It is n
o
w
quite c
o
m
m
o
n
for the output to b
e
sent f
r
o
m

the master plan to the
individual's workstation electronically, and it will subsequently
b
e
c
o
m
e
their time sheet. T
h
e
w
o
r
k-
to list m
a
y
contain the following informarion:
Activity n
u
m
b
e
r
and n
a
m
e
•

Baselined dates and duration
•
Current estimate/actual dates and duration
•
E
s
t
i
m
a
t
e
d
w
o
r
k
c
o
n
t
e
n
t
•
W
o
r
k
-
t

o
d
a
t
e
•
B
a
r
c
h
a
z
t
o
f
b
a
s
e
l
i
n
e
d
d
a
t
e
s
•
B

a
r
c
h
a
r
t
o
f
c
u
r
r
e
n
t
e
s
t
i
m
a
t
e
/
a
o
t
u
a
l
d
a
t
e
s

~
~
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r
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0
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m
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m
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G
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r
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9
~
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-
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9
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o
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m
~
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e
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e
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e
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e
~
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e
~
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e
w
e
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e
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e
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e
o
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n
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n
n
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e
u
~
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i
C
e
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m
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r
e°-oe~e'd-'e-'e-~'ooeiee~ee~rioii~
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o
c
e
n
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n
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A~~AOeA~eoeoeo~eo~Aeooeo~A~~
Azn
2
9
1
E
X
E
C
U
T
I
O
N
A
N

D
C
O
N
T
R
O
L
2
9
3
A
t
the e
n
d
o
f
the control period the w
o
r
k
-to list will b
e
c
o
m
e
a
turnaround d

o
c
u
m
e
n
t
(Sec. 17.2)
through w
h
i
c
h
the project t
e
a
m
reports progress. T
h
e
processes o
f
drawing u
p
the activity schedules,
including t
h
e
m

in the master plan, a
n
d
issuing w
o
r
k-to lists are s
h
o
w
n
in the procedure for monitar-
~
~
ing a
n
d
control (Fig. 16.1).
~a ~
77.2
C
O
N
T
R
O
L
L
I

N
G
P
R
O
G
R
E
S
S
w
~
Everything I
h
a
v
e
covered u
p
to this point h
a
s
brought u
s
to the point w
h
e
r
e
w

e
are d
o
i
n
g
w
o
r
k
.
A
s
the w
o
r
k
is d
o
n
e
,
w
e
m
u
s
t
ensure w
e
achieve the planned results; that w

e
deliver the n
e
w
asset a
n
d
h
desired changes a
n
d
performance i
m
p
r
o
v
e
m
e
n
t
to the desired s
p
e
c
cation, a
n

d
within the cost a
n
d
am"
time at w
h
i
c
h
it w
a
s
thought to b
e
worthwhile, Furthermore, as the project output is c
o
m
m
i
s
s
i
o
n
e
d
,
w

e
m
u
s
t
ensure it delivers the expected benefits w
h
i
c
h
w
e
r
e
used to justify the m
o
n
e
y
spent. W
e
c
a
n
~
̀
b
e
sure that this will not occur in a
haphazard fashion. T

h
e
structured process b
y
w
h
i
c
h
w
e
c
h
e
c
k
progress, an
d
take action to o
v
e
r
c
o
m
e
a
n
y
deviations f
r
o

m
plan is control. A
s
w
e
h
a
v
e
seen several
~
~
times u
p
to n
o
w
,
there are four essential steps to the control process (Fig. 11.2):
~
,.~
1
.
P
l
a
n
future w
o

r
k
a
n
d
estimate performance.
2
.
M
o
n
i
t
o
r
a
n
d
report results.
~
.c
~
3
.
C
o
m
p
a
r
e
results to the plan a

n
d
forecast future results.
~
w
4
.
P
l
a
n
a
n
d
take effective action to recover the original plan or to m
i
n
i
m
i
z
e
the variance.
T
h
e
b
o
o
k
s
o

far has dealt with the fast step. I
n
the remainder o
f
this chapter, I
deal with the other
~
N
~, ~
~
three steps in turn. I
start b
y
explaining the requirements for effective control.
~
~
~
~
~
~
w
w
w
w
Effective C
o
n

t
r
o
l
ybj
~
l
~
h
l
~
l
~
[
~
[
~
~
~
~
D
N
N
N
N
N
N
N
M

;~
~
~
~
~
~
,Q; ~
~
~
F
o
r
control to b
e
effective, e
a
c
h
step in this four-step process m
u
s
t
b
e
effective.
w
w
w
w
w

w
w
~
~
~
,,, ~„ ~„
o
N
r
n
o
~
r
n
N
N
N
N
m
E,fjective Planning.
I
have discussed the requirements o
f
effective p

l
a
m
u
u
g
throughout the b
o
o
k
.
I
n
my
,~ ~
U
.
0
.
A
~
N
~
N
particular, the plans m
u
s
t
b

e
comprehensive a
n
d
frozen into a
baseline to provide a
fixed measure for con-
y
~'
a~J
w
w
w
w
w
w
w
~
~
trol. If the plans are updated frequently, without the application
o
f
strict change control, then there will
b
e
n
o
measure for control. T
h

e
project will always b
e
o
n
time, because the plans h
a
v
e
just b
e
e
n
updated.
b
T
e
a
m
m
e
m
b
e
r
s
m
a
y
develop n
e

w
activity schedules, but the project m
a
n
a
g
e
r
m
u
s
t
authorize t
h
e
m
befare
;~
x
b
~
~
~
»
~
o
~
N
,
they are included in the master plan. W

o
r
k
is d
o
n
e
against current w
o
r
k-to lists, issued regulazly.
a
o
~
,,, ~
~
~
v, ~n V, o
.-.
F
sffective Reporting.
T
h
e
r
e
are six requirements for effective reporting.
b

