The Evolution and History of Project Controls

Project controls is a recognized professional role and function within project management. Although there are multiple definitions of what project control is, it commonly refers to the data-driven processes used to manage the variables within a project to ensure that it stays on track. In short, project controls is all about the people, tools, information and processes that provide the right information to be present in the right time to effectively support project decision making.

Within the broader framework of project management, project controls are essential for monitoring and controlling various aspects of a project or programme to ensure that objectives are met within the defined scope, time, and budget.

Project controls encompass a range of activities that support project managers in making informed decisions throughout the project lifecycle. They help in maintaining alignment between the project’s actual performance and the planned performance by identifying potential risks, monitoring and forecasting cost and schedule outcomes, and implementing corrective actions as necessary. Key components of project controls include

1. Cost Control: This involves monitoring and managing the project’s budget to avoid cost overruns. Cost control processes include budgeting, cost estimation, cost tracking, and financial reporting. The goal is to ensure that the project is completed within the approved financial resources.
2. Scheduling: Scheduling is the process of developing, maintaining, and communicating the timelines and milestones of a project. Effective scheduling involves creating a detailed plan that outlines the sequence of tasks, their duration, and their dependencies. This helps in ensuring that the project is delivered on time.
3. Risk Management: Risk management within project controls involves identifying potential risks that could impact the project’s objectives, assessing their likelihood and potential impact, and developing strategies to mitigate or manage these risks. Effective risk management is critical to avoiding delays, cost overruns, and other project issues.
4. Quality Management: Quality management ensures that the project’s deliverables meet the required standards and specifications. This involves regular quality checks, audits, and compliance monitoring to ensure that the project outputs align with the expected quality criteria.
5. Change Management: Change management processes within project controls help manage any changes to the project scope, budget, or schedule. This involves evaluating the impact of proposed changes, obtaining approvals, and implementing changes in a controlled manner to avoid project disruption.

Nowadays, project controls and project controllers are a vital part of the project team, that work with project managers, providing the necessary support to monitor, manage, and adjust project parameters and ensure successful project completion. By integrating cost control, scheduling, risk management, quality management, and change management, project controls help to keep projects aligned with their objectives, thereby increasing the likelihood of project success.

This article aims to provide more context to history of project controls, tracing the historical development, and highlight key milestones and advancements in the field.

Early Examples of Managing Complex Projects

As an integral part of the project management practice, exploring how projects were managed in the past, can best help us understand the past of project controls.

The practice of project management has ancient roots, with some of the earliest examples seen in the construction of monumental ancient structures that continue to inspire awe today.

1. The Pyramids of Giza: The Pyramids of Giza in Egypt are a perfect example of an early project management. The construction of these massive structures required meticulous planning and coordination. The project involved the quarrying, transportation, and assembly of over 2 million limestone blocks, each weighing several tons.
2. Roman Aqueducts: The Roman aqueducts, constructed between 312 BC and 226 AD, are another remarkable example of early project management. These structures were built to transport water from distant sources into cities and towns, a critical infrastructure project for the Roman Empire. The planning and execution of these aqueducts required detailed surveys, precise engineering, and effective management of vast resources, including labor, materials, and time. The Roman engineers’ ability to maintain a consistent gradient over long distances demonstrates their advanced understanding of project management principles.

Methods Used for Planning, Resource Allocation, Control and Labor Management

The successful construction of ancient wonders like the Pyramids of Giza and Roman aqueducts relied on several key project management methods, many of which resonate with modern practices:

1. Planning: Detailed planning was essential for the success of these monumental projects. In both Egyptian and Roman contexts, the projects were overseen by master builders or architects who were responsible for the entire construction process. Despite the lack of modern technology, simple, but effective models and plans were created using tools at their disposal, as design, materials, logistics, and timelines for their projects were required to be considered. For example, the Egyptians planned for the transportation of massive stone blocks across great distances, while the Romans meticulously mapped the routes for their aqueducts to ensure a steady flow of water. The work was most likely divided in phases, due to the large scale of work to be done and the influence of external conditions.
2. Resource Allocation: Efficient use of resources was crucial in these early projects. The builders had to manage limited resources, such as labor, materials, and tools, to ensure that the project stayed on track. In Egypt, this meant organizing a workforce that included skilled laborers, as well as coordinating the supply of materials like limestone and granite. The Romans, on the other hand, had to allocate resources across a vast empire, ensuring that each aqueduct received the necessary materials and labor at the right time.
3. Labor Management: Managing large labor forces was a key aspect of these ancient projects. The construction of the Pyramids of Giza, for example, involved tens of thousands of workers, including laborers, craftsmen, and supervisors. These workers had to be organized into teams, each with specific tasks, to ensure efficient progress. Similarly, the Roman aqueducts required coordinated efforts from engineers, masons, skilled artisans, and laborers who worked together to build these complex structures.

