PROJECT CONTROL PRINCIPLES

Bernd Madauss International Space University Strasbourg

bernd@madauss.com

2010

Project Control Principles

Optimization of Project Parameters: Performance (P), Schedule (S) and Cost (C)

P
Performance Dependence of Parameters

S
Schedule

C
Costs

Project Control Principles

Project Management & Control
Status Control

Technical Achievements Critical Areas Documentation Engineering Changes Schedule (Actual vs. Plan, Critical Path) Actions Financial Status Contractual

Status vs. Planning

Deviations to Plan Corrective Actions & Resolutions

Project Control Principles

Project Management & Control
Analysis

Impact to entire Project Consequences to Project Goal Decisions to be taken

Management Decisions

Change of Project Baseline

Technical Requirements Schedule Restraints Financial Contractual

Change of Project Plans

Project Control Principles

Integrated Project Control Process
(Project Feedback Solution)
R&D, Organization AIV, Test, Operations Total Project, Dedicated WPs, Subcos & Supplier

At CTR Award

P S C

PROJECT BASELINE

PROJECT PLANS

PROJECT ATP
ATP = Authority to Proceed

Actions, Changes, Redirection

PM DECISIONS

TASK PERFORMANCE

ANALYSIS FORECAST
Propose Corrective Actions

COMPARE TO PLAN
Deviation Analysis

STATUS REVIEW
Status Review

Project Control Principles

Work Breakdown Structure

Subdivision into Smaller Increments

Level 1: Total Project Level 2: Systems of the Project

Level 3: Subsystems of the Project Level 4: Units/Equipments Level 5: Work Packages or Components

Project Control Principles Work Breakdown Structure

(sample only)
Satellite System Customer Luxembourg

Supply of Launch Vehicle Contractor "A" USA

Supply of Satellite Contrctor "B" France

Supply of Ground Station Contrctor "C" UK

Satellite Operations Contractor "D" Holland

1st Stage Contractor "D" Russia 2nd Stage Contractor "E" Ukrain Fairing Contractor "I" Switzerland Launch Campaign Contractor "K" Kasakstan

Payload Contractor "H" USA Bus Contractor "G" France Propulsion Contractor "H" Germany Interface Contractor "F" Japan

TT&C Station Contractor "L" Italy Up-Link Contractor "M" Spain Data Processing Contractor "N" Belgium Telemetry Contractor "O" UK

Tracking Company "P" Germany Monitoring Company "D" Holland Evaluation Company "Q" Ireland Relay Company "R" China

Project Control Principles Work Breakdown Structure (WBS)

A Key to Successful Project Management !!!
The WBS serves several important Purposes, such as:
Subdivision of Work Identification of Project Levels Work Sharing between Companies Economic Geographical Distribution of Funds Implementation of WBS Numbering System (Code) applicable to the entire Project Definition of Cost Account Structure Allocation of Funds Implementation of Project Control in line with the WBS Code Assignment of Responsibilities to Companies & Individual Managers Identification of Interfaces at all Levels Implementation of Documentation Numbers related to WBS Code Identification of Work Packages

Project Control Principles

Content of Work Package Description

Work Package (WP) Identification

Title Identification of the WP in the WBS (WP Number) Date of the Start and End of the WP Company or Entity in charge of the WP Performance

Assign Work Package Manager

Description of WP Tasks to be Performed Tasks Explicitly Excluded

WP Inputs (Documents, Hardware, Software)

WP Outputs (Products: Hardware, Software, Documents)

Project Control Principles

Project Milestones

Identify Project Milestones

Major Milestones Payment Milestones Other Milestones

Planned Achievements
Important Key Events for Control

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Project Control Principles

1. Establish Schedule Baseline

Input * project task

Output **

time
*
Objective, requirements, mission plan, etc.

**
Deliverables (HW, SW, documentation
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Project Control Principles

1. Establish Schedule Baseline

(Sequence of Events)

Specification Design Production Test

Activity Dummy Activity

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Project Control Principles

1. Establish Schedule Baseline

(Sequence of Events and Durations)

to

Specification 4w Design

8w

Production 6w Test

to + 20

2w

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Project Control Principles Baseline Milestone Schedule

A INSTALLATION B APPROVAL RESPONSiBILITY C ACCOMPLISHMENT
RESPONSiBILITY MILESTONES TIME SCALE

H SCHEDULE TITLE

LEVEL

D ORIG. SCHEDULE APPR.

(DATE)

G PROJECT J CONTRACTOR I SCHEDULE NO.

