Lecture8-ProjectControl_ocm

8/13/2019 Lecture8-ProjectControl_ocm

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Construction ManagementEVB5022

Lecture 7(b)

Resource Allocation & Levelling


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1.0 Resource Allocation andLeveling

Resources of a project need to be

scheduled i.e. right amount of resources must be

allocated to a given task at the required time

leveled i.e. distributed accordingly at the required time

to avoid or minimize fluctuations in day-to-day use.

Resource Leveling (RL) makes use of floats ortime tolerances in the schedule to re-schedule

resources and bring back any deviation of actual

progress from schedule to within acceptable limits

RL applies to resources which are hired i.e. labour

and equipment but not material. The need for these2 resources fluctuates greatly as some activities

start (requiring resources) while other finish

(releasing resources)

RL improves efficiency and minimize project cost

(by optimizing labour usage and cost)


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1.1 Conceptual Example Assigning Resources to Tasks

- first, assume youve unlimited resources

- determine deadline; check whether unlimited resource assumption

has overloaded available resources:

A

B

C

D

Need 2

Need 1

Need 1

Need 2

*Have 3

availableTime (weeks)Fig. 1.1 Schedule with resources overloaded


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- check any task with enough float; to allow delay until resourcesbecome available

- leveling is done at Task C

A

B

C

D

Need 2

Need 1

Need 1

Need 2

*Have 3

availableTime (weeks)Fig. 1.2 Schedule using float to level resources


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- Now, Task D needs 3 people; complicates the situation

- three possibilities; reduce scope, change time limit or reduce performance

A

B

C

D

Need 2

Need 1

Need 1

Need 3

*Have 3

availableTime, weeksFig. 1.3 Schedule with inadequate float on C to permit leveling


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1.1 Conceptual Example

Assigning Resources to Tasks

- use all the float on Task C; now it becomes critical-path task time-

criticalresource leveling

- sliding tasks over until resources become available resource-critical

leveling

A

B

C

D

Need 2

Need 1

Need 1

Need 3

*Have 3

availableTime, weeksFig. 1.4 Schedule under resource-critical conditions


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1.1 Resource Allocation andLeveling (cont.)

STEPS:

Determine critical path and floats from network orother techniques

Identify key resource and produce bar chart usingnetwork data

Plot histogram of resource demand

Reschedule timing of activities using float to obtain a

more even demand profile

Redraw the resource profile

NB. Resource leveling may result in project delay time ,if necessary (i.e. if cost saving is more important to

be achieved)


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1.2 Resource Allocation andLeveling (cont.)

Example Resource Allocation : Flooring Project

ACTIVITY DESCRIPTION IPA* DURATION LABOUR

A Delivery Of

Materials

- 5 2

B Remove Old Tiles - 7 4

C Install Ceramic

Tiles

A 3 3

D Install Vinyl Tiles A,B 5 3

E Clean Up And

Inspect

C,D 2 2

Immediately Preceding Activity

Example Resource leveling process
http://localhost/var/www/apps/conversion/tmp/scratch_6/RESOURCELEVEL.xlshttp://localhost/var/www/apps/conversion/tmp/scratch_6/RESOURCELEVEL.xls


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Construction ManagementEVB5022

Lecture 8

Project Control


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Project Control

PROJECT

MONEY MACHINES

METHODSMATERIALS

MANPOWER

FIVE RESOURCES FOR PROJECT (5M)


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Project Management Body ofKnowledge (PMBOK)

(I) The Project ManagementFramework

(II) The Standard for ProjectManagement of a Project

(III) The Project ManagementKnowledge Areas

(IV) Appendices

(V) Glossary and Index


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The Project Management KnowledgeAreas

Project Integration Management

Project Scope Management

Project Communication Management

Project Procurement Management

Project Time Management

Project Cost Management

Project Quality Management

Project Human Resources Management

Project Risk Management


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Project Time Management

Activity Definition

Activity Sequencing

Activity Resource Estimating Activity Duration Estimating

Schedule Development

Schedule Control


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Schedule Control

Schedule Control is concerned with

Determining the current status of the project

schedule

Influencing the factors that create schedule

changes Determining that the project schedule has

changed

Managing the actual changes as they occur


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Schedule Control

Inputs Tools & Techniques Outputs

1. Schedule

management plan

2. Schedule baseline

3. Performance

reports

4. Approved change

requests

1. Progress reporting

2. Schedule change

control system

3. Performance

measurement

4. Project management

software

5. Variance analysis

6. Schedule comparison

bar charts

1. Schedule model

data (updates)

2. Schedule baseline

(updates)

3. Performance

measurement

4. Requested changes

5. Recommended

corrective actions

6. Organizational

process assets

(updates)

7. Activity list (updates)

8. Activity attributes

(updates)


plan (updates)


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Schedule ControlInputs

Schedule Management Plan

Contains the schedule management plan that establishes

how the project will be managed and controlled.

