MODULE 5

PROJECT MANAGEMENT ORGANIZATION

• Project management organization is a concept which helps

in coordination between the organization strategies and
program management, portfolio management, project management.
The structure of Organizational project management is used in
aligning the practices of project management with the organization’s
structure.
• The Organizational project management also attempts to achieve the
objectives in time and within the cost and profit goals as the
Management specifies. Further, a Project Manager leads and directs a
project organization.
 IMPORTANCE OF PROJECT MANAGEMENT
ORGANIZATION
• 1. Clarity on Responsibilities and Accountability
• 2. Effective Risk and Bottleneck Management
• 3. Optimized Resources Allocation
• 4. Collaboration and Communication
• 5. Enhanced quality
• 6. Higher customer satisfaction
• 7. Increased productivity
• 8. Increased flexibility
 CHARACTERISTICS

• The project manager is the single focal point for bringing together all the necessary
resources for achieving the project objectives
• The project manager is responsible for integrating people from different functional
disciplines
• The project manager will negotiate directly with the functional managers for support.
• Responsible for timely delivery of a particular product or services at a certain point of
time and cost
• A project in a organizational structure has two chains of command: horizontal and
vertical
• For rewarding incentives and distributing the responsibilities
• Thus the project organization is temporary, the functional units from which it is
formed are permanent.
 PREREQUISITES FOR A SUCCESSFUL PROJECT
MANAGEMENT ORGANIZATION

• Adequate project formulation

• Implementation planning
• Availability of funds on time
• Effective monitoring
 PRINCIPLES OF PROJECT MANAGEMENT ORGANIZATION

Successful project management can be achieved by proper application of

principles, and they are:
• Identifying project type that is suitable for business.
• Understanding the needs and expectations of the customers
• Preparing the reasonable plans
• Establishing a good team with a good leader
• By defining the status of project ( Helps to improve the quality of project)
• By making proper assumption for the project
• By taking proactive actions in the problem of the project
 CHALLENGES IN PROJECT MANAGEMENT
ORGANIZATION
• Unrealistic deadlines
• Communication deficit
• Resource competition
• Undefined vision and goals
• Failure to manage risk
• Insufficient team skills
 WHAT IS PROJECT IMPLEMENTATION?

• Project implementation is the process of putting a project plan into action to produce
the deliverables, otherwise known as the products or services, for clients or
stakeholders.
• It takes place after the planning phase, during which a team determines the key
objectives for the project, as well as the timeline and budget. Implementation involves
coordinating resources and measuring performance to ensure the project remains
within its expected scope and budget.
• It also involves handling any unforeseen issues in a way that keeps a project running
smoothly.
• To implement a project effectively, project managers must consistently communicate
with a team to set and adjust priorities as needed while maintaining transparency
about the project's status with the clients or any key stakeholders.
 STEPS INVOLVED IN PROJECT IMPLEMENTATION

1. Assess the project plan

• In the first phase of the project cycle, it's beneficial to establish a plan that
meets the expectations of management, clients and key stakeholders. Before
implementing a project, assess the plan and make sure that everyone on the
team understands the project deliverables.
2. Execute the plan
• With a plan in place and expectations set for the team, it's time to start work
on the project. During this step, project managers want to have regular
discussions with the team about their progress. Measure the project's timeline
against the projected schedule and monitor resources to ensure the team has
what they need to complete the project successfully
 STEPS INVOLVED IN PROJECT IMPLEMENTATION

3. Make changes as needed

• During any type of project, it's likely that a project manager needs to make changes
during implementation, such as to address additional requests from the client or to
keep the project within its scope. Make these adjustments as necessary, relying on the
project plan to identify solutions.
4. Analyze project data
• Throughout the implementation phase of a project, it's important to analyze data
consistently to measure how a project is progressing against the initial projections.
You can use specific project management software or a manual system to compile
data related to staffing, resources and budget. Examine the data and determine if there
are other areas where it would be beneficial to implement additional changes to help a
team meet the initial project expectations
 STEPS INVOLVED IN PROJECT IMPLEMENTATION

