VLV RI FRQVWUXFWLRQ SURMHFW XVLQJ SULPDYHUD S

Earn value analysis of construction project using primavera p6

Sachin Nalawade1, Omkar Ghode2, Piyush Vaidya3

Assistant Professor,DYPIEMR Akurdi, BE Civil DYPIEMR Akurdi, BE Civil DYPIEMR Akurdi [email protected] [email protected]

[email protected]

Abstract— Most of the construction project suffers from cost and time overruns due to multiple factors. Earn value management is a project performance evaluation technique and which has been adapted for construction management. Earn value analysis gives early indication that either project is delay or not and project is either over budget or under budget at any particular day by tracking it. This study is discus main parameter involve in calculation of Earn value analysis. For earn value analysis various software are developed like Visual studio 2008, SQL server 2005, MS project 2007 and primavera p6. Therefor software is use of wide range of projects for earn value analysis calculation. So it concludes that primavera p6 is best tool for Earn value analysis in construction industry. And expected conclusion is that due to tracking and EVM will get idea about our project is going through with budgeted cost and with time or not.

Keywords— Earn value, Primavera p6, tracking.

I. INTRODUCTION

All manuscripts must be in English. These guidelines include complete descriptions of the fonts, spacing, and related information for producing your proceedings manuscripts. Please follow them. Earn value management is a project accomplishment approach that has been suitable for utilization in project management. Baseline plan can be calculated using EVM to check the progress of the project. EVM operation helps in giving achievement standard to the assessment of evolution report of project and to deal with budget and time. Earned Value Key Parameter:

Planned Value (PV):- This is the cost that we planned to spend on the various activities of the construction project. This value gives a cost of how much we planned to spend as of this date. Planned value = % Planned work finished * BAC Where, BAC = Budgeted cost at completion

Earned Value (EV):- This is the cost that shows the worth of the work done as spent the money in the construction project. EV is the estimation of the "value" of the work done to date or "what you physically refined".

Earned value = % finish effort * Budget at completion Actual Cost (AC):- This is the cost actually incurred in performing a various activities of the construction project.

Actual cost is the cost caused for executing deal with a project or "what you have spent”. Actual cost = Hourly Rate * Total hour spent

Cost Variance (CV):- This is the variance of cost from worth of the work done on project to actual cost accomplished in Project. (or) The distinction between earn value and actual cost. Cost variance = Earn Value – Actual Cost If the cost variance is positive the project is under run from planned value. Schedule Variance (SV):- This the variance of cost from worth of the work done on project to planned value of the

Project. (or) The distinction between earn value and planned value. Schedule variance = Earn Value – Plan Value. If the schedule variance is positive the project is ahead of schedule and if the schedule variance is negative the project is Running behind the schedule. Cost Performance Index (CPI):- This is the ratio of worth of work done to actual cost accomplished in doing a endeavor.

CPI is spoken to scientifically as, Cost performance index = Earn Value / Actual Cost. If the CPI ratio is below one it shows the activities are consuming more cost to finish the work. If the CPI is above one The activities consuming less cost to finish the work as from plan. Schedule Performance Index (SPI):- This is the ratio of worth of the work done to planned value

Schedule performance index = Earn Value / Plan Value If the SPI ratio is below one it shows the activities are consuming more time to finish the work.