The construction of ancient wonders like the Pyramids of Giza and Roman aqueducts highlights the early application of project management principles. The methods used for planning, resource allocation, and labor management in these projects laid the foundation for the development of modern project management practices. These ancient examples demonstrate that the successful completion of large-scale projects has always required careful planning, effective resource management, and skilled labor coordination—principles that remain central to project management today.

Primitive Project Control Techniques

The construction of the Pyramids of Giza and Roman aqueducts are not only marvels of ancient engineering but also early examples of project management in action.

In essence, both cultures employed regular inspections to ensure the quality and accuracy of the construction. The Egyptians used sightlines and measurements to ensure the precise alignment of the pyramids, while Roman engineers checked the integrity of their structures, especially their aqueducts, which required careful leveling to maintain water flow.

Though they lacked the advanced tools and technologies available today, these ancient builders employed various primitive project control techniques to ensure that their monumental tasks were completed successfully. These techniques, while rudimentary, laid the groundwork for modern project control methods.

Use of Manual Tracking Methods

Stones and Tally Sticks: Both the Egyptians and Romans employed manual tracking methods to monitor progress and resource usage. One common technique involved the use of stones or tally sticks to keep count of materials, labor hours, and completed tasks. In Egypt, for example, workers may have used stones to track the number of blocks transported or placed during the construction of the pyramids. Similarly, Roman overseers could have used tally sticks to record the number of workers assigned to different sections of an aqueduct or to track the progress of the construction.

Physical Markers: Physical markers were also used to measure progress and ensure adherence to the project schedule. For instance, the Egyptians likely used reference points or markers along the construction site to align the placement of stones, ensuring the pyramids’ precise shape. In Rome, engineers might have employed similar markers to maintain the gradient necessary for the aqueducts to function correctly.

Use of Initial Drawings to Measure Success: Though detailed blueprints as we know them did not exist, both the Egyptians and Romans used basic drawings and plans to guide their construction projects. The Egyptians likely created initial sketches or models of the pyramids to establish dimensions and design specifications. These drawings served as a reference throughout the project, helping workers to measure their progress against the planned outcome. Success was gauged by how closely the construction adhered to these preliminary designs.

Roman engineers on the other hand, were known for their advanced use of mathematics and geometry, which they applied to the design of aqueducts. Preliminary plans, possibly etched in wax tablets or drawn on parchment, were used to outline the route, elevation, and structure of each aqueduct. These plans were critical in ensuring that the aqueducts maintained the correct slope over long distances, which was essential for the proper flow of water. The accuracy of these initial drawings was a key factor in determining the success of the project.

The Industrial Revolution and the Birth of Modern Project Controls

The Industrial Revolution, spanning the late 18th to the early 19th centuries, marked a pivotal period in the history of project management and project controls. As technological advancements transformed industries, the scale and complexity of projects increased dramatically, leading to the emergence of modern project controls methods. This era witnessed the construction of vast infrastructure projects, such as railways, bridges, and factories, which necessitated more systematic and formalized approaches to managing time, cost, and resources.

• Time Management: As project management continued to evolve in the early 20th century, one of the most significant advancements was the development of the Gantt chart, a tool that would revolutionize how projects were planned, monitored, and controlled. Henry’s Gantt chart was designed to aid in the planning and tracking of project tasks over time. The original Gantt chart was a simple yet powerful representation of a project’s schedule, where tasks were listed on the vertical axis, and time intervals were marked on the horizontal axis. Each task was represented by a bar that spanned the duration of its expected start and end dates, providing a clear visual overview of the project timeline. The introduction of the Gantt chart marked a significant milestone in the history of project management. It provided a systematic approach to scheduling and time management that had not been available before. The legacy of Gantt’s work extends far beyond his own lifetime. Gantt charts are still widely used in project management today, both in their original form and as part of more advanced software tools that build on the same fundamental principles. The simplicity and effectiveness of the Gantt chart have made it a timeless tool, essential for anyone involved in the planning and execution of projects.
• Cost Management: As projects became more expensive, cost management became a critical aspect of project controls. The Industrial Revolution saw the development of more sophisticated accounting and budgeting practices, which enabled managers to better estimate costs, allocate budgets, and monitor expenditures throughout the project lifecycle. This was crucial in preventing cost overruns and ensuring that projects were completed within the financial resources available.
• Resource Management: The complexity of industrial projects also demanded more efficient resource management. This included not only the management of physical resources, such as materials and machinery, but also human resources. The Industrial Revolution led to the formalization of labor management practices, with the introduction of techniques such as time and motion studies. These studies, pioneered by Frederick Taylor in the late 19th century, aimed to optimize worker productivity and efficiency, laying the foundation for modern resource management practices.