5. Gather feedback
• Once the team has completed the project deliverables, there are still some
essential steps left in the process. Gather feedback from the project team, clients
and stakeholders about the project's outcome, assessing what parts of the project
went according to plan and what areas the team could improve in the future.
6. Provide final reports
• In the last part of the implementation phase, provide reports to the project team,
clients and stakeholders outlining how the project performed against the
projected budget and timeline. Explain any areas where you needed to make
changes to keep the project within its scope and budget. These reports include
the applicable data related to the project's budget, time and resources.
 PRE-REQUISITES FOR SUCCESSFUL PROJECT IMPLEMENTATION

1) Adequate formulation
2) Sound project organization
3) Proper implementation planning
4) Advance action
5) Timely availability of funds
6) Judicious equipment tendering and procurement
7) Better contract management
8) Effective monitoring
 ADVANTAGES OF PROPER PROJECT IMPLEMENTATION

1. Accomplishing project objectives energizes team members. When you’re part of a

successful project, actively achieving milestones and meeting goals boosts the overall
mood and motivation of your project team.
2. Achievement of project goals. Successful implementation of your project means you’re
achieving your project goals. When you’re willing to put your plan into motion, goals
transform from an idea in your head to a positive real-world achievement.
3. Following an implementation plan improves workflow. Following the four project life
cycle phases, including implementation, creates a clear roadmap for project activities.
Strategic planning increases efficiency, reduces confusion, and improves your team’s
effectiveness.
4. Project success benefits your organization. The more project successes you achieve, the
better your reputation, which leads to more clients and stakeholders wanting to work with
and invest in your organization.
 1. High Degree of Activity: Plenty of hectic activities
CHARACTERISTICS OF PROJECT EXECUTION
are visible in project execution. Most of them are non-
repetitive. Project activities are the result of planned
action. Project planning, therefore, should be based on
realistic assumptions. Planning of activities requires a
good database and a high degree of expertise.
2. Interrelated Activities: Large numbers of project
activities are interdependent. A cascading effect on
project viability may be severe if one activity goes out
of control. The application of effective management
tools for planning of interdependent activities and for
measuring the impact of interrelations are vital aspects
of project management. The project team has to be
good at crisis management so that cascading effects
are minimized.
 3. High Level of Uncertainty: A large number of
CHARACTERISTICS OF PROJECT
variables, EXECUTION
the non-repetitive nature of activities
and a long time frame of project execution
contribute towards the risk. A high level of risk
can be effectively countered if the project team is
prepared to deal with the deviations.
4. High Degree of Interaction with Agencies: A project
team's interface with other agencies within the
company and outside is very frequent. Rather, the
functioning of project team depends entirely on
interface management. Purchase, stores, finance,
manpower planning, internal audit, engineering,
maintenance and host of other (virtually all)
departments of the firm have to be activated by
the project team. External agencies may include
vendors, transporters, installation teams,
contractors, banks, railway, government and
others. Strong man management and coordination
is the essence of success.
 CHARACTERISTICS OF PROJECT EXECUTION

5. High Stakes Involved in the Project: The success of project

is very essential for good financials, employee morale and
company prestige. These are long-term implications. Success may
not be remembered for long, but failure will be. Therefore, the
completion of a project as per the plan is highly essential. The
cost of failure is heavy in financial terms as well as in others
terms. Strong control mechanism during the project execution
stage can avoid high cost
 GOALS OF PROJECT EXECUTION

The execution of a project must aim at the following:

 Efficient coordination among all subunits of project teams and
their activities
 Enabling changes in project design appropriate for final
outcome of the project
 Discouraging those changes in a project design that may not be
essential for final outcome of the project
 Completing the project within the targeted cost and time
 Minimizing variations in the standard of performance
 ACTION

