Lecture 6

Project Control
 Project
Control

Recall: The 5 Phases of Project Management

FEASIBILIT DESIGN, CLOSEOUT OPERATIONS

DEVELOPMENTCLOSEOUT
Y PLANNING

Finance Organization Monitoring & Control

Evaluation Estimation Changes & Claims
Planning Quality & Reviews

Actual Start of Project

 Project
Control

Monitoring & Control: A Feedback Process

Detect
deviations

Monitoring Control
1. Measurement 1. Actions
2. Performance Analysis) 2. Revised Plans, Cash Flows, Schedules, etc.

Correct
Deviations
 Project
Control
Project Control: The Big Picture …

Give
n
Project
is Off-
track
 Project
Control

Project Control: The Big Picture …

Give
n
Project
is Off-
track

Monitoring indicates that:

- Project is behind time-schedule, and/or
- Project has exceeded budget, and/or
- Quality of materials or finished work is below standard, and/or
- Productivity is lower than as planned, etc.
 Project
Control

Project Control: The Big Picture …

Resources
Give for PC (the
n 4-M’s)
Project
is Off-
track
 Project
Control

Project Control: The Big Picture …

Resources
Give for PC (the
n 4-M’s)
Project
is Off-
track

Resources available to the Project Manager for Project Control:

- Money
- Manpower (labor)
- Materials
- Machinery (Equipment)
 Project
Control

Project Control: The Big Picture …

Resources
Give for PC (the
n 4-M’s) Mechanism and
Elements of PC
Project
is Off-
track Adjust the
resources

Adjust the
project
characteristics:
size, scope, etc
 Project
Control

Project Control: The Big Picture …

Resources
Give for PC (the
n 4-M’s) Mechanism and
Elements of PC
Project
is Off-
track Adjust the
resources

Adjust the
More labor? Better labor? project
resourc
Better supervision? characteristics:
More materials? Better materials? size, scope, etc
es
More equipment? Better equipment?
More money?
Reduce project size? Reduce project scope?
project
Terminate project?
 Project
Control

Project Control: The Big Picture …

Resources
Give for PC (the
n 4-M’s) Mechanism and
Elements of PC
Project
is Off-
track Adjust the
resources

Adjust the
project
characteristics: output
size, scope, etc
Project
brought
Was the Project Control successful? How can we tell?
back
on-track
 Project
Control

Project Control: The Big Picture …

Resources
Give for PC (the
n 4-M’s) Elements and
Mechanism of
Project PC
is Off-
track Adjust the
resources

Adjust the
project
characteristics: output
size, scope, etc
Project
brought
back
on-track
 Part 1
How can we tell
when Project
Control is needed?
 Is Project Control needed now?
How can we tell?

General Clues Specific Clues

Performance Cost Time “Primitive” Other

and Quality Indicators Indicators
How can we tell when Project Control is
needed?

GENERAL CLUES (Meredith and Mantel, 2006)

• Performance
- Unexpected technical problems arise
- Insufficient resources are unavailable when
needed
- Quality or reliability problems occur
- Owner/Client requires changes in technical
specifications
- Inter-functional complications and conflicts arise
- Market changes that increase/decrease the
project’s value
How can we tell when Project Control is
needed?

GENERAL CLUES (Meredith and Mantel, 2006)

 Cost
- Technical difficulties that require more resources
- Scope of work increases
- Bid amount (accepted for the contract award) is
too low
- Reporting of the monitoring results are poor/late
- Project budgeting for contractor cash flows not
done right
- Changes in market prices of the inputs
How can we tell when Project Control is
needed?

GENERAL CLUES (Meredith and Mantel, 2006)

 Time
- Technical difficulties require more time to solve
- Scope of work increases
- Unexpected utilities needing relocation
- Task sequencing not done right
- Required material, labor/equipment unavailable
when needed
- Key preceding tasks were not completed on time.
1. How can we tell when PC is needed?
SPECIFIC CLUES

• “Primitive” Equipment-hours
planned
actual

indicators: Total Man-hours

planned
actual
• More resources or
less resources haven Amt of concrete used (tons)
planned
actual
been used than
planned 0 500 1000 1500 2000
Amount input to date

• Activities are taking

long than planned

• Cost of activity (or of

project to date) is
higher than expected
1. How can we tell when PC is needed?
SPECIFIC CLUES

 “Primitive”
indicators:
– More resources or less planned
Equipment-hours
resources haven been actual

used than planned Total Man-hours

planned
actual

planned
Amt of concrete used (tons)
– Activities are taking long actual

than planned 0 500 1000 1500 2000

Amount input to date

– Cost of activity (or of

project to date) is higher
than expected
1. How can we tell when PC is needed?
SPECIFIC CLUES
JAN FEB MAR APR MAY JUN
 “Primitive” Activity 1
planne
d actual

indicators:
– More resources or less Activity 2
resources haven been
used than planned
Activity 3

– Activities are taking long

NOW
than planned

– Cost of activity (or of

project to date) is higher Legend
planned
than expected
actual
1. How can we tell when PC is needed?
SPECIFIC CLUES