(LEAVE BLANK)

E LAST SCHEDULE CHANGE F STATUS AS OF

L KEY MILESTONES

M INTERNAL MILESTONES

N INTERFACES

O NOTES

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Project Control Principles

1. Prepare Schedule Baseline
(sample schedule)

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Project Control Principles

1. Establish Schedule Baseline

(Critical Path Analysis)

to

Specification 4w Design

8w

Production 6w Material 20 w Test

to + 26

2w

Critical Path of Project

Positive Slack
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Project Control Principles

2. Establish Schedule Targets

(Definition of Milestones)

Complete Specification Design

Complete
Complete

Product.
Complete Test

Activity Dummy Activity

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Project Control Principles

2. Establish Schedule Targets

(Definition of Milestones)

Identify Project Milestones Major Milestones Payment Milestones

Other Milestones
Describe Planned Achievements Perform Control

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Project Control Principles

4. Provide Schedule Control

(Status Monitoring)

Baseline Planning Measurement of Achievements Comparison of Planned and Actual

Deviations to Plan Corrective Actions

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Project Control Principles

4. Provide Schedule Control

(Status Monitoring)
A u fg a b e n
1 2 3 4 5
-2

10

11

12

K o n s tru k tio n
- 4

F e rtig u n g

+2

Zusam m enbau und Test

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Project Control Principles

4. Provide Schedule Control
(Schedule Trend Charts)
14 13 12 11 10 9
5

Terminverzge von 1 bis 3 haben voll auf 4 und 5 durchgeschlagen

Geplanter Termin *

8 7 6 5 4

Berichterstattung fr 3 bis 5 nicht realistisch

3

3 2 1
1

Problem Erkennung

* Monate nach Projektbeginn (0)

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Berichterstattung *

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Project Control Principles

5. Identify Schedule Problem Areas

Activities and/or Milestones are not Completed in Time

Progress Information not Available Work Forecast Shows Delay of Deliverables

Critical Path Analysis not Performed

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Project Control Principles

6. Implement Corrective Actions

Requesting Additional resources to Complete Activities and/or Milestones on the Critical Path Provide Constantly Progress Information

Introduce Work Around Solutions Perform Critical Path Analysis

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Project Control Principles

7. Implement Schedule Reporting

Activities and Milestones Completed Work Forecast of Activities to be Completed including Time to Completion (TTC) Schedule Problem Areas and Solutions Results of Critical Path Analysis

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Project Control Principles

Project Cost Plans

Cost Account Structure

Manpower & Cost Plan

Travel & Subsistence Overall Cost Summary

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Project Control Principles

Planning Of Project Resources

Manpower Requirements Material Requirement Requirements for Machines Facility Requirements

Travel Requirements Others (TBD)

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Project Control Principles Manpower and Cost Plan

RESOURCE
Manpower (hrs) Costs (T-Euro): o Manpower o o Travel Material 100 10 150 15 200 20

TIME LINE (Month or Quarter)

250 25 200 20 150 15 100 10 50 5

TOTA L
1 200 120

o
o o

Equipment
Contractors Others

Grand Total

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Project Control Principles

Manpower and Cost Control
RESOURCE
Manpower and Cost Elements Manpower (Hours) Costs (Euro): o Manpower o Travel o Material o Equipment o Suppliers o Others a. Budget

MANPOPWER & COST STATUS REPORT

b. Actual c. PO d. CTC e. Forec ast (b + c + d) 1 300 130 16 24 29 f. Variance (e a)

1 200 120 15 25 35 90 5 8 0

900

0 0 0 13 29

400 40 11 3 0

- 100 - 10 -1 +1 +6

Grand Total

195

103

42

54

199

-4

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Project Control Principles

Earned Value Methodology
Akkumulierte Kosten (TDM)

700 600

Accumulated Costs

Time Now (TN)

Statuskontrolle ( 01.07.XX )

ACWP
500 400

Cost at Completion (CAC)

Cost to Completion ( CTC )

BCWS
Plankosten ( PK )

300 200 100

BCWP

Ist-Kosten

( IK )

Arbeitswert ( AW )

ACWP Actual Cost Work Performed BCWP Budgeted Cost Work Performed BCWS Budgeted Cost Work Scheduled
11 12 40 640 13 --14 --15 --16 ---

1 20 15

2 45 65 40 55

3 45 110 40 95

4 70 180 45 140

5 70 250 50 190

6 75 325 60 250

7 65 390

8 65 455

9 65 520

10 40 560

Zeitplan
Kostenplan Akk. Kosten Ist-Kosten Akk. Ist-Kosten

40 600

Cost Plan Actual Costs

Time Schedule
Terminplan
e:\pmt\seminare\s_10\s_10gf02.cdr Fo-03

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Project Control Principles

Recommended Project Management Literature

Kerzner, Project Management & Study Guide, 8th Edition Madauss, Projektmanagement, 6th Edition, 2000, German Verzuh, The Fast Forward MBA in Project Management, 1999 Terry, Principles of Management, 7th Edition ESA, Space Project Management, ECSS-M

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