 Each project sub-team is on action at this stage

 Resources are required and collected at the site on time
 The project sub-teams follow the technical volume of DPR,
build the work package assigned to them
 More of technical tasks and resource acquisition tasks are
done at this stage
 POSSIBLE MISTAKES DURING EXECUTION

 The complexities of activities, their interdependence for

time, cost and performance and empowered subunits of
project teams often create situations where some unintended
mistakes may be made during the executive stage
 Many of these mistakes may not be noticed until it is too late
 POSSIBLE MISTAKES DURING EXECUTION

 Too fast responses to unfolding events, even if the activity is

not on the critical path and there is enough slack time
 Too much cost consciousness that may cause adverse impact
on completion time and project performance
 POTENTIAL MISTAKES

 Design change of non-essential nature which may cause

delay and extra costs
 Adding new features and provisions, though they may not
have much added value. This occurs more often in support
and peripheral assets of the project and not so much in the
core assets of the project
 Slow response to unfolding unexpected event, which may
delay the project and add to the cost
 PROJECT REVIEW
• It is known by several names Debrief, retrospectives, lessons learnt,
project performance review, project effectiveness review and project
success review
• Mid-project review and post-completion audit
 PRECAUTIONS FOR PROJECT REVIEW

• Project review is likely to be misunderstood, especially because it is

done by a team other than a planning team and an execution team
• The purpose of project review must be made explicit in the beginning
 PRECAUTIONS FOR PROJECT REVIEW

1. Establish procedures and guidelines for the project review and make
sure that all the participants have understood them well and they are
available to all the participants prior to the event
2. Ensure that all the participants are convinced that the process will be
positive and blame-free
3. Provide an environment that fosters openness and honesty
 PRECAUTIONS FOR PROJECT REVIEW

4. Ensure that results are shared with all the concerned parties so that
there is a positive effect on the future project
5. Ensure that project review is conducted economically. It is an act of
balancing between the costs of project review and the benefits. The
depth of project review has to be decided judiciously as the review
processes unfold
 PRECAUTIONS FOR PROJECT REVIEW

7. Provide a flexible set of tools and methods that will allow project
teams of all sizes and complexities to analyze significant project events
and synthesize the findings into a plan of action for remediation
8. A good project review will provide a feedback loop from the findings
to the solutions implemented on future projects
 PROJECT REVIEW
• Once the project construction is complete
– Monitoring and control of project construction progress
– Mid-term review of the project
– Post-completion review conducted on the completion of the
project construction
– Post-completion audit conducted on achieving a major milestone
during the commissioning of the project
 MONITORING AND CONTROL

• DPR- full description of work packages, time schedule and cost

budget
• In the control process, information on actual cost, time and
performance is compared with these estimates
• 3 Constraints or 3 concerns:
– Time
– Specification and
– budget
 MONITORING SYSTEM

• Must be objective oriented

• Identify the key factors to be monitored at various stages
• Identify activities which needs to be controlled or monitored
• Example:
– Critical path activities
– Technical specifications
– Price sensitive activities
 KEY AREAS OF MONITORING
• Same as key elements of the project
– Time
– Cost
– Performance
• Work quantity
• Work quality
 PROJECT CONTROL
• Project control is the process of overseeing the implementation of the
project plan. It involves monitoring progress, anticipating, discovering
and resolving problems, and re-planning to get back on track.
 REASONS FOR INEFFECTIVE CONTROL

1. Characteristics of the Project

2. People problems
3. Poor Control and Information Systems
1. Delay in reporting performance
2. Inappropriate level of detail
3. Unreliable information
 PURPOSES OF PROJECT CONTROL
• Identify problems.
• Solve problems.
• Get the project back on track as soon as possible after the problem has
been identified.
 IDENTIFY THE PROBLEM

