Chapter 4: Project

Implementation and controlling

,
4. Project Implementation and controlling
• Introduction to monitoring, evaluation and controlling
• Project Control
• Project Control Cycle
• Elements of project control (Time, Cost, Quality)
• Project schedule control
• Project cost control: methods and procedure (EVA)
• Project Quality Control
• Introduction to PMIS
4.1 Introduction to monitoring, evaluation and controlling

M&C, M&E
Monitoring and control processes continually track, review, adjust and
report on the project's performance. It's important to find out how
a project's performing and whether it's on time. This ensures
the project remains on track, on budget and on time
Monitoring is the collection and analysis of information about
a project or programme, undertaken while the project/programme is
ongoing. Evaluation is the periodic, retrospective assessment of an
organisation, project or programme that might be conducted internally
or by external independent evaluators.
Monitoring and controlling
• Monitoring and controlling is the management function of comparing
the actual achievements with the planned ones at every stage and
taking necessary action, if required, to ensure the attainment of the
planned goal.
Project Monitoring
• Regular observation and recording of project activities. Gathering
information on project how it is moving on.
• To check how project activities are progressing
• Giving feed back for making decisions for improving project
performances.
Project evaluation
• Project evaluation is a systematic and objective assessment of an
ongoing or completed project. The aim is to determine the relevance
and level of achievement of project objectives, development
effectiveness, efficiency, impact and sustainability. Evaluation is
periodic: mid term, initial evaluation, yearly evaluation, ex-post
evaluation
Types
• Internal
• External
4.2 Project control

Project control should not replace project planning. If project is not

moving as per plan than control is required to bring the project into
track. Control is taking actions/intervention to remedify the defects or
errors.
Effective project control consists of a process that:
• Identifies potential hazards well in advance of their occurrence
• Evaluate impact of hazards where possible and work out mitigation
measures
• Constant surveillance to create no surprise condition
Feedback in control system

System

Control Sensor
Device

Feedback Control for a system

Input Process Output

Feedback
Types of control system
• Closed control system – like thermostat – automatic and does not depend on outer
environment
• Open control system – like country’s economy – external environment would be
considered for decision

• Closed control loops are automated, which is insulated from disturbance of environment.
For example, thermostat in the heating system or computer control process etc.

• Open control loops is on with random disturbances. For example, human control
element etc.

Systems should be designed to make it as closed as possible.

Control system
.
Collect data

historical Planned target Current progress

Evaluation

Decision making
Project Control
4.3 Project control cycle
7 step control cycle
1. Project
Implementation

2. Establish
datum

7. Take corrective
actions if deviation is 3. Collect data during
not acceptable implementation

6. Decide if 4. Compare with datum

deviation is
acceptable

5. Note the deviations

Project control cycle

.
•.
Controlling in a project
Project control cycle
Controlling is three-step process consisting
of:
• Measuring degree of progress towards an objective
• Evaluating what remains to be done – possible ways of improvement
• Correcting - Taking corrective actions on unfavorable trend to achieve
objectives
 3 step control cycle
Measuring
Determining through formal and
informal reports the degree to
which progress towards objectives
id being made

Evaluating
Correcting Determining cause of and
Taking control action to correct
possible deviations from
an unfavorable trend or to take
planned performance
advantage of an unusually
favorable trend.

Project control steps

Effective control system shall include:
• Thorough planning of the work
• Good estimating of time, labor and costs
• Clear communication of the scope of required task
• Budget and authorization of expenditure
• Timely accounting of physical progress and cost
• Periodic re-estimation of time and cost
• Comparison of actual progress and expenditures to schedules and
budgets
4.4 Project control elements
• Time - Control of progress, time schedule as agreed
• Quality - Control of quality of works, performance - specification
• Cost - Control of cost, accounting system – budget, estimate

