PERCEPTION® WORK-PAC
Managing Labor Costs &
Schedules
WORK ORDER
TIME CHARGE
1211 1
10 29 3 8 4
7 5 6
MANPOWERFORECASTING
PERCEPTION WORK-PAC is
designed to plan and manage shipyard
labor costs and schedules.
The basis for this capability are
shipyard work orders that the system shipyard work orders that the system
generates and provides for inputs of
worker time charges.
The system produces reports at various
levels of details, from daily employee
time charges, work order performance
and summaries up through various work
breakdown structures. breakdown structures.
These reports provide management with
the cost and schedule performance
visibility necessary to maintain project
budgets and planned schedules.
System Benefits
1. Better labor planning cost/schedule control.
2. Improved management control of job progress and labor
expenditures.
3. Immediate job cost reporting and summarization.
4. Fast and accurate reporting of labor cost problems.
5. Labor costing by project (job) work breakdown structure and by
organization structure.
6. Automated final labor cost forecasting based upon actual
performance.
7. Automated job progressing - no manual assessments required.
8. Generous checks for erroneous data and bad timecard charges.
• By Systems Work Breakdown Structure (SWBS)
Costs and schedules can be summarized by
several different project work breakdown
structures (WBS) simultaneously:
• By Systems Work Breakdown Structure (SWBS)
• By Product Work Breakdown Structure (PWBS)
• By Shipyard Organization (COA)
• By Contract Line Item (CLIN)
Possible Contract
Work Breakdown
Structures
Multi-Ship Program Management
Cost & Schedule Consolidation
PERCEPTION WORK-PAC measures and
tracks the following:
� Labor Hours per 1% Progress
� Production Process Rates by Stage of Construction
� Weeks Ahead/Behind Planned Schedules� Weeks Ahead/Behind Planned Schedules
� Forecast & Trend Weeks Ahead/Behind for 100%
Progress
� Forecast & Trend Over-Run/Under-Run
� Original Estimated Costs & Schedules
� Baseline Costs & Schedules
� Current Budget Costs & Planned Schedules
PERCEPTION further tracks different
phases of costs and schedules:
� Current Budget Costs & Planned Schedules
� Management Reserves
� Actual Labor Costs & Schedules
� Rework
� Change Orders
Labor Performance Reporting
PERCEPTION produces many excellent high-
level status and tracking reports.
These reports provide the project manager with
the visibility and status of labor costs and the visibility and status of labor costs and
schedules. These reports quickly identify
problem areas of costs and schedules.
The quicker someone recognizes the problems,
the sooner they can be resolved and any damage
to costs and schedules minimized.
WBS Performance Reports
This function of tracking and managing requires
accurate and timely feedback of costs and schedules
which can be measured against a baseline of budgets which can be measured against a baseline of budgets
and planned schedules.
PERCEPTION can produce a wide variety of reports
that provide visibility of project performance at
different levels of detail.
WBS Summarizes Performance
Most modern shipyards manage their costs by way of
the project Work Breakdown Structure (WBS).
The WBS summarizes cost and schedule information in
various categories and provides a high level view of a various categories and provides a high level view of a
project’s performance.
The WBS is an ideal means for identifying areas of a
project that may require special management attention
to resolve problems that may be adversely impacting
budgets and planned schedules.
• BAC: Budget At Completion
• MR: Management Reserves
• BCWS: Budgeted Cost of Work
• EAC: Estimated Cost At
Completion
• EAC Trend for 100% Progress
For any level of the project’s WBS, PERCEPTION
summarizes cost and schedule performance:
• BCWS: Budgeted Cost of Work
Scheduled
• BCWP: Budgeted Cost of Work
Performed
• ACWP: Actual Cost of Work
Performed
• EAC Trend for 100% Progress
• Planned & Actual Progress
• Calendar Schedule Variance
• Calendar Variance Trend for
100% Progress
1. % progress (planned, actual, & current variance from planned)
2. Weeks ahead or behind schedule
3. Current budget hours earned from labor hours charged (BCWP)
4. Current budget hours scheduled as planned (BCWS)
5. Current actual hours charged (ACWP)
The Summary Progress reports provide the following status
information:
5. Current actual hours charged (ACWP)
6. Current budget hours ahead or behind planned schedule (BCWP-BCWS)
7. Total labor hours budget (BAC)
8. Estimated labor hours at completion (EAC)
9. Estimated labor hours to complete (ETC)
10. Estimated total labor hours savings (BAC – EAC)
SWBS Summary Progress Reports Available At Group and
Account Levels.
