Change Order in Project

1.0 MANAGING CHANGES IN THE PROJECT

During the course of a project, circumstances may come to light that necessitate minor or major adjustments to the plan. Not all changes are bad, yet not all changes can be made once a project is underway and project time, cost, and scope have been established.

Frequent scope changes may be an indication of inadequate up-front planning. They most often occur because of errors or omissions in the planning stage. Frequent changes may also be an indication of weak management in the organization, or a sign that the organization is trying to accomplish more work than available resources can handle. Changes may also be brought on by external events, such as changes in government regulations, new technologies, or new products or competitors.

It is important to establish a formal change control process to handle proposed changes to the plan. The system should include processes for submitting, evaluating, approving, and communicating changes in the project plan.

However, avoid making the system more complex than it needs to be. A lack of control can mean chaos, whereas an excessive amount of red tape can be overly burdensome to the project. Large projects with high visibility or a great degree of risk deserve a more rigorous change control process.

Change control is necessary to manage the potential effects on the project budget, schedule, and scope. Remember that the project triangle must be kept in balance. Changes in the time, cost, or scope of the project must be accompanied by appropriate changes in at least one other side of the triangle.

After the project is under way, the project sponsor may decide he wants new features added to the product, but he may still expect it to come in on the original schedule and budget. Change control can protect the project from “scope creep” (the tendency for scope to increase during the course of the project without proportionate increases in time or cost).

2.0 Actions

Consider the following actions to manage project changes:

1. Establish processes for submitting, evaluating, approving, and communicating changes in the project plan, including changes in time, cost, or scope.
2. Define tolerance guidelines within the approved project objectives so team members know which minor changes they can accept and which changes must go through the formal change control process.
3. Review change requests with the project team. Consider the impact of the change on all aspects of the project. Determine what added value the change represents for the project sponsor, customer, or project team. Identify the causes of the change and determine if these causes necessitate changes in other areas of the project or in future projects.
4.  Study alternative courses of action and determine their effect on the project.
5. Submit change requests to the project sponsor or customer and receive the appropriate approval or rejection. Communicate approved changes to all concerned. Document and track all changes, reporting on their effect on the project.

3.0 Change Request and Approval Form

The form in Figure.1 illustrates the kind of information needed to control change requests. Develop an appropriate form to use with your project.

Figure.1

 

4.0 Change Control Log

A change control log (see Figure.2) also may be used by the project manager to document and track changes.

Figure.2

5.0 Such a form helps:

1.  Keep track of changes.
2.  Determine why changes are made.
3. Justify changes to management.
4. Capture lessons learned for future projects.
5. For larger projects, you may want to hold a formal kickoff meeting with the project sponsor, customers, project team members, and other stakeholders to explain the roles and responsibilities of everyone present and communicate the project plans clearly and concisely.
6. Be sure to communicate the appropriate level of project information to each group. Management may be interested in summary-level information, whereas team members need much more detail.
7. Project management is the process of comparing actual performance to the plan to determine the variances, evaluate possible alternatives, and take appropriate corrective action. The ability to manage a project is directly tied to the effectiveness of the project plan. You need a plan to indicate where you are supposed to be, and you need status information to track where you are.

6.0 The steps in establishing a plan to monitor and manage a project are as follows:

1. Determine information needs (what must be known to manage the project).
2. Determine the methods to collect data (such as electronic, manual, on-site inspections, one-on-one interviews, or team meetings).
3. Determine how frequently data must be collected (based on the length and requirements of the activity and your level of confidence in it). 

    Once project work begins, the project manager systematically collects status information and compares it with the schedule, budgets, and scope identified in the project plan to determine variances.

Not all variances have a negative impact on the project, and not all variances deserve corrective action.

    The project manager develops and analyzes solutions to the problem, then takes the appropriate corrective course of action.

Time management is the process of comparing actual schedule performance to the baseline schedule, in order to determine variances, evaluate possible alternatives, and take the appropriate action. Cost management is the process of comparing actual expenditures to the baseline cost plans, in order to determine variances, evaluate possible alternatives, and take appropriate action.

    Scope and quality management is the process of comparing actual performance to the scope statement, in order to determine variances, evaluate possible alternatives, and take the appropriate action. Resource management is the process of comparing actual performance to the resource plans, in order to determine variances, evaluate possible alternatives, and take the appropriate action.

     Some projects can be more tightly managed than others. Work that can be measured accurately can be managed with tighter tolerances. Work that is less precise (such as research or knowledge work) must be allowed greater tolerances.

Helpful tools to use in managing project objectives include inspections, statistical sampling, flow charting, control charts, trend analysis, Pareto diagrams, cause-and-effect diagrams, and earned value analysis.

Earned value analysis involves various calculations that measure and evaluate project performance by comparing the amount of work planned with what is actually accomplished.

         Establish a formal change control process to handle proposed changes to the plan while the project is in process. The system should include processes for submitting, evaluating, approving, and communicating changes in the project plan. Change control is necessary to manage the potential effects on the project budget, schedule, and scope.