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ManagemManagement ent Control of Control of ProjectsProjects
Nature of Projects
• A project is a set of activities intended to A project is a set of activities intended to accomplish a specified end result of accomplish a specified end result of sufficient importance to be of interest to sufficient importance to be of interest to management. Projects include construction management. Projects include construction projects, the production of a sizable unique projects, the production of a sizable unique product (such as turbine), rearranging a product (such as turbine), rearranging a plant, developing and marketing a new plant, developing and marketing a new product .product .
• A project begins when management has A project begins when management has approved the general nature of what is to approved the general nature of what is to be done and has authorized the be done and has authorized the approximate amount of resources that are approximate amount of resources that are to be spent in doing this work.to be spent in doing this work.
• The project ends when its objective has The project ends when its objective has been accomplished or it has been been accomplished or it has been cancelled.cancelled.
• Projects vary greatly. Projects vary greatly.
• A project is a set of activities intended to A project is a set of activities intended to accomplish a specified end result of accomplish a specified end result of sufficient importance to be of interest to sufficient importance to be of interest to management. Projects include construction management. Projects include construction projects, the production of a sizable unique projects, the production of a sizable unique product (such as turbine), rearranging a product (such as turbine), rearranging a plant, developing and marketing a new plant, developing and marketing a new product .product .
• A project begins when management has A project begins when management has approved the general nature of what is to approved the general nature of what is to be done and has authorized the be done and has authorized the approximate amount of resources that are approximate amount of resources that are to be spent in doing this work.to be spent in doing this work.
• The project ends when its objective has The project ends when its objective has been accomplished or it has been been accomplished or it has been cancelled.cancelled.
• Projects vary greatly. Projects vary greatly.
Nature of Projects
Contrast With Ongoing OperationsContrast With Ongoing OperationsCharacteristics of projects that make the Characteristics of projects that make the
management control of projects different from management control of projects different from the management control of ongoing activities :the management control of ongoing activities :
• Single ObjectiveSingle Objective The project usually has a single objectiveThe project usually has a single objective• Organization StructureOrganization Structure The project organization is superimposed on an The project organization is superimposed on an
ongoing operation organization and its ongoing operation organization and its management control systems is superimposed on management control systems is superimposed on the management control systems of that the management control systems of that organization.organization.
• Focus on the projectFocus on the project Project control focuses on the project, whose Project control focuses on the project, whose
objective is to produce a satisfactory product, objective is to produce a satisfactory product, within a specified a specified time period, and at within a specified a specified time period, and at an optimum costan optimum cost
Contrast With Ongoing OperationsContrast With Ongoing OperationsCharacteristics of projects that make the Characteristics of projects that make the
management control of projects different from management control of projects different from the management control of ongoing activities :the management control of ongoing activities :
• Single ObjectiveSingle Objective The project usually has a single objectiveThe project usually has a single objective• Organization StructureOrganization Structure The project organization is superimposed on an The project organization is superimposed on an
ongoing operation organization and its ongoing operation organization and its management control systems is superimposed on management control systems is superimposed on the management control systems of that the management control systems of that organization.organization.
• Focus on the projectFocus on the project Project control focuses on the project, whose Project control focuses on the project, whose
objective is to produce a satisfactory product, objective is to produce a satisfactory product, within a specified a specified time period, and at within a specified a specified time period, and at an optimum costan optimum cost
Nature of Projects
Contrast With Ongoing OperationsContrast With Ongoing Operations• Need for Trade OffsNeed for Trade Offs Projects usually involve trade offs between Projects usually involve trade offs between
scope, schedule and cost.scope, schedule and cost.• Less Reliable StandardsLess Reliable Standards Performance standards tend to be less Performance standards tend to be less
reliable for projects than for ongoing reliable for projects than for ongoing organizations.organizations.