Critical Information: Weeks Ahead (or behind), Scheduled Hours Ahead
(or behind) & Labor Hours EAC
The details of labor cost and schedule information at
any level of the project WBS can be viewed on-line by
drilling down from the WBS level’s worksheet.
PERCEPTION determines WBS level performance
from work order performance.
Measuring Progress
PERCEPTION allows manual progress
assessments to be entered against work orders.
PERCEPTION also measure progress
automatically. Its method is very accurate, and
is uniquely objective.
PERCEPTION applies the progress factor for EAC.
As work orders are completed, the system better
learns the extent of cost variance for these work
orders.
Measuring Estimate At
Completion (EAC)
orders.
EAC = BAC +
Factor x [Variance completed w/os
+ Adjustments in-progress w/os]
Work OrdersWork orders for the basis for planning shipyard labor and for
collecting time charges.
“The work order is a distinct and definable unit of work that
can be started and completed without significant interruption can be started and completed without significant interruption
under the direction of a single work center.”
For new construction, work orders should average 250-500
hours and have a schedule of 2-4 weeks in duration. Smaller
work orders will make time charging more difficult and
therefore less accurate. Larger work orders will lose visibility
of progress and cost/schedule performance.
The system allows the user to develop four
different types of work orders:
1. Discrete work order (default) that can clearly be assigned to
any single element or level of the project WBS.
2. Distributed work order that cannot be assigned to any
single project WBS element, but rather includes work that
involves multiple elements.involves multiple elements.
3. Time-phased level of effort work order that has no clear-cut
end product, but rather is a service to be provided over time
within a fixed budget.
4. Incremental process work order that measures progress and
performance on the basis of physical production
throughput.
Discrete
Work
Order
Time Phased
Level-of-Effort
Work Order
Product-Oriented
Distributed
Work Order
Process-Oriented
Incremental
Work Order
Four Types of Work Orders Provide
Extra Flexibility
WBSShip
Systems
ProductZones & Unit
Modules
Product Stage ofConstruction (Work
Centers)
Work Order Listings
PERCEPTION generates a variety of work
order listings.
With the exception of time charge transactions With the exception of time charge transactions
that the system also tracks, work orders
represent the lowest level of detail for managing
labor hours, costs and schedules.
Sample Bar Coded Work Order List
(Optional)
Work Order Reports
Special features of work order reports include:
• Actual hours charged versus budget hours
• Actual start & finish dates versus planned schedules
• Whether authorized for charging or not• Whether authorized for charging or not
• Hours worked after work order has been closed
• Premium hours charged
• Rework hours charged
Cataloging of Work Orders
Each work order must be properly cataloged so that its cost and
schedule performance information can be summarized to the
project:
• Contract number (20 characters maximum)• Contract number (20 characters maximum)
• Project number (8 characters maximum)
• Work center assigned (8 characters maximum)
• Work order number (8 characters maximum)
• SWBS account assigned (8 characters maximum)
• PWBS assigned (optional) (8 characters maximum)
Time Charging to Work
Orders
The time charge transactions only requires the following
information:
• Project number
• Work center• Work center
• Work order number.
• Date
• Hours charged
• Employee number
If bar codes are used for collecting time charge transactions, the bar code uses an internal
work order sequence number in lieu of the project, work center and work order numbers.
Comparing Production
Performance With Estimate
The performance of production costs should be
monitored and compared against the original estimate.
PERCEPTION generates summary reports at any level PERCEPTION generates summary reports at any level
of the project WBS comparing the estimate against the
current budgets, actual costs charged to date, and the
estimated costs at completion.