Post-World War II Developments

The period following World War II was a time of significant innovation in project management, driven by the increasing complexity of projects and the need for more efficient and systematic approaches to managing them. Two of the most important developments during this era were the introduction of the Program Evaluation and Review Technique (PERT) and the Critical Path Method (CPM), both of which have had a profound and lasting impact on the field of project management.

The PERT Method  

The Program Evaluation and Review Technique (PERT) was developed in the 1950s as a response to the complexities of managing large-scale, high-stakes projects during the Cold War era. PERT was initially created by the United States Navy, specifically for the Polaris submarine missile project. This project was unprecedented in its complexity and urgency, requiring a method that could manage the uncertainties inherent in such a large and innovative endeavor.

PERT is a probabilistic tool that focuses on analyzing and representing the tasks involved in completing a project. Unlike earlier methods, which often assumed that task durations were fixed, PERT introduced the concept of three time estimates for each task: optimistic, pessimistic, and most likely. These estimates allowed project managers to calculate an expected time for each task and identify the overall project timeline with a greater understanding of potential variances.

Key advantages of PERT include:

1. Uncertainty Management: PERT’s use of multiple time estimates made it particularly useful for projects with high levels of uncertainty, where task durations could vary widely. This was a significant improvement over earlier methods that relied on single-point estimates.
2. Complex Project Management: PERT’s ability to handle large and complex projects made it ideal for use in industries such as defense, aerospace, and engineering, where projects often involved numerous interdependent tasks and required meticulous coordination.
3. Identification of the Critical Path: By analyzing the sequence of tasks, PERT helps in identifying the critical path—the sequence of tasks that determines the minimum project duration. This insight allows managers to focus their attention on the most critical tasks that could delay the entire project.

Origins of Work Breakdown Structure (WBS)

The development of PERT also led to the formalization of the Work Breakdown Structure (WBS), a key component of modern project management. WBS is a hierarchical decomposition of a project into smaller, more manageable components or tasks. Each level of the WBS provides a greater level of detail, ultimately breaking the project down into work packages that can be assigned, tracked, and controlled.

WBS allows for:

1. Clear Task Definition: By breaking down a project into its constituent parts, WBS ensures that each task is clearly defined, with specific goals, resources, and timeframes.
2. Improved Resource Allocation: With a clear understanding of the tasks involved, project managers can allocate resources more effectively, ensuring that each component of the project receives the necessary attention and resources.
3. Enhanced Control and Monitoring: The hierarchical nature of WBS makes it easier to monitor progress and control various aspects of the project, as managers can track the completion of individual tasks and their contribution to the overall project.

The Critical Path Method (CPM)  

The Critical Path Method (CPM) was developed in the late 1950s by the chemical company DuPont and the computer firm Remington Rand as a response to the need for more efficient project management in complex industrial projects. Like PERT, CPM was designed to address the challenges of planning, scheduling, and controlling large projects with numerous interdependent tasks.

CPM is a deterministic technique that focuses on identifying the longest sequence of dependent tasks—known as the critical path—that must be completed on time for the entire project to be finished by its deadline. The critical path is crucial because any delay in the tasks on this path will directly impact the overall project completion date.

Key features and advantages of CPM include:

1. Deterministic Approach: Unlike PERT, which uses probabilistic time estimates, CPM assumes that task durations are known and fixed. This makes CPM particularly useful for projects where time estimates are more predictable, such as construction projects.
2. Identification of the Critical Path: CPM provides a clear and systematic method for identifying the critical path, allowing project managers to prioritize resources and attention on tasks that are crucial to the project’s timely completion.
3. Optimization of Resources: By focusing on the critical path, CPM helps managers optimize the allocation of resources, such as labor and materials, to ensure that the project stays on schedule. It also allows for the identification of slack or float time in non-critical tasks, which can be used to optimize resource allocation further.
4. Cost-Time Trade-Offs: CPM introduced the concept of cost-time trade-offs, where project managers can analyze the impact of accelerating tasks on the critical path to reduce the overall project duration. This was particularly valuable in industries where time equated to cost, and reducing project duration could lead to significant savings.

