Project Control Process

Project Control Process

1. Setting Project Standards: Targets are set for each project activity in terms of time, cost, quality etc. They serve ads standards for control. Project planning is used to set such standards.
2. Performance Monitoring: Actual performance of each project activity is measured to provide feedback. Project reporting system is the source of such information.
3. Find Performance Deviations: The actual performance is compared with the standards to find out deviation for each activity. The causes and incidence of deviatiions are analyzed.
4. Corrective Actions: Corrective actions are taken to improve performance in future period. This is the crux of project control. It remedies the deviations to keep the system stable.
1. Project control system should focus on critical points in which performance deviatiions cause  the greatest damage to the project. It should find and resolve problems to get the project back on track.

Areas for Project Control

1. Time Control: Time control can be of two types:
• Normal Time Control: It is the estimated time for completion of an activity. Increase beyond this time is not likely to result in cost reduction.
• Crash Time Control: It is the estimated time of completion of an activity which cannot be reduced further irrespective  of cost considerations.
• Every project has an optimal time schedule which is effectively controlled to check overruns. Time delays result in cost overruns.
2. Cost Control: It involves the following:

• Setting up standard costing and budgetary control systems for the project. Project accounts capture costs as they are committed.
• Allocating responsibilities for cost control at task level.
• Ensuring proper allocation of costs to project codes; ensuring that costs are properly authorized.
• Measuring actual costs and comparing them with standard costs to prepare cost reports.
• Identifying deviations to take corrective actions to control cost overruns and maintain financial discipline.
• Value engineering can be used for Cost Reduction.

Types of Project Costs can be:

1. Budgeted Cost: Estimated during project planning.
2. Contracted Cost: Cost provided in the contract.
3. Committed Cost: Cost of purchase orders issued.
4. Earned Value: Cost of work in progress.
5. Invoiced Cost: Accrued Cost/ Invoice by contractor.
6. Incurred Cost: Payment authorized.

Project Monitoring and Evaluation System of INGOs

INGOs (International Non-Government Organizations) are voluntary non-government international organizations. They have head office in a developed country such as UK, USA, Japan, and Germany. But their operations and activities extend to too many developing countries. They conduct various activities to uplift and develop the under developed countries. The activities of INGOs consist mainly of:

1. Community Development Activities: They aim at social well-being of target groups. The sectors consist of : 
• Health and drinking water
• Education, including literacy and child care
• Agriculture, forestry, irrigation 
• Infrastructure development such as bridges, trails, school building. 
• Skills development etc.
2. Income Generating Activities: They aim to enhance the economic well-being of the target groups. For example, goat rearing.
3. Advocacy Activities: They aim to advocate issues like democracy, transparency, environmental protection, rights of women, children and consumers, etc.

• Nepal has more than six dozen INGOs engaged in various at grassroots level. They operate directly or through local NGOs. The Social Welfare Council serves as the focal point for INGO activities.
• INGOs carry out their activities mainly through small projects. A growing number of donors have started to work in partnership with INGOs. A substantial amount of foreign aid (estimates are about Rs. 6 billion) to Nepal flows through the INGOs.
• Monitoring and evaluation is an important aspect of project management by INGOs.

Monitoring
Formal Monitoring by INGOs consists of periodic reports and accounting statements from the project, usually on a monthly or quarterly basis. The actual performance is compared against performance benchmarks in terms of time, budget and quality. Corrective actions are taken for deviations by the INGOs.

Evaluation

• Field level evaluation: It is an on-going process. The project progress is evaluated weekly or monthly by INGO staff through field visits.
• Impact evaluation: This is done for the country programme of the INGOs. It is carried out generally in three to five years.

Project M and E Techniques of Various Agencies 

Logical Framework for M & E

A logical framework is generally used for monitoring evaluation. It evaluates cause and effect relationships as well as assumptions and risks of the project. The logical framework evaluates three sequential relationships:

1. Inputs to Outputs: Outputs resulting from inputs, for example grain storage godown facility for a grain storage project.
2. Outputs to Effects: Effects resulting from project outputs. For example reduction in grain losses as an effect of grain storage godown facility.
3. Effects to Impacts: Impacts resulting from project effects. For example higher income to farmers as an impact of reduction in grain losses.

• The assumptions and risks are evaluated as to their validity. These cannot be controlled by the project.
• Performance benchmarks serve as the standards for monitoring and evaluation purposes.
• A logical framework matrix for each project is prepared for planning, monitoring and evaluation purposes as shown in box:



Logical Framework Matrix

Key Concepts in the Logical Framework

• Objective: This is the desired outcome of the project.
• Purpose: This is the effect or impact of the project.
• Outputs: These are the deliverable of the project as specified in the Terms of Reference.
• Activities: These are the tasks that must be undertaken to accomplish outputs. They involve inputs in terms of money, human resources, equipment, materials etc.
• OVIs: Objectively Verifiable Indicators are targets in  terms of quantity, quality, time to measure actual performance.
• MOV: Means of Verification describe sources of information that provide the basis for monitoring and evaluation of the project. They are reports and publications related to project accomplished.
• Assumptions and Risks: They are important external factors beyond the control of the project. Their validity is important for achieving project objective, purpose, outputs and activities.

M & E: Monitoring and Evaluation