Executive Control with Flexibility In Managing Capital Projects


Abstract | Introduction | Need for PM | Comparison | Objectives
Execution | Features | Flexibility | Stages | Work Breakdown
Scheduling | Construction Management | Services | Conclusion

Scheduling and Cash Management

For schedule control, an integrated network should be drawn to the work package level to monitor and forecast progress. Consultants and contractors should be responsible for providing schedule status and logic, showing work package units for which they are responsible. It should not be necessary for the Project Management team to incorporate into the network schedule, information which is more detailed than the work package level. Progress should be monitored at this level and variances can be investigated through field reports.

A Master Schedule should be developed and maintained for the owner which shows key milestones or events at given points in time. Overall progress is then measured against the Master Schedule.

This schedule should not be changed unless:

  1. A formal reprogramming of the entire project or major part takes place
  2. The target schedule and the current schedule become so far apart that recovery is impossible and target objectives become meaningless
  3. Such changes are recognized and approved by top management.

When each work package is budgeted and scheduled, summation and a time scale will provide a cash flow profile. Expenditure profiles corresponding to early and late start can also be generated. Actual expenditures-to-date will provide key inputs for estimates-to-complete and cost variance analyses.

Thus, the project control system not only schedules feasibility, design and construction activities but also assists decision making cost breakdown, and cash flow.

Breakdown Structure  Work Breakdown Structure

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