Project Estimating and Control Techniques

Project Estimating and Control Techniques

Project estimation techniques help project managers to estimate critical project elements such as cost and scope. The tools are quite necessary, especially for large projects, as they offer project managers the help they need to ensure that they allocate the right amount of resources for specific activities. Since most projects are restrained within a specific financial budget, project estimation tools come in handy as they help project managers provide accurate estimations and budgets for upcoming projects. Without project estimation tools, it is almost impossible to tell how long a project may last, and essential project elements such as people, tools, and materials may not be available when needed. On the other hand, project control and monitoring tools help project managers track the progress of a project and undertake corrective action when actual performance deviates significantly from planned performance.

Project Information Gathering Tools

Project information gathering is a series of actions required to collect, analyze, track, and utilize the data for upcoming projects. Throughout a project’s lifetime, information gathering is required to provide project stakeholders with the relevant information required to implement projects successfully. During the project management process, project managers constantly gather and distribute information concerning the ongoing project. The process provides key project pointers such as status, performance, and assignments about the ongoing project.

1. Team Meetings

Organizing team meetings is perhaps one of the most crucial information-gathering tools. Given JP Phentar’s experience in constructing homes, the owner is well acquainted with the contractors used in the project. Team meetings should occur consistently, weekly or monthly, to ensure the entire team is updated about the project. Among other reasons, consistent team meetings update members about short-term project changes, especially on project schedules and budgetary changes (Eid, 2015). Considering the many features incorporated in JP Phentar’s home projects, multiple changes are likely to occur before the project is completed. Apart from meeting the project team, it is also critical for the project manager to meet the customers and update them about the project progress and any changes needed.

1. Questionnaires/Surveys

Questionnaires or surveys are also appropriate tools to gather information about a project. Surveys will help JP Phentar collect information from as many people as possible, given the many contractors involved in constructing the new home. Surveying is also preferable if the project contractors are spread geographically, with many responses stemming from the stakeholders. Questions in a survey must be objective and brief to obtain accurate answers.

• Special Discussions

Special discussions seek to eliminate the inefficiency of relying on record-keeping for effective project management. Such discussions, especially when they follow face to face framework, boost the sustainability of a project. Bringing project participants together enhances communication and creates a rapport between them (Eid, 2015). Special discussions are also meaningful, especially if some participants cannot attend physically. By using online software tools, remote-based project participants can be sure of being incorporated in meetings.

Project Analytical Tools

After gathering data relating to the project, the next crucial step is to analyze the data relative to work requirements. This step is essential because a project manager’s role goes beyond overseeing project works and ensuring that the project complies with the initial plan. Analysis of project works involves gathering information about a project and determining what the information reveals about the project at hand. Various tools can be used to analyze project works.

1. Project S-Curve Analysis

Project S-curve analysis compares one parameter in a project against another parameter within the work or whole project. Cost can be used as a parameter against the function of time to determine project status (Wilson, 2014). JP Phanter’s new construction project faces some challenges that may affect the initial schedule plan. For instance, the initial works involved in clearing the rocky areas before constructions works begin may affect the project timeline and cost. Using a simple grid display analysis, one can tell the project’s status by comparing the initial projected cost and the actual cost resulting from extra works.

1. Milestone Analysis

Millstones refer to major stop points used to analyze the project’s status to ensure it complies with the initial plan. These stop points are in the form of regulatory guidelines or engineering design. A project cannot proceed before attaining these major stop points (Wilson, 2014). For instance, in JP Phanter’s case, one milestone could be a 35,000-gallon saltwater fish tank. In case the milestone has not been achieved, other project activities may be paused for a while. Sometimes, the project manager may deliberately set project stop points to allow the customer to assess progress.

• Tracking Gantt

A tracking Gantt is yet another analytical tool used to analyze project status using MS-project. The tracking Gantt shows project works on the left side of a screen. As works update stream in, the tracking Gantt shows the percentage of completion in reference to time. The tracking Gantt is effective when differentiating between planned performance and actual performance as a function of work activities (Wilson, 2014). Given JP Phanter’s many new construction project activities, the tool would help keep staff on toes.

