Construction Project

Monitoring
Dr. Ashwin Mahalingam

Elements of Project Control

Creation of a Baseline Schedule
Measurement of Performance
Effective Corrective Actions

Planning Levels
Master Plan
Macro Plan
Micro Plan

Execution

Major Milestones -> Quarters

Key resources
Activity Completion -> Monthly
Quantity Targets
Overall Resource Requirements
Activity Completion -> Daily/Weekly
Quantity/Location Targets
Detailed Resource Requirements

Monitoring Levels
Master Plan
Monthly Reports &
EVM Parameters.

Macro Plan
Micro Plan

Weekly Reports
& Activity Targets
Productivity Trends
Daily Progress Reports
Productivity Measurement
& Improvement

Execution

Schedule Updating
1. Schedule durations and sequences often vary
from actual durations and sequences

2.

Subcontractors might use different methods

Force Majeure events delay the project
Etc

Participants would like to know how the

project is progressing

Owners When can I move in? How much should I

pay this month? What milestones have been met?
Designers When do I release drawings
Subcontractors when do I come on to the site?

Usefulness of frequent schedule

updating
Current state of the project is always
known
Updates provide a valuable record of
project status at a given time
Can document changes, responsibilities and
delays throughout the project
Useful during claims proceedings

Schedule is a document that can be

followed

More on updates
Schedules should be updated periodically
Especially if a major event such as a logic
change occurs

Updates should show

New start and completion dates
Completed activities
Percentage progress on activities

Percentage Complete

Planned Vs. Actual

Updating a Precedence Diagram

0

3
A 3

B (4)6
3

8
D 2

9
9

0
0

Finish

E 3

Start
0

F (3)4
3

9
7
6

8
C 2

7 1 9

Project Monitoring

Project Monitoring
This graph shows Project Progress

Cost over-run with schedule

Time over-run

Cost

Ideal
Curve

Time

What is your feedback on this project ?

At 2 Weeks

At 8 Weeks

14

ANSWER
Week 02 Bad ?
Week 08 Good ?

Not really !!!

How much work was actually done ?

Progress Curve does not indicate this!!

Earned Value Analysis requires taking value
of work done into account!!!
15

In this case ?
160

RR
140

CSK
120

Optimistic ?!
100

80
60
40
20
0
0

9 10 11 12 13 14 15 16 17 18 19 20

Example -2.1
What is % Complete of this
Piping Package
Activity

Total Est.
Qty (M)

Qty
In-place (M)

% Complete

Small Bore
Piping

1063

197

Large bore
piping

10,000

701

Total Piping

Do you have enough information ?

17

Example -2.2
What is % Complete of this
Piping Package
Activity

Total Est.
Qty (M)

Qty
In-place
(M)

Est.
Man
Hours
Mhrs

Act.
Man
Hours

%
Complete

Small Bore
Piping

1063

197

1,350

300

Large bore
piping

10,000

701

10,200

1000

Total Piping

Do you have enough information ?

18

Example-2.3
What is % Complete of this
Piping Package
Activity

Total
Est. Qty
(M)

Qty
Inplace
(M)

Planned
Rate
Mhr/M

Est.
Man
Hours
Mhrs

Act.
Man
Hours

%
Complete

Small
Bore
Piping

1063

197

1.27

1,350

300

Large
bore
piping

10,000

701

1.02

10,200

1000

Total
Piping

Do You Have Too Much Information ?

19

Example -2.4
What is % Complete of this
Piping Package
Activity

Total
Est. Qty
(M)

Qty
Inplace
(M)

Planned
Rate
Mhr/M

Est.
Man
Hours
Mhrs

Small
Bore
Piping

1063

197

1.27

1,350

Large
bore
piping

10,000

Total
Piping

701

1.02

10,200

11,550

Do You Have Too Much Information ?

