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© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-1
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-2
Chapter 11: Project Control
keep project on target
as close to plan as feasible
adapt to new circumstances
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-3
Planning vs. Control
Planning• set goals & directions• allocate resources
• anticipate problems• motivate
Control• guide work toward goals• ensure effective use of
resources• correct problems• reward achievement
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-4
IS Control Problems
Lin & Hsieh (1995)
• Corporate Culture can be closed to new ideas
• Organizational Stability if changing, too busy
• Developer Experience with IT
• Developer Task Proficiency• Project Size bigger projects, greater risks
• System Structure changing requirements cause problems
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-5
Managerial Actions to Maintain Project Control Ahituv et al. [1999]
1. Early user involvement2. Senior non-technical management in
charge for time and budget performance3. Milestones for accurate project progress
measurement4. Hold suppliers & vendors legally
responsible for deadlines5. Don’t change project requirements
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-6
Risk Management
Boehm (1989) top risk items
• Personnel shortfalls• Dynamic requirements• Externally provided components• Real-time performance benchmark
• Development incremental development, requirements scrubbing
• Unrealistic estimates multiple sources
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-7
the Control Process
• assess actual vs planned technical accomplishment
• verify validity of technical objectives• confirm need for project• time progress to match operational requirements• oversee resource usage• monitor costs
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-8
Control Process Phases
• performance standards - technical specifications, budgeted costs, schedules, resource requirements– from user specifications, project plan
• compare performance with plan - forecast anticipated date and cost at completion
• corrective action taken when severe variance encountered
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-9
Control Devices
• Responsibility Assignment– Chart activities with personnel
• identify what each is responsible for
• Budget– variance analysis– Earned Value
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-10
Earned Value
Work Package Budgeted % done Earned Actual
A 20 100 20 25
B 10 100 10 8
C 12 50 6 6
D 20 75 15 15
Total earned value 51 54
Efficiency = earned/actual
A = 20/25 = 0.80 B = 10/8 = 1.25
total project = 51/54 = 0.94
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-11
Traditional Cost Control
• variance analysis• in project management, deficient - doesn’t track
how much work completed, no projections of future costs– so show quantities– progress may be nonlinear
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-12
Project Cost Monitoring
• tie to work packages– work descriptions– time-phased budgets– work plans & schedules– responsibility assignments– resource requirements
• keep up with change orders
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-13
Work Authorization
upper management authorizes project
project manager authorizes department workvia work orders
functional managers authorize work orders to
sections
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-14
Data Collection
upper management continues or cans
project manager adjusts to solve problems
work sections report progress
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-15
Data Collection & Tally
• periodically collect data about actual costs and work progress
• project control accounting system tallies and summarizes– by work package– by department– project overall
• manager intimately familiar with budget, actual
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-16
Project Review Meetings
• where things are going wrong– emergencies– time bombs– opportunities
• should be periodical• participants should have information prior• give assignments to present in advance
– broaden participation
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-17
When to Hold Review Meetings
• periodic– regularity leads to more thorough preparation– can have in central meeting place
• with network schedule on wall
• key data available
• special event– at critical milestones
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-18
Corrective Action
• identify WHEN ACTION NECESSARY– how much variance is acceptable?– rather than preset limits, ought to be constant
projection to completion– is change worse than current?
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-19
Reasons for Changes
• change in project scope & specification• changes in design - errors, omissions,
afterthoughts, revised needs• changes to improve rate of return• changes to adopt improvements
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-20
Impact of Changes
• cause grief• the more the project completed, the more difficult
to change• impact on project scope, cost, schedule are
major sources of conflict• may reduce changes & impact by change review
process
© McGraw-Hill/Irwin 2004
Information Systems Project Management—David Olson11-21
Summary
• project control guides work toward goals• assess actual versus planned• need data collection, information dissemination• focus on work package & cost account• use authorization process• constantly update projected performance