The reward of diligent project control is that when problems do occur, you'll know about them right
away. The fastest way to get off schedule and over budget is to leave a problem alone. Problems left
alone generally will do one of two things-feed or breed. They feed off themselves and grow bigger and
more problematic, or they get lonely and breed new problems to keep them company
• Detecting Problems
– So now you understand the need for discovering problems early. But
how do you actually find them?
SOLVING PROBLEMS
– It is vital that you view problems as
momentary distractions, rather than
disasters bound to derail the entire
project
– Guidelines for Problem Solving in
Groups
• First: Everyone must play by the rules.
• Second: Have each member state his or
her view of the problem for one minute
• Third: Develop alternatives in "waves.“
• Fourth: Identify the top three solutions
that would appear to solve the problem
for all concerned, and get the group to
choose the best one.
• Fifth: Develop an implementation plan
for the solution chosen by asking the
group
• Sixth: Implement the solution, keeping
the top two other solutions on file as
"Plan B' or "Plan C.“
• Seventh: Follow-up
• Eighth: If Plan A doesn't work,
determine why and move immediately to
Plan B (or Plan C if it seems to fit
better).
 FIRST: EVERYONE MUST PLAY BY THE RULES
1. The problem will not be considered solved until all implications (as far as can be reasonably determined)
have been explored.
2. Supportive communication will be used at all times. This means that issues will be the focus, not blame or
personalities.
3. The goal of all will be the best solution, not just the "okay for the time being“ solution.
4. Everyone must agree to persist in the activity until all can either be committed to the solution or can "live
with it." If there is hesitation on anyone's part, the problem will not stay solved for long.
5. Input from all is required, including those not directly affected by the problem. (Sometimes those on the
outside have a clearer view.)
6. No solution will be evaluated, officially or subtly (snickers or rolling eyes) until all are given out.
Outlandish or especially creative suggestions that might indeed solve the problem should be affirmed whether
they appear doable or not. (Remember, the police "stun gun" grew out of the need to shoot fleeing suspected
felons without shooting them-a seemingly impossible notion.)
SECOND: HAVE EACH MEMBER STATE HIS OR HER VIEW OF THE PROBLEM FOR ONE
MINUTE

1. Allow people to give their input in writing if they are uncomfortable with speaking to
a group. Be certain to count the number of suggestions to ensure complete
participation.
2. Record all views on a master chart or board.
3. Start with a definition of what the problem really is as follows:
a) Define the reasons the situation is problematic and implications if the problem
remains unsolved.
b) Decide for whom this is a problem. (If it's not generally agreed to be a
problem, then the one who proposed it may need to overlook the situation. Not
all individual irritations are team or project problems.)
c) Record and submit for group approval a statement of the problem to be
solved.
 THIRD: DEVELOP ALTERNATIVES IN "WAVES."

1. If group is larger than eight, divide into smaller groups of four to five. Have each group discuss and
develop 10 possible alternative solutions.
2. When each group has finished, ask them their top three that would solve the problem, and their most
creative alternative. Record these visibly (chart or board).
3. Have groups exchange alternatives, so no group has the ones originally developed by it.
4. Instruct each group to come up with at least three new or expanded ideas related to each of the four they now
have to work with (three best plus the one most creative).
5. After these have been recorded (now up to 20 or more depending on the number of groups you are using),
instruct each group to choose 3 and discuss how each of them might realistically be implemented. Caution must
be observed here. Research into whether an alternative is possible or not may be required to move beyond the
information or perceptions of the group. Things change, and what was impossible just last week may be indeed
doable this week.
 FOURTH: IDENTIFY THE TOP THREE SOLUTIONS THAT WOULD APPEAR TO SOLVE
THE PROBLEM FOR ALL CONCERNED, AND GET THE GROUP TO CHOOSE THE BEST
ONE.

1. Narrow options down by asking who can commit to support each solution.
2. Work toward a commitment to the solution by all members. If total agreement can't be reached, then ask,
"Those of you who aren't enthusiastic about this, can you live with this solution?“
3. Ask those who are affected most directly again, "Does this solve it in a way that is helpful to you?“
4. Repeat this until the top solution emerges.
 FIFTH: DEVELOP AN IMPLEMENTATION PLAN FOR THE SOLUTION
CHOSEN BY ASKING THE GROUP.

