project cost control

11

Project Cost

Control

22

PROGRESS PAYMENTS CHANGE IMPACT CONFORMANCE TO PLAN PROJECT FINAL COST PROJECT DATE OF COMPLETION

Reasons for Project

Cost Control

33

PLANNING PERFORMANCE MEASURING PERFORMANCE COMPARING ACTUAL AND PLANNED PERFORMANCE ADJUSTING PLANS AS REQUIRED

Reasons For Project Cost Control

44

REDUCTION OF COMPLEXITYREDUCTION OF COMPLEXITY SHORT PLANNING INTERVALSSHORT PLANNING INTERVALS COST ESTIMATING SIMPLIFICATIONCOST ESTIMATING SIMPLIFICATION COST COLLECTION SIMPLIFICATIONCOST COLLECTION SIMPLIFICATION COST / SCHEDULINGCOST / SCHEDULING

WORK BREAKDOWN

55

COST: DEVIATION FROM BUDGET.DEVIATION FROM BUDGET. NO CONSIDERATION FORNO CONSIDERATION FOR PLANNED SEQUENCE.PLANNED SEQUENCE.

A COMPARISON BETWEEN PLANNED AN SCHEDULED ACTIVITIES.

SCHEDULE:

VARIANCES

66

TIME PERIOD

100

90

80

70

60

50

40

30

20

10

%COSTREPORT

DATE %COST

BEHINDSCHEDULE

BCWS

ACWP AVACCOUNT.VARIANCE

CVCOSTVARIANCETO DATESV

SCHEDULEVARIANCE

BCWP (EARNED VALUE)

5 1510

BAC

77

Progress by

DISCIPLINE

88

ENGINEERING

99

DRAWING MILESTONES

START DRAFT - 20%

DRAFT COMPLETE - 65%

OFFICE CHECK - 80%

OWNER REVIEW - 85%

FINAL DRAFT - 90%

APPROVAL WITH HOLDS - 95%

FINAL OWNER APPROVAL - 100%

1010

BUDGETEDMANHOURSDISCIPLINE

CIVIL

ARCHITECTURAL

STRUCTURAL

MECHANICAL

PIPING

ELECTRICAL

INSTRUMENTATION

20

35

20

20

50

40

15

200

1250

2500

1250

1500

4000

3000

1500

15000

8.3

16.7

8.3

10.0

26.7

20.0

10.0

100TOTAL ENGINEERING VALUE

DISCIPLINE WGT. VALUE

%ESTIMATEDDRAWINGS

1111

TOTALPIPE

DWGS.

START DRAFT

DRAFT COMPLETE

OFFICE CHECK

OWNER REVIEW

FINAL DRAFT

APPRV. W/ HOLDS

FINAL APPROVED

50

50

50

50

50

50

50

4.0

6.5

8.0

8.5

9.0

9.5

20.0

TOTAL PIPING DISCIPLINE PROGRESS 65.5

MILESTONE DISCIPLINE %COMPLETE

DWGS. INMILESTONE

10

5

5

5

5

5

10

MILESTONEVALUE

%20

65

80

85

90

95

100

1212

PROJECTCONTRIBUTION

WEIGHTEDVALUE

CIVIL

ARCHITECTURAL

STRUCTURAL

MECHANICAL

PIPING

ELECTRICAL

INSTRUMENTATION

8.3

16.7

8.3

10.0

26.7

20.0

10.0

7.5

11.7

6.6

7.5

17.4

12.0

5.0

TOTAL ENGINEERING PROGRESS 67.7%

DISCIPLINE %COMPLETE

90

70

80

75

65.5

60

50

1313

PROCUREMENTMEASUREMENT

1414

MATERIAL TAKE OFFS PURCHASE REQUISITIONS PURCHASE ORDERS

PROCUREMENTMEASUREMENT

1515

FUNCTION% WEIGHTED

VALUEESTIMATEDMANHOURSFUNCTIONS ESTIMATED

QUANTITIES

MATERIAL TAKE-OFF (DWGS)

PURCHASE REQUISITIONS

PURCHASE ORDERS

400

700

400

26.6

46.7

26.7

TOTAL PROCUREMENT VALUE 1500 100

150

200

100

1616

150

75

50%

DRAWINGS REQUIRING TO'S

DRAWING WITH TO'S COMPLETE

PHYSICAL PROGRESS

TAKE OFFS

1717

PURCHASEREQUISITIONS

200

50

25%

ESTIMATED PR's

PR's APPROVED FOR PURCHASE

PHYSICAL PROGRESS

1818

PURCHASEORDERS

28 PO's OUT OF 100 = 14%

1 MILLION DOLLARS EXPLANTEDOUT OF 50 MILLI0NS = 1%

PHYSICAL PROGRESS = 14 + 1 = 15%

QUANTITY PLACED = 50%DOLLAR VALUE SHIPPED = 50%

1919

FUNCTIONS %COMPLETEWEIGHTED

VALUEPROCUREMENTCONTRIBUTION

MATERIAL TAKE-OFFS

PURCHASE REQUISITIONS

PURCHASE ORDERS

TOTAL PROCUREMENT PROGRESS 29.0

50

25

15

26.6

46.7

26.7

13.3

11.7

4.0

2020

MOBILIZATION & GRADE

FOUNDATION COMPLETE

STRUCTURAL COMPLETE

EQUIPMENT ERECTION COMPLETE

PIPING COMPLETE

ELECTRICAL COMPLETE

MECHANICAL COMPLETION

COMMISSIONING

5

12

9

14

25

17

13

5

TOTAL PROJECT VALUE 40000 100

WEIGHTEDPERCENTAGE

2000

4800

3600

5600

1000

6800

5200

2000

ESTIMATEDMANHOURSMILESTONE

2121

WEIGHTED%

MOBILIZATION& GRADING

FOUNDATION

STRUCTURAL STEEL

EQUIPMENT ERECTION

5

12

9

14

5

9.6

2.7

1.4

TOTAL PHYSICAL PROGRESS 18.7

PROJECTCONTRIBUTION

100

80

30

10

%COMPLETEMILESTONE

2222

TOTALENGINEERING

PROGRESS

2323

TOTAL CONTRACT

DESIGN/ENGINEERINGOVERALL COMPLETE

WEIGHTEDVALUE%

ENGINEERING

PROCUREMENT

90.9

9.1

60.6

2.6

PROGRESS 16500 100 63.2

PROJECTCONTRIBU-

TION

BUDGETEDMANHOURS

15000

1500

67.7

29.0

%COMPLETE

2424

PRODUCTIVITYPRODUCTIVITY

PROFILESPROFILES

2525

FACTORS AFFECTINGPRODUCTIVITY PROFILES

PROJECT LOCATION JOB COMPLEXITY WORKING HOURS LABOR DENSITY SUPERVISION QUALITY WEATHER MIXTURE OF NATIONALITIES DISCIPLINE

2626

THEORETICAL% BUDGET MANHOURS UTILIZED

10 20 30 40 50 60 70 80 90 100

1.2

1.1

1.O

0.9

0.8

0.7

0.6

0.5

12 23 33 42 50 57 63 76 87 100

**

**

**

** *

*

PRODUCTIVITY

PHYSICAL COMPLETION%

2727

CREDITBY EARNEDMANHOURS

2000 MHRS

1000 MHRS

1000 MHRS

ORIGINAL ESTIMATE

ESTIMATE REMAINING

EARNED