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user specifications and the project planAssessment – comparisons are made between actual performance and the plan during operationsCorrective actions – when severe variances are experienced, need to take measures to fix itResponsibility chart – clearly state who is responsible for each project activityVariance analysis – implementing cost control. Cost control works most effectively when it is tied to workpackagesWork packages – include work descriptions, time-phased budgets, work plans and schedules, resource requirements, and assignments of responsibilityEarned value concept – measure of the budgeted value of work that has been accomplished. It indicates how much of the budget was planned to have been spent in order to do the amount of work done so farStandard time unit – measures work accomplished in terms of what a normal, prudent worker with average luck would accomplish in that time unit. This can be useful in measuring the efficiency of a work unit. It also focuses on activity completionAuthorization – primary means of controlling projects. The authorization chain works its way down through the organization. Ensuring that expenditure and work activity do not proceed without authorization is a primary means of maintaining control over the projectReasons for change include:Change in project scope and specification (due to new circumstances, etc.)Changes in design (original plan clearly will not work, new technology available, etc.)Changes to improve rate of return (financial factor, where owner has better things to do with themoney required by the project)Changes to adopt improvements
Project evaluation:Formative evaluations – those that are used to control the projectAfter-action evaluations – involve first classifying completed projects into categories of success and failure. Management needs to understand why successful projects worked as well as they didProject control is a means to guide project efforts toward achievement of project goals. A primary meansof control is to compare actual work with planned accomplishments. This requires accurate data collection and efficient dissemination of project reports.Project control should clearly identify responsibilities for work packages, and use these work packages asthe basis of cost accounting. The authorization process ensures that management retains control over the project. There is a need to constantly update projected performances in order that top management has a complete picture, and is capable of making decisions to continue the project based upon sound, objective information.