The Control Process

Control is the act of reducing the difference between plan and reality.

Click here to view a video that explains the steps in the control process.

The control process comprises three operating modes:

Measuring: monitoring and determining progress by formal and informal reporting as well as observations

Evaluating: determining the cause of deviations from the project plan.

Correcting: taking corrective action in addressing the deviations.

A project control system should be used to facilitate the above-mentioned modes. A simple system that starts with a comparison of the actual results of work done with the desired results (the project plan).

Variances are identified; triggering a process whereby the possible causes are identified and evaluated. A number of solutions need to be generated and considered, after which the best solutions are implemented. The results of the corrections are then measured. These corrective actions need to be recorded – the project plan is updated to reflect the real status of the project. Progress is then reported.

The system can be depicted as follows:

Variances/deviations are not only identified through formal measurements, but also through keen observations by the project manager who keepings a close watch on everything.

Managing by walking around (MBWA) is a technique well known in management circles; in the case of project management we might as well call it Monitoring By Walking Around. Monitoring is collecting, recording and reporting information concerning any and all aspects of project performance that the project manager or others in the organization wish to know, and is part and parcel of the control process. What should be monitored and consequently controlled?

Booyens identified the following things to monitor:

• The status of work
• The volume of completed work
• Costs and expenditures
• Attitudes of role-players – the team, stakeholders and customers
• Team cohesion

Let us consider a few control topics important to the project manager:

Control of Change

Coping with changes and changing priorities have been reported as the most important single problem facing the project manager. Minor changes can be reacted to fairly quickly, but significant change is much more serious and can have a demotivating effect on the project team unless it is something, they have sought in the interests of the project. Change can stem from the customer, the end user, the sponsor or from technical problems. The most common changes are due to the natural tendency of the customer and team members to improve the product or service. The customer may become aware of new demands and performance requirements during the course of the project; new technologies may become available; or better ideas occur to the team as work progresses. Without control, a continuing accumulation of little changes can have a major negative effect on the project’s schedule and cost.

How should change then be controlled?

It is suggested that the use of a formal change control system be utilised:

• Review all requested changes to the project (both content and procedure)
• Identify all task impacts
• Translate these impacts into project performance, cost and schedule
• Evaluate the benefits and costs of the requested changes
• Identify alternative changes that might accomplish the same ends
• Accept or reject the requested changes
• Communicate the changes to all concerned parties
• Ensure that the changes are implemented properly
• Prepare monthly reports that summarise all changes to date and their project impacts

Control of Costs

When performance becomes a problem due to things such as insufficient resources when required or changes required by the customer in specifications, cost implications arise. When time becomes a problem due to things such as incorrect task sequencing or unavailable resources when required, cost implications arise.

Cost need to be controlled due to typical problems such as:

• Technical difficulties requiring more resources
• Increased scope of work
• Too low initial estimates
• Poor or untimely reporting
• Inadequate budgeting
• Late corrective action
• Price changes of inputs

It should be obvious that changes/problems regarding performance and time will result in cost issues.

In order to control costs accurately, data must be collected in a consistent and disciplined way.

For effective control, the project manager needs information on:

• The project budget as fixed in the business case/proposal
• The project operating budget, a cumulative total based on the WBS
• The costs incurred in the current accounting period
• The costs incurred to date from the start
• The work scheduled for completion according to the schedule in the current period
• The total work scheduled for completion to date
• The work actually completed in the current period
• The total work actually completed to date

Costs need to be measured as work progresses and then be compared with the operating budget (as derived from the WBS). If any variances are identified, corrective action is required to minimize the consequences.

Project Evaluation

Project evaluation appraises the progress and performance of a project compared to the project’s planned progress and performance. Project evaluation conducted in a formal way is called project auditing. The project audit is a thorough examination of the management of a project, its methodology and procedures, its records, its properties, its budgets and expenditures and its degree of completion. The focus of the audit may be the entire project or only a part of the project.

Meredith & Mantel make the following observations on a project audit:

• The audit report should contain at least the current status of the project, the expected future status, the status of crucial tasks, a risk assessment, information pertinent to other projects and any caveats and limitations.
• Audit depth and timing are critical elements of the audit because, for example, it is much more difficult to alter the project based on a late audit than an early audit.
• The difficult responsibility of the auditor is to be honest in fairly presenting the audit results. Data interpretation may even be required on occasion.
• Several essential conditions must be met for a credible audit: a credible evaluation/audit team, sufficient access to records and sufficient access to personnel.
• There are other issues that need to be monitored and controlled, such as conflict, which often arises when disagreements between stakeholders occur; ethical issues, especially in procurement management; motivational levels of the project team and so on. These issues are beyond the scope of this course, but it is recommended that you investigate and study them before embarking on an important project.

Quality Management

Quality is of the essence for project management, as one of the forces in the triangle of forces of Time, Cost, and Quality. Quality also has a major influence in the costing of a project, not only concerning the material, delivery and equipment cost, but also the cost of quality as can be seen from the figure below.

It is therefore also essential to plan quality as part of the project planning cycle and to work the plan in the implementation, monitoring and control cycle of the project.

Click here to view a video that explains how to measure project success.