Earned
%
Manhours Complete
Mhr
197*1.27
=250

701*1.02
=715

250+715
=965

?
20

Example -2.4
What is % Complete of this
Piping Package
Activity

Total
Est. Qty
(M)

Qty
Inplace
(M)

Planned
Rate
Mhr/M

Est.
Man
Hours
Mhrs

Small
Bore
Piping

1063

197

1.27

1,350

197*1.27
=250

250/1350
=18.5%

Large
bore
piping

10,000

701

1.02

10,200

701*1.02
=715

715/10,200
=7.0%

Total
Piping

250+715
=965

965/11550

11,550
Questions & Comments ?

Earned
%
Manhours Complete
Mhr

=8.4%
21

MANHOURS & MONEY

TWO RESOURCES AS THEY ARE THE
COMMON TO ALL ACTIVITIES

THE EARNED VALUE CONCEPT USES

THESE FACTORS TO MONITOR
PROGRESS
22

Earned Value
Process
Planning Phase
1. Establish the Work Breakdown Str. (WBS)
2. Identify the activities to be scheduled within
WBS.
3. Allocate resources to be expended on each
activity, calculate costs
4. Schedule the activities over time. Level
resources- Plot relevant S curve.
5. Confirm that the plan is acceptable.

Earned Value Process

Monitoring Phase
1. Update the schedule by reporting activity
progress. Typically % Complete (Physically or
Estimate)

2. Enter the actual costs on the activities.

3. Execute the Earned Value calculations, print and

plot the reports and charts.

4. Analyze the data and write the performance

Concepts of Earned Value

Evaluating Progress on an Activity

Units completed
Length of pipe laid, length of trench dug

Effort expended
Plastering = 50%, Painting = 50% effort
3 walls plastered, two painted out of 4 walls
Percentage complete = (3x0.5+2x0.5)/4 = 62.5%

Expert opinion
Amount spent
Time taken (?)

Concept of Earned Value

Consider the following example:
Wall construction
Wall is divided into 4 sections
For 4-sections - 100 man-hours are required
Hence if 2-sections are completed,
(2/4) 100
= 50 man-hours
We say that 50 man-hours have been EARNED

The actual man-hours spent to construct these two

sections can be more than or less than the Earned
Value of man-hours

Concept of Earned Value

Wall construction
If 4 sections cost Rs. 1000/then the cost of constructing 2 sections = Rs. 500/We say that Rs. 500/- is the EARNED value of money
The actual cost incurred in constructing these two sections can
be more than or less than the Earned Value of money
It is important to note that Earned Value is based on the Actual
quantities installed or Actual quantity of work done
Hence output is considered in the Earned Value concept

Concept of Earned Value

Calculation of Earned Value
Earned Value of man-hours or money for an activity can be
calculated as follows:

Components of Earned Value

Components of Earned value Analysis

Budgeted Cost of Work Scheduled (BCWS)
It is the budgeted cost of work scheduled to be performed
It is also called the Planned Value (PV)
It tells how much work have been completed

Components of Earned value Analysis

Budgeted Cost of Work Performed (BCWP)
It is the budgeted cost of work actually performed
The Earned Value for the work actually completed
It tells how much work is actually completed

Components of Earned value Analysis

Actual Cost of Work Performed (ACWP)
It is the amount actually spent on the work completed
This could be more or less than the Earned Value

Components of Earned value Analysis

Scheduled Variance (SC)

It compares work completed vs work planned

It helps to identify whether the project is ahead or behind
schedule
Negative value indicated that the project is behind schedule

Components of Earned value Analysis

Scheduled Performance Index (SPI)

It helps to identify whether the project is ahead or behind

schedule
Less than 1 indicates that the project is behind schedule
It can be used to forecast how long it will take for the project to
complete

Components of Earned value Analysis

Cost Varience (CV)

It compares what was planned to be spent on the work

completed vs. what was actually spent
It helps to identify whether the project is ahead or behind
schedule
Negative value indicates that the project is over budget