• Frequent Changes in PlansFrequent Changes in Plans Plans for projects tend to be changed Plans for projects tend to be changed
frequently and drastically. frequently and drastically. • Different RhythmDifferent Rhythm The rhythm of a project differs from that of The rhythm of a project differs from that of
ongoing operations ongoing operations
Contrast With Ongoing OperationsContrast With Ongoing Operations• Need for Trade OffsNeed for Trade Offs Projects usually involve trade offs between Projects usually involve trade offs between
scope, schedule and cost.scope, schedule and cost.• Less Reliable StandardsLess Reliable Standards Performance standards tend to be less Performance standards tend to be less
reliable for projects than for ongoing reliable for projects than for ongoing organizations.organizations.
• Frequent Changes in PlansFrequent Changes in Plans Plans for projects tend to be changed Plans for projects tend to be changed
frequently and drastically. frequently and drastically. • Different RhythmDifferent Rhythm The rhythm of a project differs from that of The rhythm of a project differs from that of
ongoing operations ongoing operations
Nature of Projects
Contrast With Ongoing Contrast With Ongoing OperationsOperations
• Greater Environmental Greater Environmental InfluenceInfluence
Projects tend to be influenced Projects tend to be influenced more by the external more by the external environment than is the case environment than is the case with operations in a factory. with operations in a factory.
• ExceptionsExceptions In some projects, team In some projects, team
members are hired for the job, members are hired for the job, they are not associated with they are not associated with functional departments in an functional departments in an on going organizations. on going organizations.
Projects in a research Projects in a research laboratory are conducted on laboratory are conducted on the premises rather than in the premises rather than in outside facilities.outside facilities.
Contrast With Ongoing Contrast With Ongoing OperationsOperations
• Greater Environmental Greater Environmental InfluenceInfluence
Projects tend to be influenced Projects tend to be influenced more by the external more by the external environment than is the case environment than is the case with operations in a factory. with operations in a factory.
• ExceptionsExceptions In some projects, team In some projects, team
members are hired for the job, members are hired for the job, they are not associated with they are not associated with functional departments in an functional departments in an on going organizations. on going organizations.
Projects in a research Projects in a research laboratory are conducted on laboratory are conducted on the premises rather than in the premises rather than in outside facilities.outside facilities.
The Control Environment
Project Organization StructureProject Organization Structure• A project organization is a temporary A project organization is a temporary
organization.organization.• Team members may be employees of the Team members may be employees of the
sponsoring organization, they may be hired for sponsoring organization, they may be hired for the purpose, or some or all of them may be the purpose, or some or all of them may be engaged under a contract with an outside engaged under a contract with an outside organization.organization.
Matrix OrganizationsMatrix Organizations• If members of the project team are employees of If members of the project team are employees of
the sponsoring organization they have two the sponsoring organization they have two “bosses” : the project manager and the manager “bosses” : the project manager and the manager of the functional department to which they are of the functional department to which they are permanently assigned.permanently assigned.
• The project manager, therefore, has less The project manager, therefore, has less authority over personnel than the manager of a authority over personnel than the manager of a production department, whose employees have production department, whose employees have an undivided loyalty to that department. an undivided loyalty to that department.
Project Organization StructureProject Organization Structure• A project organization is a temporary A project organization is a temporary
organization.organization.• Team members may be employees of the Team members may be employees of the
sponsoring organization, they may be hired for sponsoring organization, they may be hired for the purpose, or some or all of them may be the purpose, or some or all of them may be engaged under a contract with an outside engaged under a contract with an outside organization.organization.
Matrix OrganizationsMatrix Organizations• If members of the project team are employees of If members of the project team are employees of
the sponsoring organization they have two the sponsoring organization they have two “bosses” : the project manager and the manager “bosses” : the project manager and the manager of the functional department to which they are of the functional department to which they are permanently assigned.permanently assigned.
• The project manager, therefore, has less The project manager, therefore, has less authority over personnel than the manager of a authority over personnel than the manager of a production department, whose employees have production department, whose employees have an undivided loyalty to that department. an undivided loyalty to that department.