Corrective Actions

The project manager can notice problems or abnormal trends while analyzing project outcomes. In such a case, it is essential to determine the root cause of the problem before deciding what corrective measure to implement. Ascertaining the underlying cause of a problem will save project participants from implementing activities that do not solve the problem (Doskočil & Lacko, 2019). One tool that can be used for implementing a corrective action is the root cause analysis. Root cause analysis relies heavily on outcome analysis. Once the project manager identifies undesirable trends from outcome analysis, they can refer to expert opinion to eliminate such a problem. Root cause analysis is the simplest yet effective tool to identify underlying issues affecting project performance. The only challenge of using the tool is the unavailability of experts who can correctly diagnose causative factors.

Conclusion

Large-scale projects require keen management and monitoring to ensure compliance with the initial plans. As a result, Project managers use estimating and control techniques to ensure project success. Estimating tools are meant to help project participants determine the project’s scope and cost through information gathering. On the other hand, monitoring tools help project managers undertake an outcome analysis to avoid significant deviation between project plans and project performance. Outcome analysis can also reveal undesirable trends in a project, which can be corrected using corrective tools such as root cause analysis.

References

Doskočil, R., & Lacko, B. (2019). Root Cause Analysis in Post Project Phases as Application of Knowledge Management. Sustainability, 11(6), 1667. https://doi.org/10.3390/su11061667

Eid, M. (2015). Requirement Gathering Methods. https://www.umsl.edu/~sauterv/analysis/F2015/Requirement%20Gathering%20Methods.html.htm

Wilson, R. (2014). A comprehensive guide to project management schedule and cost control : methods and models for managing the project lifecycle. Pearson.

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Project Estimating and Control Techniques

JP Phentar Construction Case Study: JP Phentar has owned and operated his construction company for 27 years and is currently interested in building a custom home for his own family. Phentar Construction has specialized in large and exotic custom homes built in areas that present challenges, such as heavily wooded and rocky terrain, hillsides, and sandy beach sites. Phentar Construction has built large custom homes for executives, heads of state, and movie stars around the world; those projects generally include interesting and challenging amenities for construction companies to manage in the course of building homes.Phentar is pulling out all the stops on this construction project to include things in his own home that his family can enjoy although they are typically out of the norm for most family residences. Phentar has purchased three acres of foothill terrain that include several large rock outcroppings that have to be removed for the construction of an 8,500 square foot six-bedroom, six-bathroom home. This home will also include an elaborate game room with professional pool table and arcade games, a large family room with rock fireplace, and a fully functional home theater room with large-screen TV and surround sound and theater seating. The home will also feature as its primary centerpiece a 35,000-gallon saltwater fish tank that will start at the main floor in the center of the house and extend for two stories to the ceiling. This fish tank will include a large rock wall covered with all manner of coral and sea urchins, flowing water movement, and it will be stocked with an elaborate display of tropical fish. The exterior of the home will include a large pool with spa and a covered patio with full outdoor kitchen, including a fully functional brick fire oven.Because Phentar has built homes with similar amenities in the past, he knows all too well several of the contractors required to outfit these types of amenities can present challenges in cost estimation, level of quality, and ability to stay on schedule. Concerns with this particular project lie within clearing the initial acreage of large rock, and specialized amenities such as the game room, theater room, and fish tank that can present challenges during the scheduling of these activities in the course of building the home. There can be serious issues in the timing of these activities because they can affect other areas of the home during construction. Phentar is confident this project can be completed if proper project management tools and techniques are implemented to monitor and control critical activities through the course of this project life cycle.

Case Study Exercise for Chapter 11
1. Determine what information-gathering tools would be most effective on this project and what activities would need to be monitored.
2. Based on data that would be generated from work activities, what types of analytical tools could be used to determine project status?
3. Can any corrective actions be initiated?