PROJECT PLANNING AND CONTROL

INTRODUCTION:
Planning and control are not separable activities. Good planning without a control
mechanism has no meaning. Control becomes possible by comparing actual
performance with planned targets. The onus is on the management to create an
environment conductive to effective planning and control. Failure of planning and
control is disastrous, especially in project matters. This chapter, therefore, looks at
the nature of project activities, the effect of poor planning and control and the
project of life cycle before taking up a discussion on project control functions.
Project organization, planning tools and techniques, issue of contracting,
monitoring of progress and review based decisions are elaborated under the project
control function. The need of a dynamic response cycle for a quick and desired
reaction to deviations in plans and actual is also discussed in this chapter.
NEED FOR PROJECT CONTROL
When the future gets unfolded, it is realized that reality (outcome) is different from
what it was thought to be. The characteristics of projects are responsible for higher
chances of deviation. Concerns for projects are also varied due to some key
elements of the projects. The cost of deviations is also very high. Therefore, the art
of project management lies in a quick response to the deviation through adjustment
in activities.

KEY CHARACTERISTICS OF PROJECTS:

Projects are very different from routine operations. Important characteristics of
projects are listed below;
HIGH DEGREE OF ACTIVITY
Plenty of hectic activities are visible in project executions. Most of them are nonrepetitive. Project activities are the result of planned action. Project planning
therefore, should be based on realistic assumptions. Planning of activities requires
a good database and a high degree of expertise.

INTERRELATED ACTIVITIES
Large numbers of project activities are interdependent. A cascading effect on
project viability may be very severe if one activity go out of control. The
application of effective managements tools for planning of interdependent
activities and for measuring the impact of interrelations are vital aspects of project
management. The project team has to be good at crisis management so that
cascading effects are minimized.
HIGH LEVEL OF UNCERTAINTY
A large number of variables, the non-repetitive nature of activities and a long time
frame of project execution contribute towards riskiness. A high level of risk can be
countered well if the project team is prepared to deal with the deviations.
HIGH DEGREE OF INTERACTION WITH AGENCIES:
A project teams interface with other agencies within the company and outside is
very frequent. Rather, the functioning of the project team depends entirely on
interface management. Purchase, stores, finance, manpower planning, internal
audit, engineering, maintenance and a host of other departments of the firm have to
be activated by the project eam. External agencies involved may include vendors,
transporters, the installation team, contractors, banks, railway, government and
others. Strong man-management and co-ordination is the essence of success.
HIGH STAKE INVOVLED IN PROJECT:
The success of a project is very essential for good financials, employs morale and
company prestige. These are long term implications. Success may not be
remembered for long, but failure will. Therefore, the completion of a project as per
plan is highly essential. The cost of failure is heavy in financial term as well as in
other terms. Strong planning and good control of a project can avoid high costs.
KEY ELEMENTS OF PROJECTS
A variable project is one which attains multiple objectives. Four key elements are
central to the project objectives:
1) Timely completion
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2) Completion within cost targets

3) Matching the quality parameters and
4) Adherence to the technical parameters
Multiple dimensions make it difficult to have a comprehensive control
mechanism. Data collection, reporting and the variance analysis need vey
special care because the project has multiple key elements and objectives.
EXPENSIVE OVERRUNS
Overruns are a major problem eclipsing the viability of the project experienced by
many projects undertaken by Pakistani businesses. Delay in project completion is
expensive. Still many projects get delayed due to various reasons.
COST OF DELAY
Delay in project construction jobs incurs many costs. Some of them are listed
below:
1) Interest on invested capital
2) Overhead expenses like wages, salary, insurance, materials caring cost etc.
3) General Price escalation.
4) Compensation to consultants and contractors.
5) Loss of production due to delay