Project Budget Monitor and Control
Author：Yin Guo-li
Nationality：American
Derivation：Management Science and Engineering. Montreal: Mar 20, 2010
纸老虎打一成语With the marketing competitiveness growing, it is more and more critical in
budget control of each project. This paper discuss that in the construction pha, how can a project manager be successful in budget control. There are many methods discusd in this
paper, it reveals that to be successful, the project manager must concern all this methods.
1. INTRODUCTION
The survey shows that most projects encounter cost over-runs (Williams Ackermann, Eden,
2002,pl92). According to Wright (1997)'s rearch, a good rule of thumb is to add a minimum of 50% to the first estimate of the budget 惜时的名言(Gardiner and Stewart, 1998, p251). It indicates that project is very complex and full of challenge. Many unexpected issues will lead the project cost over-runs. Therefore, many echnologies and methods are developed for
successful monitoring and control to lead the project to success. In this article,we will discuss in the construction pha, how can a project manager to be successful budget control.
2. THE CONCEPT AND THE PURPOSE OF PROJECT CONTROL AND
MONITOR
Erel and Raz (2000) state that the 打破僵局project control cycle consists of measuring the status of the project, comparing to the plan, analysis of the deviations, and implementing any appropriate corrective actions. When a project reach the construction pha, monitor and
control is critical to deliver the project success. Project monitoring exists to establish the need to take corrective action, whilst there is still time to take action. Through monitoring the
activities, the project team can analyze the deviations and decide what to do and actually do it. The purpo of monitor and control
is to support the implementation of corrective actions, ensure projects stay on target or get project back on target once it has gone off target
。
3. SETTING UP AN EFFICIENT CONTROL SYSTEM
For the purpo of achieving cost target, the manager need to t up an efficient
management framework including: reporting structure, asssing progress, and communication system. The employees' responsibility and authority need to be defined in
the reporting structure. The formal and informal asssing progress can help getting a general perspective between reality and target. It is significant to help identify what is the risk and should be monitored and controlled. Project success is linked to communication. The efficient communication system benefit for teamwork and facilitate problem solving ( Diallo and Thuillier, 2005 ).
4. COST MONITOR AND CONTROL
4.1 Ranking the priority of monitoring
In construction pha, many activities are carried out bad on the original
plan. It is need to know what kind of activities or things are most likely to lead the project delay and disruption. Therefore, the first step is ranking the priority of the activities. Becau the duration of a project is determined by the total time of activities on critical path, any delay in an activity on the critical path will cau a delay in the completion date for the project (Ackermann Eden, Howick and Williams,2000,p295). Therefore, the activiti
es on critical path should firstly to be monitored and controlled. Secondly, monitoring the activities with no free float 企业培训管理课程remaining, a delay in any activity with no free float will delay some subquent activity inevitably. The subquent delays will discomfit the resource schedule significantly. Some resources are unavailable becau they are committed elwhere. Thirdly, monitoring the activities with less than a specified float, becau if an activity has very little float, it might u up the time before control decision is made 鬼后once such an activities has a variance with the target. Fourthly, managers should monitor high risky activities. High risky activities are most likely to overspend. Fifthly, managers should monitor the activities using critical resource. Some resource is critical becau they are very expensive or limited (Cotterell and Hughes, 1995).
3. SETTING UP AN EFFICIENT CONTROL SYSTEM
For the purpo of achieving cost target, the manager need to t up an 双曲线的标准方程efficient management framework including: reporting structure,
Asssing progress, and communication system. The employees' responsibility and auth
ority need to be defined in the reporting structure. The formal and informal asssing progress can help getting a general perspective between reality and target. It is significant to help identify what is the risk and should be monitored and controlled. Project success is strongly linked to communication. The efficient communication system benefit for 金华哪里好玩teamwork and facilitate problem 肪怎么读solving ( Diallo and Thuillier, 2005 ).
4. COST MONITOR AND CONTROL
4.1 Ranking the priority of monitoring
In construction pha, many activities are carried out bad on the original