The Control Environment
Project Organization StructureProject Organization StructureEvolution of Organization StructureEvolution of Organization Structure• Different types of management personnel and Different types of management personnel and
management methods may be appropriate at management methods may be appropriate at different stages of the project.different stages of the project.
Contractual RelationshipsContractual RelationshipsContracts are of two general types: fixed price Contracts are of two general types: fixed price
and cost reimbursement.and cost reimbursement.Fixed Price ContractsFixed Price Contracts • The contractor agrees to complete the The contractor agrees to complete the
specified work by a specified date at a specified work by a specified date at a specified price.specified price.
• The sponsor is responsible for auditing the The sponsor is responsible for auditing the quality and quantity of the work to ensure that quality and quantity of the work to ensure that it is done as specifiedit is done as specified
Project Organization StructureProject Organization StructureEvolution of Organization StructureEvolution of Organization Structure• Different types of management personnel and Different types of management personnel and
management methods may be appropriate at management methods may be appropriate at different stages of the project.different stages of the project.
Contractual RelationshipsContractual RelationshipsContracts are of two general types: fixed price Contracts are of two general types: fixed price
and cost reimbursement.and cost reimbursement.Fixed Price ContractsFixed Price Contracts • The contractor agrees to complete the The contractor agrees to complete the
specified work by a specified date at a specified work by a specified date at a specified price.specified price.
• The sponsor is responsible for auditing the The sponsor is responsible for auditing the quality and quantity of the work to ensure that quality and quantity of the work to ensure that it is done as specifiedit is done as specified
The Control Environment
Contractual Contractual RelationshipsRelationships
Cost Reimbursement Cost Reimbursement ContractsContracts
• The sponsor agrees to The sponsor agrees to pay reasonable costs pay reasonable costs plus a profit (often with plus a profit (often with a “not to exceed” upper a “not to exceed” upper limit)limit)
• The sponsor has The sponsor has considerable considerable responsibility for the responsibility for the control of costs and control of costs and therefore needs a therefore needs a management control management control system and associated system and associated control personnel.control personnel.
Contractual Contractual RelationshipsRelationships
Cost Reimbursement Cost Reimbursement ContractsContracts
• The sponsor agrees to The sponsor agrees to pay reasonable costs pay reasonable costs plus a profit (often with plus a profit (often with a “not to exceed” upper a “not to exceed” upper limit)limit)
• The sponsor has The sponsor has considerable considerable responsibility for the responsibility for the control of costs and control of costs and therefore needs a therefore needs a management control management control system and associated system and associated control personnel.control personnel.
The Control Environment
Contractual RelationshipsContractual RelationshipsContrasts in Contract TypesContrasts in Contract Types Contractual RelationshipsContractual RelationshipsContrasts in Contract TypesContrasts in Contract Types
Fixed Price ContractsCost Reimbursement
Contracts•The contract is bid by
or proposed by the contractor
•The contracts are appropriate when the scope of the project can be closely specified in advance and when uncertainties are low.
• The profit component, or fee, usually should be a fixed monetary amount.
The Control Environment
Contractual RelationshipsContractual RelationshipsVariationsVariations • In an incentive contract, In an incentive contract,
completion dates or cost completion dates or cost targets, or both, are defined targets, or both, are defined in advance, and the in advance, and the contractor is rewarded for contractor is rewarded for completing the project completing the project earlier than the target date earlier than the target date or for incurring less than the or for incurring less than the target cost.target cost.
• Different contract types may Different contract types may be used for different be used for different activities on the project.activities on the project.
Contractual RelationshipsContractual RelationshipsVariationsVariations • In an incentive contract, In an incentive contract,
completion dates or cost completion dates or cost targets, or both, are defined targets, or both, are defined in advance, and the in advance, and the contractor is rewarded for contractor is rewarded for completing the project completing the project earlier than the target date earlier than the target date or for incurring less than the or for incurring less than the target cost.target cost.