• Write names of group members beside parts of the implementation plan and ask for
their commitment to the action item. Provide the due date and primary name for
completion of action.
 SIXTH: IMPLEMENT THE SOLUTION, KEEPING THE TOP TWO OTHER
SOLUTIONS ON FILE AS "PLAN
B' OR "PLAN C."

• This will reduce recovery and redirection time if Plan A doesn't actually
solve the problem.
 SEVENTH: FOLLOW-UP.
• Return to the group most directly affected by the problem and elicit an
evaluation of the results.
EIGHTH: IF PLAN A DOESN'T WORK, DETERMINE WHY AND MOVE IMMEDIATELY TO
PLAN B
(OR PLAN C IF IT SEEMS TO FIT BETTER).

• Generally, the surprise problems will require the most creative solutions.
 GETTING BACK ON TRACK
• The most important part of solving a problem is getting the project back on track as soon as possible afterwards.
This means showing how the original project completion date will be met.
• In order to do this, you'll have to update your plan. Consider how this event affects the rest of your schedule and
your cost predictions.
• Everyone involved in the project, including the client, needs to receive a copy of the new information,
including updated schedule and cost projections, Make sure that everyone knows how any changes affect their
activities. This way you can be sure that everyone is headed in the same direction
CONTROL REPORTS
 1. Cost Reports
TYPES OF REPORTS
(a) Activity cost report
(b) Cost flow report
(c) Variance report
2. Time and Efforts Reports
(a) Time activity report
(b) Time analysis report
• Programme schedule and work efforts are highly
inter-related
• These reports provide PERT/CPM type information
3. Work Status Reports
• Status index report (this report attempts to combine
all the three-cost, time and work-into a single index)
• Earned value project management report
Alternatively, the types of reports can be listed in six parts as follows:
(1) Financial Reports
(a) Monthly commitment and expenditure
(b) Monthly cash flow forecast
(c) Monthly bank guarantee position
(d) Monthly outstanding payments to consultants, suppliers and
contractors
(e) Weekly documents retired through bank
2) Procurement-Monthly Reports
(a) Order placement details
(b) Pending ordering schedule
(c) Bids processing status
(d) Delivery forecast
(3) Inspection Expediting Reports
(a) Weekly vendor-wise details status report
(b) Constraints report - technical and commercial
(c) Exception report
(d) Sub-ordering report
(4) Engineering Reports
(a) Documents release and balance status report (monthly)
(b) Bid's technical scrutiny and recommendation report
(c) Construction drawings-release and status report
(d) Operation manual
(e) Model
(5) Construction and Erection Report
(a) Weekly job-wise, contractor-wise report
(b) Monthly detailed progress review
(c) Exception report

(6) Project Management

(a) Monthly overall review covering the above aspects
(b) Exceptions and recommendations
 VARIANCE ANALYSIS APPROACH

• Comparison of actual cost with the budgeted cost to determine the variance
Inadequacy of Variance Analysis Approach
1) It is backward looking rather than forward looking
2) It does not use the data effectively to provide integrated control
 STATUS INDEX NUMBER
• SIN = 1 means actual cost, time and progress equal the budgeted ones
• SIN > 1 means more than budgeted performance in terms of cost, time and progress
• SIN < 1 means less than budgeted performance in terms of cost, time and progress
 EARNED VALUE MANAGEMENT

Performance Analysis: Analytical Framework

 BCWS (Budgeted Cost for Work Schedule)
 BCWP (Budgeted Cost for Work Performed)
 ACWP (Actual Cost for Work Performed)
 BCTW (Budgeted Cost for Total Work)
 ACC (Additional Cost for Completion)

• It is one of the reporting tool in which its significance is in

monitoring 3 dimensions : time, cost, quality
 PREREQUISITES

• 1. Define work scope: Using the works breakdown structure, all the works of a project must be
defined. This is not an easy task, especially defining performance targets. Without defining
performance targets, one cannot ascertain the amount of work completed.