Differences between PERT and CPM

PERT and CPM improved project controls and assisted in methodically organizing the creation and implementation of projects of all sizes. Their application contributes to the timely, cost-effective, and high-quality completion of projects.

PERT and CPM both help project control by:

• Detailly breaking down tasks to provide a clear roadmap, making it easier to assign resources, estimate time, and manage dependencies between tasks.
• Identify the sequence of activities and minimize delay by better understanding the order of operations and setting clear task priorities.
• Regular monitoring against the PERT or CPM schedule enables early detection of deviations, allowing for corrective actions to be taken before small issues become significant problems
• By providing time estimates, PERT and CPM allow project managers to create realistic schedules, predict completion dates, and identify potential time constraints
• Project professionals can better understand resource requirements across the project timeline
• Identify high-risk tasks, develop risk mitigation strategies and allocate buffers where needed, reducing the likelihood of delays or cost overruns.

The Computer Age and Automation (1960s-1990s)

The period from the 1960s to the 1990s marked a transformative era in project management, driven by rapid advancements in computer technology and automation. These developments revolutionized how projects were planned, monitored, and controlled, leading to greater integration of cost and schedule management, the emergence of powerful project management software, and the rise of personal computing, which brought project controls into the digital age.

Origins of Cost Breakdown Structure (CBS) and Emergence of Earned Value Management (EVM)

As projects became more complex and the need for rigorous financial oversight grew, the 1960s and 1970s saw the integration of cost and schedule control into project management practices. This period marked the development of the Cost Breakdown Structure (CBS) and the emergence of Earned Value Management (EVM), both of which became fundamental tools for managing project performance.

1. Cost Breakdown Structure (CBS): CBS was developed as a hierarchical framework that allows project managers to break down project costs into manageable components. Similar to the Work Breakdown Structure (WBS), CBS organizes project costs into categories, such as labor, materials, and overhead, making it easier to allocate budgets, track expenditures, and control costs at various levels of the project. This structured approach to cost management provided greater visibility into where resources were being spent and helped in identifying potential cost overruns early.
2. Earned Value Management (EVM): EVM emerged as a powerful method for integrating cost, schedule, and scope into a single performance measurement system. Originally developed by the U.S. Department of Defense in the 1960s for managing large defense contracts, EVM allowed project managers to assess project performance in real time by comparing planned work, actual work completed, and actual costs incurred. By calculating key metrics, such as Schedule Performance Index (SPI) and Cost Performance Index (CPI), EVM provided early warning indicators of project issues, enabling managers to take corrective actions before problems escalated. The adoption of EVM spread beyond defense projects to industries such as construction, aerospace, as well as IT and others, where it became a standard practice for managing large and complex projects.

Development of Integrated Software Tools

The integration of computers into project management during the 1960s and 1970s paved the way for the development of comprehensive project management software suites in the following decades. These software tools revolutionized how project managers planned, scheduled, and controlled projects by automating many of the manual processes that had previously been labor-intensive and error prone.

1. Primavera: Introduced in 1983, Primavera was one of the first comprehensive project management software packages designed to handle large-scale and complex projects. Developed by Primavera Systems, Inc., the software provided a robust platform for scheduling, resource allocation, and cost management. Primavera’s ability to handle thousands of tasks and resources made it particularly popular in industries such as construction, engineering, and oil and gas, where project complexity and scale demanded the support from advanced tools. The software’s features, such as critical path analysis, resource leveling, and earned value analysis, set a new standard for project management tools. Later it was acquired by the Oracle corporation, who continued its development to date.
2. Microsoft Project: Launched in 1984, Microsoft Project brought project management software to a broader audience. Initially developed for the IBM PC, MS Project offered a user-friendly interface and powerful scheduling capabilities that made it accessible to project managers across various industries. The software quickly gained popularity due to its integration with other Microsoft Office applications, enabling seamless data sharing and collaboration. As personal computing grew in the 1990s, MS Project became a standard tool for project managers, offering features such as Gantt charts, resource management, and budget tracking.

Furthermore, the rise of personal computing in the 1980s and 1990s had a profound impact on project management and controls. As computers became more affordable and accessible, project management software moved from mainframe systems to desktop environments, making advanced project control tools available to a wider range of users.

