Chapter 5 Project Monitoring and Control
Transcript of Chapter 5 Project Monitoring and Control
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roject Monitoring and Contro
l
Chapter -5
Mohammed W. EiT-M Industrial Engineering Department→
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roject Monitoring
The set of procedures and management practices used to
collect information about the performance of a project
Performance Analysis
The process of determining performance var iances basedon monitored and forecasted performance
The purpose of Project Monitoring and Control is to make
necessary actions when the project’s performance deviates
significantly from the plan
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urpose
Monitor the actual values of the project planningparameters against the project plan
The common reference is the original Plan or the
!udgeted cost and value curve
Performance
CostTime
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Project Control
Control " process and activities needed to correct
deviations from plan
Control the triple constraints
time #schedule$
cost #budget% e&penses% etc$
performance #specifications% testing results% etc$
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Monitoring and control as part of a feedback syst
em
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M easuring roject rogress
'tep ( define original budget and weighs of its ac
tivities
'tep ) measure activity progress and actual cost 'tep * calculate project progress as weighed sum
of activities
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Measuring roject rogress +,&le
BudgetedQuantity
UnitCost
BudgetActivityWeigh
Structures
1,100,001.40 100%
Footings 14,!00.00 1"%
#rocure$en
t & 1400
10&,400.0
0 !%
Ste'
1
Budget
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Progress after 10 Months
ActualQuantity
ActualUnit Cost
Actual Cost[10 months]
Structures 00,000.(!
Footings 1&!,!0*.1!
Procurement 79 1500 11!500"00
#hi$$ing 79 %0&"% 1'!059"1%
Construction 79 &50 %7!'50"00
Co)u$ns (",*1.40
Procurement 10 &%00 &(5!'00"00
#hi$$ing 10 (00 (&!%00"00Construction 10 1&79"55 1(!991"(0
Ste'!
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Actua)Quantity
Budget
edQuantit
y
Activity#rogress
ActivityWeigh
#ro+ect#rogress
Structures
Footings 104% 1"% 14.0%
Procurement 79 7' 10() 7%) 7("')
#hi$$ing 79 7' 10() 10) 10"7)
Construction 79 7' 10() 1) 1"7)
Co)u$ns 4*% % 4!.(%
Procurement 10 %%0 (9) '5) &1")
(&.4%
Ste'"
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'chedule./uration. (0 months budget. (%(11%111 2
After (1 months.
Actual consumed cost. 311%111 2 Progress. 5406
And not 311%1117(%(11%111 8 4*4* 6
-a$')e Continued/
Look at the activity Progress Not at the cost progress !
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Earned Value Analysis
9ntegrating cost% schedule% and work perform
ed by ascribing monetary values to each
A way of measuring overall perform ance #not in
dividual task$ using an aggregate performance measure
,arned value of work performed #value complete
d$ for those tasks in progress found by multiplying
the estimated percent physical completion of wor
k for each task by the planned cost for those tasks
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Earned Value Analysis,arned value analysis has three major cost measur
ements.
budgeted cost of work scheduled#!C:'$%
budgeted cost of work performed #!C:P$%
Actual cost of work performed #AC:P$
!C:'. indicates the amount that should have been
e&pended for work scheduled during the reportin
g period
!C:P.indicates the number of dollars that should
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Earned Value Analysis
!aseline cost to completion " referred to as bu
dget at completion #!AC$
Actual cost to date " referred to as estimated cost at completion #,AC$
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erform ance 9ndices
Cost #spending$ variance #C;$" difference betwee
n budgeted cost of work performed #earned value$#!C: $ and actual cost of that work #AC: $ C; 8 !C:P " AC:P #negative value - cost overru
n$
'chedule variance #';$ " difference between earned value #!C: $ and cost of work we scheduled toperform to date #!C:'$
'; 8 !C:P " !C:' #negative value - behind schedule$
Cost Performance 9nde& #CP9$8!C:P7AC:P
'chedule Performance 9nde& 'P9 8 !C:P7!C:'
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Fig. Areas of cost and time performance using Cost and Schedule performanceindexes
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Possibilities ,arned ;alue Analysis
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Earned Value Chart – basis for evaluatingcost & performance to date
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,&le
A(2, 40)
(2, 0)
C(4, 0)
"(2, #0) $(4, %0)
&(#, #0)
'(, 0)(#, *00)
+(, #)
-(*, 40)
Duration (Months)
Cost (1000$)
Activity A B C F 2 3
*# 0 0 ! ! ! % & ( 11 5
+# 0 ! ! ! ( & 11 7
Cost,Month
! !( 1 "0 !0 %0 10 %5 40 %0
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Time 'caled <etwork
#,arliest 'tart $
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Time 'caled <etwork
#=atest 'tart $
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Cumulative Costs
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,&le. >eviewing the project
'uppose at the end of * months we obtained t
he following.
