Lecture 7 - Project Control

Question 1

What other aspect of Project Management does ‘Project Control’ go hand in hand with?

Answer 1

Risk Management

Question 2

Do projects fail instantaneously or gradually?

Answer 2

Gradually

Question 3

How can a project fail gradually?

Answer 3

• Days are lost here and there
• Money is overspent in small amounts but frequently.
• Under performance adds up over time

Question 4

As projects fail gradually, project control should implement a system which…

Answer 4

• Visualises project performance.
• Detects under performance relative to a baseline.
• Allows project manager to take corrective actions in time.

Question 5

What is the analysis used in ‘Project Control’ called?

Answer 5

Earned Value Analysis

Question 6

Define ‘actual spend’:

Answer 6

Money spent on the project so far.

Question 7

Define ‘planned spend’:

Answer 7

Money intended to be spent on the project so far (if everything goes according to plan).

Question 8

Define ‘Earned Value’:

Answer 8

Budgeted costs of completed tasks.

Value formed from the suggestion that cost of task is proportional to the task’s contribution to the project.

Question 9

Draw out the ‘Project Control’ analysis matrix (this explains why you don’t compare the actual and planned spends)…

Answer 9

…

Question 10

Define ‘Time performance (TP)’:

Answer 10

TP = Earned Value / Planned spend

If TP = 1; on track
If TP < 1; behind schedule
If TP > 1; ahead of schedule

Question 11

How do you calculate the ‘estimated time to completion’?

Answer 11

Estimated time to completion = original estimate / TP

Question 12

Define ‘Cost performance (CP)’:

Answer 12

CP = Earned Value / Actual spend

If CP = 1; on track
If CP < 1; spending more
If CP > 1; spending less

Question 13

How do you calculate the ‘estimated cost at completion’?

Answer 13

Estimated cost at completion = original budget / CP

Question 14

What are the two control measures taken to visualise completion of tasks?

Answer 14

1. Last planner

2. Gantt Charts

Question 15

Describe the ‘last planner’ project control:

Answer 15

• It is a weekly plan of tasks to be completed.
• Tasks should be small (no longer than 0.5 day; therefore not same as activities used in WBS).
• There tends to be a weekly review meeting to discuss progress and causes of delays.
• Mostly used in manufacturing.

Question 16

Describe the use of ‘Gantt Charts’ in project control:

Answer 16

• Gantt charts help to visualise the project progress to date.
• They are supported by most project management software (e.g. MS Project).

Question 17

What are the limits of ‘Project Control’?

Answer 17

1. Baseline difficult to predict:
   - Difficult to predict a reasonable baseline in the planning stage.
   - Baseline may change due to developments outside of our control (political interference, supplier/customer insolvency)
2. Measurements difficult to obtain:
   - Information is not always real time (e.g. invoicing of purchasing orders).
   - May involve human judgement (e.g. degree of task completion).
3. Control paradox: “the more you control, the less control you have”.
   - Too much bureaucracy causes staff to start working around it.
4. Downsides of control:

• “Being controlled” can be perceived negatively.
• Control may reduce the creativity of team.