 “Primitive”
indicators:
– More resources or less Program
(schedule)
resources haven been
used than planned Progress
(actual)
$
– Activities are taking long
than planned 70%
Program
(schedule)
– Cost of activity (or of 50%
Progress
project to date) is higher (actual)
than expected
now time
 Part 2
Resources
for
Project Control
2. Resources for Project Control

• Money
• Machinery (Equipment)
• Materials and Supplies
• Manpower (Labor and
Supervision)
Money as a PC Resource

• Not a direct resource

• Rather, used to influence the
amounts or quality of the other
resources
Using Equipment for PC

• Often used to augment labor in

order to speed up project

• Can be expensive

• May involve renting or purchasing

Materials and Supplies as a PC Resource

• Increase in quality or quantity may

be necessary to enhance project
control

• Improved inventory systems for

materials
Manpower as a PC Resource

• Project problems (time delays, excess

costs, poor performance, etc.) are
partly due to the human element
(action or inaction)

• In using Manpower as a tool for

project control, PM encounters human
emotions (anger, fear, frustration, etc.)
 Part 3

Elements
of
Project Control
 Elements of Project
Control

Resources-related Project-related
 3. Elements of Project Control
3A. Resource-related

Re-allocate resources
• Manpower-related control

• Machinery-related control

• Money-related control

• Material-related control
 Elements of Project Control
3A. Resource-related

Re-allocate resources
 ManpowerAlso referred to as ”Human Resource Control”
- Lay-off/fire any under-performing staff
- Hire staff with needed skills
Machinery- Assign staff with specific skills to specific
activities

Money
Issues:
-PM may be seen as a “stern disciplinarian”
Materials - PM must avoid heavy handed actions,
- Fix problems without blaming people
 Elements of Project Control
3A. Resource-related

Re-allocate resources

ManpowerAlso referred to as ”Physical Asset Control”

- Decommission any under-performing
equipment
 Machinery-capabilities
Bring in equipment with appropriate

- Re-assign specific equipment to specific

activities
Money

Materials
 Elements of Project Control
3A. Resource-related

Re-allocate resources

ManpowerAlso referred to as ”Physical Asset Control”

- Decommission any under-performing
equipment
 Machinery-capabilities
Bring in equipment with appropriate

- Re-assign specific equipment to specific

activities
Money
Issues:
- Equipment decisions may involve some
Materials economic
analysis
- Equipment-based control easier than
manpower-
based control
 Elements of Project Control
3A. Resource-related

Re-allocate resources

Manpower

Machinery
Also referred to as ”Financial Resource Control”
- How much money should be spent?
 Money - How should it be spent?
- PM assisted by:
- Project accountant
Materials - Project Finance Manager
 Elements of Project Control
3A. Resource-related

Re-allocate resources

Manpower

Machinery

Money
 Materials- Discontinue use of sub-standard material
- Seek new sources of superior material
Elements of Project Control
3B. Project-related

 Options:

- Reduce project size?

- Reduce project scope?

- Terminate project?
Post-Control Types of Project Control

• Also called: Post-performance control, Post-

performance review
• Is done after the activity or project is over
• Like a post-mortem or report card
• Is it “Locking the barn door after the horse
has escaped”?
• Or is it “We need to learn from the past to
avoid future mistakes”?
• Generates lessons from current projects so
that future projects can be controlled
better.
Desired characteristics of a project control mechanism

• Flexible – PC should be able to react to changes in

system performance
• Cost-effective – Value of PC should exceed cost of
PC
• Useful – Must really satisfy the needs of project,
not the whims of the PM
• Timely – Be able to react quickly before the
problem overwhelms the project
• Simple –Easy to understand and operate
• Adjustable – Capable of being adjusted to reflect
changing priorities
• Documented – so that training is possible
Some Interesting Issues in Project
Control

Impediments to Project Acceleration

• Human resources
• Multiple-shift work
Environmental/safety issues, High cost, Neighborhood
objections
• Overtime/extended workdays
Fatigue, Lower morale, Rework
• Increasing # of workers
Training (takes time of most experienced!), Space constraints,
Hiring time
• Technology
• Using more, larger or more efficient equipment
Training/learning curve, Procurement time, Space constraints
• Using faster-installing materials
Procurement, Submittals for owner approval
• Alternate construction methods
Skill set, Learning curve, Unknown side-effects
 Some Interesting Issues in Project
Control

Impediments to Project
Acceleration
 Human resources
– Multiple-shift work
Environmental/safety issues, High cost, Neighborhood
objections
– Overtime/extended workdays
Fatigue, Lower morale, Rework
– Increasing # of workers
Training (takes time of most experienced!), Space constraints,
Hiring time
 Technology
– Using more, larger or more efficient equipment
Training/learning curve, Procurement time, Space constraints
– Using faster-installing materials
Procurement, Submittals for owner approval
– Alternate construction methods
Skill set, Learning curve, Unknown side-effects