mb0049 slides unit 12

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  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    1

    Program : MBA

    Semester : II

    Subject Code : MB0049

    Subject Name : Project Management

    Unit number : 12

    Unit Title : Project Execution and Control

    Lecture Number : 12

    Lecture Title : Project Execution and Control

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  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    2

    Project Management

    Objectives:

    After studying this unit, you should be able to:

    Describe the introduction of project execution phase

    Identify the key elements of a project control system

    Understand the roles of a project manager

    Outline the responsibilities of project teams

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  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Lecture Outline

    Introduction

    Project Execution

    Project Managers Responsibilities

    Project Team Responsibilities

    Issue of Network, Work to List, and Work Order Form

    Project Control Process

    Purpose of Project Execution and Control

    Summary

    Check Your Learning

    Activity

    3

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  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    4

    Introduction

    Project execution (or implementation) is the phase in which the plan designed in the prior phases is put into action. The purpose of project execution is to deliver the project expected results (deliverable and other direct outputs). During the project execution, the execution team utilises all the schedules, procedures, and templates that were prepared and anticipated during prior phases. The completion of start-up activities ensures that all elements are in place and project is ready to take-off. Project execution converts the plan into tangible asset, fulfilling a set of objectives. .

    In this session, you will learn about project execution, project managers responsibilities, project team responsibilities, issue of network, work to list, and work order form, project control process, purpose of project execution and control.

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  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Project Execution

    5

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    At the time a project moves into the execution phase, the project team and the necessary resources to carry out the project should be in place and ready to perform project activities.

    The figure depicts where in the project management the execution phase occurs.

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Project Managers Responsibilities

    6

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    The responsibilities of the project manager are the following: Responsible to internal and external stakeholders, the project team,

    vendors, executive management

    Enable project plans and processes

    Provide project status

    Deal with procurement and contract administration issues

    Manage quality control

    Monitor project risk

    Daily interaction and feedback from team members

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Project Team Responsibilities

    7

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    The project team members are expected to assist in the management of the project as well; albeit, at a more functional level.

    The critical project management elements for the project team to provide assistance includes:

    Performance monitoring

    Provide project status

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Network, Work to List, Work Order Form

    Issue of network, work to list, and work order form

    For execution of a large project three types of network are prepared.

    They are:

    Work-to list is a list prepared separately for each agency, after resource scheduling process. It is a recommendation to the concerned managers of the sequence and timing of work to be done.

    Work order form acts as a history sheet. It can help in managing the future network.

    Critical path network

    Detailed network

    Agency wise network

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  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Project Control Process

    9

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    Control of the project is exercised through formal and informal processes exercised by the project manager, project team, and stakeholders.

    The process of conducting reviews and monitoring reports exerts a degree of control over the project.

    The different stages of project control process are:

    Identify output and performance objective

    Performance monitoring for schedule and cost

    Cost and schedule performance measure Earned Value Method (EVM)

    Choose/implement corrective measures

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Project Control Process (cont.)

    10

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    Identify output and performance objective

    There are three basic performance objectives/standards for a project which a manager is expected to control. These include time schedule (project duration), project cost, and conformance to design specifications which ensure quality.

    The two common methods to evaluate these objectives are variance analysis and earned value method.

    The variance and earned value analysis are not applied to the objective, quality, as there is difficulty in quantifying it. In this case, the project manager may develop his or her own standards or adopt available ones and tries to ensure that they are met.

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Project Control Process (cont.)

    11

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    Performance monitoring for schedule and cost

    This tells who is to monitor the information and at what frequency. Normally, for a moderate size project, a separate project monitoring cell is created for collecting, analysing, and reporting information to all concerned for the purpose of information and controlling the project.

    The task of the group may include:

    1 Monitor progress

    2 Calculate variance/earned value

    3 Prepare variance/earned value report and other reports and send

    them to all concerned

    4 Present the report in review meeting

    5 Compile the measures arrived at in the meeting to deal with variances

    6 Follow up the implementation of suggested measures

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Project Control Process (cont.)

    12

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    Cost and schedule performance measure Earned Value Method (EVM) The Earned Value Method (EVM) is a useful tool that allows the calculations

    of cost and schedule performance measures including cost variance, schedule variance, cost and time over-runs for a project.

    EVM uses the following parameters to calculate the measures.

    Budgeted Cost of Work Schedule (BCWS)

    Budgeted Cost of Work Actually Performed (BCWP)

    Actual Cost of Work Performed (ACWP)

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Project Control Process (cont.)

    13

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    Choose/implement corrective measures The findings about variance and forecast are compiled in the form of report.

    The report is circulated to all concerned and discussed in a review meeting.

    Various options including re-planning, reallocating resources or changing the way the project is managed, etc. are discussed to resolve the variances. Of these, a set of options are chosen.

    Plan to implement these options are drawn and executing agencies are identified. The progresses of such plans are monitored in the review meeting.

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    Purpose of Project Execution & Control

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    The purpose of project execution and control is to develop the product or service that the project was commissioned to deliver.

    This is the longest phase of the project management lifecycle, where most resources are applied.

    Project execution and control utilise all the plans, schedules, procedures, and templates that were prepared and anticipated during prior phases.

    Unanticipated events and situations will inevitably be encountered, and

    the project manager and project team will be taxed to capacity to deal with them while minimising the impact on the projects CSSQ (Cost, Scope, Schedule, and Quality).

    The conclusion of the phase arrives when the product of the project is fully developed, tested, accepted, implemented, and transitioned to the performing organisation.

  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

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    Summary

    Project execution (or implementation) is the phase in which the plan designed in the prior phases is put into action.

    The project managers responsibilities are to enable project plans and processes, provide project status deal with procurement and contract administration issue etc.

    The critical project management elements for the project team to provide assistance includes performance monitoring and provide project status.

    Control of the project is exercised through formal and informal processes exercised by the project manager, project team, and stakeholders.

    The three basic performance objectives/standards for a project which a manager is expected to control are time schedule (project duration), project cost, and conformance to design specifications.

    Earned Value Method (EVM) is a useful tool that allows the calculations of cost and schedule performance measures including cost variance, schedule variance, cost and time over-runs for a project.

    The purpose of project execution and control is to develop the product or service that the project was commissioned to deliver.

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  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    16

    Check Your Learning

    1. Name the critical project management elements for the project team to

    provide assistance.

    Ans: The critical project management elements are:

    a. Performance monitoring

    b. Provide project status

    2. List the different stages of project control process.

    Ans: The different stages of project control process are:

    a. Identify output and performance objective

    b. Performance monitoring for schedule and cost

    c. Cost and schedule performance measure of EVM

    d. Choose/implement corrective measures

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  • C o n f i d e n t i a l

    MB0049-Project Management

    Unit-12 Project Execution and Control

    17

    Activity

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    Assume you are a project manager of a software company. You are assigned to start a new project. What are the project control process you would follow?