• Different contract types may Different contract types may be used for different be used for different activities on the project.activities on the project.
Project Planning
In the planning phase :In the planning phase :• Takes as a starting point the rough Takes as a starting point the rough
estimates that were used as the estimates that were used as the basis for the decision to undertake basis for the decision to undertake the projectthe project
• Refines estimates into detailed Refines estimates into detailed specifications for the product, specifications for the product, detailed schedules and a cost budgetdetailed schedules and a cost budget
• Develops a management control Develops a management control system and underlying task control system and underlying task control systems and an organization chart systems and an organization chart
In the planning phase :In the planning phase :• Takes as a starting point the rough Takes as a starting point the rough
estimates that were used as the estimates that were used as the basis for the decision to undertake basis for the decision to undertake the projectthe project
• Refines estimates into detailed Refines estimates into detailed specifications for the product, specifications for the product, detailed schedules and a cost budgetdetailed schedules and a cost budget
• Develops a management control Develops a management control system and underlying task control system and underlying task control systems and an organization chart systems and an organization chart
Project Planning
Nature of the Project PlanNature of the Project PlanThe final plan consists of three related parts : The final plan consists of three related parts : a.a. The scopeThe scope States the specifications of each work States the specifications of each work
package and the name of the person or package and the name of the person or organization unit responsibleorganization unit responsible
b. The scheduleb. The schedule States the estimated time required to States the estimated time required to
complete each work package and the complete each work package and the interrelationships among work packages, interrelationships among work packages, that is, which work package must be that is, which work package must be completed before another can be started completed before another can be started (network) (network)
c. Costc. Cost Stated in the project budget, usually called Stated in the project budget, usually called
the control budget.the control budget.
Nature of the Project PlanNature of the Project PlanThe final plan consists of three related parts : The final plan consists of three related parts : a.a. The scopeThe scope States the specifications of each work States the specifications of each work
package and the name of the person or package and the name of the person or organization unit responsibleorganization unit responsible
b. The scheduleb. The schedule States the estimated time required to States the estimated time required to
complete each work package and the complete each work package and the interrelationships among work packages, interrelationships among work packages, that is, which work package must be that is, which work package must be completed before another can be started completed before another can be started (network) (network)
c. Costc. Cost Stated in the project budget, usually called Stated in the project budget, usually called
the control budget.the control budget.
Project Planning
Network AnalysisNetwork AnalysisSeveral tools are available for Several tools are available for
constructing the time constructing the time schedule for the project. schedule for the project.
a.a. PERT (Program Evaluation and PERT (Program Evaluation and Review Technique)Review Technique)
b. CPM (Critical Path Method)b. CPM (Critical Path Method) Each technique has three basic Each technique has three basic
steps :steps :• Estimating the time required Estimating the time required
for each work packagefor each work package• Identifying the Identifying the
interdependencies among interdependencies among work packageswork packages
• Calculating the critical pathCalculating the critical path
Network AnalysisNetwork AnalysisSeveral tools are available for Several tools are available for
constructing the time constructing the time schedule for the project. schedule for the project.
a.a. PERT (Program Evaluation and PERT (Program Evaluation and Review Technique)Review Technique)
b. CPM (Critical Path Method)b. CPM (Critical Path Method) Each technique has three basic Each technique has three basic
steps :steps :• Estimating the time required Estimating the time required
for each work packagefor each work package• Identifying the Identifying the
interdependencies among interdependencies among work packageswork packages
• Calculating the critical pathCalculating the critical path
Project Planning
X B
A
A
Critical Path(X-A, A-B & B-C Indicate Critical Path)
Time (week) 2 5
4 3
Project Planning
Estimating CostsEstimating Costs• For practical reasons, cost estimates are For practical reasons, cost estimates are
often made at a level of aggregation that often made at a level of aggregation that incorporates several work packages.incorporates several work packages.
