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Topics: Communications Management, Construction, Earned Value Management, Work Breakdown Structures (WBS)
Does control account level need to be in the same level as work package level?
In a project, WBS is defined in sufficient detail to facilitate proper monitoring and control and achieve the objectives.

Execution level monitoring is done at lowest level of WBS ( say work package WP level).

Is it necessary to also to fix the control account at this level?
If so, will this not increase the work load for control account personnel?

If control account is positioned at a level higher than the execution progress monitoring level, then the WP has to be rolled upto control account level. In that case, progress monitoring will be done at lowest level and control account will be at higher WBS level.

In such situation, the key stakeholder will not be able to know the detail of where the problem/issue lies?

How to overcome this issue?
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From my experience, in large projects, we usually do something called: Cost Code. We assign major cost codes for higher levels and sub-codes for lower ones and this will allow you to keep track on everything. Hope this helps.
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1 reply by Steven Zachary
Dec 30, 2015 1:46 AM
Steven Zachary
...
Hey Rami,

Interesting answer. How do you track the cost codes. Within the WBS or in a seperate tabular format?
Dec 30, 2015 12:43 AM
Replying to Rami Kaibni
...
From my experience, in large projects, we usually do something called: Cost Code. We assign major cost codes for higher levels and sub-codes for lower ones and this will allow you to keep track on everything. Hope this helps.
Hey Rami,

Interesting answer. How do you track the cost codes. Within the WBS or in a seperate tabular format?
...
1 reply by Rami Kaibni
Dec 30, 2015 2:11 AM
Rami Kaibni
...
Hi Steven,

In a separate tabular format connected to the project accounts, monitoring system and WBS. We have something called a Pyramid.

For example: Installing Rebar for a Column in Area D, Building 5

Cost Code will be similar to this: WBS-D005-02-03

D005 = Area D - Building 5
02 = Columns In General
03 = Steel Works

Every activity has a cost code and sub-cost codes. During construction, the section engineers and site managers will ensure they record all material, MHRS under the proper cost codes then Project Controls will link progress, AC, MHRS accordingly and run the EVM.
Dec 30, 2015 1:46 AM
Replying to Steven Zachary
...
Hey Rami,

Interesting answer. How do you track the cost codes. Within the WBS or in a seperate tabular format?
Hi Steven,

In a separate tabular format connected to the project accounts, monitoring system and WBS. We have something called a Pyramid.

For example: Installing Rebar for a Column in Area D, Building 5

Cost Code will be similar to this: WBS-D005-02-03

D005 = Area D - Building 5
02 = Columns In General
03 = Steel Works

Every activity has a cost code and sub-cost codes. During construction, the section engineers and site managers will ensure they record all material, MHRS under the proper cost codes then Project Controls will link progress, AC, MHRS accordingly and run the EVM.
...
1 reply by Steven Zachary
Dec 30, 2015 10:59 AM
Steven Zachary
...
To play the devils advocate here Rami, do you find cost code maintenance of this detail gets unruly?
Rami

Thanks for your reply.

The cost code at higher level is meant for which stakeholder and what are the needs for this stakeholder? Are these stakeholders from finance and accounts?

regarding the sub code, I believe this code will be used by the project team for monitoring and control of the project. Is that correct?
...
1 reply by Rami Kaibni
Dec 30, 2015 2:13 PM
Rami Kaibni
...
Balaji,

The cost codes need not be for a specific stakeholder. This is part of the Monitoring and Controlling Process.

The sub-code and the main codes are used for monitoring.

Let me know if further explanation is required.
Dec 30, 2015 2:11 AM
Replying to Rami Kaibni
...
Hi Steven,

In a separate tabular format connected to the project accounts, monitoring system and WBS. We have something called a Pyramid.

For example: Installing Rebar for a Column in Area D, Building 5

Cost Code will be similar to this: WBS-D005-02-03

D005 = Area D - Building 5
02 = Columns In General
03 = Steel Works

Every activity has a cost code and sub-cost codes. During construction, the section engineers and site managers will ensure they record all material, MHRS under the proper cost codes then Project Controls will link progress, AC, MHRS accordingly and run the EVM.
To play the devils advocate here Rami, do you find cost code maintenance of this detail gets unruly?
...
1 reply by Rami Kaibni
Dec 30, 2015 2:16 PM
Rami Kaibni
...
Not if you have a dedicated and experience team on ground. But yes, it does happen, but it can be controlled unless there was not control over a period of time then that is another story but I guess if anything was uncontrolled in the project it will take sideways or highways.
Dec 30, 2015 8:47 AM
Replying to Ganesan Balaji PMP, RMP, PgMP
...
Rami

Thanks for your reply.

The cost code at higher level is meant for which stakeholder and what are the needs for this stakeholder? Are these stakeholders from finance and accounts?

regarding the sub code, I believe this code will be used by the project team for monitoring and control of the project. Is that correct?
Balaji,

The cost codes need not be for a specific stakeholder. This is part of the Monitoring and Controlling Process.

The sub-code and the main codes are used for monitoring.

Let me know if further explanation is required.
Dec 30, 2015 10:59 AM
Replying to Steven Zachary
...
To play the devils advocate here Rami, do you find cost code maintenance of this detail gets unruly?
Not if you have a dedicated and experience team on ground. But yes, it does happen, but it can be controlled unless there was not control over a period of time then that is another story but I guess if anything was uncontrolled in the project it will take sideways or highways.
...
1 reply by Steven Zachary
Dec 30, 2015 4:34 PM
Steven Zachary
...
I suppose so. Do you use any software for this? I could see that easing the administrative burden. I worry that overly complex solutions tend to fail often as they take up valuable cycles in administrative capacities rather then in delivering value.
Dec 30, 2015 2:16 PM
Replying to Rami Kaibni
...
Not if you have a dedicated and experience team on ground. But yes, it does happen, but it can be controlled unless there was not control over a period of time then that is another story but I guess if anything was uncontrolled in the project it will take sideways or highways.
I suppose so. Do you use any software for this? I could see that easing the administrative burden. I worry that overly complex solutions tend to fail often as they take up valuable cycles in administrative capacities rather then in delivering value.
...
1 reply by Rami Kaibni
Dec 30, 2015 5:23 PM
Rami Kaibni
...
Yes of course, they use something called the Pyramid - They developed this themselves and it was working perfectly.
Dec 30, 2015 4:34 PM
Replying to Steven Zachary
...
I suppose so. Do you use any software for this? I could see that easing the administrative burden. I worry that overly complex solutions tend to fail often as they take up valuable cycles in administrative capacities rather then in delivering value.
Yes of course, they use something called the Pyramid - They developed this themselves and it was working perfectly.
...
1 reply by Steven Zachary
Dec 30, 2015 8:55 PM
Steven Zachary
...
Interesting. An in-house solution.You should write a post on this.
Dec 30, 2015 5:23 PM
Replying to Rami Kaibni
...
Yes of course, they use something called the Pyramid - They developed this themselves and it was working perfectly.
Interesting. An in-house solution.You should write a post on this.
...
1 reply by Rami Kaibni
Dec 31, 2015 3:08 AM
Rami Kaibni
...
I can't because this is exclusive for my previous employer's organization so I have to take their permission first before I disclose something.
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