Proj Implementation - Controlling
Proj Implementation - Controlling
[ 7 hours]
Finding and
Analyzing
Deviations
Rework
Defective work may be of two categories, i.e. repairable or totally rejected.
Rework is aimed at bringing a defective item into compliance with specification.
• Rework results into extra costs and time delays.
• Cost arising out of poor quality of work may rise to as high as 30%.
Causes of rework may be due to:
• 46 % incorrect execution (which include 30 % lack of care, 08 % lack of information, 04 % lack of
competence, and 04 % lack of knowledge).
• 30 % failure in design and development
• 08 % lack of clear data
• 08 % faulty materials
• 06 % impossible to execute
• 02 % of others
Elements of Project Control contd.
Quality Audit
• Quality audit is a structured review of quality
management activities.
• Objective of quality audit is to identify measures that
can improve performance of a particular project.
• Quality audit should focus at the project defined
quality standard.
Elements of Project Control contd.
• * 100.
• Values under 100% indicate that project is
behind schedule.
Terms used in EVA
•Forecasting
60 BCWP CV
SV
50
40
BCWS
ACWP
0 Time
This project is ahead schedule and completed in less cost.
SV = BCWP – BCWS = 60 - 40 = 20
+ve value indicates project is ahead schedule.
CV = BCWP – ACWP = 60 - 50 = 10
+ve value indicates project completed in less cost.
SPI = (BCWP÷ BCWS) x 100 = (60 ÷ 40) x 100 = 150.0%.
Value >100 % indicates that project is ahead schedule.
CPI = (BCWP ÷ ACWP) x 100 = (60 ÷ 50) x 100 = 120.0%.
Value >100 % indicates that project completed in less cost.
S - curve diagram as shown above depicts that project is
ahead schedule & completed in less cost.
Time now
Cost
26 ACWP
CV
24
SV
20
BCWP
BCWS
0 Time
This project is behind schedule and cost overrun.
• SV = BCWP – BCWS = 20 - 24 = - 04
• -ve value indicates project is behind schedule.
• CV = BCWP – ACWP = 20 - 26 = - 06
• -ve value indicates cost overrun.
• SPI =(BCWP÷ BCWS)x100=(20 ÷ 24)x100= 83.33 %.
Value less than 100 % indicates time overrun.
• CPI=(BCWP ÷ ACWP)x100=(20 ÷ 26)x100 =76.92 %.
Value less than 100 % indicates that cost overrun.
Time now
Cost
16
CV
ACWP
SV
13
12
BCWS
BCWP
0 Time
This project is ahead schedule and cost overrun.
SV = BCWP – BCWS = 13 - 12 = 01
Positive value indicates project is ahead schedule.
CV = BCWP – ACWP = 13 - 16 = - 03
Negative value indicates budget overrun.
SPI =(BCWP÷ BCWS) x 100= (13 ÷ 12) x 100 = 108.33 %.
Project is ahead schedule.
CPI =(BCWP ÷ ACWP)x100=(13 ÷ 16) x100 = 81.25 %.
Project is cost overrun.
This project indicates “fast work but with more cost”.
Time now
Cost
28 BCWS SV
26 CV
24
ACWP
BCWP
0 Time
This project is behind schedule and completed in less cost
SV = BCWP – BCWS = 26 - 28 = - 02
-ve value indicates project is behind schedule.
CV = BCWP – ACWP = 26 - 24 = + 02
+ve value indicates less cost.
SPI = (BCWP÷ BCWS) x 100 = (26 ÷ 28) x 100 = 92.86 %.
Project is behind schedule.
CPI = (BCWP ÷ ACWP) x 100 = (26 ÷ 24) x 100 = 108.33 %.
Less cost.
This project indicates “project is behind schedule but with less
cost”.
Time now
Cost
ACWP
20
CV
19
SV
17
BCWP
BCWS
0 Time
This figure depicts that this project have ups and down, project is not
smooth.
SV = BCWP – BCWS = 17 - 19 = - 2
-ve value indicates Time overrun.
CV = BCWP – ACWP = 17 - 20 = - 3
-ve value indicates cost overrun.
SPI =(BCWP÷BCWS)x 100=(17 ÷ 19) x 100 = 89.47%.
Value less than 100 % indicates that project is behind
schedule.
CPI =(BCWP ÷ ACWP)x 100=(17 ÷ 20) x 100 = 85.00%.
Value less than 100 % indicates that project budget is
overrun.
Example of EVA
• Example: 50 units of plantation have to be done
in two weeks period.
• Per unit cost of plantation is estimated as Rs. 200
of which progress monitoring was done one week
after the work was started.
• Only 40% work was found completed and the
account record showed that actual expenditure
(cost) for plantation per unit was Rs. 250.
Solution
• BCWS = 25 x 200 = 5,000;
• BCWP = 20 x 200 = 4,000; ACWP = 20 x 250 = 5,000
• CV = BCWP – ACWP = 4, 000 – 5,000 = - 1,000 (Cost overrun)
• SV = BCWP – BCWS = 4,000 – 5,000 = - 1,000 (Time overrun)
• CPI = (BCWP ÷ ACWP) x 100 = (4, 000 ÷ 5, 000) x 100 = 80%
• SPI = (BCWP÷ BCWS) x 100 = (4, 000 ÷ 5, 000) x 100 = 80%
• Both cost and time (schedule) are overrun.
• CPI is 80%, final cost would be: (50 units x Rs. 200) ÷ 0.80 = Rs. 12,500
(instead of estimated cost Rs. 10, 000)
• SPI is 80%, completion time would be: 2 weeks ÷ 0.80 = 2.5 weeks
(instead of estimated time 2 weeks)
Control Costs
Cumulative Value
Data Date
Time
Figure: Earned Value, Planned Value, and Actual costs
Assignment: Example 1
• Provide an earned-value analysis to evaluate progress
of sewer and water lines project.
• Original budget is $147,500 and project is scheduled to
be completed in 94 working days.
• A status report of the project after 10 working days
include following information:
• BCWP = 7,600; ACWP = 7,700; BCWS = 7,600; BAC =
147,500
4.7 Project Quality Control
Environment
.
Organization
Input Process Output
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