• Cost estimates for most projects tend to be Cost estimates for most projects tend to be less accurate than those for manufactured less accurate than those for manufactured goods, because projects are less goods, because projects are less standardized.standardized.
Preparing the Control BudgetPreparing the Control Budget• The control budget is prepared close to the The control budget is prepared close to the
inception of the work, allowing just enough inception of the work, allowing just enough time for approval by decision makerstime for approval by decision makers
• The control budget is an important link The control budget is an important link between planning and the control of between planning and the control of performance.performance.
Estimating CostsEstimating Costs• For practical reasons, cost estimates are For practical reasons, cost estimates are
often made at a level of aggregation that often made at a level of aggregation that incorporates several work packages.incorporates several work packages.
• Cost estimates for most projects tend to be Cost estimates for most projects tend to be less accurate than those for manufactured less accurate than those for manufactured goods, because projects are less goods, because projects are less standardized.standardized.
Preparing the Control BudgetPreparing the Control Budget• The control budget is prepared close to the The control budget is prepared close to the
inception of the work, allowing just enough inception of the work, allowing just enough time for approval by decision makerstime for approval by decision makers
• The control budget is an important link The control budget is an important link between planning and the control of between planning and the control of performance.performance.
Project Planning
Other Planning ActivitiesOther Planning Activities• During the planning During the planning
phase, other activities phase, other activities are performed : material are performed : material is ordered, permits are is ordered, permits are obtained, preliminary obtained, preliminary interviews are interviews are conducted, personnel conducted, personnel are selected, and so on.are selected, and so on.
• All these activities must All these activities must be controlled and be controlled and integrated into the integrated into the overall effort.overall effort.
Other Planning ActivitiesOther Planning Activities• During the planning During the planning
phase, other activities phase, other activities are performed : material are performed : material is ordered, permits are is ordered, permits are obtained, preliminary obtained, preliminary interviews are interviews are conducted, personnel conducted, personnel are selected, and so on.are selected, and so on.
• All these activities must All these activities must be controlled and be controlled and integrated into the integrated into the overall effort.overall effort.
Project Execution
Basically, both the sponsor and the Basically, both the sponsor and the project manager are concerned project manager are concerned with these questions :with these questions :
1. Is the project going to be finished 1. Is the project going to be finished by the scheduled completion date ?by the scheduled completion date ?
2. Is the completed work going to 2. Is the completed work going to meet the stated specifications ?.meet the stated specifications ?.
3. Is the work going to be done 3. Is the work going to be done within the estimated cost ?. within the estimated cost ?.
Basically, both the sponsor and the Basically, both the sponsor and the project manager are concerned project manager are concerned with these questions :with these questions :
1. Is the project going to be finished 1. Is the project going to be finished by the scheduled completion date ?by the scheduled completion date ?
2. Is the completed work going to 2. Is the completed work going to meet the stated specifications ?.meet the stated specifications ?.
3. Is the work going to be done 3. Is the work going to be done within the estimated cost ?. within the estimated cost ?.
Project Execution
Nature of ReportsNature of ReportsManagers need three somewhat different types Managers need three somewhat different types
of reports : trouble reports, progress reports of reports : trouble reports, progress reports and financial reports.and financial reports.
1.1. Trouble ReportsTrouble Reports Report both on trouble that has already Report both on trouble that has already
happened and also anticipated future troublehappened and also anticipated future trouble2. Progress Reports2. Progress Reports Compare actual schedule and costs with Compare actual schedule and costs with
planned schedule and costs for the work planned schedule and costs for the work done.done.
3. Financial Reports3. Financial Reports Are accurate reports of projects cost that Are accurate reports of projects cost that
must be prepared as a basis for progress must be prepared as a basis for progress payments if there is a cost reimbursement payments if there is a cost reimbursement contract, and a basis they usually are contract, and a basis they usually are necessary as a basis for financial accounting necessary as a basis for financial accounting entriesentries
Nature of ReportsNature of ReportsManagers need three somewhat different types Managers need three somewhat different types
of reports : trouble reports, progress reports of reports : trouble reports, progress reports and financial reports.and financial reports.