Schedule Baseline

Component of the PM plan that provides the basis for

measuring and reporting schedule performance.

Performance Report

Provide information on schedule performance such as

which planned dates have been met and which have not.

Approved Change Requests

To update the project schedule baseline or other

components of the PM plan.


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Schedule ControlTools & Techniques

Progress Reporting

Includes information such as actual start and finish dates,

and the remaining durations for unfinished activities.

Schedule Change Control System

Defines the procedures by which the project schedule can

be changed.

Performance Measurement

Produce the Schedule Variance (SV) and Schedule

Performance Index (SPI), which are used to access the

magnitude of any project schedule variations that do

occur.


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Schedule ControlTools & Techniques cont.

Project Management Software

Provides the ability to track planned dates versus actual

dates, and to forecast the effects of project schedule

changes, real or potential.

Variance Analysis

Comparing target schedule dates with the actual/forecast

start and finish dates for the detection of deviations and

for the implementation of corrective actions in case of

delays.

Schedule Comparison Bar Charts

To facilitate analysis of schedule progress. Displays twobars for each activity. One bar shows the current actual

status and the other shows the status of the approved

project schedule baseline.


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Schedule ControlOutputs

Schedule Model Data (updates)

A project schedule update is any modification to theproject schedule model information that is used to

manage the project.

Schedule Baseline (updates)

Changes to the schedules start and finish dates.

Performance MeasurementsThe calculated schedule variance (SV) and schedule

performance index (SPI) values for WBS components.

Requested Changes

SV analysis along with review of progress reports, results

of performance measures, and modifications to theproject model can result in requested changes to the

project schedule baseline.

Recommended Corrective Actions

Anything done to bring expected future project schedule

performance in line with the approved project schedule

baseline.


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Schedule ControlOutputs cont

Organizational Process Assets (updates)

Lessons learned documentation of the causes of

variance, the reasoning behind the corrective actions

chosen, and other types of lessons learned from schedule

control are documented in the organizational process

assets.

Activity List (updates)Updated comprehensive list including all schedule

activities that are planned.

Activity Attributes (updates)

Updated activity attributes for each schedule activity.

Project Management Plan (Updates)

The schedule management plan component of the PM

plan is updated to reflect any approved changes.


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Cost Estimating

Cost Budgeting

Cost Control

Project Cost Management


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Cost Control includes

Influencing the factors that create changes to the costbaseline

Ensuring requested changes are agreed upon

Managing the actual changes when and as they occur

Assuring that potential cost overruns do not exceed

the authorized funding periodically and in total for the

project.

Monitoring cost performance to detect and

understand variances from the cost baseline

Recording all appropriate changes accurately against

the cost baseline

Preventing incorrect, inappropriate, or unapprovedchanges from being included in the reported cost or

resource usage

Informing appropriate stakeholders of approved

changes

Acting to bring expected cost overruns withinacceptable limits

Cost Control


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Cost Control

Inputs Tools & Techniques Outputs

1. Cost baseline

2. Project funding

requirements

3. Performance

reports

4. Work performance

information

5. Approved change

requests

6. Project

management plan

1. Cost change control

system

2. Performance

measurement analysis

3. Forecasting

4. Project performance

reviews


software

6. Variance management

1. Cost estimate

(updates)

2. Cost baseline

(updates)

3. Performance

measurements

4. Forecasted

completion

5. Requested changes

6. Recommended

corrective actions

7. Organizational

process assets

(updates)


plan (updates)


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Cost ControlInputs

Cost Baseline

A time-phased budget that is used as a basis against

which to measure, monitor, and control overall cost

performance of the project. Usually displayed by S-curve

Project Funding Requirements

Funding requirements, total and periodic, are derivedfrom the cost baseline and can be established to exceed,

usually by a margin, to allow for either early progress or

cost overruns.

Performance Reports

Provide information on cost and resource performance asa result of actual work progress.


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Cost ControlInputs cont

Work Performance Information

Work performance information pertaining to the status

and cost of project activities being performed is collected.

Approved Change Requests

Include modifications to the cost terms of the contract,

project scope, cost baseline, or cost management plan.

Project Management Plan

The project management plan and its cost management

plan component and other subsidiary plans are

considered when performing the Cost Control process


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Cost ControlTools & Techniques

Cost Change Control System

Defines the procedures by which the cost baseline can be

changed.

Performance Measurement Analysis

Assess the magnitude of any variances that will invariably

occur. The Earned Value (EV)technique is used.

Forecasting

Making estimates or predictions of conditions in the

projects future based on information and knowledge

available at the time of the forecast.


