PROJECT ENGINEERING

B.E. Civil Engineering

Lecture Slides

UNIT 4

Project implementation and controlling

1
 Contents

❑ 4.1 Introduction to Monitoring , Evaluation and Controlling

❑ 4.2 Project Control
❑ 4.3 Project Control Cycle
❑ 4.4 Elements of Project Control (Time, Cost and Quality)
❑ 4.5 Project Schedule Control
❑ 4.6 Project Cost Control : Methods and procedure (Earned Value Analysis)
❑ 4.7 Project Quality Control
❑ 4.8 Introduction to Project Management Information System (PMIS)
 4.1 Introduction to monitoring, evaluation and controlling
What is Monitoring?

➢ Monitoring is collecting, recording and reporting information concerning all aspects of

project performance.
➢ It is a continuous and ongoing process .
➢ It is done during the project implementation phase.
➢ Aims at tracking project inputs, schedules, outputs and other actions and improving project
implementation.
What is Evaluation ?
➢ Evaluation is an objective and systematic judgmental process for determining relevancy,
efficiency, effectiveness and impact of project performance.
➢ It is the assessment of project during implementation.
➢ Evaluation is done to improve project implementation and future project planning and
decision making.
 4.1 Introduction to monitoring, evaluation and controlling
What is Controlling?

➢ Controlling is the management function of comparing the actual achievements with the
planned ones at every stage and taking necessary action.
➢ It includes three step processes- measuring, evaluating and correcting.
➢ Controlling ensures that “Right things are done at the right time in right manner”,
 4.2 Project Control
➢ is a process or mechanism for continuing regular monitoring and controlling of the project.
➢ Control measures actual performance and compares it with standards to identify
deviations to take corrective actions.
➢ Serves two major functions:
✓ Ensures regular monitoring of performance.
✓ Motivates project personnel to strive for achieving project objectives.

Types of control

❖ Pre-control (Feed-forward control)

❖ Concurrent Control (Yes/No Control)
❖ Post Control (Feedback Control)
 4.3 Project Control Cycle

➢ Project control is the cyclic process.

➢ Project control starts from the project initiation phase and continues until the end of the
project.
➢ Four basic steps.
 Project Control Cycle
1. Setting Standards
❖ What is to be done?
❖ are the starting point of control.
❖ They are target or yardstick of control.
2. Measuring Performance
❖ What actually was done?
❖ is the second step in project control and actual performance within a given period is measured.
❖ It is a continuous ongoing process to get feedback.
3. Finding Deviations
❖ Extent and causes of deviation
❖ actual performance measured is compared with standards set to find extent and cause of the
deviation.
4. Take corrective actions
❖ After finding deviation and locating responsibility necessary actions are taken to bring the
project back on track.
 Elements of Project Control
❖ Areas of control are: Time Control, Cost control and Quality control.
❖ The effective control system must monitor quality, cost and time in an integrated manner, not
in isolation.
Project Schedule Control
❖ is related to controlling changes to baseline (target) schedule.
❖ “An updated schedule is a revised schedule reflecting project information at a given date
regarding completed activities, in progress activities, change in logic, cost and resource
required and allocated at any activity level”. – Popescu and Charecrugam.
Information required for updating schedule
❖ To update the plan at an intermediate stage new information and knowledge are required.
❖ Can be grouped- 1. Past Information 2. Future Information
❖ Techniques used for effective schedule control:
✓ Work breakdown structure (WBS).
✓ Network Analysis (PERT/CPM).
✓ The line of Balance (LOB).
 Project Cost Control: Methods and procedure
❖ is related to controlling changes to project budget.
❖ It is the process of controlling the expenditure in a project at all stages from its inception
through its development
❖ Cost control implies good cost management, which must include-
1. Cost estimating
2. Cost accounting
3. Project cash flow
4. Company cash flow
5. Direct labor costing
6. Overhead cost
7. Others such as incentives, penalties and profit sharing
Elements of cost control
1. Observation
2. Comparison
3. Reasons for variance
4. Correction
 Project Cost Control: Methods and procedure
Methods of cost control
1. Short term planning and control
✓ Breaking down the project into the much smaller project.
✓ are easy to monitor, evaluate and control
✓ project being controlled effectively.

2. Accounting method of cost control

✓ Overall profit/loss account
✓ Unit costing
✓ Profit/loss on valuation date

3. Project cost method: EVA

✓ EVA is a way to measure the amount of work actually performed on a project and to
forecast a project's cost and date of completion.
✓ The method relies on a key measure known as earned value.
✓ It enables one to compute performance indices for cost and schedule.
 Earned Value Analysis
❖ EVA is a tool that compares the value of work done with the value of work that should
have been done.
❖ It is the value of work done at a given point of time.
❖ EVA is often presented in the form of progress
❖ Earned value actually uses three data values- BCWS, BCWP, ACWP

❖ Budgeted Cost for Work Scheduled (BCWS): is the value of work that should have
been done at a given point of time i.e. planned expenditure at a review date.