Comparing Production Costs with Estimate
Management Report Graphics
Other high-level reports track a project’s
performance throughout the course of its
execution. execution.
These can best be reviewed in graphical
form.
Work Order Detail Analyses
Overall Work Order Performance Status
253
151
100
150
200
250
300
Nu
mb
er
of
Wo
rk O
rde
rs
Completed Work Order Performance Status
151
49
98
129
87
40
60
80
100
120
140
160
Nu
mb
er
of
Wo
rk O
rde
rs
51 51
0
50
Total Number of Work Orders Number of Completed Work
Orders
Number of In-Process Work
Orders
Number of Un-Started Work
Orders
Nu
mb
er
of
Wo
rk O
rde
rs
3-
-
20
Number of
Completed Work
Orders
Completed No
Budget
Completed No
Schedule
Number
Completed &
Underrun
Number
Completed &
Overrun
Number
Completed & Late
To Start
Number
Completed & Late
To Finish
Nu
mb
er
of
Wo
rk O
rde
rs
In-Process Work Order Performance Status
51
16 16
2
-
10
20
30
40
50
60
Number of In-Process Work
Orders
Number In-Process & Overrun Number In-Process & Late To
Start
Number In-Process & Late To
Finish
Nu
mb
er
of
Wo
rk O
rde
rs
In-Process Work Order Performance Status
18,828
16,262
141
17,180
33,441
5,769
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
In-Process Budget
Hours
In-Process Actual
Hours
In-Process Rework
Hours
In-Process ETC
Hours
In-Process Actual +
ETC hours
In-Process Hours
Overrun
Rework Included in Actual Hours
ETC based on Manual Assessed Progress
La
bo
r H
ou
rs
Work Center Performance
AnalysesWork Center Progress
10
0
90
.54
95
.56
96
.43
52
.49
10
0
30
.39
62
.19
10
0
99
.98
69.5
3
32.2
0
48.8
5
21.0
0 28.5
0
52.3
7
97.2
9
23.2
820
40
60
80
100
120
Perc
en
t P
rog
ress
Planned Progress
Actual Progress
Work Center Current Cost & Schedule Variance
6%
3%
-26%
0%
0%
0%
67%
-27%
-10%
0%
-30%
-49%
0%
0%
-6%
-16%
-3%
-40%
-20%
0%
20%
40%
60%
80%
Fab
ricati
on
Assem
bly
Fit
Assem
bly
Weld
Ere
cti
on
Fit
Ere
cti
on
Weld
Ou
tfit
tin
g
Rig
gin
g
Pip
ing
Ere
cti
on
Jig
s
& F
ixtu
res
En
gin
eeri
ng
&
Man
ag
em
en
t
001 002 003 004 005 006 012 015 153 800
Perc
en
t V
ari
an
ce
0.0
0
0.0
0
0
Fabricatio
n
Assem
bly
Fit
Assem
bly
Weld
Ere
ctio
n F
it
Ere
ctio
n W
eld
Outfitt
ing
Rig
gin
g
Pip
ing
Ere
ctio
n J
igs &
Fix
ture
s
Engin
eering &
Managem
ent
001 002 003 004 005 006 012 015 153 800
-64%
-49%
-79%
-77%
-100%
-80%
-60%
001 002 003 004 005 006 012 015 153 800
Cost Variance Schedule Variance
Work Center Current Labor Hour Efficiency
10
5.9
2%
10
2.9
5%
74
.23
%
10
0.0
0%
10
0.0
0%
10
0.0
0%
16
7.4
3%
72
.53
%
89
.91
%
10
0.0
0%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Fabrication Assembly Fit Assembly
Weld
Erection Fit Erection Weld Outf itting Rigging Piping Erection Jigs
& Fixtures
Engineering &
Management
001 002 003 004 005 006 012 015 153 800
Rati
o E
arn
ed
Valu
e/A
ctu
al C
ost
Current Work Center Schedule Efficiency
66
.71
%
10
0.0
0%
23
.38
%
67
.42
%
84
.56
%
0.0
0%
10
0.0
0%
96
.42
%
70
.00
%
67
.02
%
59
.29
%
27
.01
%
0%
20%
40%
60%
80%
100%
120%
Outfit
Fabricatio
n
Outfit
Insta
llatio
n
Hull
Testin
g
