9/13/2017 Measuring Project Progress : 6 Methods You Should Know

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> Measuring Project Progress : 6 Methods You Should Know

Measuring Project Progress : 6 Methods

You Should Know

MARCH 28, 2015 BY RESHMA SADHU 4 COMMENTS

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Accurately measuring the progress of a

project is always a challenge. There are
many factors to account for in an progress
update type of measurement, accuracy of
the data, frequency of the collect and the
system of record are all important factor in
accurate progress measurements.

And software packages like Primavera P6 dont always help us out. Sure there a 3
choices for Percent Complete Types, but how to we decide which one works best and
under which conditions?

Inaccurate progress will foil your ability to spot early warning signs of trouble ahead,
so to avoid that, here are 6 commonmethods for measuring projectprogress that will
help you best measure performance and work completion. The methods below are
summarized from Project Control: Integrating Cost and Schedule in Construction, by
Wayne Del Pico.

6 Ways to Measure Project Progress

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1. Units Completed
The Units Completed lends itself well to tracking tasks that are done repeatedly,
where each iterationcan easily measured. Usually a task that is done repeatedly
tends to take about the same amount of time, resources and e ort, so tracking the
units completed works well here. A simple example could be installing standard light
xtures. Each xture takes roughly the same amount of time; if we had 100 xtures to

install then we can simply count the units installed. In this case theres no subjective
experience-based
judgement involved.

2. Incremental
Milestones
Also known
as the steps method, the incremental milestones method is
predominantly
used for cost accounts that involve subtasks that need to be
completed in an orderly fashion. An example of this technique is the forming and
placing of a concrete foundation wall. Laying the foundation wall on footings, erecting
inside wall panels and brace, setting horizontal and vertical rebar in formwork and so
forth needs to be done in sequence to complete the task appropriately.

So how do you calculate this data? The calculation is built on each single item step
and the budgeted amount of time (labor hours) that is needed to complete the task
by the construction crew. As each step is completed, that is documented as a mini-
milestone which represents a percentage of the total installation process. The
percentage given for each subtask can vary based on the project and this progress is
usually agreed on to be used as a measuring took beforehand. A good way to
implement this method in Primavera P6 is using Activity Steps.

3. Start/Finish
This method is only focused on capturing the starting point and the nishing point of
the task and nothing in between. This method is best for tasks that areshort in
duration. You would implement this method if the tasks work estimations are not
available or if the percent complete progress data is too di cult to collect.

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9/13/2017 Measuring Project Progress : 6 Methods You Should Know

Classic examples include testing services such as load test on electric

panels, ushing and cleaning of piping, and similar tasks.1

Using the Start/Finish technique, we earn a percentage of progress when the task
starts and the other half is earned once the task is complete. These percentages are
determined by the owner and contractor of the project.

Often, companies agree to usethe standard 50/50 Rule or other rules:

50/50 Rule once started, the task is marked as 50% complete, and the balance
is earned at nal completion of the work.

20/80 Rule used to track higher value tasks that takes a longer time to reach
completion.

0/100 Rule this rule illustrates that once 100 percent of the task is completed,
only then will the value be earned. An example of this is in testing or
experimental tasks since you cannot get results until the task is completed.

4. Cost Ratio
The Cost Ratio method is usually implemented ona project that has tasks that tend
occur over a long phase or the entire project. Often used for Overhead costs, this
technique is measured based on the budgeted allocation of dollars vs. the labour
hours of production. This method gives the contractor the ability to earn value that is
equal to the overall percent of project completion.

For example,[] if the overall progress of the project was determined to

be 42 percent, then the contractor would have earned 42 percent of the
overhead and fees.1

5. Experience/Opinion

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Unlike the methods above that rely on de nitive data, this method is relies on the
experience and subjectivity of the project manager. This technique is used for tasks
such as dewatering or frost removal/protection. Its not usually recommended and
tends to be seen as the last resort because each individuals experiences and
opinions vary from one another and can cause con ict between owners, contractors
and architect.

6. Weighted
or Equivalent Units
This method
was highlighted as the best technique in the text and is the one that
requires more e ort, but also extends to a wider data range. The tasks that are being

calculated tend to occur over a longer duration time and includes multiple subtasks,

where subtasks can have di erent units of measurements.

The example used to illustrate this method is building a structural steel package. In
order to complete this project it requires various units, labor hours, resources and
subtasks. So to calculate the subtasks, its weighted on the estimated level of e orts in
labor hours or by monetary value that is particular to each subtask. Once the
weighted value is determined, its converted to re ect that value in units of measure
speci c to the task and for this example, the units of measure would be tons. So
once each subtask has been completed, the weighted tons (units of measure) is then
converted to the equivalent units of percentage complete of the overall project.

These 6 methods for measuring project progress are commonly used in Construction
project management and lter into a process of determining a percentage complete
for the project as a whole using Earned Value Management.

Which of these methods do you use the most on your projects?

1
Source: Del Pico, Wayne J. (2013) Project Control: Integrating Cost and Schedule
in Construction. Hoboken,New Jersey: John Wiley & Sons, Inc.

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Filed Under: Construction, Progressing, Project Controls Tips & Tutorials, Project Management

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About Reshma Sadhu

Reshma is a Marketing Intern at Plan Academy. She is a Graduate of the
Social Sciences program at McMaster University and has a background in
Marketing. She loves to travel and has a strong interest in practicing meditation
oh and playing Mah Jong! You can connect with her on LinkedIn at:
ca.linkedin.com/in/sadhureshma

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Comments
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9/13/2017 Measuring Project Progress : 6 Methods You Should Know

Victor says:
April 01, 2015 at 4:01 pm
Reshma, great article.
Part of the methods you mentioned are incorporated is Earned Value Management
(EVM). EVM is the most powerful project control we ever had. Many project
managers

nd EVM di cult to set up however. To help close that gap, I included an
appendix on how to set up EVM in my latest eBook Project Management Quick

Start. Keep up the good works

Reply

Navindu says:

June 07, 2017 at 5:36 am
Hi Sir,

in EVM calculation, Actual Work Done needs to be calculated .( EVM = BV x

Actual Work Done), how to calculate the Actual Work Done (Physical
Progress). Please advise.

TIA

Reply

Faisal says:
July 17, 2017 at 9:05 am
Nice Article..

To setup the PMS (with respect to Quantity and Man-hours) during

the approval or preparation of Planning Package for monitoring or
calculating the physical progress which will help you to calculate the
physical progress.

Reply

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Ahmed says:
November 28, 2016 at 5:55 am
Many Thanks Reshma Sadhu

Reply

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