1. Reports should b
e
m
a
d
e
against the plan.
T
o
ensure people are interpreting the reports in the s
a
m
e
'g
„
y
~,
{
w
a
y
,
the reports should b
e
m
a
d
e
against the plan. E

x
a
m
p
l
e
3.6 describes a
case in w
h
i
c
h
the project
~
~
'~
~
o
m
a
n
a
g
e
r
a
n
d
t
e
a

m
m
e
m
b
e
r
s
w
e
r
e
working o
n
different plans. T
h
e
t
e
a
m
m
e
m
b
e
r
s
w
e
r
e
m
a

k
i
n
g
ver-
~
o'a
q
~
'
a
~
~
~~
~
bal reports a
n
d
reporting satisfactory progress. T
h
e
project m
a
n
a
g
e
r
could not understand w

h
y
they
<q ~
o
~
~
~
~
w
e
r
e
not achieving his milestones. T7unaround d
o
c
u
m
e
n
t
s
are a
tool for.reporting against the plan.
y
o
'~ ~' a
p
°

m •~ u`~
2
.
There should b
e
defined criteria f
o
r
control.
Likewise it is important to h
a
v
e
defined criteria. I
f
o
A
~
'
:
~
:~' :~' ~
~
~
'~
o
people are asked to m

a
k
e
a
d
h
o
c
reports, they tend to report the g
o
o
d
n
e
w
s
a
n
d
hide the b
a
d
n
e
w
s
.
v
~
~, g
g

~
~
o
"tea
If asked to report against a
set of closed questions, they will usually a
n
s
w
e
r
honestly. If they
~
b
~
~
m
A
w
Q
c~ ~
report dishonestly, it will b
e
c
o
m
e
obvious at the s
e

c
o
n
d
o
r
third reporting period. D
e
f
i
n
e
d
criteria
are given below.
.".~
c
N
~^ ~' "~ ̀
~ ~
00 °i
3
.
T
h
e
control-tools should b
e
s
i

m
le a
n
d
iendl .
T
e
a
m
m
e
m
b
e
r
s
should s
e
n
d
as little t
i
m
e
as
P
Y

p
m
.
~
~
v`~'i v"'i v"'i vii vii vii v"'i v"'i
'fi'
possible filling in reports. If submitting reports takes a
n
excessive time, people rightly c
o
m
p
l
a
i
n
they are being distracted f
r
o
m
productive w
o
r
k
(
E
x

a
m
p
l
e
17.1). Simple, friendly tools m
e
a
n
s
single -page reporting nested in the w
o
r
k
b
r
e
a
k
d
o
w
n
structure (
W
B
S
)
and reports against the plan
2
9
2

-
-
-
-
___ _
-
_
_
_
-
-
yin
`
2
9
4
`

P
R
O
C
E
S
S
E
X
E
C
U
T
I
O
N
A
N
D
C
O
N
T
R
O
L
2
9
5
with defined criteria requiring n
u
m

e
r
i
c
or yes/no answers. Reports are often filed against w
o
r
k-
to lists. T
h
e
s
e
aze turnaround d
o
c
u
m
e
n
t
s
.
T
h
e
w
o
r
k -to list contains space for the report, a
n
d

is
returned at the e
n
d
o
f
the reporting period (Table 17,1).
F~cample 17.1
Simple, Friendly Tools
I
u
s
e
d
to w
o
r
k
o
n
a
m
m
o
n
i
a
plant overhauls, e
a
c
h

a
4
-
w
e
e
k
project. E
v
e
r
y
day, supervisors c
a
m
e
to a
1-hour control meeting in the m
o
r
n
i
n
g
,
a
2
-hour meeting in the afternoon, a
n
d
spent 1

h
o
u
r
after w
o
r
k
completing daily returns. T
h
e
y
quite reasonably c
o
m
p
l
a
i
n
e
d
that they should s
p
e
n
d
m
o
r

e
time o
n
the patch motivating their workers.
4
.
Reports should b
e
m
a
d
e
at defined intervals.
lust as it is necessary to report against defined
criteria, it is also necessary to report at defined intervals. Y
o
u
should n
o
t
ask people to report only
w
h
e
n
there is s
o
m

e
t
h
i
n
g
to discuss. P
e
o
p
l
e
hate to volunteer failure, s
o
they will n
o
t
ask for help
until it is too late to recover. If people k
n
o
w
that they m
u
s
t
report both g
o
o
d

n
e
w
s
a
n
d
b
a
d
at
defined intervals, then they will report m
o
r
e
freely a
n
d
accurately. T
h
e
frequency o
f
the reporting
period d
e
p
e
n
d
s

o
n
•
T
h
e
length o
f
the project
•
T
h
e
stage in the project
•
T
h
e
risk a
n
d
c
o
n
s
e
q
u
e
n
c

e
o
f
failure
O
n
a
year -long project, y
o
u
m
a
y
report fortnightly at the activity level. In azeas of h
i
g
h
risk,
y
o
u
m
a
y
report m
o
r
e
often. T
o

w
a
r
d
the e
n
d
y
o
u
m
a
y
report w
e
e
k
l
y
or e
v
e
n
daily.
5
.
Reports should b
e
discussed a
t

forr~zal meetdngs.
T
o
b
e
effective the reports m
u
s
t
b
e
m
a
d
e
a
n
d
discussed at f
o
r
m
a
l
meetings. Passing the t
i
m
e
o
f
d
a