• 2. Create an integrated bottom-up plan: An integrated bottom-up plan of detailed measurement

cells is called Control Account Plans (CAPs), which combines critical processes including defined
work scope, schedule of activities and resource plans. The performance measure takes place within
the detailed CAPs which are then added to get the total project's performance.
• 3. Formally schedule CAPs: Each
defined CAP must be planned and
scheduled with a formal scheduling
system with a specific time frame.
As performance takes place on the
project, the portion of the planned
value actually accomplished
becomes the earned value. Both the
planned value and earned value use
the same matrix to measure their
performance.
• 4. Assign each CAP to an
Executive for Performance: Each
• 5. Establish a baseline that summarizes CAPs: A
total baseline against which a project performance
may be measured is formed at this stage. This may be
simply a sum of all CAP performance goals, if
management reserve is held by a senior manager
committee and not assigned to CAP executives or the
project manager.
• 6. Measure performance against schedule: The
value of the work scheduled and the value of the
work accomplished in a given time frame are
collected for performance measurement. Each
behind-schedule task must be evaluated in terms of
criticality to the project. If the late task is on the
critical path or if the task carries a high risk, efforts
must be made to put the task back on schedule even
if more costs have to be incurred.
• 7. Measure cost efficiency against costs incurred: Here, cost efficiency is measured. The difference
between value of work performed and the costs incurred to accomplish the work is the measure of
cost efficiency.
• 8. Forecast final costs based on performance: Periodically, during project execution, using the zero
base approach, one must forecast the total estimated cost at completion. As time passes and activities
performed are more accurate, forecasting becomes possible, indicating the viability of the project.
• 9. Manage remaining work: The expenses incurred on the project up to the point of
a review time are sunk cost but future activities must be reviewed for improvement,
if any.
• 10. Manage baseline changes: The baseline must be adjusted for any changes made
in the remaining work.
 • Control reports must be read and interpreted for
CORRECTIVE ACTIONS
corrective actions, if needed. The timeliness of an
action is extremely important in project management
because the decision-maker has to balance among
time, cost and quality for ensuring viability of
projects.
• In addition, there may be some additional information
outside the project reports, which may lead to change
in specifications or design of the sub-projects. Some
changes may be desirable for project efficiency and
some other changes may look good at the face of it,
but may cause unjustifiable cost and time overrun
without adding any efficiency value to the project.
• Review meetings on reports and other information
pertaining to a project are significant
The following are the prerequisites for achieving
effectiveness in decision-making in this matter:
• Knowledge of critical aspects of the project
 • The firm identifies the critical aspects of a project at the
CRITICAL ASPECTS
planning stage.
OF A PROJECT
• For each work package and its component, the firm
must identify what is most crucial, i.e., how much slack
time is available, what are the cost implications of delay
vs. the cost of alternate course of action for timely
completion of a work package and what will be the cost
implications of changed quality of work.
• The person in charge must be aware of these so that she
can respond to the situation and take a right decision
whenever a deviation is found or a problem is noticed.
• The knowledge of critical path and activities on it, the
idea about the total cost implication together with the
right degree of delegation of power can facilitate better
management of overruns. This facilitates dynamic
response expected from the project team to the
externality.
 • Control encompasses all phases of the project from
DYNAMIC RESPONSE CYCLE
conception to completion. It is a cycle which begins
with setting objectives and ends only when the last
activity has been completed. Throughout each phase of
the operation, the system must provide the management
with the capacity to respond to any situation which
arises.
• The first element in the cycle is preparation of the PERT
chart and identification of critical paths. At this stage,
various options of priorities and restraints are identified
and divided. These are then combined to produce a
range of plans reflecting various expenditures of time
and money. When the management has selected one of
