Project Controls is a process that includes all of the resources, procedures, and tools that are used to plan, monitor, and control all stages of a capital project. This includes estimating, managing costs and schedules, managing risks, managing changes, tracking earned value, and making predictions.
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So, how do you control a project?
Well, in simple terms, Project Controls means comparing the project’s key performance indicator to the project plan and approving change requests, including recommended corrective and preventive actions.
The hardest part of project management is project control, which is also called monitoring and controlling. Project controllers are expected to know how to control a project that has been planned and managed in a very formal, proper way. In the real world, though, many project managers don’t use dedicated project control.
What is the Definition of Project Controls?
As per CII – Project Controls – Construction Industry Institute
Project Controls is a process that encompasses the resources, procedures, and tools for the planning, monitoring, and controlling of all phases of the capital project lifecycle. This includes estimating, cost and schedule management, risk management, change management, earned value progressing, and forecasting.
There is a formal definition of project control by various project management bodies. Some of them are as follows.
According to the PMI’s Project Management Body of Knowledge (PMBOK),
project controls are defined as the following: “Project controls are the data gathering, management and analytical processes used to predict, understand and constructively influence the time and cost outcomes of a project or program; through the communication of information in formats that assist effective management and decision making.”
As per the Association for Project Management (APM), Project control is defined as
“The application of processes to measure project performance against the project plan, to enable variances to be identified and corrected, so that project objectives are achieved.”
As per AACE Practice Standard,
cost control is the application of procedures to monitor expenditures and performance against the progress of projects or manufacturing operations; to measure variance from authorized budgets and allow effectively action to be taken to achieve minimum costs.
What are the 3 project control methods?
There are plenty of project control methods. You might not be able to use every method in every project. You’ll choose some of the following based on the type of project, how hard it is, and who is working on it. The following methods can be used to manage and keep track of a project from its start to its successful end.
Here are a few of the most common methods to control projects.
Work Breakdown Structure (WBS)
It’s always a good idea to break up a big project into smaller tasks so you can see how things are going. WBS breaks down big project tasks into smaller tasks that you and your team can easily understand and finish. From a control point of view, it is much easier to find a delayed or troubled task if your work packages are scheduled to finish within one reporting period.
Cost Breakdown Structure (CBS)
A Cost Breakdown Structure (CBS) is a way to show the different costs of a project in a tree-like structure. CBS shows how much each part of the Work Breakdown Structure costs (WBS).
Gantt Charts
A Gantt chart is a bar chart that shows how tasks are spread out over time. A Gantt chart is used to plan projects of all sizes, and it is a good way to show what work is supposed to be done on a certain day. It can also show you in a simple chart when a project starts and when it ends.
You’ll be able to see how tasks depend on each other, how long each task will take, and how the length of a task will affect when it starts and when it ends.
Critical Path Method (CPM)
The schedule model is used to do an analysis of the schedule network using the critical path method. By doing a forward pass analysis and a backward pass analysis through the project schedule network paths, the critical path method figures out the theoretical early start and finish dates, as well as the late start and finish dates, for all schedule activities. This is done without taking into account any resource limitations.
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What is Project Controls Example?
One of the most common examples of Project controls is Plan for the budget. Budget management is an important part of a project manager’s job, and it can be a big factor in whether or not a job goes well. You can’t just make a budget for a project and leave it alone, hoping everything will work out.
Let’s take another example of project controls. In project management, schedule control is used to keep an eye on your activities and tasks to make sure everything is going as planned. Obviously, it’s not just about checking status. Controlling the schedule of a project also means keeping your project processes up to date and dealing with change.
Most of the time, this is done by making a baseline. A baseline shows how you think the project will go. When you have a baseline schedule, you can compare your actual progress to your planned progress to see if you’re ahead or behind schedule.
What are the 3 main components of project controls?
There are basically three main components, which come under the project control function.
Schedule Control
Schedule Control is the process of keeping track of how the project’s tasks are going so that project progress can be updated and changes to the schedule baseline can be managed. This is done so that the plan can be carried out. To control the schedule, you have to keep an eye on and manage all of the project schedules.
Cost Control
Cost control is the process of finding and cutting business costs to make more money. It starts with making a budget. Cost control is an important part of staying profitable and making more money.
Risk Management
Risk management is the process of finding, evaluating, and controlling financial, legal, strategic, and security risks to an organization’s capital and earnings.
What is the role of project controls?
The project controller is a key member of the project team and works directly with the project manager to help set the project’s goals and objectives, create and keep track of the project’s budget and schedule.
Compare the reported progress to the work schedules and suggest ways to improve progress. Project control aims to minimize scope, cost, and schedule deviations and reduce risks. Project size and type determine project control goals.
The project’s value and timeline determine whether the project is small or large. This doesn’t mean you shouldn’t apply project controls to smaller projects; it just means you should scale the right processes based on project size and complexity.
Following are the key roles of the project control’s function.
- Ability to compare original budget with actual cost as project progresses Track and report project impacts of change requests.
- Use historical project data to provide cost estimates, schedules, plans, etc. to new projects.
- Ability to track real-time project progress, define work in WBS and work packages, establish cost coding and cost breakdown structure (CBS), track actual and remaining budget, and forecast remaining cost based on current project scenario.
What is the project controls process?
For effective and practical project management, here is the 5 Steps of project control process for keeping track of the project.
Step-1: Set standards for performance.
A project controller must create standards before holding their team and project to them. Project success depends on meeting performance standards. These criteria guide the project team during the active phase.
Standards help project managers assess project status. Managers know their team is on track if standards are met or exceeded. If standards aren’t fulfilled, the manager must go back to the process groups and adjust their staff, timetables, or goals.
Step-2: Measure Performance.
After setting standards, the control process group measures and tracks performance. A project controller can immediately flag lagging performance via measurement and monitoring.
Metrics tied to standards make performance tracking easy. Metrics usually relate to tangible criteria. A manager managing their team’s schedule can track when work is submitted and how many modifications are needed before approval. The management can also track supply spending to assess budget performance.
Step-3: Compare Actual Performance with Standards
Project Controller compare performance data to their standards. The manager can detect gaps between standards and team performance at this period.
These gaps can be favorable when the team exceeds standards or negative when it fails to reach goals. Positive gaps indicate prudent management. Monitor and praise the team for these shortcomings.
Step-4: Analyze Deviations
After identifying areas where a team is falling short, a project controller must determine why. Deviations should be rare if a project manager has spent enough time on preceding process groups. This indicates that the team did not account for all project variables or requirements. Finding missing pieces is crucial to changing project standards or activities to accomplish the original goal.
Step-5: Take Corrective Actions
Improving deviations is the final phase. Managers should leave favorable gaps alone until the project is finished. Performance above expectations gives the project buffer leeway for delays or setbacks.
Summary
Project Controls are data gathering, data management, and analytical processes used to predict, understand, and constructively influence the time and cost outcomes of a project or program by communicating information in formats that aid management and decision-making.
The project control process monitors project resources, processes, and tools and tracks performance indicators. Project control focuses on cost and schedule, but also considers quality, scope, etc. Finally, project control requires the right people, processes, and tools.
