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Fundamentals of Project Control: Conceptual Planning

The document discusses the objectives and process of project control, which involves developing a plan with a design, estimate, and schedule and then continuously monitoring and comparing actual performance to the original plan in order to ensure budget, schedule, and quality standards are met. It also covers optimizing the project duration by analyzing the tradeoff between reducing indirect costs by finishing earlier versus increasing direct costs through expediting activities.

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57 views22 pages

Fundamentals of Project Control: Conceptual Planning

The document discusses the objectives and process of project control, which involves developing a plan with a design, estimate, and schedule and then continuously monitoring and comparing actual performance to the original plan in order to ensure budget, schedule, and quality standards are met. It also covers optimizing the project duration by analyzing the tradeoff between reducing indirect costs by finishing earlier versus increasing direct costs through expediting activities.

Uploaded by

Hasan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Stage 1 Preconstruction Stage 2: Procurement

Conceptual Planning
Stage3: Construction

Design
Stage 4: Project Close-out

Fundamentals of Project Control

Chapter 11
Introduction
• The purpose of the project control process is to guarantee
that design requirements, budget and schedule are met by
project team.
• Project control begins with a plan composed of design
documents, an estimate, and schedule
• The plan involves checkpoints throughout the project cycle.
• As the project advances, the actual work is compared to the
original plan. Actions maybe taken based on this
comparison.
• The expected cost and duration to complete the work must
be continually updated and reported. Why?
Project Control Objectives
• Check progress against acceptable standards at key dates
– standards of quality are defined by the specs.
– Standards of quantity are defined by the drawings
– standards of budget are defined by the estimate.
– Standards of time are defined by the schedule.
• Measurements of actual performance on the project
– actual performance is monitored, documented, and
compared to the planned performance.
– A project control report is then produced. The report is
based on data from time sheets, daily reports, purchase
orders, etc.
– Based on this comparison, an evaluation of the performance can be done and
actions can be suggested to meet the goals of the project.
– Data in the report are then analyzed, variances are examined, and actions
may be taken.
– Example of a site clearing report:
Budget Actual Variance
Quantity(acres) 5 acres 5 acres -
Equipment (hrs) 40 hrs 48 hrs 8
Labor (hrs) 40 hrs 48 hrs 8

Why variance? Weather, site conditions, approach, estimate, or worker


performance? What should we do for the next similar activity?
Project Control Cycle
• Examine Figure 11-3
• cost schedule engineers coordinate the data from the
field and compare the performance with the original
plan. They also prepare recommend adjustments to
the plan based on the field data.
• data are then stored as historical records for future
use.
• In the mean time, status reports are delivered to the
managers to decide the best course of action. The
project management may seek outside support, such
as consultants.
• Final instructions are given to field personnel.
• Control cycle is repeated as often as necessary.
Optimum Project Duration
• Node notation used in the book:
float of i-j = LETj - (EETi + durationi-j)
i Activity j
duration float
LET EET LET EET
•It might be more economic to pay the extra cost to
finish the project earlier if other returns are higher.
•Finishing the project earlier saves indirect expenses
and may result in a bonus.
•The extra cost comes from the increase in direct costs
of material, labor, and equipment because of working
extra hours
• Crash
– the process of accelerating an activity or multiple
activities to shorten the overall duration of the
project.
– crashing is effective when activities on the critical
path are crashed.
– As the project finish earlier, the direct cost
increases and the indirect costs decreases.
– crashing is a good idea when the total costs are
reduced as the project is shortened. In other
words, when savings in the indirect costs are
more than the extra cost of the direct costs.
• The relationship between the direct, the indirect, and the
total cost can be displayed graphically. Figure 12-3 is the
relationship between the cost (Y) and finish time (X)
• In that curve, point A is the normal finish time.
• As the project finish earlier, the direct cost increases and the
indirect costs decreases. This is true down to day 30.
• The direct cost will be more than the indirect cost if the project
finishes in day 29.
• The optimal duration is day 30, which is the lowest point in the
total cost curve.
Example

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