1. Increased Accessibility: The proliferation of personal computers meant that project managers at all levels could now access powerful project management tools on their desktops. This democratization of technology allowed smaller organizations and individual project managers to adopt formal project control practices that were previously limited to large enterprises.
2. Enhanced Collaboration: Personal computing and networked environments facilitated greater collaboration among project teams. The ability to integrate project data with other business systems also enhanced decision-making and allowed for more agile responses to project changes.
3. Customization and Flexibility: As project management software evolved, it became increasingly customizable to meet the specific needs of different industries and projects. Users can use different software to reflect their unique project structures, workflows, and reporting requirements.

Modern Project Controls

As we entered the 21st century, the field of project management continued to evolve rapidly, driven by technological advancements, increasing globalization, and the growing complexity of projects. Modern project controls have become more sophisticated, with a strong emphasis on data analytics, software tools, and the ability to manage complex global projects. These developments have reshaped how project managers plan, monitor, and control projects, ensuring that they can meet the demands of today’s dynamic business environments.

Advances in Software

The 2000s saw significant advances in project management software and data analytics, transforming how project controls are executed. Modern software tools have moved beyond simple scheduling and cost tracking, incorporating advanced analytics, and integration with other business systems to provide a comprehensive view of project performance.

Primavera, Microsoft Project, and other widely used project management software, have evolved to offer a wide range of features that support not just scheduling but also resource management, risk analysis, and portfolio management. These tools allow project managers to track project performance across multiple dimensions, ensuring that all aspects of the project are aligned with organizational goals. Features like cloud-based access, real-time collaboration, and mobile interfaces have further enhanced their usability, making it easier for teams to stay connected and informed regardless of location.

In addition, industry standard software tools like MS Project and Primavera P6 can be further used with accompanying software tools such as project viewers.

ScheduleReader and Seavus Project Viewer are an ideal example of project viewer, tools that improve the communication on projects, leading to improved performance and an on-time completion of scheduled tasks and activities.

ScheduleReader is one tool designed to enhance communication and collaboration in projects that use Primavera P6. It allows team members to view project schedules in a user-friendly format without requiring access to the Primavera software suite.

ScheduleReader enables project managers to share schedule updates with stakeholders across different locations, ensuring that everyone has access to the latest information.

This tool is particularly valuable in complex projects, where timely communication is critical to keeping the project on track. It is also excellent for the purpose of project controls, as users can easily review all cost and schedule details contained within the project schedule, perform earned value analysis, compare baselines, and much more.

The ScheduleReader software is available for download as a 15-day trial version.

Globalization and Complex Project Environments

The globalization of business has brought new challenges to project management, particularly in managing projects that span multiple time zones, cultures, and regulatory environments. The complexity of global projects requires innovative tools and methodologies to ensure that projects are completed successfully, despite the challenges posed by distance and diversity.

Common Challenges in Project Control brought by Globalization

1. Communication Barriers: One of the most significant challenges in managing global projects is communication. Teams spread across different time zones and speaking different languages can struggle with coordination, leading to delays and misunderstandings. Cultural differences can also impact communication styles, decision-making processes, and team dynamics, further complicating project management.
2. Coordination of Resources: Global projects often involve coordinating resources, including personnel, materials, and equipment, across various locations. This can be challenging due to differences in local regulations, availability of resources, and logistical complexities. Ensuring that resources are allocated efficiently and that there is no duplication or wastage is critical to the success of global projects.
3. Risk Management: Managing risks in global projects is inherently more complex due to the diverse environments in which these projects operate. Political instability, economic fluctuations, and regulatory changes in different regions can all impact project timelines and budgets. Global projects require robust risk management strategies that account for these variables and allow for quick adaptation when unforeseen challenges arise.

Tools and Methodologies to Handle These Complexities

To address the challenges of globalization, modern project controls have incorporated tools and methodologies specifically designed to manage complex, global projects effectively.

Collaborative Project Management Platforms have become essential in managing global projects. These platforms allow teams to collaborate regardless of their physical location. Features like task assignment, progress tracking, monitoring of schedule, and integrated communication channels help ensure that all team members are on-board, perfectly aligned and can contribute effectively to the project success.

Project Controls Today

Project controls remain a critical element in ensuring the success of project management. As projects become more complex and stakeholders demand higher levels of accountability, effective project controls provide the necessary framework for tracking progress, managing risks, and optimizing resources. They serve as a bridge between planning and execution, offering real-time insights that enable project managers to make informed decisions and course corrections when needed. Without robust project controls, projects are more likely to face cost overruns, missed deadlines, and scope creep. Therefore, their continued importance lies in their ability to improve project outcomes, increase transparency, and ensure alignment with organizational goals.