1.1. Trouble ReportsTrouble Reports Report both on trouble that has already Report both on trouble that has already
happened and also anticipated future troublehappened and also anticipated future trouble2. Progress Reports2. Progress Reports Compare actual schedule and costs with Compare actual schedule and costs with
planned schedule and costs for the work planned schedule and costs for the work done.done.
3. Financial Reports3. Financial Reports Are accurate reports of projects cost that Are accurate reports of projects cost that
must be prepared as a basis for progress must be prepared as a basis for progress payments if there is a cost reimbursement payments if there is a cost reimbursement contract, and a basis they usually are contract, and a basis they usually are necessary as a basis for financial accounting necessary as a basis for financial accounting entriesentries
Project Execution
Use of ReportsUse of Reports
1.1. Trouble ReportsTrouble Reports the manager has to decide which problems the manager has to decide which problems
will get his or her personal attention, which will get his or her personal attention, which will be delegated to someone else, and will be delegated to someone else, and which will be disregarded on the assumption which will be disregarded on the assumption that operating personnel will take the that operating personnel will take the necessary corrective action.necessary corrective action.
2. Progress Reports2. Progress Reports The approach to analyzing progress reports The approach to analyzing progress reports
is “Management By Exception”. If progress is “Management By Exception”. If progress in a particular are is satisfactory, no in a particular are is satisfactory, no attention needs to be paid to the area.attention needs to be paid to the area.
Use of ReportsUse of Reports
1.1. Trouble ReportsTrouble Reports the manager has to decide which problems the manager has to decide which problems
will get his or her personal attention, which will get his or her personal attention, which will be delegated to someone else, and will be delegated to someone else, and which will be disregarded on the assumption which will be disregarded on the assumption that operating personnel will take the that operating personnel will take the necessary corrective action.necessary corrective action.
2. Progress Reports2. Progress Reports The approach to analyzing progress reports The approach to analyzing progress reports
is “Management By Exception”. If progress is “Management By Exception”. If progress in a particular are is satisfactory, no in a particular are is satisfactory, no attention needs to be paid to the area.attention needs to be paid to the area.
Project Execution
Informal Sources of InformationInformal Sources of Information
• Written report usually are less Written report usually are less important than information that the important than information that the manager gathers from talking with manager gathers from talking with people who actually do the work, people who actually do the work, from members of his or her staff.from members of his or her staff.
• From these sources, the managers From these sources, the managers learns of potential problems and of learns of potential problems and of circumstances that may cause circumstances that may cause actual progress to deviate from the actual progress to deviate from the plan.plan.
• Nevertheless, formal reports are Nevertheless, formal reports are necessary. necessary.
Informal Sources of InformationInformal Sources of Information
• Written report usually are less Written report usually are less important than information that the important than information that the manager gathers from talking with manager gathers from talking with people who actually do the work, people who actually do the work, from members of his or her staff.from members of his or her staff.
• From these sources, the managers From these sources, the managers learns of potential problems and of learns of potential problems and of circumstances that may cause circumstances that may cause actual progress to deviate from the actual progress to deviate from the plan.plan.
• Nevertheless, formal reports are Nevertheless, formal reports are necessary. necessary.
Project Execution
Project AuditingProject Auditing
• In many projects, the audit of In many projects, the audit of quality must take place as the quality must take place as the work is being done.work is being done.
• In general, auditing as the work In general, auditing as the work progresses is preferable, it may progresses is preferable, it may uncover potential errors that uncover potential errors that can be corrected before they can be corrected before they become serious.become serious.
• Internal auditors have Internal auditors have expanded their function into expanded their function into what is called operational what is called operational auditing. auditing.