Outfit
Testin
g
Pro
du
ctio
n C
ontr
ol
Rig
gin
g &
Mate
rial
Contr
ol
Pro
ductio
n
Serv
ices
Fabricatio
n
Assem
bly
Fit
Assem
bly
Weld
Ere
ctio
n F
it
Ere
ctio
n W
eld
21 22 800 850 901 925 950 S01 S02 S03 S04 S05
Perc
en
t H
ou
rs O
n S
ch
ed
ule
EAC Tracking Analyses
Tracking Labor Hour Costs
40,000
60,000
80,000
100,000
120,000
140,000
Lab
or
Ho
urs
ACWP (Incl Rework)
Projected ACWP
BAC
EAC (Incl. Rework)
EAC Extended
BAC Extended
BCWS
BCWP
EAC Trend
Tracking Various Labor Hour EACs
40,000
60,000
80,000
100,000
120,000
140,000
160,000
Lab
or
Ho
urs
B A C
SPA R EA C
C PI EA C
SPI EA C
SC I EA C
SPA R Trend EA C
M anual Progress EA C
Trend @ 10 0 %
SPA R EA C t o T rend @ 10 0 %
B A C @ 10 0 %
-
20,000
05/09/03 06/28/03 08/17/03 10/06/03 11/25/03 01/14/04 03/04/04 04/23/04 06/12/04 08/01/04 09/20/04 11/09/04
EAC Trend
EAC Trend Extended
Current EAC to Trend @100%
Rework
-
20,000
- 10 20 30 40 50 60 70 80 90 100
% Real Progress (ACWP/Current EAC)
Tracking Performance Indexes(By Percent Progress)
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
- 10 20 30 40 50 60 70 80 90
Percent "Real" Progress
(ACWP/Current EAC)
Perf
orm
an
ce I
nd
ex
CPI = BCWP/ACWP
SPI = BCWP/BCWS
SCI = SPI x CPI
TCPI = (BAC - BCWP)/(EAC - ACWP)
Labor Hours Per 1% Progress
(1,000)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
- 10 20 30 40 50 60 70 80 90 100
Percent "Real" Progress
Lab
or
Ho
urs
per
1%
Pro
gre
ss
Hours per 1% SPAR Progress
Hours per 1% Manual Progress
Budget Hours per 1% Progress
Schedule & Progress Tracking
Projected Days
Ahead (Behind) Planned Finish Schedule
(19.25)(20.00)
(15.00)
(10.00)
(5.00)
-
Current Estimated Days Trend Days
Days A
head
/(B
eh
ind
) P
lan
ned
Fin
ish
Date
Estimated Finish Dates
9/1/2004
9/30/2004
9/21/2004
1
Trend Finish
Current Estimated Finish
(28.42)
(19.25)
(30.00)
(25.00)
Days A
head
/(B
eh
ind
) P
lan
ned
Fin
ish
Date
16-Aug-04 21-Aug-04 26-Aug-04 31-Aug-04 05-Sep-04 10-Sep-04 15-Sep-04 20-Sep-04 25-Sep-04 30-Sep-04 05-Oct-04
Planned Finish
Tracking Schedule Variance In Weeks
-20.0
-15.0
-10.0
-5.0
0.0
5.0
- 10 20 30 40 50 60 70 80 90 100
Percent "Real" Progress
(ACWP/Current EAC)
We
eks
Ah
ead
/(B
eh
ind
) S
ch
ed
ule
Current Est. Weeks
Trend Weeks
Trend Weeks @ 100%
Current Weeks Extended To Trend
@100%
Tracking & Comparing Progress
-
20
40
60
80
100
120
05/09/03 06/28/03 08/17/03 10/06/03 11/25/03 01/14/04 03/04/04 04/23/04 06/12/04 08/01/04 09/20/04
Perc
en
tag
e P
rog
ress C
om
ple
te
PERCEPTION Progress
Manual Progress
Real Progress (ACWP/Cur.EAC)
Percent Hrs Spent
Cash Flow Analyses
Tracking Actual Costs
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
Actual Labor Cost
Actual Labor + Overhead
Actual Overhead Cost
Material Cost Received
Material Cost Used
Total ACWP(Labor+Material+Overhead)
Total Cash Budget Versus EAC
(Labor, Material & Overhead)
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
$9,000,000
Do
llars
Total BAC + Reserves
Total EAC
Total Budget
Total ACWP
Total BCWP
Extended Total BAC
$-
$500,000
$1,000,000
