Chapter

11Project Execution and

Control
Project Management for Business,
Engineering, and Technology
Phase C: Project
Execution
■ Most projects move through some or all
of the stages of Phase C in the Project
Cycle Span model
Project Life Span:
Execution
Phase A: Conception phase Phase B: Definition phase
Initiation stage Project definition
Feasibility stage System definition User
Proposal preparation and system
requirements

Phase D: Operation phase Phase C: Execution

System maintenance phase Design stage
and evaluation Product/build stage
Fabrication Testing
System System Implementation stage
Improvement termination Training Acceptance
tests Installation
(To Phase A:
Termination
Repeat cycle)
 Phase C: Project
■ Execution
In addition to planning, scheduling, budgeting, and
risk and quality management responsibilities already
discussed, during Execution the PM is responsible for
❑ Expanding the project team
❑ Assigning responsibilities
❑ Task integration
❑ Documentation
❑ Change control
❑ Quality control
❑ Production coordination
❑ Inventory control
■ When PM is not directly responsible for these, she
appoints people who are
Design
Stage
■ Design methodology

■ Technical Review process

■ Planning for production/build and later stages

 Design
■ methodology
Typical Development Process bid
s
Supplier
s

Procuremen RFB’
t s

Parts
Custome Marketing Product Finance Manufacturing
r /
req’t
Customer design
s
Cost
target Proces
Requirement Product s s
s req’ts/
req’ts/ design
design
Inputs/outputs
Change
requests
Design
methodology
■Team approach

Product
design
Technical Review
Process
}
Basic requirements
1. Preliminary review :
Functional design concept does concept fit basic
requirements?

}
H/W and S/W
2. Critical Review: does
Detailed design detailed design
reflect functional
design?
tests

Manufactured H/W and S/

W Full scale production
} 3. Functional readiness
review: Do manufactured
items conform to detailed
design?

Final H/W and S/W

} 4. Product readiness:
Do production
documents conform
to design
documents?
Production/Build
Stage
■System fabrication/ construction/ assembly

■ Testing: design vs. requirement/ vs.

implementation
❑ logical, stress, failure
Production/
Build
■Side-items vs. end-items
❑ Manuals
❑ Tools/peripherals
❑ User training

■ Detailed planning for the

implementation stage
Project
Control
■ PM Role Throughout Phase C
❑ Guide project to meet performance
requirements, scheduled due dates,
and budgeted expenses.
❑ Track project performance vs. plan
❑ Take corrective action
■ Make project conform with plan
■ Make plan conform to new realities/expectations
Project Life Cycle:
Control
Phase A: Conception phase Phase B: Definition phase
Initiation stage Project definition
Feasibility stage PLANNING System definition
Proposal preparation User and system
requirements

Phase D: Operation phase Phase C: Execution phase

System maintenance Design stage Product/
and evaluation build stage
Fabrication
System System Testing CONTROL
Improvement termination Implementation stage Training
Acceptance tests
(To Phase A: Installation Termination
Repeat
cycle)
Internal vs. External
Control
■ Internal vs. External Control
❑ Internal
Exercised by contractor
❑ External
Exercised by customer
▪ Audit of books and records
▪ Work inspection
▪ Periodic reports of costs, schedule,
and performance
▪ Incentive contracts
▪ Customer’s own project manager
Control
Control Process
Process
Starts with the Project Plan
■

Prepare A. Authorize
Plan Work
B. Monitor Work
(Track and
Report) Repeat
throughou
C. Analyze
t project
Performance

D. Take
Action
Work
Authorization
■ Authorize Work/Closeout Work (start/
stop control)
❑ No work begins without authorization.
❑ All work ends with formal closeout.
 Work Authorization (start/stop
control)
Top mgt. authorizes project to begin

PM authorizes work to begin

via work orders; closes out work orders
and
work packages when completed

(When PM has Tracking/performance Information

authority Tracking/
over performance
work Information
packages) FMs authorize work package to
begin via work orders
Suppliers
Tracking/performance Information

