Forecast to complete

" Corrective action i -TîjiC

Figure 9: The basic feedback loop of control.

1. Periodic status checking will be performed monthly.

2. Labor costs will be collected manually and estimated where necessary from discussion with Group engineering management.

3. Out-of-pocket costs will be collected through commitments and/or invoice payment records.

4. Monthly status reports will be issued by the PM&C Program project manager including:

a. Cost to date summaries.

b. Cost variances.

c. Schedule performance relative to schedule in Gantt format.

d. Changes in scope or other modifications to plan.

5. Informal control will be exercised through milestone anticipation by the PM&C Program project manager.

Figure 10: Control system.

in the Activity-on-Node network), milestones form a limited subset of events, in practice rarely exceeding 20 at any given level. The milestones are predetermined times (or performance states) at which the feedback loop of control described above (Figure 9) should be exercised. Other subdivisions of the project are possible, milestones simply being a subdivision by events. Periodic time subdivisions may be made, or division into phases, one of the most common. Figure 11 shows the milestones for the PM&C Program.


The Heublein PM&C Program met the conditions for a successful project in the sense that it was completed on time and within the budgeted funds. As is so often the case, the existence of a formal plan and continuing reference to it made it possible to deal with changes of scope. Initial reaction to the educational package was so favorable that the population of attendees was increased by Group executives and en gineering managers; by reference to the original plan it was possible to predict cost increases in advance. Thus, there was no overrun in any sense.

To deliver on time and within budget, but to deliver a product which does not serve the client's needs is also unsatisfactory. Did this PM&C Program achieve the "General Objectives" of Figure 5? We all know the difficulties of quantifying and measuring such objectives within the real-world environment, where the concept of a proper research design is not allowable: We rarely deliberately experiment with organizations. This is a similar problem to that faced in medical research; if we have a methodology that can save or make millions of dollars, can we deny it to any group, even if we are not absolutely certain of its value?

Thus, as is so often the case in managerial systems and educational programs, we are forced to rely on the perceptions of the clients. In this PM&C Program, the clients are Corporate Management, Group Management, and most importantly, the Managers of Engineering and their staffs. In the short




Program plan approved by both Corporate & Groups


Reporting and control system approved by Corporate and Groups


Organizational impact analysis report issued


Basic project planning and control seminars completed


Reporting and control system implemented


Final procedures manual approved


Technical Seminars completed

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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