• Project success??? – if all the three elements/indicators are within an

acceptable level of deviation
Elements of project control
4.5 Project schedule control
Control of progress will help:
• To give an idea of amount of payments to be made
• To give information about project on schedule or behind schedule
• To take corrective steps well in time to bring the project on schedule
• To work out profit margin of client or contractor
.
.
Progress in terms of time
Methods of recording progress:
• Job/daily diary – every thing of importance will be noted down in the diary.
• Register of instruction or instruction book – channel of communication
between the engineer in-charge and the contractor.
• Progress report – report to the owner about the progress of work on a
regular basis including updated schedule.
• Construction report/measurement sheet – record of time, quality and
quantity of work ensuring satisfactory progress as per specification.
• Abstract of quantity – measurement of executed works. Measurement
Book is the basis of payment in government system.
Schedule control
With the data obtained, comparison is made between;
• Schedule and actual start dates
• Schedule and actual time of an activity
• Schedule and actual milestones
4.6 Cost control
• Cost control measures should start right from the inception of the project.
• It is easier to make changes in the project at initial stage. As the project
advance, chances of reducing cost through various cost control measure
reduces.
• Usually project manager do not feel the seriousness of the situation and do
not properly monitor the project activities frequently. When they find the
project is in problem it becomes too late for them to be able to correct and
bring the project in the original track resulting in cost and time overrun.
• Cost control can be achieved by appropriate decision-making process and
financial control system.
Decision-making in cost control
• Delay in decision-making incurs more cost.
• Prompt decision is prerequisite for better-cost control
• Decision should be well received in time and disseminated correctly
to lower levels to make it cost effective.
• Decision is influenced by feedback, which flows from bottom to top.
Appropriate feed back system should be in place for cost control.
Elements/steps of cost control
Observation – regular observation of:
• Martial consumed
• Manpower consumed
• Equipment employed
• Other direct cost
Comparison – comparison of observed data with design standard/estimate by calculating variance.
Reason for variance – for greater variances, reason for variance should be well explained by checking
• Purchase price
• Quality
• Wastage and use
• Work conditions etc
• Corrective action – having known acceptable limit in comparison and reason for variance, corrective
actions should be worked out and implemented, which may include re-estimate of the project.
Cost Control Techniques
Short term planning and control
Project cost control models – S curve and EVA
Accounting method of control
• Overall - profit and loss account
• Profit - loss on valuation date
• Unit costing

1 - Planning the Project Budget. You would need to ideally make a budget at the beginning of the
planning session with regard to the project at hand.
2 - Keeping a Track of Costs.
3 - Effective Time Management.
4 - Project Change Control.
5 - Use of Earned Value.
Earned Value Analysis (EVA)
• EVA compares the value of work done with the value of work that
should have been done.
• Many of the project control systems assume a direct relationship
between lapsed time, work performed and incurred costs. EVA system
analyses each of these components independently comparing actual
data to base line plan set at the beginning of the project.
• EVA is often presented in the form of progress, productivity, or S- curve
diagrams.
• Actual and estimated costs are made available to determine the
progress factors at any stage of the project. Progress and cost factors are
used to monitor variance and trends for individual activities.
Earn value analysis
•.
Terms used in EVA
• Budgeted cost of work scheduled (BCWS) - is the value of work that should have been done at a
given point of time.
• Budgeted cost of work performed (BCWP) – is the value of the work done at a point of time. This
takes the work that has been done and the budget for each task, indicating what potion of the
budget ought to have used to achieve it.
• Actual cost of work performed (ACWP) – is the actual cost of the work done.
• Schedule variance (SV) – is the value of the work done minus the value to the work that should
have done (BCWP-BCWS). A negative number implies that work is behind schedule.
• Cost Variance (CV) – is the budgeted cost of the work done to date minus the actual cost of the
work done to date (BCWP-ACWP). A negative number implies a current budget overrun.
• Schedule performance index (SPI) – is (BCWP/BCWS) x 100. Values under 100 indicate that the
project is behind schedule.
• Cost performance index (CPI) – is (BCWP/ACWP) x 100. Values under 100 indicate that the
project is over budget.
EVA
BCWS, BCWP, ACWP
• 10000 m3 of concrete was planned to be completed in six month
@10,000/m3 = 1,000,000,00 - -------- BCWS
• 8000 m3 of concrete could be casted in six month @ 10,000/m3 that
equals to 800,000,00---------------------BCWP
• 8000m3 of concrete could be casted in six month at actual cost
@15,000/m3 that equals 1,200,000,00 ----ACWP
EVA
.
EVA
EVA
Comparison of project as per CPI and SPI
• Project A
• CPI = 70%
• SPI = 95%
• Project B
• CPI = 96%
• SPI = 93%
• Project C
• CPI= 102%
• SPI = 101%
4.7 Quality Control
Quality definitions
• Degree of goodness – oxford dictionary
• Conformance to requirements.
• Zero defects
• Doing things right first time
• Quality is the totality of characteristics of an entity that bear on its
ability to satisfy stated and implied needs.
Facts and Misconceptions
• Quality is not grade.
• Quality costs more, but lack of quality costs even more.
• Quality is means of achieving project success. It is not the goal in
itself.
• Process quality is more than product quality.
• Quality standards does not demand the best quality, they establish
the minimum requirements to be achieved.
Quality Management
• Quality Control
• Quality Assurance
• Total Quality Management
Quality Control
QC concerns the operational means to fulfill the quality requirements.
• Detection of non-conformity
• Verification of conformity
Stages of QC
• Input - Incoming goods, services and information
• In-process
• Output - End product
Quality Assurance
• QA aims at providing confidence in fulfilling the requirements both within
the organization and externally to customers and authorities.
• A systematic way of ensuring those organized activities happen in a way
that they are planned.
• QA is concerned with anticipating problems and with creating the attitudes
and controls that prevent problems arising. It is a logical extension of good
management practice.
• QA firstly, it aims to impart confidence to the client assuring that his needs
will be consistently met (external quality assurance). Secondly, it aims to
achieve quality through systematic and planned actions avoiding ‘fire-
fighting or crisis management’ (internal quality assurance).
Quality management and TQM
• QM includes QA and QC as well as other concepts of quality planning,
quality policy and quality improvement.
• TQM develops these concepts as a long-term global management
strategy and the participation of all members of the organization for
the benefits of the organization itself, its members, its customers and
society as a whole.
4.8 Project Management Information System
• Project
• Management – marketing, accounting, finance, production and R and D are
coordinated by management hierarchy. Top, middle and supervisory management
level. Top managers need information highly summarized supported primarily by
decision support system for strategic planning. Middle managers need summarized
information with detail for tactical planning and control. Supervisory mangers should
be supported by transactional processing information system for operational control.
• Information - data that have been shaped or formed by humans into a meaningful
and useful form
• System - is a group of elements either human or non-human that is organized and
arranged in such a way that the elements can act as a whole towards achieving some
common goal, objective or end. System exists on continuous basis.
Communication - PMIS
• One of the major contributors of project success is good communication system
and set up of information system for effective communication. PMIS is employed
for effective communication. Software can be developed and communication
logistic can be added for better information system.
• An idea, no matter how great, is useless until it is transmitted and understood by
others.
• Communication is transference (imparting) and understanding of meaning.
• Barrier of communication
• Perception
• Filtration
• Environmental disturbance
• language
Knowledge - PMIS
Difference among Knowledge, information and data
• Data – raw facts that can be shaped and formed to create information
• Information - data that have been shaped or formed by humans into a
meaningful and useful form
• Knowledge – the stock of conceptual tools and categories used by human to
create, collect, store and share information
• Information system – it can be defined as a set of interrelated components
working together to collect, retrieve, process, store and disseminate
information for the purpose of facilitating planning , control, co-ordination,
and decision making in business and other organizations
•
Three basic activities of IS
• Input – collection of raw data resources from within a business or
from its external environment
• Processing – the conversion of raw input into more appropriate and
useful form
• Output – the transfer of processed information to the people or
business activities that will use it.
• Feedback – output that is returned to appropriate members of the
organization to help them refine or correct the input phase.
•
Activities of IS