y
at the coffee m
a
c
h
i
n
e
is part o
f
effective
t
e
a
m
building, b
u
Y
n
o
t
o
f
effective control. T
o
k
e
e
p
the meetings short a

n
d
effective, the discus-
sion should focus o
n
identifying problems, a
n
d
responsibility for solving t
h
e
m
,
but the meeting
should not attempt to solve the problem.
6
.
T
h
e
reports should stimulate creative discussions.
T
o
link into the next steps o
f
control, the
reports m
u

s
t
generate creative discussion, s
o
the t
e
a
m
c
a
n
identify w
h
e
r
e
variances are occurring
a
n
d
w
a
y
s
o
f
taking effective timely acrion.
Effective Reviews.
U
s
i

n
g
the data, the t
e
a
m
determines whether the project is b
e
h
a
v
i
n
g
as pre-
dicted a
n
d
if not, calculates the size a
n
d
i
m
p
a
c
t
o
f
the variances. T
h

e
t
w
o
quantitative m
e
a
s
u
r
e
s
o
f
progress are cost a
n
d
time, a
n
d
s
o
they receive the greatest attention. T
h
e
t
e
a
m
uses the reports to
forecast time a

n
d
cost at completion, a
n
d
calculates a
n
y
differences b
e
t
w
e
e
n
these figures a
n
d
the
baseline. It m
a
y
simply b
e
that w
o
r
k
is taking longer a

n
d
vesting m
o
r
e
than predicted; or delays or
additional effort m
a
y
b
e
caused b
y
variances in quality, people failing to fulfill their
responsibility,
externally i
m
p
o
s
e
d
delays, or changes in scope. Therefore, the variances in time a
n
d
cost cari point
to a
n

e
e
d
to control o
n
e
or m
o
r
e
o
f
the dive functions o
f
project m
a
n
a
g
e
m
e
n
t
.
T
h
e
defined criteria,
formal meetings; a
n

d
creaflve discussions aze k
e
y
to this process.
Effective Action.
T
o
close the controlloop, the t
e
a
m
m
u
s
t
take effective action to o
v
e
r
c
o
m
e
a
n
y
variances. This m
a
y
m

e
a
n
revising the plan to reflect the variances, b
u
t
hopefully it m
e
a
n
s
taking
timely effective action to stop t
h
e
m
f
r
o
m
getting w
o
r
s
e
a
n
d
preferably reducing or ~limivating t
h
e

m
.
G
a
t
h
e
r
i
n
g
D
a
t
aTh
e
first step in the control process is to gather data o
n
progress. T
h
e
s
e
are usually collected at the
activity level but m
a
y
b
e
collected at the w
o

r
k -package or task level. W
h
e
n
collected at a
l
o
w
e
r
level,
the data c
a
n
b
e
aggregated to report at a
higher level, T
h
e
u
s
e
o
f
these data in the control process is
described below.
I
said a

b
o
v
e
that data are m
o
s
t
effectively gathered against defined criteria using turnaround
d
o
c
u
m
e
n
t
s
a
n
d
w
o
r
k -to lists issued at the start o
f
the reporting period a
n
d
u
s
e

d
at the e
n
d
o
f
the
period to gather data. T
u
r
n
a
r
o
u
n
d
d
o
c
u
m
e
n
t
s
provide reports against the plan, defined criteria, a
n
d
simple, friendly tools. T
h
e

y
c
a
n
also b
e
used as the focus for f
o
r
m
a
l
meetings. I
find it effective to
ase a
data projector to project the turnazound d
o
c
u
m
e
n
t
onto a
whiteboazd. T
h
e
t
e
a

m
c
a
n
fill in the
d
o
c
u
m
e
n
t
o
n
the boazd in a
g
r
o
u
p
meeting. T
h
i
s
process encourages creative discussions to identify
a
n
y
problems, but also enables the meeting to b
e

kept short. Figure 17.4 is a
m
a
n
u
a
l
turnaround doc-
u
m
e
n
t
e
n
c
o
m
p
a
s
s
i
n
g
the activity schedule f
r
o
m
Fig. 9.6. Table 1
7
.

2
contains acomputer-generated
turnaround d
o
c
u
m
e
n
t
.
Figure 17.5 is a
turnazound d
o
c
u
m
e
n
t
at the milestone level.
T
h
e
required time a
n
d
cost data c
a
n
b

e
gathered using people's time sheets. A
t
the start o
f
the
w
e
e
k
,
individuals are given blank t
r
m
e
sheets listing the activities they should b
e
w
o
n
t
i
n
g
o
n
d
a
y
b
y

day; they enter the a
m
o
u
n
t
o
f
t
i
m
e
spent w
o
r
k
i
n
g
o
n
e
a
c
h
activity, a
n
d
at the e
n
d
o

f
the time period
they enter the a
m
o
u
n
t
o
f
t
i
m
e
left to w
o
r
k
o
n
e
a
c
h
activity:
•
T
h
e
first Mime h
e
or she b

o
o
k
s
time against a
n
activity is actual start.
•
T
o
t
a
l
t
i
m
e
b
o
o
k
e
d
gives effort to date.
•
Effort remaining is entered at the e
n
d
o
f
the period.