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Cost ControlTools & Techniques cont

Project Performance Reviews

Compare cost performance over time, schedule activities

or work packages overrunning and under-running budget

(planned value), milestones due, and milestones met.

Project Management Software

PM software, such as computerized spreadsheets, is

often used to monitor Planned Value (PV) versus Actual

Cost (AC), and to forecast the effects of changes or

variances.

Variance Management

The amount of variance tends to decrease as more workis accomplished. The larger variances allowed at the start

of the project can be decreased as the project nears

completion. The cost management plan describes how

cost variances will be managed.


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Cost ControlOutputs

Cost Estimates (updates)

Revised schedule activity cost estimates are

modifications to the cost information used to manage the

project.

Cost Baseline (updates)

Budget updates are changes to an approved cost

baseline.

Performance Measurement

The calculated CV, SV, CPI, and SPI value for WBS

components.

Forecasted Completion

Either a calculated EAC or ETC value or a performing

organization-reported EAC or ETC value is documented

and communicated.


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Cost ControlOutputs cont

Requested Changes

Analysis of project performance can generate a requestfor a change to some aspect of the project. Identified

changes can require increasing or decreasing the budget.

Recommended Corrective Actions

Anything done to bring expected future performance of

the project in line with the PM plan. Organizational Process Assets (updates)

Lessons learned are documented so they can become

part of the historical databases for both the project and

the performing organization.

Project Management Plan (updates)Schedule activity, work package, or planning package

cost estimates, as well as the cost baseline, cost

management plan, and project budget documents are

components of the PM plan. All approved change

requests affecting those documents are incorporated as

updates to those documents.


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SCURVE

0%

100%

JobPro

gress

Time

Job

Start

Completion

Time-now

Delay

UnachievedWork


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EARNED VALUE

Time-now

AC

EV Cost

Variance

Overs

pend

Slippage

100%

PV

Time

ScheduleVariance


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Earned Value Terminology

Time-now, also called progress to date, isthe date when progress is measured

Budget at Completion (BAC)is the originalcost estimate or budget indicating the

funds required to complete the work

Percentage Complete (PC)is the workprogress to time-now

Estimate at Completion (EAC)is a revisedestimate of the cost to complete the work,based on current productivity


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Week 7

Planned Value (PV)is the portion of the

cost that is planned to be spent on thework between the start date and time-now

PV = PC(planned) x BAC

Earned Value (EV)is the budgeted amountfor the work actually completed on theschedule activity during a given timeperiod.

EV = PC (actual) x BAC Actual Cost (AC) is the total actual cost

incurred between the start date and time-now



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Week 7

Assuming productivity to-date will

continue at the same rate to the end of theproject,

EAC = AC/EV x BAC

But EV = PC(actual) x BACTherefore EAC = AC/PC(actual)

Schedule Variance (SV) is the differencebetween the current progress and the

scheduled progress. SV = EVPV

Note SV is in money units



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Week 7

Schedule Variance (SV) is the differencebetween the current progress and thescheduled progress.

SV = EVPV

Note SV is in money units

Schedule Variance Percentage (SV%)

SV% = SV/EV

Cost Variance (CV) is the difference

between the works estimated cost and itsactual cost.

CV = EVAC



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Week 7

The Cost Performance Index (CPI) is theratio of budgeted costs to actual costs.

CPI = EV/AC

The Schedule Performance Index (SPI) isthe ratio of work performed to workscheduled.

SPI = EV/PV



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Time-now

AC

PV

EV

BAC

PC(Planned)

EAC

PC(Actual)

SV CV


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An Earned Value Example

Activity Number BAC 1 2 3 4 5 6

Design 100 100

Foundation 400 200 200

Structures 1200 400 400 400

Furnishing 600 300 300

Plumb/Elect 200 200

Weekly Expenditure 2500 100 600 600 700 300 200PV 100 700 1300 2000 2300 2500

PC (planned) 4% 28% 52% 80% 92% 100%

EV 625

PC (actual) 25%

AC 750


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Sample Calculations

Assume Time-now is End of Week 2. From

the Table:BAC = $2,500

PV = $700

PC (Planned) = 28%

EV = $625

PC (Actual) = 25%

AC = $750

SV = EVPV = $625 - $700 = - $75

CV = EVAC = $625 - $750 = - $125


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SPI = EV/PV = $625/$700 = 0.89

CPI = EV/AC = $625/$750 = 0.83

EAC (Schedule) = Total Scheduled Period/SPI

= 6 weeks/0.89 = 6.74 weeks= 5 days delay

EAC (Cost) = BAC/CPI

= $2,500/0.83 = $3,012 ($512 over)


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Time-now

AC

PV

EV

BAC

PC(Planned)

EAC

PC(Actual)

SV CV

+$512

+5days

Documents

Lecture8-ProjectControl_ocm