Environment

Organization

Input Process Output

Feedback

Activities of information system; input, processing and output

Information system
• Information system essentially transform into a form usable for coordinating the flow of work
in a firm, helping employees or managers make decisions and solving other kinds of problems.
• Decision-making and Control – alterations and other guidelines that employees are to follow
etc.
• Information and record - for taking decisions and have decision choices.
Formal and informal information systems
• Formal – information systems that rely on mutually accepted and relatively fixed definition of
data and procedures for collecting, storing, processing and disseminating information. E.g.
library catalogue
•
• Informal – does not have features of formal information. Not established system like what is
information, how it will be stored, and what will be processed. Office gossip network, friends
circle.
Formal Project PMIS
• Daily diary – all activities of the day is noted down
• Progress report – monthly, quarterly , yearly
• Financial Progress report – trimesterly
• Project completion report
• Record photographs
• Progress photographs
• Monitoring reports
• Regular meetings – site, management, tripartite
Choice of information channel
• Face to face talk, meetings – lesser chance of miscommunication
• Telephone/supporting aids
• Electronic mail/internet
• Memos and letters
• Flyers, bulletin and general reports
• TV and Radio etc.
Feasibility assessment of IS
• Technical – I/O devices, capability, software items, operating systems, special
language. What impact on the organization and people employing the new
system
• Economical – cost saving that IS can accrue and added benefits, reduction of
manpower, computerization cost and meaningful and more timely
information. Better inventory system and control. JIT inventory pattern, other
intangible benefits.
•
• Operational – to produce forecasted benefit, problems related to motivational
and psychological aspects should be removed through trainings. Need to
assess management, non-management and general operational consideration