•
W
h
e
n
this is zero, y
o
u
c
a
n
l
o
o
k
b
a
c
k
to find the last t
i
m
e
h
e
or s
h
e
entered t
i
m

e
against the activity
for actual completion.
•
Forecast completion c
a
n
b
e
extrapolated f
r
o
m
effart to date a
n
d
effort remaining.
C
a
l
c
u
l
a
t
i
n
g
P
r

o
g
r
e
s
s
T
h
e
data gathered are u
s
e
d
to calculate progress o
n
ail seven project m
a
n
a
g
e
m
e
n
t
funcrions: time,
cost„ quality, project organization, stakeholder satisfaction,
scope, a
n
d
risk. I

n
pazticular, with the
first t
w
o
w
e
try to forecast the final outturn, the t
i
m
e
a
n
d
cost to completion, as this gives better
control than reporting the actual t
i
m
e
a
n
d
cost to date. T
h
i
s
concept is part o
f
the f

o
r
w
a
r
d-looking
control. This is a
n
important principle o
f
project m
a
n
a
g
e
m
e
n
t
—
y
o
u
c
a
n
control only the future, n
o
t
the past. T

h
e
only value o
f
the past is to give y
o
u
information to help y
o
u
control the future. B
u
t
y
o
u
cannot u
n
d
o
the past; all y
o
u
c
a
n
influence is the future, a
n
d

s
o
it is the future q
o
u
n
e
e
d
to control,
Y
o
u
drive b
y
focusing o
n
the road ahead, not b
y
constantly looking in the rearview mirror. T
h
u
s
w
e
try to forecast t
i
m
e

a
n
d
cost to completion.
Forecasting T
i
m
e
to Completion.
T
i
m
e
is the simplest funcflon to monitor, a
n
d
that is perhaps w
h
y
it receives the greatest attention. All y
o
u
h
a
v
e
to d
o
is to schedule the rest o

f
the project in the s
a
m
e
w
a
y
y
o
u
scheduled it inirially. Tracked bar
-charts a
n
d
milestone tracker charts (Fig. 13.15) help in
this process. If critical milestones h
a
v
e
b
e
e
n
delayed, or if the critical path has b
e
e
n
delayed (
a

n
d
n
o
other path has b
e
c
o
m
e
"
m
o
r
e
critical"), then likely the project has b
e
e
n
delayed b
y
that a
m
o
u
n
t
.
If
the t
e

a
m
has maintained a
n
up-to-date n
e
t
w
o
r
k
for the project, that c
a
n
b
e
used to forecast the c
o
m
-
pletion date for the project in exactly the s
a
m
e
w
a
y
it w
a
s

u
s
e
d
to predict the e
n
d
date initially. T
h
e
record o
f
effort to date versus effort remaining c
a
n
also b
e
u
s
e
d
to control time in o
n
e
o
f
three w
a
y

s
:
B
y
revising estimates o
f
duration. If there is a
consistent estimaring error, this will b
e
indicated
b
y
a
trend. T
h
e
estimates o
f
duration c
a
n
b
e
revised accordingly.
B
y
indicating the cause o

f
delays. Table 17.3 s
h
o
w
s
four possible o
u
t
c
o
m
e
s
o
f
duration a
n
d
effort.
B
o
t
h
m
a
y
b
e
o
n
(or u

n
d
e
r
)
budget, in w
h
i
c
h
case all is well. T
h
e
project m
a
y
b
e
o
n
t
i
m
e
but effort
is over budget, in w
l
v
c
h
case there m

a
y
b
e
m
i
n
o
r
errars but the t
e
a
m
is coping, perhaps b
y
w
a
r
k
-
i
n
g
u
n
p
l
a
n
n
e
d

overtime. T
h
e
project m
a
y
b
e
late bnt n
o
additional effort has b
e
e
n
e
x
p
e
n
d
e
d
.
T
h
e
n
the cause o
f
the delay m

u
s
t
b
e
d
u
e
to external factors—perhaps other people failing to fulfill their
responsibilities, late delivery o
f
s
o
m
e
materials, or the project t
e
a
m
m
e
m
b
e
r
s
h
a
v
e
b
e
e
n

occupied
o
n
w
o
r
k
o
f
higher priority (to them). If both t
i
m
e
a
n
d
effort are over budget, then the cause m
a
y
b
e
serious estimating errors, r
e
w
o
r
k
d
u
e
to p

o
o
r
quality, or r
e
w
o
r
k
d
u
e
to change. A
trend wi11
indicate the first as described above, a
n
d
s
o
y
o
u
will n
e
e
d
to monitor effort a
n
d
duration over

several reports. Y
o
u
c
a
n
see f
r
o
m
Table 17.3 h
o
w
the complete set o
f
control data c
a
n
help itritiate
discussion over the likely causes o
f
delays, a
n
d
help in their elimination.
T
h
r

o
u
g
h
the e
a
r
n
e
d
value calcailc~tion. T
h
e
schedule variance, calculated as part o
f
the cost c
o
n
-
trol process (Sec. 12.4), will indicate whether the project is o
n
average a
h
e
a
d
or b
e
h

i
n
d
schedule.
SFtHA ACTIVITY SCHEDULE
REPORT
Pro'ech
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FIGiIRE 17.4 Manual turnazound document encompassing the
acflvity schedule.