❖ Budgeted Cost for Work Performed (BCWP): BCWP is the value of work done at a
point of time.

❖ Actual Cost for Work Performed (ACWP):actual cost of work done at a point of time.
Earned Value Analysis
 Earned Value Analysis
❖ Using this following variance definition can be obtained;

Cost Variance (CV) = BCWP-ACWP

If CV=0, right on budget,
If CV>0, under budget and
If CV<0, cost overrun
Schedule Variance (SV) = BCWP-BCWS
If SV=0, right on schedule,
If SV>0, ahead of schedule and
If SV<0, behind schedule.

Schedule performance index (SPI) = BCWP/BCWS

Cost performance index (CPI) = BCWP/ACWP

 Project Quality Control
❖ What is Quality?
❑ Quality is about doing the thing right the first time.
❑ Zero defects.
❑ Consistent conformance to expectation.
❑ Quality is degree of goodness.
❑ Quality is the totality of characteristics of an entity that bears on its ability to satisfy
stated and implied needs
❖ Facts about quality
❑ Quality is not grade.
❑ Quality costs more, but lack of quality costs even more
❑ Quality is means of achieving project success. It is not the goal in itself
❑ Process quality is more than product quality
❑ Quality standards do not demand the best quality; they establish the minimum
requirements to be achieved
 Project Quality Control
Cost of quality
❑ Cost to control quality and cost of failure to control quality.
Quality Management Cost
Prevention Cost: Cost involved in activities to ensure right first time performance
❑ quality planning
❑ new products review
❑ process planning
❑ process control
❑ quality audits
❑ supplier quality evaluation
❑ training
Appraisal Cost: Cost involved in activities that check whether right first time is achieved,
❑ incoming inspection and test
❑ final inspection and test
❑ product quality audits
❑ maintaining the accuracy of test equipment
❑ Evaluation of stocks etc.
 Project Quality Control

Failure Cost (Failure to control quality)

Cost involved in the activities which result from not confirming to right first time and includes:
❖ Internal Failure Cost
❖ External Failure Cost
❖ Intangible Quality Cost
 Quality management concept

1. Inspection: One or more characteristic of a product is examined or measured and compared

with specified requirement to assess its conformity.
2. Quality control: Ensure job managements, competence and performance so that it meets the
quality plan as designed. Under quality control
❖ Product testing.
❖ Some self-inspection by an operator.
❖ Use of basic statistics.
❖ Process control.
3. Quality assurance (QA):
• Planned and systematic activities implemented within the quality system
• Provide confidence that a product or service will fulfill requirements of quality.
• Under QA following things are done:
i. Statistical process control (SPC).
ii. Failure mode analysis.
iii. Advance quality planning.
iv. Third party approval etc
 Quality management concept

4. Total quality management:

• is a new concept of quality management
• Overall management function that determines and implements the quality policy.
• The essential elements of TQM are:
❖ Quality planning
❖ Quality control
❖ Quality audit
❖ Quality surveillance
❖ Quality assurance
❖ Quality circles
Tools for quality control

❖ Specification and requirements.

❖ National and international codes (standard): NBC, IS codes, ACI
❖ Other organization.
❖ Procedural guidelines
 Introduction to Project Management Information System (PMIS)

❑ PMIS is a database for the project.

❑ It reduces uncertainties in decision making.
❑ It collects, analyses, stores, retrieves, and disseminates project information for making project
decisions.
❑ It consists of people, equipment, and procedures.
❑ It is a communication device. Project Management Information System is based on various
forms and reports that generate written information for decision making and control.

Objective of PMIS

i. Reduce duration or finish the project on time.

ii. Maximize the use of available resources.
iii. Decrease the cost or chances of cost overrun.
iv. Reduce risk and uncertainty in decision.
 Introduction to PMIS
Elements of EMIS

❑ PMIS consists of inputs-information-feedback

 Introduction to PMIS
Essentials requirements of PMIS

i. The PMIS should be factual and objective based on reliable data

ii. Report on achievement and deviations should be quick hitting
iii. It should contain the appropriate information with required level of accuracy
iv. It should strive to pinpoint root causes with accuracy
v. It should be easily understandable and usable
vi. It should focus on decision and expectation.

Advantages of PMIS

i. Better understanding or reduces communication gap between project members.

ii. Helps to monitor, evaluate and control in terms of cost, time and quality.
iii. Provides information about project problem before the occur.
iv. Informs managers and stakeholders about progress of the project.
v. It facilitates project planning and simplifies project control.
Thank you

Thank You!!
 NUMERICAL

Earned Value Analysis

50 units of plantation have to be done in two weeks period. Per unit cost of plantation is
estimated as Rs. 200 of which progress monitoring was done one week after the work was
started. Only 40% work was found completed and the account record showed that the actual
expenditure for plantation per unit was Rs. 250.Use Earned value analysis to comment on the
performance. Also estimate the cost and duration required for completing the remaining work
 NUMERICAL

Solution