a/ !udgeted cost#!C:'$ 8(35k2 + ?rom master sched
ule
5/ Actual money 'pent #AC: $8 (51k2
c/ ;alue of work Completed #,; or !C: $845
Activity A is completed +(1168
1k2
Activity C and / have not started
1k2
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Cost #spending$ var iance #C;$8 !C:P " AC:P
oC;845-(518-
05k2 +verrun'chedule variance #';$
o '; 8 !C:P " !C:'845-(358-((1k
2
+behind the sch
edule $o *-(438(** months behind the schedule
Cost Performance 9nde& #CP9$8!C:P7AC:P8 457(518 1*
'chedule Performance 9nde& #'P9$8 !C:P7!C:'8457(358
1*3
,&le. Continued
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EXAMPLE
Assume that operations on a :ork Package cost (%5112 to complete They were originally scheduled to finish today At this point% we actually spent (%*512 And we estimate that we have completed two thirds #)7*$ of the work :hat are thecost and schedule variancesB
C; 8 !C:P " AC:P 8 (511 #)7*$ " (*51 8 - *51 +co
st overrun
'; 8 !C:P " !C:' 8 (511 #)7*$ " (511 8 - 511 +!e
hind 'chedule
CP9 8 !C:P7AC:P 8 (511#)7*$7(*51 8 13
'P9 8 !C:P7!C:' 8 (511#)7*$7(511 8 143
'pending higher than budget% and given what we h
ave spent% :e have not completed as m uch wor
k as we should have
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EXERCISE
A project to develop a country park has an actual co
st in month (3 of 2*51%111% a planned cost of 235%111% and a value completed of 2*11%111 ?ind the cost and schedule variances and the inde&es
Month 17
Planned !"aseline# – $%'(((
Actual cost – )('(((
Value completed – )(('((( BCWP
ACWP
BCWS
Time t
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Solution
!C:' 8 35%111
!C:P 8 *11%111
AC:P 8 *51%111
C; 8 *11%111 " *51%111 8 -51%111 #negat ive value - cost overru
n$
'; 8 * 11%111 " 35%111 8 -(35%111 #negat ive value - beh ind sch
edule$
Cost er form ance 9nde& #C 9 $ 8 !C: 7AC: 8 *117*51 8 1 04
'chedule erform ance 9nde& #' 9 $ 8 !C: 7!C: ' 8 *11735 8
14*
CV = BCWP – ACWP
SV = BCWP – BCWS
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?orecast ing erformance
Attempts to predict the conditions at a later time or th
e end of the projectTypically made repeatedly on a regular basis througho
ut a project
,stimate at completion ,AC 8 cost spent estimate to complete
,AC 8 AC:P #!AC " !C:P$ 7 C9
AC:P 7 !C:P 8 ( 7 C9 ,AC 8 !AC 7 C9
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,&le +,AC
!AC8(%(11
!C:P84)(@ AC:P8311
,AC8!AC7C9
C98 !C:P7AC:P84)(731181003 ,AC8 (%(11 71003 8 (%)1%111 2
;AC variance at completion 8 (%(11 " (%)1 8 - (1%111
2
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?orecast ing com pletion t im e
Actual completion date #AC$
AC 8 Current date #:ork remaining 7 ,&pected work rate$
T = current date (time no)BC = !ud"et com#etion time
Previo.s $/ampe % T=10 months & BC=1' months
AC=10(1100*+,1)-(1'*10)./(1100 ++0)-(+,1.++0)
= 1023 - '.1 = 10 34,+ = 13 m ' da5s
Time overr.n 1 % ays