Components of Earned value Analysis

Cost Performance Index (CPI)

It helps to identify weather the project is above or below budget

Less than 1 means the project is over budget
It can be utilised to forecast how much amount will be required to
complete the project

Components of Earned value Analysis

Budget at Completion (BAC)
It is the amount that was originally budgeted to complete the
project

Components of Earned value Analysis

Estimate at Completion (EAC)
It is the estimated amount required to complete the project

Components of Earned value Analysis

http://www.iceincusa.com/16CSP/content/4_ev/gifs/image1.gif (17.01.2007)

Example 1

Example 1

Determination of planned % complete:

Consider the following example
300

700 (man-hours)

Excavation
5000

5000 (money)
500

800 (man-hours)

Transportation
10000

70000 (money)

Draw % complete with respect to man-hours and money.

Example 1

Determination of planned % complete based on man-hours.

300

700 (man-hours)

Excavation
5000

5000 (money)
500

800 (man-hours)

Transportation
10000

7000 (money)

Daily Cumulative

300

1200

800

Total Cumulative

300

1500

2300

% Complete

300
2300

1200
2300

300
2300

= 0.13

= 0.65

= 1.0

Example 1

Determination of planned % complete based on money.

300

700 (man-hours)

Excavation
5000

5000 (money)
500

800 (man-hours)

Transportation
10000

10000 (money)

Daily Cumulative

5000

15000

7000

Total Cumulative

5000

20000

27000

5000
27000

20000
27000

90000
27000

= 0.185

= 0.741

= 1.0

% Complete

Percentage

Example 1

Stages

Example 1

BCWS Man-hours

Stages

Total

Excavation

300

700

1000

Transportation

500

800

1300

Stage Total

300

1200

800

Cumulative Total

300

1500

2300

Project % Complete

0.13

0.65

1.0

2300

Example 1

BCWS Money

Stages

Total

Excavation

5000

5000

10000

Transportation

10000

7000

17000

Stage Total

5000

15000

7000

Cumulative Total

5000

20000

27000

Project % Complete

0.185

0.741

1.0

27000

Example 1

Determination of Earned Value of Man-hour.

Consider the previous problem (man-hours)

Excavation

300

Transportation

700

500

800

0.95

1.0

0.6

0.95

% Complete
Excavation
Transportation

0.25

scheduled

Example 1
Determination of Earned Value of Man-hour.
Stage 1:
EMh (Excavation)

EMh (Transportation)

% complete of project:
Total Man-hours = 2300

% complete = 250 / 2300

% complete = 0.11

Example 1
Determination of Earned Value of Man-hour.
Stage 2:
EMh (Excavation)

EMh (Transportation)

% complete of project:
Total Man-hours = 2300

% complete = 1730 / 2300

% complete = 0.752

Example 1
Determination of Earned Value of Man-hour.
Stage 3:
EMh (Excavation)

EMh (Transportation)

% complete of project:
Total Man-hours = 2300

% complete = 2235 / 2300

% complete = 0.97

Example 1

Determination of Earned Value of Man-hour:

Excavation

250

700

300

700

50

Man-hours

Earned Value
Transportation

780

455

500

800

0.95

1.0

0.6

0.95

0.752

0.971

% Complete
Excavation

0.25

Transportation
Project - % Complete

0.108

Man-hours

(man-hours)
scheduled

Example 1

Determination of Earned Value of Man-hour.