ISSN NO: 0975-6876

http://cikitusi.com/

CIKITUSI JOURNAL FOR MULTIDISCIPLINARY RESEARCH

Volume 6, Issue 5, May 2019 514

II. LITRATURE REVIWE

Khalid Mohiuddin Khan, Mr. Masum Reza. EARN VALUE MANAGEMENT DESIGN AND CONSTRUCTION PROJECT. Volume 2 Issue 5 | ISSN: 2456-6470 stated that earn value analysis cost monitoring, schedule using tool Microsoft project as the study for apply the earn value management on construction project which was completed in 2017 and they conclude that earn value management helps to do the particular project within the stipulated time and cost so they are able to complete the project within the time. Chiranjeevi D S, Dr. G. Narayana, Rajeeva S J” ANALYSIS ON COST, SCHEDULE AND TRACKING OF RESIDENTIAL PROJECT BY EARN VALUE MANAGEMENT METHOD USING PRIMAVERA P6” August 2017 | IJIRT | Volume 4 Issue 3 | ISSN: 2349-6002. These author carried out the study that importance of the earn value analysis and define all the parameter in earn value analysis that is planned value ,Earn value ,actual cost , cost variance ,schedule variance, cost performance index, schedule performance index, which is help in tracking the project. Shamya shani kumar, ms. Minu anna johny ISSN (2278-081) vol. 5 issue no.9 stated that all terminology and use of it to tracing the construction project also get biggest benefit to implementing EVM is that single system that can track the project in terms of time and money project managers do not have to learn multiple system EVM is use full for measure the amount of work actually completed, forecast the implementation date, Comair the actual performance with plan and track the project into real time Suhas k B and Professor Vijay K “Base line fixing and Earn value analysis in construction industry using primavera”IJERT ISSN: 2278-0181 volume 5 issue 8 Aug 16. Author said that primavera software can be used for every construction industry and which is powerful tool to solve complex problem. the utilization of software can help to proper running of the project also project was completed 70% and project lagging behind when they track the project as compare the plan to complete the block masonry, plumbing work plastering work as positive vale of schedule variance therefore these are the over the schedule. Door shutter fixing and internal plaster is as per schedule so estimate show 440800/- Rs. Is the expected extra cost to complete the extra project. Prof. B. Prakash Rao,Jacob Cherian” EARNED VALUE ANALYSIS ON AN ONGOING RESIDENTIAL BUILDING PROJECT IN BANGALORE, INDIA” International Research Journal of Engineering and Technology (IRJET e-ISSN: 2395-0056 Volume: 02 Issue: 03 | June-2015 In this paper author explain all the parameter of the earn value analysis and define the importance of the project. In these paper author carried out the study of Earn value management and use the software MSP for the study. Using the MSP planning, scheduling and budget of the project. And then they track it to find the performance of the project finally it will predict the complication time of the project along with the additional profit or loss the contractor will make from what originally plan on whole EVM manager will monitor the project of the progress work in terms of cost and time and much more effective. Sandhya Suresh, Ganapathy Ramasamy” ANALYSIS OF PROJECT PERFORMANCE USING EARNED VALUE ANALYSIS” INTERNATIONAL JOURNAL OF SCIENCE, ENGINEERING AND TECHNOLOGY RESEARCH (IJSETR) Volume 4, Issue 4, April 2015 1080 ISSN: 2278 – 7798. In these paper author carried out the study of Earn value management and use the software msp for the study.Using msp planning, scheduling and budget of the project. And then they track it to find the performance of the project. Shaik Mohammad Masood, Devanand.R, Harsha H.N “AN ANALYSIS ON RESOURCE PLANNING, COST ESTIMATION AND TRACKING OF PROJECT BY EARNED VALUE MANAGEMENT” ISSN: 2277-375 ISO 9001:2008 Certified International Journal of Engineering and Innovative Technology (IJEIT) Volume 4, Issue 4, October 2014. Author use primavera and Earn value analysis for the tracking of the project and study show the importance, Implementation and unique features of EVM in construction project. That use for construction manager and ultimately use for project success Radhika Gupta” EARNED VALUE MANAGEMENT SYSTEM” INTERNATIONAL JOURNAL OF EMERGING ENGINEERING RESEARCH AND TECHNOLOGY Volume 2, Issue 4, July 2014, PP 160-165 ISSN 2349-4395 (Print) & ISSN 2349-4409. Author studied that, Earned Value Analysis is a better method of program/project management because it integrates cost, schedule and scope and can be used to Forecast future performance and project completion dates. It is an “early warning” program/project management tool that enables managers to identify and control problems before they become complex. EVMS inspires the participants to pay more attention to costs and progress, motivates the participants to discuss the cost elements with more intensity and optimize the costs resulting in a project that was finished on time and on budget.

ISSN NO: 0975-6876




T. Subramani, D. S. Stephan Jabasingh, J. Jayalakshmi “ANALYSIS OF COST CONTROLLING IN CONSTRUCTION INDUSTRIES BY EARNED VALUE METHOD USING PRIMAVERA” IJERA ISSN : 2248-9622, Vol. 4, Issue 6( Version 1), June 2014, pp.145-153. In this paper author told, what is earn value management and define all the parameter use in EVM and define benefits and also states about primavera software how to create activity, How it link, How to define calendar , How allocate resources, And how to track it. Rajesh ganpat virle and sumedh Mhanske. MONITORING OF THE CONSTRUCTION PROJECTS USING EVM AND ESM TOOL ISSN 2319-6009 vol.2 no. 4 Nov. 2013. In this paper stated that by doing the EVA project manner can be confident to dissection and action taken will have much higher probability to success.

III. METHODOLOGY

A. Creating Create new project:

The project is created under the respective division in enterprise project structure the project can be given plan started and must be finish date. The project should assign the calendar which can be global, resource, calendars. Steps to assign create new project in the primavera are as shown below.

1) login to primavera

Fig. 1 login to primavera

2) Click add button and select EPS.

Fig no.2 click add button and select EPS.

ISSN NO: 0975-6876




3) Project id and project name.

Fig no. 3 project id and project name

4) Plan and star finish date for the project.

Fig no. 4 Plan and start finish for the project

5) Open project.

B. Define work break down structure:- WBS is the hierarchy of the project that must be accomplished to complete a project. Each WBS element may content contain more details WBS level, activity or both.

ISSN NO: 0975-6876




Fig no. 5 WBS

C. Creating calendar for activity and for resource- for creating the calendar go to enterprise in the toolbar and select calendar. There is three is three types of calendar available in primavera that is global calendar, project calendar and resource calendar. Select calendar if we want to change working day like introduce holly day change in working hours, then select modified option and modified calendar working hours and day

Fig no. 6 Calendar activity

Fig no. 7 Select calendar

ISSN NO: 0975-6876




Fig no. 8 Modified calendar

D. Define activity:- coming in project To create the activity in the project select activity option in directory button. Afterwards WARDS press adds the activity in command bar button. It will create individual activity id.

