Scribd
Upload
40 views13 pages

Session 19 - MCS - Management Control Systems in Projects - Dec 2020

The document discusses various aspects of project management and control systems including project overview statements, project reviews, scheduling, cost control, productivity measurement, change control, and auditing. Effective project management requires clear goals, comprehensive planning, ongoing collaboration, and control systems to track progress and ensure projects are completed as planned.

Uploaded by

kirsurkulkarni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
40 views13 pages

Session 19 - MCS - Management Control Systems in Projects - Dec 2020

The document discusses various aspects of project management and control systems including project overview statements, project reviews, scheduling, cost control, productivity measurement, change control, and auditing. Effective project management requires clear goals, comprehensive planning, ongoing collaboration, and control systems to track progress and ensure projects are completed as planned.

Uploaded by

kirsurkulkarni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 13

Management Control Systems in Projects

• Introduction to Project Control


• Project Overview Statement as the Basis for Control
• Project Plan as the Primary Control Mechanism
• Organizing for Project Control
• Control of Project Execution
• Overall Change Control
• Project Auditing
• Conservation and Utilization of Resources

Reading: Chapter 14 of Text Book


Key factors for success of Projects
• Clear definition of Project Goals
• Agreement on success factors by project stakeholders, before
project commences
• Support & involvement of Top Management/ Project Sponsor to
ensure project success
• Comprehensive Project Planning
• Ongoing collaboration between Project Sponsor and Project
Manager, involvement of Project Sponsor in key discussions and
decisions during Planning & Execution of Project
• Technical/managerial competence, troubleshooting capabilities,
and flexibility of Project Personnel
• Project control systems, including Progress Review, Information
Systems, Communication, and Coordination Mechanisms
Project Overview Statement as basis for Control
• Project Scope Statement
– Precise description of Project Goal and how it will be achieved
– To be decided based on requirements of Project Sponsor, needs of
users, and requirements of other concerned stakeholders
– Should give a detailed account of activities to be performed and
requirement of resources for project completion
– Scope to be clearly laid out for each phase, for multi-phased projects
• Project Overview statements usually comprise following parts:
– Reason for undertaking project
– Broad goal of project, specific objectives, and criteria for assessing
successful project completion
– Anticipated risks & obstacles that can impact progress & completion
of project; and assumptions involved
• Project Stakeholders should agree on Project Scope
• Once agreed upon & signed off, Project Overview Statement
provides basis for effective control of project, during subsequent
stages of project execution
Project Review
• Purpose of Project Review is to check:
– if project can accomplish Business Goals
– whether organization’s rules are understood & implemented properly
– whether project is being managed effectively, and team members are
sure of completing it by following guidelines

• Types of Project Reviews


– Status reviews
– Design reviews
– Process reviews
Reporting relationships for Project Control
Schedule Control Tools in Projects
• Critical Path Method and Milestone Tracking
Cost Control in Projects
• Contingency Planning
• Cash Flow Management
• Earned Value Analysis (EV)
– A method for evaluating Project Progress & Financial Analysis
– Earned Value represents value earned from a project, based on
activities that are completed
– EV is measured in terms of Time or Money units
– For labor-intensive projects, unit is mostly time (man-hour utilisation
analysis)
– In non-labor intensive projects, unit is mostly money as it is useful
where one needs to consider variables like salary rates, hikes, and
overhead adjustments
• EV helps in enhancing cost performance analysis by measuring
amount of value of work done in a unit that is comparable to cost
• EV is calculated by multiplying % completion of each activity
with budgeted cost
• EV = Budgeted cost of work performed (BCWP)
Illustration: Cost Summary Table
Cash Flow Tracking Chart
Performance Metrics
Productivity Measurement
• Planned productivity for various phases of project can be
determined, based on planned work and planned resource
utilization
• During project execution, actual productivity is measured based
on actual progress and actual resource utilization
• A comparative trend analysis of actual productivity versus
planned productivity alerts the project manager to take corrective
actions when required
• Productivity measurement provides inputs for revising cost
estimates and schedules
• Progress Reporting
– Trouble reports
– Work Progress reports (planned vs. actual % of work completed)
– Financial reports (planned vs. actual costs incurred)
Progress Measurement Curve
Overall Change Control
• Scope Change Control
– Process of controlling changes in project scope that occur at various
stages of project life cycle
– Involves identifying changes in the scope, and managing factors that
cause scope changes, to see that changes are advantageous to project
– Project managers use information collected from various documents
such as work breakdown structure, performance reports, and change
requests to control scope change
– Documentation Tools used: Work Breakdown Structure, Performance
Reports, Change Requests

• Schedule Change Control


– Describes procedures by which, project schedules can be modified
– Methods include redrawing project network diagrams and
understanding proposed changes
– Performance measurement systems assess effective completion of
project activity in normal duration. They calculate magnitude of
variation that may occur for each project activity

You might also like