Work package begins

Monitoring
Performance
■Project plan specifies methods/procedures for
tracking and assessment
■ Defines specific measures and metrics to be
used for terms like “ review”, “verify”, or “assess”
■ Monitoring includes status meetings and
reviews and specified in the communication
plan

Example project communication plan, next slide

 S S P D
B E T B P B U S
t t r e Other
u D e r u s y
Meetings/ a a
t
s A c
u
s o
o
s e s
t
t i b a
Reports u u
n
R
B
h
n
i j
e
l
i
n C
t
e
i
s s n e l
e R i e c e a m
s m e
M e c s t s s
M s s d
e q a s s e A
e u l P
e r
e F a T
Role/type t e B l S A c
t e n e
i s F r a t n h
i a d c
n t e i n u a i
n s a h
g e d l t
g i I n
s f y y e
b s i
M i s c
i s c
i b i t
l u a
n i s u
i e l
u l r
t s
t i e
y t D
e e
s y
s
i
g
n
Client X X X X X X X X

Relationship X X X X X X X X X X
Manager

Business Analyst X X X X X X X X X

Project Manager X X X X X X X X X X X X

Client Project Team X X X X X X X X

IT Project Team X X X X X X X X

Client Director X X X X X X

IT Director X X X X X X X X X X

Project Sponsor X X X X
Monitoring
Performance
Use a variety of measures, qualitative and quantitative
■ Invoices
■ Time cards
■ Managers and supervisors assess progress by
observation, asking questions, and reviewing reports
■ Achievement of milestones.
■ Test and demonstration results.
■ Design reviews—meetings with managers and
technical personnel to review progress
■ Opinions of outside experts.
Monitoring
Performance
■ Do not only measures cost and time, which
are measures of input.

■ Need measures of output from each task and

work package
❑ Output measures address the deliverables or
results defined for each work package.
Project Control
Emphasis
■Scope Change Control
❑ identify where changes have occurred
❑ ensure the changes are necessary or beneficial
❑ contain or delimit the changes wherever possible
❑ the implementation of changes.

■ Quality Control
❑ manage work to achieve requirements and specifications
❑ take preventive measures to eliminate errors and mistakes
❑ identify and eliminate sources of errors and mistakes
❑ includes technical performance measurement, TPM
Project Control
Emphasis
■Schedule Control
❑ keep the project on schedule and minimize
schedule overruns
❑ Use Time Buffers
❑ Fight Tendency to Multitask
❑ Frequently Report Activity Status
❑ Publicize Consequences of Delays and
Benefits of Early Finish
Project Control
Emphasis
■Procurement Control
❑ Monitor quality, schedule, and cost of all
procured items
❑ Visit and inspect the facilities of subcontractors
and suppliers
❑ Track subcontractors’ and suppliers’ progress
and expenses,
❑ Prepare contingency for all major procured
material, equipment, components, and services
Performance Analysis with
Earned Value
Percent Complete Concept

❑ Subjective assessment of performance vs.

schedule
❑ Assessed regularly for every work package
❑ Requires competency, candor, and trust
behind

ahead
behind
Earned
Value
■Performance Assessment
❑ Purpose: determine current status of project
with respect to schedule and budget

■ Earned value method

❑ Combine % complete, schedule, and cost

information to assess current status of project

Earned Value Concept
(EV) Statu
s
A Date
100%

B
C
50%
75%

Total Expenditur
How well is this project doing? e
Budget
to date
A 100
1000 0
B 205
2000 0
C 400 25
330
1000
0 00
Earned Value
Example
■Example, project with three tasks, A, B, and C
❑ Task A is on schedule, on budget
❑ Task B is behind schedule, under budget
❑ Task C is ahead of schedule, under budget

■ How well is the project doing?