___— —. __ __,.~
TABLE 17.2 Computer-Generated Turnazound Document and
Time Sheet
Orig Rem Sched Sched Actual Actual M 'hi W Th F WE Work
Act no. Descripfion dur (d) dur (d) start finish start finish (h)
(h) (h) (h) (h) (h) rem (h)
S31 Identify jobs 5 Feb. 2 Feb. 6 Feb. 2 Feb. 6 --
S32 Specify skills 15 Feb. 9 Feb. 27 Feb. 9 Feb. 25 6 6 6 18 0
S33 Specify experience 15 5 Feb. 9 Feb. 27 Feb. 9 6 8 7 21 6
S34 Specify personality 15 6 Feb. 9 Feb. 27 Feb. 9 Feb. 26 5 6 3
3 17 0
S35 Determine competence 5 5 Feb. 23 Feb. 27 Feb. 23 Feb. 23
8 8 0
S36 Essential competencies 5 5 Feb. 23 Feb. 27 Feb. 24 Feb. 24
8 8 0
S37 Deternune assessment 5 5 Feb. 23 Feb. 27 Feb. 25 Feb. 25 8
8 0
S38 Consultation 20 20 Maz:2 Maz:27
S39 Approve final version 1 1 Mar. 30 Maz: 30
2
9
8
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17.5
11~mazound document at the milestone level.
T
A
B
L
E
17.3
Determining the Cause of Delays b
y
Comparutg Effort and Complefion Dates
Effort
Duration o
n
T
i
m
e
Late
A
s
predicted
N
o

problem
External delays
Responsibilities not fulfilled
Over budget
Minor estimating errors
Esrimating errors
Minor changes
Major quality problems
Forecasting C
o
s
t
to Completion.
I
s
h
o
w
e
d
in Sec, 1
2
.
4
h
o
w
to u
s

e
the cost data gathered to fore-
cast the cost at completion:
Forecast cost at completion =
a
c
t
u
a
l
cost to date +forecast cost remaining
This adheres to the principle o
f
forwazd-looking control. I
described this m
o
r
e
fully in Sec. 12.4. T
h
e
S
curve (Fig. 12.8) provides a
highly visual representation o
f
the progress to date.
Controlling Quality.
D

a
t
a
gathered c
a
n
s
h
o
w
w
h
e
r
e
deviations h
a
v
e
occurred f
r
o
m
the specifl-
cation. T
h
e
s
e
quality variances m
a

y
b
e
identified as part o
f
the quality control process ar m
a
y
b
e
noticed b
y
t
e
a
m
m
e
m
b
e
r
s
.
Controlling Organization.
Similazly, the data gathered m
a
y
indicate w
h

e
r
e
the project organiza-
tion is not performing as planned. This m
a
y
specifically b
e
caused b
y
people not fulfilling their roles
o
r
responsibilities as agreed u
p
o
n
in the responsibility chart. Table 17.3 also s
h
o
w
s
h
o
w
the control
process c
a

n
indicate the i
m
p
a
c
t
o
f
these organizational delays o
n
t
i
m
e
a
n
d
cost.
Satisfaction o
f
Stakeholders.
This is difficult to monitor but is the second -to-last step in the
stake-
holder e
n
g
a
g
e
m

e
n
t
process (Fig. 10.2). Y
o
u
n
e
e
d
to w
o
r
k
closely with the stakeholders a
n
d
in that
w
a
y
try to j
u
d
g
e
their satisfaction. Y
o
u
c

a
n
also c
o
n
d
u
c
t
marketing surveys, or just ask t
h
e
m
directly
if they are happy.
Controlling S
c
o
p
e
.
T
h
e
data gathered c
a
n
indicate that c
h

a
n
g
e
s
in s
c
o
p
e
h
a
v
e
occurred. T
h
e
s
e
especially will h
a
v
e
a
n
i
m
p
a
c
t
o
n

the t
i
m
e
a
n
d
cost o
f
a
project (Table 17.3). C
h
a
n
g
e
s
in scope aze
usually inevitable. H
o
w
e
v
e
r
,
they should b
e
rigidly controlled, a
n

d
this requires a
c
h
a
n
g
e
control
procedure. C
h
a
n
g
e
control is a
six-step process:
1
.
L
o
g
the change.
2. Define the change.
3
.
Assess the i
m
p

a
c
t
o
f
the change. S
e
e
m
i
n
g
l
y
simple c
h
a
n
g
e
s
c
a
n
h
a
v
e
far-reaching consequences.
4
.
Calculate the cost o

f
the change. This is not just the direct cost but the cost o
f
the impact.
5
.
Define the benefit o
f
the change. This m
a
y
b
e
financial or nonfinancial. T
h
e
latter includes safety.
6
.
A
c
c
e
p
t
or reject the c
h
a
n

g
e
based o
n
marginal investment criteria. A
return o
f
4
0
percent per
a
n
n
u
m
is possible for marginal criteria c
o
m
p
a
r
e
d
to 2
0
percent for the project as a
whole.
If this procedure is applied rigorously, m
a

n
y
c
h
a
n
g
e
s
d
o
not get past step 3. Table 17.3 is a
f
o
r
m
to aid this process.
M
o
n
i
t
o
r
i
n
g
Risk.
Finally y
o
u
n

e
e
d
to monitor risk. Y
o
u
should review the risk register (Table 14.4)
regularly, focusing o
n
those risks that m
a
y
occur in the neaz future. Consider whether anything has
h
a
p
p
e
n
e
d
to raise or l
o
w
e
r
the likelihood or c
o
n
s

e
q
u
e
n
c
e
o
f
a
risk, a
n
d
so whether it has c
h
a
n
g
e
d
in its ru~lcing in Fig. 14.1.
3
0
0
P
R
O
C

E
S
S
E
X
E
C
U
T
I
O
N
A
N
D
C
O
N
T
R
O
L
3
0
7
T
a
k
i
n
g
A

c
t
i
o
n
T
A
B
L
E
17.4
Change Control F
o
r
m
Pioject:
Milestone:
Activity: -
Description of change:
Impact of change:
Cast of change:
Value of change:
N
a
m
e
Proposed by:
............
Checked by:
............

