W11_Ocharlie_Progress Measurement

Problem definition

For project visibility the individual tasks of the project has to be tracked and progress measured. Without progress tracking, management of the project is run blindly with resultant schedule and cost over runs. There are six different methods of measuring progress;

Unit completed- for activities involving quantities requiring same level of effort

Incremental milestones- for activities with sequential tasks

Start/Finish- for activities that level of effort cannot be readily measured

Supervisor opinion- where the level of effort is based on supervisor`s judgement

Cost ratio- activities which are spread over a long time and whose cost is budgeted on lump sum.

Weighted or Equivalent units-  for activities with overlapping subtasks and last for long period.   

Feasible alternatives

For the progress measurement the weighted or equivalent units shall be used in this calculation

Develop the outcome of each alternative

Using the structural skid fabrication of the Retrofit project with man-hour listed below;  

 

 

 

Table 1 Manhour allocation

 The planned % progress based on the allotted man-hours will be as in Table 2 below;

 

 

 

Table 2 Resource loading and levelling by author

If the weighting factor for the structural skid fabrication is

Skid frame 70%

Handrail 15%

Drain pan 10

Grating 5%

The percent contribution of each of the subtasks is shown in table 3

 

Table 3 Percent contribution

To calculate the performance indices if the actual percentage complete on the 8^th day is 40% and actual hour spent is 240hrs

Selection of criteria

The measurement criteria are;

·         Earned value

·         Cost performance Index (CPI)

·         Schedule Performance Index (SPI)

·         Cost Variance

·         Schedule Variance

Analysis of alternatives

Actual hours spent = Actual cost of work performed ACWP = 240hrs

% complete = 40%

Earned Value = Budget Cost of Work Performed BCWP = % complete x Budget At Completion (BAC)

                          BCWP= 0.4 x 524 = 209.6

Cost Variance = BCWP – ACWP = 209.6 – 240 = -30.4

Schedule Variance = BCWP – BCWS = 209,6 – 265.52 = -55.92

CPI = BCWP/ACWP = 209.6/240 = 0.87

SPI = BCWP/BCWS = 209.6/265.52 = 0.79

Estimate At Completion EAC =  BAC/CPI = 524/0.87 = 602

Selection of preferred alternative

Progress measurement allows status visibility at any point in time so that management can make decisions to stay the project on course. Analysis of the data helps in identification of early warning of future costs and schedule impacts.

Performance monitoring and evaluation

The data from the analysis shows that the project is running at cost overrun and schedule delay. Urgent action need to be taken by identifying the schedule drivers and putting in measures to make up for lost time and eliminate wastes.

References

Orczyk, J. J. Progress Measurement and Earned Value, Skills & Knowledge of Cost Engineering (5^th ed.), (PP 14.1.-14.6) WV, AACE International

Humphreys, G. C. (2011). Performance Measurement Calculations And Estimates At Completion, Project Management Using Earned Value (2^nd ed.), (PP. 545-558) CA, Humphreys & Associates Inc.

Humphreys, G. C. (2011). Establishing The Performance Measurement Baseline, Project Management Using Earned Value (2^nd ed.), (PP. 519-527) CA, Humphreys & Associates Inc.