Earned Value Concept
(EV) Statu
s
A Date
100%

B
C
50%
75%

(a
Total
) (c) Percent (a) x (d) Percent (a) x
Budget (b) AC Scheduled (c)= Completed (d)=
PV EV

A 1000 1000 100 1000 100 1000

B 2000 2050 100 2000 50 1000
C 1000 250 50 500 75 750

4000 3300 3500 2750

Earned Value
Example
■Definitions
❑ PV = planned value (also called BCWS:
budgeted cost of work scheduled)
❑ AC = actual cost (or ACWP: actual cost of work
performed)
❑ EV= earned value (or BCWP: budgeted cost of
work performed)
Earned Value Concept
(EV) Statu
s
A 100 Date
%
B
50% C

75
%
(a) x
Budget AC PV EV (d)=
Total (c) Percent 3300
4000 (a) x (c)=(d) Percent
3500 (EV) 2750
Budget (b) ACWP Scheduled BCWS Complete BCWP
• Since EV < PV, project is behind schedule in terms of value of work
A 1000
(ignores 1000
critical path) 1001000 1001000
• B 2000
Since AC > EV 2050
project 1002000 50in 1000
is over budget terms of value of work completed
C 1000 25050 50075 750

4000 3300 3500 2750

Earned Value
Example
■ Second example
❑ Assess not only current state of the project
but also the project’s likely completion cost.
 Earned Value
Example
Definitions
❑ CPI= cost performance index= EV/AC
❑ ETC= estimated cost to complete project
= (BAC - EV)/CPI
BAC = budgeted cost at completion
❑ EAC= estimated cost of project at completion
= AC + ETC
 Earned Value
Example Budget
%
Scheduled
PV %
Complete
EV
AC

A A 220 100 220 100 220 240

B B 190 100 190 100 190 180

C C 250 100 250 50 125 150

D D 90 100 90 100 90 110

E E 350 100 350 50 175 190

F F 400 50 200 100 400 380

G G 250 0 0 0 0 0

H H 140 0 0 0 0 0

I I 240 0 0 0 0 0

1 2 3 5 6 7
4 weeks 2,130 1,300 1,200 1,250
Earned Value
Example
Status summary analysis, end of week 4:
1. Project Cost to date $1,250
2. Value of work completed, EV = $1,200
3. Value of work remaining,
$2,130 – $ 1,200 = $930
3. CPI = 1,200/1,250 = 0.96
4. Likely cost to complete project

930/0.96 = $969
Earned Value
Example
Second Example (cont’d)
■ Likely project cost at completion

❑ $1,250 + $969 = $2,219

■ Project cost variance

❑ $2,130 – $2,219 = -$89 (4.2% overrun)
Earned Value
Tracking
■Earned value is assessed continually

■ Actual expenditures (AC) and actual work

completed (EV) are assessed vs. budget
and schedule (PV)
Earned Value
Tracking
■ If AC line is above EV line, project is over budget

AC

EV
Earned Value
Tracking
■If EV line is below PV line, project is
behind schedule
❑ How much behind schedule?
■ Identify progress on the critical path, or
■ Compare EV with PV

PV
Measure on the graph
horizontal distance
between PV and EV.
This represents amount
of time project is
E behind, ahead of
schedule
V
Earned Value
Tracking
Value of Earned
Value
■ ?
Enables
❑ simultaneous assessment of %completion,
schedule, and cost performance
❑ information about work packages to be rolled up
to provide a project –wide assessment
❑ forecasts of cost and date at completion

■ Assumes
❑ valid estimates of % complete
❑ actual expenditures coincide with work
performed (no delayed or advance payment)
Controlling Changes in
Projects
■ “Change”
❑ any deviation in the project plan
❑ happens defacto or by discretion
❑ tends to increase project cost and schedule

■ Role of the PM is to control changes, not

let changes control the project!
Reasons for Change in
Projects
■ Incomplete Requirements
❑ Unknowns or omissions in the original plan
or requirements

■ User change of mind

❑ Because of changing conditions or needs,
the original requirements are no longer what
user wants
Reasons for Change in
Projects
■Insurmountable Obstacles
❑ Unavoidable difficulties render original plan
difficult or impossible to follow.
❑ Original requirements difficult or impossible to
achieve