Fig no.9 Define activity

E. Define activity duration:- when planning the work duration is the entering original duration field.

F. The relation between the activities:- to form the network in activity should be connecting to each other which is done

by the assigning predecessor and successor with significant relationship with the activity.

ISSN NO: 0975-6876




Fig no.10 relation of activity

G. Performance schedule:- Scheduling is the perform that all activity must be schedule as according to relationship between various activity with simply perform by pressing F9 button.

Fig no.11 scheduling H. Allocating resources:- The resource is attached to activity for completion of activity.

Fig no. 12 allocating resources

ISSN NO: 0975-6876




I. Creating baseline:- Baseline is standard benchmark based on standard performance of the project is measure. To create

baseline select project option in activity tool bar and then select base line after creating base line assign base line to the project.

Fig no.13 creating baseline

J. Updating schedule:- after assign a base line again made a schedule to update the project base line to project for

analysis

K. Tracking/ earn value analysis:- Earn Value analysis is a venture execution evaluation methodology that has been balanced for application in venture organization. EVA is the way towards measuring execution of venture struggle with a pattern task. Earned esteem investigation application help in giving execution standard to assessment of propel report and comparatively go about as a control gadget to oversee time and cost arrange.

IV. CONCLUSION

THE PROJECT WAS TRACK ON 29 APRIL 2019 SO ALL THAT WE OBTAIN PLAN VALE, EARN VALUE, ACTUAL COST AND

EARN VALE PERFORMANCE INDEX.

Eva parameter

Tracking

Tracking date 29 April 2019

Original duration 341 days

Budgeted total cost Rs. 9161234.61/-

Plan value Rs 712108.06/-

Earn value Rs 612633.53/-

Actual cost Rs 312633.53/-

Schedule variance Rs (99474.53)

Cost variance Rs 0.0/-

Schedule performance index 0.86

Cost performance index 0.0

Estimate to complete Rs 8548601.08/-

Schedule variance is ( 99474.53) hence project behind schedule. Cost variance is Rs. 0/- hence project is on budget. Schedule performance index is 0.86 hence the project is behind by 40%. Cost performance index is 0.0 hence project is on budget.

ISSN NO: 0975-6876




REFERENCES

[1] Khalid Mohiuddin Khan, Mr. Masum Reza. EARN VALUE MANAGEMENT DESIGN AND CONSTRUCTION PROJECT. Volume 2 Issue 5 | ISSN: 2456-6470. [2] Rohan Ghadge & Gajanan Kanade “Earn Value Analysis Using Primavera for Construction Industry- A Review” Imperial Journal of Interdisciplinary Research (IJIR) Vol-3, Issue-7, 2017 ISSN: 2454-1362. [3] Shama salikuma and ms.minu anna johny” Application of earn value analysis in project performance” IJERT ISSN: 2278-0181volume 5, issue 9, Oct 2016. [4] Suhas k B and Professor Vijay K “Base line fixing and Earn value analysis in construction industry using primavera” JERT ISSN: 2278-0181 volume 5 issue 8 aug 16 [5] Prof. B. Prakash Rao, Jacob Cherian” EARNED VALUE ANALYSIS ON AN ONGOING RESIDENTIAL BUILDING PROJECT IN BANGALORE, INDIA” International Research Journal of Engineering and Technology (IRJET e-ISSN: 2395-0056 Volume: 02 Issue: 03 | June-2015 [6] Sandhya Suresh, Ganapathy Ramasamy” Analysis of Project Performance Using Earned Value Analysis” International Journal of Science, Engineering and Technology Research (IJSETR) Volume 4, Issue 4, April 2015 1080 ISSN: 2278 – 7798. [7] SHAIK MOHAMMAD MASOOD, DEVANAND.R, HARSHA H.N “An Analysis on Resource Planning, Cost Estimation and Tracking of Project by Earned Value Management” ISSN: 2277-3754 ISO 9001:2008 Certified International Journal of Engineering and Innovative Technology (IJEIT) Volume 4, Issue 4, October 2014. [8] Radhika Gupta” Earned Value Management System” International Journal of Emerging Engineering Research and Technology Volume 2, Issue 4, July 2014, PP 160-165 ISSN 2349-4395 (Print) & ISSN 2349-4409 [9] T. Subramani, D. S. Stephan Jabasingh, J. Jayalakshmi “Analysis of Cost Controlling In Construction Industries by Earned Value Method Using Primavera” IJERA ISSN : 2248-9622, Vol. 4, Issue 6( Version 1), June 2014, pp.145-153. [10] Rajesh ganpat virle and sumedh Mhanske.” Monitoring Of The Construction Projects Using Evm And Esm Tool” ISSN 2319-6009 vol.2 no. 4 Nov. 2013

ISSN NO: 0975-6876




Documents

VLV RI FRQVWUXFWLRQ SURMHFW XVLQJ SULPDYHUD S