Page 255 - DCAP304_DCAP515_SOFTWARE_PROJECT_MANAGEMENT

Unit 12: Monitoring & Control

12.5 Purpose of Controls Notes

Controls are actions taken as a result of reports. When implemented, controls are designed to
bring actual project status back into conformance with the project plan. These reports are designed
to support control activities by drawing attention to certain aspects or characteristics of the
project, such as planned versus actual schedule, trends in the schedule, and actual versus planned
resource use.
We typically track performance levels, costs, and time schedules. There are three reasons to use
reports in your project.
1. To track progress: The project manager will want to use a periodic (at least biweekly, but
weekly is best) reporting system that identifies the status of every activity scheduled for
work since the last progress report. These reports summarize progress for the current
period as well as the cumulative progress for the entire project.
2. To detect variance from plan: Variance reports are of particular importance to management.
They are simple and intuitive, and they give managers an excellent tool by which to
quickly assess the health of a project. To detect variance, the project manager needs to
compare planned performance to actual performance.
3. To take corrective action: To take corrective action, it is necessary to know where the
problem is and to have that information in time to do something about it. Once there is a
significant variance from plan, the next step is to determine whether corrective action is
needed and then act appropriately.

12.6 Balancing the Control System

Figure 12.7: The Total Cost of Control and Risk

It is very easy to get carried away with controls and reports. The more controls that are put in place,
the lower the project risk, and the less likely it will be for the project to get in trouble. As figure 12.7
shows, however, there is a point of diminishing returns. Cost aside, there is another impact to
consider. To comply with the project controls, project team members will have to spend time
preparing and defending progress reports. This subtracts from the time spent doing project work.
The project manager needs to strike a balance between the extent of the control system and the
risk of unfavorable outcomes. Figure 12.7 shows the relationship between risk and control.
Conceptually, there is a balance point that minimizes the total cost exposure for having chosen
a particular level of control.

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