■ Pursuit of perfection
❑ User or designer perceives “desirable”
improvements in the original plan or requirements
Reasons for Change in
Projects
■ Opportunities
❑ User or designer sees benefits not recognized or
unavailable when plans or requirements were
first established
Effects of
Changes
■Uncontrolled changes lead to “scope creep”
■ The effects of the change on the project must
be assessed
❑ Effects of defacto changes must be reflected in
revised work plans, schedules, and budgets
❑ Estimated effects of discretionary (requested)
changes must be assessed before the changes
are approved or denied.
Change Control
System and
Configuration
■Project plan should include polices and
Management
procedures for change control and
configuration management

■ These policies and procedures are

communicated to customers, contractors,
suppliers, and everyone in the core project team
Functions of Change
Control
■Continuously identify changes as they occur
■ Reveal consequences of changes (impacts on
the other tasks, project costs, and duration)
■ Analyze alternative courses of action and make
acceptance or rejection decisions
■ Minimize changes
■ Communicate changes to all concerned
■ Ensure changes are implemented
■ Report summaries of all changes and their
impact on the project
Change Control Process
Change Control
Procedures
■Require that the original work requirements and
work orders are clearly stated and agreed upon
by persons responsible

■ Closely monitor work to ensure it is meeting

(not exceeding) specifications.

■ Be alert for signs of cost or schedule overruns;

take quick action to correct problems
Change Control
Procedures
■ Require all engineering and work changes to be
1. documented for their effect on work orders ,

budgets, schedules, and contractual prices

2. reviewed, and

3. authorized by sign- off

■ Example
 IRON Butterfly Corp
Change Request Page … of …
Title:
Project no. Task no. Revision no. Date issued
Description of change

Reason for change

Documentation attached
Originated by: Date:
Request logged by: Date:

Cost implications
Schedule implications
Implications on performance of deliverable(s)
Other implications (risks & issues)
Proposed plan for implementation
Implications evaluated by: Date:
Recommendation
Recommended by: Date:
Documentation attached

Approved by: Date: Approved by: Date:

Change Control
Procedures
■ Require similar control procedures of all
subcontractors, purchase orders, test
requests, etc.

❑ Examples:

http://www.retisoft.com/CRTrakFeatures.html

http://www.ittoolkit.com/workbooks/
qt_pmchange.pdf
 Change Control Procedures
(cont’d)
■ Change control board
■ Freeze date: At a predefined phase, freeze
project against all nonessential changes (freeze
point must be agreed to by management)
❑ The sooner the project can be frozen, the less
that changes will adversely affect project
schedule and cost
Boeing
777
Configuration
Management
■“Configuration”
❑ The relative arrangement, location or disposition
of a subsystem or component within the system.
Configuration refers to both functional and
physical items.

■ Problem:
❑ Complex, large systems are designed, developed,
and produced over a period of many months
years
❑ During this time, changes to configuration will
occur
Configuration
Management
■ “Configuration management”
❑ Managing changes to system design, and
maintaining records of the current configuration

■ Configuration management in large complex

systems is costly and time-consuming,
❑ hence must be planned early and incorporated
into the project plan and budget
Configuration
Management
■ Configuration management continues after the
system becomes operational, hence the
process moves from the contractor to the
customer.
Apollo
spacecraft
■ During peak design period,
1000 change orders per week!
Main Functions of
CM
Identify the items to be placed under CM
1.

❑ Functional and physical characteristics

❑ Selected subsystems and components

2. Establish baseline configuration

3. Document the items to define functional
performance requirements and physical
specifications
4. Manage changes to the configuration
Scope creep
example: Bradley
Fighting Vehicle

■ Scope creep run amuck!

Video segment from the
movie
Thefighting
Bradley Pentagon Wars*
vehicle development project

■ Changes made at whim of generals

■ No effective change control or CM
■ Results
❑ 17 YEARS over schedule
❑ $14 BILLION over budget
❑ Ineffective armor

* HBO Home Video,1998, 104 minutes; visit http://hbohomevideo.com/