BCWP

Stages

Excavation
Transportation

0.25
0

0.95
0.6

1.0
0.95

Excavation
Transportation
Stage total

250
0
250

700
780
1480

50
455
505

Excavation (cum)
Transportation
(cum)

250
0

950
780

1000
1235

250

1730

2235

0.109

0.752

0.972

% complete

Earned Value (man-hours)

Total cumulative
Project % complete

Example 1

Determination of Earned Value of Man-hour:

ACTUAL MAN-HOURS

Excavation

400

500

300

700

100

Man-hours

Actual
Transportation

450

1000

500

800

Man-hours

(man-hours)
scheduled

Example 1

Determination of Earned Value of Man-hour:

ACWP

Stages

Excavation
Transportation

400
0

500
450

100
1000

Stage Total

400

950

1100

Cumulative Total

400

1350

2450

Example 1

Determination of Earned Value of Man-hour:

Stage 1

Stage 2

Stage 3

BCWS

SCHEDULED MAN-HOUR

(Cumulative)

300

1500

2300

BCWP

EARNED MAN-HOUR

(Cumulative)

250

1730

2235

ACWP

ACTUAL MAN-HOUR

(Cumulative)

400

1350

2450

SV

BCWP-BCWS

-50

230

-65

CV

BCWP-ACWP

-150

380

-215

SPI

BCWP/BCWS

0.83

1.15

0.97

CPI

BCWP/ACWP

0.63

1.28

0.9122

Example 1
Determination of Earned Value of Man-hour:
Earned Value

Man-hour

Stages

Example 1

Determination of Earned Value of Money

Consider the previous problem (money)

Excavation

5000

Transportation

5000

10000

7000

0.95

1.0

0.6

0.95

% Complete
Excavation
Transportation

0.25

scheduled

Example 1
Determination of Earned Value of Money.
Stage 1:
EMh (Excavation)

EMh (Transportation)

% complete of project:
Total Man-hours = 27000

% complete = 2500 / 27000

% complete = 0.093

Example 1
Determination of Earned Value of Money.
Stage 2:
EMh (Excavation)

EMh (Transportation)

% complete of project:
Total Man-hours = 27000

% complete = 19700 / 27000

% complete = 0.730

Example 1
Determination of Earned Value of Money.
Stage 3:
EMh (Excavation)

EMh (Transportation)

% complete of project:
Total Man-hours = 27000

% complete = 26150 / 27000

% complete = 0.969

Example 1

Determination of Earned Value of Money.

Excavation

2500

7000

5000

5000

500

Money

Earned Value
Transportation

10200

5950

10000

7000

0.95

1.0

0.6

0.95

0.730

0.969

% Complete
Excavation

0.25

Transportation
Project - % Complete

0.093

Money

(money)
scheduled

Example 1

Determination of Earned Value of Money.

BCWP

Stages

Excavation
Transportation

0.25
0

0.95
0.6

1.0
0.95

Excavation
Transportation
Stage total

2500
0
2500

7000
10200
17200

500
5950
6450

Excavation (cum)
Transportation
(cum)

2500
0

9500
10200

10000
16150

Total cumulative

2500

19700

26150

Project % complete

0.093

0.730

0.969

% complete

Earned Value (money)

Example 1

Determination of Earned Value of Money.

ACTUAL MONEY

Excavation

4500

6000

5000

5000

5000

Money

Actual
Transportation

8500

7500

10000

7000

Money

(money)
scheduled

Example 1

Determination of Earned Value of Money.

ACWP

Stages

Excavation
Transportation

4500
0

6000
8500

5000
7500

Stage Total

4500

14500

12500

Cumulative Total

4500

19000

31500

Example 1

Determination of Earned Value of Money.

Stage 1

Stage 2

Stage 3

BCWS

SCHEDULED MONEY

(Cumulative)

5000

20000

27000

BCWP

EARNED MONEY

(Cumulative)

2500

19700

26150

ACWP

ACTUAL MONEY

(Cumulative)

4500

19000

31500

SV

BCWP-BCWS

-2500

-300

-850

CV

BCWP-ACWP

-2500

700

-5350

SPI

BCWP/BCWS

0.5

0.99

0.97

CPI

BCWP/ACWP

0.56

1.04

0.83

Example 1
Determination of Earned Value of Money.
Earned Value

Money

Stages

Thank You