Project AuditingProject Auditing
• In many projects, the audit of In many projects, the audit of quality must take place as the quality must take place as the work is being done.work is being done.
• In general, auditing as the work In general, auditing as the work progresses is preferable, it may progresses is preferable, it may uncover potential errors that uncover potential errors that can be corrected before they can be corrected before they become serious.become serious.
• Internal auditors have Internal auditors have expanded their function into expanded their function into what is called operational what is called operational auditing. auditing.
Project Evaluation
The evaluation of projects has two separate The evaluation of projects has two separate aspects :aspects :
1.1. An evaluation of performance in executing the An evaluation of performance in executing the project.project.
Carried out shortly after the project has been Carried out shortly after the project has been completedcompleted
2.2. An evaluation of the results obtained from the An evaluation of the results obtained from the project. project.
May not be feasible until several years later.May not be feasible until several years later.Evaluation for PerformanceEvaluation for PerformanceThe evaluation of performance is executing the The evaluation of performance is executing the
project has two aspects :project has two aspects :1.1. An evaluation of project managementAn evaluation of project management The purpose is to assist in decisions The purpose is to assist in decisions
regarding project managers, incl. rewards, regarding project managers, incl. rewards, promotions or reassignmentpromotions or reassignment
2. An evaluation of the process of managing the 2. An evaluation of the process of managing the project.project.
The purpose is to discover better ways to The purpose is to discover better ways to conducted future projects. conducted future projects.
The evaluation of projects has two separate The evaluation of projects has two separate aspects :aspects :
1.1. An evaluation of performance in executing the An evaluation of performance in executing the project.project.
Carried out shortly after the project has been Carried out shortly after the project has been completedcompleted
2.2. An evaluation of the results obtained from the An evaluation of the results obtained from the project. project.
May not be feasible until several years later.May not be feasible until several years later.Evaluation for PerformanceEvaluation for PerformanceThe evaluation of performance is executing the The evaluation of performance is executing the
project has two aspects :project has two aspects :1.1. An evaluation of project managementAn evaluation of project management The purpose is to assist in decisions The purpose is to assist in decisions
regarding project managers, incl. rewards, regarding project managers, incl. rewards, promotions or reassignmentpromotions or reassignment
2. An evaluation of the process of managing the 2. An evaluation of the process of managing the project.project.
The purpose is to discover better ways to The purpose is to discover better ways to conducted future projects. conducted future projects.
Project Evaluation
Evaluation of ResultsEvaluation of Results• The success of a project cannot The success of a project cannot
be evaluated until enough time be evaluated until enough time has elapsed to permit has elapsed to permit measurement of its actual measurement of its actual benefits and costs.benefits and costs.
• For many projects, evaluation of For many projects, evaluation of results is complicated by the results is complicated by the fact that the expected benefits fact that the expected benefits were not stated in objective, were not stated in objective, measurable terms, and the measurable terms, and the actual benefits also were not actual benefits also were not measurable.measurable.
• The results of relatively few The results of relatively few projects are subjected to a projects are subjected to a formal evaluation (often called formal evaluation (often called a post completion audit) a post completion audit)
Evaluation of ResultsEvaluation of Results• The success of a project cannot The success of a project cannot
be evaluated until enough time be evaluated until enough time has elapsed to permit has elapsed to permit measurement of its actual measurement of its actual benefits and costs.benefits and costs.
• For many projects, evaluation of For many projects, evaluation of results is complicated by the results is complicated by the fact that the expected benefits fact that the expected benefits were not stated in objective, were not stated in objective, measurable terms, and the measurable terms, and the actual benefits also were not actual benefits also were not measurable.measurable.
• The results of relatively few The results of relatively few projects are subjected to a projects are subjected to a formal evaluation (often called formal evaluation (often called a post completion audit) a post completion audit)
Summary
The most important difference between the management control on ongoing operations and the management control of projects is that the ongoing operations continue definitely, whereas a project ends.
The EndThe End