Approved by:
............
Signature
Date
O
n
c
e
w
e
h
a
v
e
identified that a
project is deviating f
r
o
m
plan, w
e
m
u
s
t
take appropriate action. T
h
e
earlier action is taken, the better, because it is cheaper to

recover or abort the project should it prove
nonviable.
R
e
c
o
v
e
r
i
n
g
a
Project.
T
h
e
response to the variances c
a
n
b
e
easily m
a
n
a
g
e
a
b
l
e

or u
n
m
a
n
a
g
e
-
able a
n
d
reactive. T
h
e
m
o
s
t
effecrive approach d
e
p
e
n
d
s
o
n
the circumstances. T
h
e

r
e
aze cases that
d
e
m
a
n
d
a
n
i
m
m
e
d
i
a
t
e
response. H
o
w
e
v
e
r
,
in m
o
s
t
cases there is time to reflect a

n
d
recoup. A
siruc-
tured approach to p
r
o
b
l
e
m
solving (Fig. 1.6) is the best m
e
a
n
s
o
f
recovery, H
e
r
e
,
Idescribe asix-step
version for planning recovery:
Stop.
Regardless
o
f

the
size
o
f
the
variance
a
n
d
its
impact, everyone
should
pause.
Unfortunately, the m
o
s
t
c
o
m
m
o
n
reaction is to seek a
n
instant r
e
m

e
d
y
.
S
o
m
e
c
o
m
m
o
n
solutions s
u
c
h
as adding m
o
r
e
resources or saclting the project m
a
n
a
g
e
r
m
a
y
d

o
m
o
r
e
h
a
r
m
than g
o
o
d
.
W
h
i
l
e
this
reaction is understandable, it is often w
r
o
n
g
because o
f
the emotional state o
f
the t
e

a
m
.
S
o
m
e
r
i
m
e
s
stock responses c
a
n
initiate feedback loops that actually m
a
k
e
the situation w
o
r
s
e
(
~
m
e
r
et al.,
2010). K
e

e
p
cool, c
a
l
m
,
a
n
d
collected. R
e
m
e
m
b
e
r
the first l
a
w
o
f
holes: if y
o
u
f
m
d
yourself in a
hole, stop digging (

E
x
a
m
p
l
e
17.2).
L
o
o
k
,
Listen, a
n
d
Z.earn.
It is important to undertake a
thorough review with all t
e
a
m
m
e
m
b
e
r
s
a
n

d
the client present. Effective recovery m
u
s
t
b
e
based o
n
a
clear understanding o
f
the cause o
f
the
divergence a
n
d
possible w
a
y
s
o
f
o
v
e
r
c
o

m
i
n
g
it. Seeking v
i
e
w
s
o
n
w
h
a
t
w
e
n
t
w
r
o
n
g
a
n
d
w
h
a
t
action
the t
e

a
m
proposes is important in rebuilding c
o
m
m
i
t
m
e
n
t
.
D
e
v
e
l
o
p
Options a
n
d
Select a
Likely Course.
E
x
p
l
o
r
e

every a
v
e
n
u
e
a
n
d
develop a
range o
f
solutions. Establish decision criteria s
o
opflons c
a
n
b
e
evaluated against agreed u
p
o
n
conditions. If
necessary, return to the original financial evaluations, recost a
n
d
retime e
a

c
h
option, air t
h
e
m
with
the client, a
n
d
then select o
n
e
that m
e
e
t
s
the decision criteria.
Wzr~ Saipport fo
r
the C
h
o
s
e
n
Option.
It is important that there is support f

r
o
m
all those involved.
T
h
e
r
e
is hard w
o
r
k
ahead, a
n
d
u
n
c
o
m
m
i
t
t
e
d
t
e
a
m
m
e

m
b
e
r
s
will falter at the first hurdle.
Act:
O
n
c
e
the agreed u
p
o
n
course o
f
action h
a
s
b
e
e
n
accepted, every effort m
u
s
t
b
e
m

a
d
e
to
i
m
p
l
e
m
e
n
t
it. Deviations f
r
o
m
the agreed u
p
o
n
plan will only a
d
d
to the confusion a
n
d
m
a
k
e

the
situation worse.
Continue to Monitor.
M
o
n
i
t
o
r
the i
m
p
a
c
t
o
f
a
n
y
actions to ensure they h
a
v
e
the desired effect.
If they d
o
not,. then the recovery process m
u

s
t
b
e
repeated.
E
x
a
m
p
l
e
17.2
If Y
o
u
F
i
n
d
Yourself in a
H
o
l
e
,
Stop D
i
g
g
i
n

g
I
w
a
s
w
o
r
k
i
n
g
for a
n
I
T
vendor a
n
d
c
a
m
e
across a
g
r
o
u
p
o
f
salespeople w

h
o
s
e
e
m
e
d
to b
e
running a
r
o
u
n
d
like headless chickens. S
o
I
asked t
h
e
m
w
h
a
t
the p
r
o

b
l
e
m
was. T
h
e
y
said they
w
e
r
e
trying to prepare a
bid for a
n
o
r
d
e
r
- w
h
i
c
h
,
if they w
o
n
it, w

o
u
l
d
m
a
k
e
t
h
e
m
the largest
supplier for a
certain line o
f
e
q
u
i
p
m
e
n
t
in E
u
r
o
p
e
.