12/10/02 01/29/03 03/20/03 05/09/03 06/28/03 08/17/03 10/06/03
$-
$1,000,000
$2,000,000
09/01/02 12/10/02 03/20/03 06/28/03 10/06/03 01/14/04 04/23/04 08/01/04 11/09/04
Extended Total BAC
Extended EAC
Extended Total ACWP-Cubic
Total BCWS
Material Cost Status
-$500,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
0 5 10 15 20 25 30 35 40 45 50
Percent Real Progress
Ma
teri
al D
ollars
Material Budget (BAC)
Material BCWS
Invoiced By Vendors
Total Commitment(Purchases + Stock)Direct Purchases
Material Received
Material Issued to Production
Material Budget +Management ReserveMaterial EAC
Material Earned Value(BCWP)
Tracking Cash Flow Schedules
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
$5,000,000
12/10/02 01/29/03 03/20/03 05/09/03 06/28/03 08/17/03 10/06/03
Labor BCWS
Material BCWS
Overhead BCWS
Total BCWS
•As Planned in Baseline
•As Currently Planned
•As Actually Expended To Date
Tracking Manpower Requirements
•As Forecast to Complete
Manpower can be evaluated by WBS, by shipyard work
center, for one project or across multiple projects.
The analysis can combine current back-log with proposed
new work.
Tracking
Project Manpower Requirements
Total Shipyard Manpower Modeling
(New Work Modeled On Top Of Active Work)
Training Tutorials
PERCEPTION system includes a wide range of
training tutorials depending upon the user’s specific
needs and scope of system functions authorized to use.
Getting Started – General System Features
Starting A New Project
ESTI-MATE Cost Estimating Libraries
ESTI-MATE Estimating New Construction
ESTI-MATE Estimating Ship Repair
MAT-PAC Starting From Scratch for Material Planning,
Purchasing & Inventory Control.
MAT-PAC Managing Drawings
MAT-PAC Managing Stock Inventories
MAT-PAC Material Requisition
MAT-PAC Purchase Orders
MAT-PAC Receiving & Warehousing
MAT-PAC The Parts Catalog
MAT-PAC Tool Room Management Control
MAT-PAC Withdrawing Material
MAT-PAC Work Order Pallets
Training Tutorials:
PERT-PAC Integrated Scheduling
PERT-PAC Scheduling Hull Block Construction
WORK-PAC Starting From Scratch for Work Order
Planning & Management
WORK-PAC Generating Work Orders
WORK-PAC Project Manpower Planning & Forecasting
WORK-PAC Shipyard Total Manpower Modeling
Project Manager Activities
Reports - Labor Cost & Work Progress
Reports - Material Cost &Schedule Status
Accounting New Project Setup
Accounting Customer Billings
Accounting Interface Setup
Accounting Time Charges
Accounting Vendor Invoices
System Security
All users are required to log into the system with their name
and password.
Each user also is formally assigned authorized areas of the
software to access and restricted from all others.software to access and restricted from all others.
SPAR Associates, Inc.
Over 30 Years Providing
•Shipyard management software
•Software development services
•Training & maintenance support•Training & maintenance support
•Planning & scheduling services
•Cost estimating services
•Management consulting
Over 35 Years Serving the Shipbuilding &
Repair Industry