Project Control: Control of Work and Cost Versus Time

1. Project Control: Control of Work and Cost Versus Time Part #5 June 2, 2014 Hide/Unhide Exercises?

2. Purpose • Describe how to use a linear approximation of the combined sets of S-Curves to: • Determine current project status with respect to scheduled and budget. • Project budget and schedule variances at the close of the job. • Recap possible counter-measures for the four possible general situations.

3. Learning Objectives • Given a set of As-Planned and As-Built (to date) construction project control data points, be able to determine: • Current Schedule and Budget Variances for a simple work package. • Probable Schedule and Budget variances at the completion of the work package. • Determine adjustments in work and expenditure rates to complete the work as planned. • Assuming that the “non-flat part” of the S-Curves can be ignored.

4. Assumptions • A complex project can be decomposed into simple, independent Work Packages. • The Work Package under consideration has no ramp-up or ramp-down; i.e., work proceeds linearly. • The amount of work accomplished can be quickly and accurately measured. • The daily cost rate for the Work Package can be computed from labor rates, equipment rental rates, and material placement rates. • The cost and work rates can be held constant.

5. Example Problem: As-Planned • A good example of a work package that will have small ramp-up/ramp-down effects is the construction of a large concrete slab. The project is to pour and trowel finish a 50,000sf slab, 8” thick. Forms and rebar are in place. You estimate (using the Means Manual) that your crew can place and finish 2,500sf/day at a cost of $3,000/day. • That is, you plan to complete 60,000sf, in 20 days, at a cost of $60,000.

6. Example Problem: As-Built The project manager checks progress on a regular basis and finds: • At day 5, • 16,000 s-f have been completed, and • $ 18,000 has been spent.

7. Problem Summary • Estimate (As-Planned): • 20 days (PS, Planned Schedule) • 50,000 sf (PW, Planned Work) • $60,000 (PC, Planned Cost) • Progress to date (As-Built) • 5 days (AS, Actual Schedule) • 16,000 sf (AW, Actual Work) • $18,000 (AC, Actual Cost)

8. Exercise #5.1 Based upon a procedure similar to S-Curve analysis: • Individually determine the current job status with respect to schedule and budget. • As pairs, locate any problems and be prepared to discuss.

9. Answers to Exercise #5.1,Using “S-Curve Method”

10. Answer to Exercise #5.1,Using Ratios or Similar Triangles

11. Exercise #5.2 Something new with linear control: • As individuals determine, the schedule and budget variance upon completion? • As pairs, be prepared to discuss an “end game” strategy. • As pairs, determine the new work and spending rates to execute the “end game.”

12. Answers, Exercise 5.2

13. Most likely Over Budget Behind Schedule Common Over Budget Ahead of Schedule Common Under Budget Behind Schedule Least Likely Under Budget Ahead of Schedule The 4 Possible Cases.

14. Important Points to remember • This technique works best for well defined, short work packages will negligible ramp-up and down. • Work progress must be easy to measure. • Check points must be established early and often during construction. • Forecasted end points are probably more meaningful than current status.

15. Reminder!Class Assessment Questions • In 1 sentence what was the muddiest part of this module? • In 1 sentence, what part of this module could be improved the most?