B
u
t
they said they w
e
r
e
m
a
k
i
n
g
n
o
progress
a
n
d
l
o
o
k
e
d
as t
h
o
u
g
h
they w

o
u
l
d
n
o
t
c
o
m
p
l
e
t
e
the bid o
n
time. I
suggested they treat the bid as
a
project a
n
d
s
p
e
n
d
3
d
a
y
s

in a
start-up w
o
r
k
s
h
o
p
with m
e
.
T
h
e
y
said they h
a
d
n
o
t
i
m
e
to s
p
e
n
d
in a

start-up w
o
r
k
s
h
o
p
with m
e
;
they h
a
d
a
bid to prepare. I
asked t
h
e
m
if they w
e
r
e
g
o
i
n
g
to

b
e
successful. T
h
e
y
said at the rate they w
e
r
e
going, n
o
!
S
o
I
asked w
h
a
t
h
a
d
they to lose, a
n
d
in fact they m
i
g
h

t
save themselves heart attacks. S
o
they c
a
m
e
a
n
d
spent 3
d
a
y
s
with m
e
i
n
a
start-up w
o
r
k
s
h
o
p
,
successfitlly w

o
n
the bid, a
n
d
b
e
c
a
m
e
the largest supplier in E
u
r
o
p
e
o
f
that
line o
f
equipment.
O
p
t
i
o
n
s
f
o

r
A
c
t
i
o
n
T
h
e
r
e
are five basic options for taking action.
F
i
n
d
a
n
Alternative
Solution
.
This is b
y
far the best solution. T

h
e
plan is recast to recover the
projects objectives in a
w
a
y
that h
a
s
n
o
i
m
p
a
c
t
o
n
the quality, cost, time, or scope. It m
a

y
b
e
that
t
w
o
ackivities w
e
r
e
planned sequentially, because they share the s
a
m
e
scazce resource. If the first is
delayed for other reasons, it m
a
y
b
e

possible to d
o
the s
e
c
o
n
d
activity first, a
n
d
hopefully w
h
e
n
it is
complete, it will then b
e
possible to d

o
the other.
Corrapromise
Cost.
This
m
e
a
n
s
adding resources either as
overtime or as additional people,
machines, or material to recover the lost time. This is usually
the instant reaction to project delays.
H
o
w
e
v
e
r
.

Brooks's l
a
w
(
1
9
9
9
)
states
A
d
d
i
n
g
resources to a
late software project m
a
k
e
s

it later still.
S
o
actually adding people c
a
n
h
a
v
e
the opposite o
f
the desired effect. T
h
e
rationale is that e~st-
i
n
g
people m

u
s
t
take t
i
m
e
out to bring the n
e
w
people u
p
to speed. If y
o
u
w
a
n
t
to a

d
d
people, y
o
u
n
e
e
d
to carve out a
bit o
f
the project a
n
d
give it to t
h
e
m

,
rather than increase the n
u
m
b
e
r
o
f
people
w
o
r
k
i
n
g
o
n
a
bit o
f

the project already u
n
d
e
r
w
a
y
.
C
o
m
p
r
o
m
i
s
e
T
i
m
e

.
This m
e
a
n
s
allowing the dates to slip. This m
a
y
b
e
preferable, depending o
n
whether cost or t
i
m
e
is the m
o

r
e
important constraint o
n
the project. This, decision should h
a
v
e
b
e
e
n
m
a
d
e
during feasibility a
n
d
'
c

o
m
m
u
n
i
c
a
t
e
d
to the project t
e
a
m
as part o
f
the project strategy. B
e
care-
ful about running activities in parallel, or "crunching the n

e
t
w
o
r
k
:
"h
i
r
n
e
r
et al. (
2
0
1
0
)
describe a
case w
h
e

r
e
overlapping activities cause interference b
e
t
w
e
e
n
t
h
e
m
,
a
n
d
that through feedback loops
caused m
u
c
h
greater delay.

C
o
m
p
r
o
m
i
s
e
S
c
o
p
e
.
This m
e
a
n
s
reducing the a

m
o
u
n
t
o
f
w
o
r
k
done, w
h
i
c
h
in turn m
e
a
n
s
taking

less o
n
time to achieve s
o
m
e
benefit. Nofice I
did not s
a
y
c
o
m
p
r
o
m
i
s
i
n
g

the quality. T
h
e
latter is very
risky o
n
c
e
the initial specification h
a
s
b
e
e
n
set, a
n
d
should therefore b
e

discouraged.
A
b
o
r
t
the Project. ,This is a
d
i
~
c
u
i
t
decision. H
o
w
e
v
e
r
,

it m
u
s
t
b
e
taken if the future costs o
n
the
project aze not justified b
y
the expected benefits. Project t
e
a
m
s
aze often puzzled that their r
e
c
o

m
-
m
e
n
d
a
t
i
o
n
to terminate a
project is ignored; a
decision w
h
i
c
h
s
e
e
m

s
obvious is avoided, a
n
d
g
o
o
d
m
o
n
e
y
is poured after b
a
d
,
depriving other projects. It takes courage to abort a
project. D
u
r

i
n
g
their
lives, projects.
acquire c
h
a
m
p
i
o
n
s
a
n
d
supporters. Senior people m
a
y
h
a

v
e
b
e
c
o
m
e
associated with
its success a
n
d
feel if the project fails, it m
a
y
d
a
m
a
g
e
their reputation. T

h
e
r
e
is often a
feeling that
"
w
i
t
h
a
little m
o
r
e
m
o
n
e
y
a
n

d
a
bit o
f
luck the project c
a
n
b
e
turned around." T
h
e
fact is that o
n
c
e
a
n
organization m

a
k
e
s
a
n
emotional c
o
m
m
i
t
m
e
n
t
to a
project, the organization finds it very hard to
a
b
a
n
d

o
n
.
A
n
o
t
h
e
r
a
z
g
u
m
e
n
t
often put forwazd to support a
failing project is that "as w
e
h
a
v

