Project Control
Project Control
Project Controls are the data gathering, data management
and analytical processes used to predict, understand and
constructively influence the time and cost outcomes of a
project or program; through the communication of
information in formats that assist effective management
and decision making.
Purposes of Project
Controls
Aligning projects with portfolio/organization goals and objectives
Developing a work-breakdown structure (WBS)
Collaborating on initial project schedules
Developing a risk management plan
Purposes of Project
Controls
Project budgeting and forecasting
Monitoring project costs
Feedback and reporting
Optimizing project strategies to enable better outcomes in the future
Benefits of Project
Controls
Reduced project costs through ability to make timely decisions using KPIs
Increased project predictability for cost and completion date
Increased visibility into the financial health of the project at all stages
Ability to mitigate project scope creep
Meaningful benchmarking data for future projects via well-structured
projects
Benefits of Project
Controls
Increased margins when working in a fixed-price environment
Improved reputation for properly managing and controlling
projects
Competitive advantage over organizations with less mature
project management capabilities
Increased job satisfaction for project team members
Controls of Activities
Use of resources
Start and end of activities
Quality of work, and
Responsibility Chart.
Reports That Every Project
Controls Team Should Have
Cost Report
Change Management Register
Risk Register
Challenges Within Project
Controls
Lack of commitment and support from senior management
Perception as just another cost function
Confrontational dynamic
Manual and outdated processes
GANTT Chart
During the execution of any given project, project manager seeks for following
answers?
Is the project going ahead of or behind schedule?
What is the present status of the project in terms of costs and schedule
performance?
How are the cost performance and schedule performance of the project?
Based on the current performance, when would the project be finished?
What is the overall cost for completing the project?
When to Use GANTT Chart
GANTT Chart
EARNED VALUE ANALYSIS
(EVA)
Earned Value (EV) is the classical multidimensional project
control method used for monitoring two dimensions: time
and cost. It compares the “planned” work with
“accomplished” work in terms of monetary value assigned to
the work. Here, when an activity is completed, then the value
of the activity will be considered as earned. Given a baseline,
project managers and their teams can determine how well the
project is meeting scope, time, and cost goals by entering
actual information and then comparing it to the baseline.
EARNED VALUE ANALYSIS
(EVA)
EARNED VALUE ANALYSIS
(EVA)
Mathematical Explanation
The project has 5 activities. Its cost per day for each activity and the total cost of each activity
along with the duration is presented as in table below
Mathematical Explanation
The Gantt chart for different activities in the project is shown
in next figure. Activity A starts at first day and ends at second
day. Activity B’s predecessor is activity A and so activity B
starts only on 2nd day. It gets completed on the 5th day. Activity
C’s predecessor is activity A so activity C starts only when
activity B ends i.e. It starts on the 5th day. Its duration is 3 days
& so gets completed on the 8th day. Similarly for activity D & E
they start on end of 5th day &7th day respectively end on 8th&
10th day respectively.
Suppose the reporting time is 7th Day, from the Gantt chart it is observed that
100% of activity A must have been completed
100% of activity B must have been completed
66% of activity C must have been completed
100% of activity D must have been completed
Activity C yet to be started
Actual work done and cost incurred on the 7th day of reporting
Earned Value Calculation