these, the resource needs and the order of commitment
will be known. At this point, resources are allocated to
project activities in order to produce a schedule.
• Once the management has approved a schedule, a time
scale diagram is produced which provides immediate
visual assimilation of the project for all levels of
MID-TERM REVIEW
• A routine preparation of reports, readings of
them and follow-up actions are functions of
control mechanism. These steps are at unit
level and never holistic.
• For a project that has a long gestation period
and several work packages, a mid- term review
of the project is also important. Mid-term
review cannot be routine; it has to be special
and decided on observation of some major
change during the course of project
construction.
 1. Reviewing
SCOPE & OBJECTIVES whether overall progress
is in the right direction
2. Rechecking external environment,
whether it has changed significantly
that may have an effect on the choice of
project or project alternative chosen
3. Re-estimating total costs, time and
performance of the project
4. Re-evaluating the strategic and
financial outcomes of the project
5. Re-strategizing the project
functions
 REVIEW MEETINGS AND REPORTS
• Objectives of review meetings
(a)Controlling multi-disciplinary activity at the higher level
(b) Involvement of all key personnel
(c) Comprehensive understanding of project situation and potential
problem
(d) Cross validation of current data for true picture of project status
(e) Interactive mode, therefore, early identification of potential problem
(f) Action oriented; corrective action can be defined and assigned
(g) Synergism, unifying force
 TYPES OF REVIEWS
• Technical Review. This review is carried out at the task level.
The task leader calls a technical review meeting, and it is
attended by all the task force members. It is held regularly and
frequently. Task status review is the main purpose of technical
review. It checks the appropriateness of technology, equipment,
etc., so that if need be, some specifications can be changed with
a view to make the project viable.
• Design Review: This review meeting is held at the sub-system
level and system level. The design of the project often
undergoes change during execution. The reasons are plenty.
The existing constraints of land, building, local environment,
non-availability of equipment, change in raw material
specifications, local weather conditions, energy supply
condition, quality of water available, change in government
regulations, etc., may require the project team to consider the
changes in design in the mid-way course.
• Programme Review. This review is a high level review, which
involves key personnel from all functional areas. The firm
that is proactive may like to review the suitability of the project
in the total scheme of the firm in terms of capacity and need. A
project may be dropped or modified in the light of the new
situation.
 PROJECT REPORTING: FUNCTIONS
1) Informing stakeholders of project status and projections
2) Assisting team members in staying on track
3) Confirming action items as a result of agreements and changes
4) Supporting requests for changes in resources, time, and/or scope
5) Fulfilling contractual obligations
6) Keeping the flow of funding
 PREVENTIVE CONTROL TECHNIQUES
1) Find the potential problems
2) Keep the commitment alive
3) Manage you time
1) Set priorities
2) Avoid time killers
3) Delegate
 • Effective cost control cannot depend on standard accounting

COST CONTROL TECHNIQUES

reporting. Instead, a project manager must set up the project's
own cost tracking "books" in order to capture cost as it is being
committed, which is typically much earlier that when
accounting will capture it. In order to keep team members
accountable for their assigned items, cost control needs to be
maintained at the item level.
• The project's cost tracking mechanism must progressively
compare an item's projected cost to its budgeted cost, so that it
is kept within budget. Discipline must be exercised in
negotiating the excesses in balance with the deficits. Of course,
the ultimate solution to the problem is an accounting system
that keeps all these items current, but in most cases, that is a
long-range solution
 PROJECT COMPLETION REPORT (PCR)

• Once the project is terminated and handed over to the

operations team, project review is undertaken. The end result of
project review is the preparation of the project completion
report (PCR).
• The project completion report is a document, which would give
a comparison of the actual costs and time with the originally
budgeted ones. The reasons for deviations are recorded.
• The initial scope and level of its attainment is also
documented with observations upon them.
• The degree of attainment of goal is also recorded in the