e
already
spent s
o
m
u
c
h
o
n
it, w
e
should finish it:' Unfortunately, this a
z
g
u
m
e
n
t
is fallacious: future costs

m
u
s
t
b
e
justified b
y
the expected benefit n
o
matter h
o
w
m
u
c
h
h
a
s
b
e

e
n
spent s
o
faz. After 10,000
A
m
e
r
i
c
a
n
s
h
a
d
b
a
e
n
killed, the g

o
v
e
r
n
m
e
n
t
justified the continuation o
f
the V
i
e
t
n
a
m
w
a
z
b
y

saying,
"
O
u
r
b
o
y
s
shall not h
a
v
e
died in vain:' S
o
2
0
,
0
0
0
m

o
r
e
A
m
e
r
i
c
a
n
s
w
e
r
e
killed, a
n
d
eventually the
3

0
2
P
R
O
C
E
S
S
E
X
E
C
U
T
I
O
N
A
N
D
C

O
N
T
R
O
L
3
0
3
S
U
M
M
A
R
Y
United States withdrew, a
n
d
people realized the a

r
g
u
m
e
n
t
h
a
d
b
e
e
n
fallacious. Unfortunately I
h
a
v
e
heard people justify the continuation o
f
the w

a
r
in Afghanistan b
y
saying, "
O
u
r
b
o
y
s
shall not h
a
v
e
died in vain;' A
n
d
s
o

it goes. If the project's o
u
t
c
o
m
e
is still important to the organizarion, it m
a
y
b
e
m
o
r
e
effective to abort aproject,.-learn f
r
o
m
it, a

n
d
stazt afresh.
1
.
T
h
e
process o
f
resourcing a
project includes the following steps:
•
Identify w
h
a
t
is to b
e

achieved.
•
Identify the skills a
n
d
skill types required.
•
Identify the people mailable.
•
Assess their competence.
•
Identify a
n
y
training required.
•
Negotiate with the resource provider.
E

n
s
u
r
e
appropriate project facilities are available.
2
.
T
h
e
five steps o
f
activity planning are as follows:
•
Define the acfivities to achieve a
milestone or w
o
r
k
package.

•
Ratify the people involved.
•
Define their roles a
n
d
responsibilities.
•
Estimate w
o
r
k
content a
n
d
durations.
•
Schedule activiries within a

w
o
r
k
package.
3
.
After the activity schedule is created, it is entered into the
master plan, a
n
d
at appropriate inter-
vals w
o
r
k
is allocated to people. B
o
t
h
steps m

u
s
t
b
e
authorized b
y
the project manager.
4
.
Work.is allocated to people via w
o
r
k-to Lists b
y
•
T
i
m
e

period
•
W
o
r
k
p
a
c
k
a
g
e
S
.
T
h
e
four steps in the control cycle are as follows:
•
P
l

a
n
future performance.
•
M
o
n
i
t
o
r
achievement against plan.
•
Calculate variances a
n
d
forecast outturn.
•
T

a
k
e
action to o
v
e
r
c
o
m
e
variances.
6
.
F
o
r
control to b
e
affective, e
a

c
h
step in this cycle m
u
s
t
b
e
effective, R
e
q
u
i
r
e
m
e
n
t
s
for effective
planning h

a
v
e
already b
e
e
n
described, a
n
d
in particular they are stated in the five principles o
f
project m
a
n
a
g
e
m
e
n

t
at the e
n
d
o
f
C
h
a
p
.
3.
7
.
Requirements for effective reporting include these:
•
Reports against the plan
•
Definedcriteria for control
•
Simple, friendly tools
•

Reporting at defined intervals
•
F
o
r
m
a
l
review meetings
•
Creative discussions
8
.
T
h
i
s
c
a
n
b
e

achieved b
y
gathering data using turnaround d
o
c
u
m
e
n
t
s
,
w
h
i
c
h
c
a
n
b
e
u

s
e
d
to gather
data to control the five objectives:
•
T
u
n
e
•
C
o
s
t
•
Quality
•
Organization

•
S
c
o
p
e
9
.
T
i
m
e
is controlled b
y
recording progress o
n
the critical or near-critical paths, or b
y
c
o

m
p
a
r
i
n
g
the cost o
f
w
o
r
k
actually completed to that planned to h
a
v
e
b
e
e
n
completed. T

o
d
o
this, the fol-
l
o
w
i
n
g
progress data are collected:
•
Actual stazt/finish
•
Revised starUfuush
•
Effort to date
•
Effort remaining
•

Costs to date
•
Costs remaining
1
0
.
C
o
s
t
is controlled b
y
c
o
m
p
a
r
i
n
g

costs incurred to the planned cost o
f
w
o
r
k
act~ially completed.
T
o
d
o
this, the s
a
m
e
data are required. Costs are said to b
e
incurred w
h
e

n
the expenditure is
c
o
m
m
i
t
t
e
d
,
not w
h
e
n
the invoices are paid, because at that t
i
m
e
the plan c

a
n
still b
e
recovered.
1
1
.
W
h
e
n
the divergence o
f
achievement f
r
o
m
the plan b
e

c
o
m
e
s
too great, the project m
u
s
t
b
e
recov-
ered. T
h
e
1
0-step p
r
o
b
l
e

m-solving cycle c
a
n
b
e
applied to find the solution to plan recovery.
Possible courses of action include
•
Rearranging the plan
•
C
o
m
p
r
o
m
i
s
i
n
g
time

•
C
o
m
p
r
o
m
i
s
i
n
g
cost
•
C
o
m
p
r
o
m
i

s
i
n
g
scope
•
Aborting the project

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