CONTENTS
General
Project Time Control
Project Cost Control
Earned Value Management (EVM)
Project Quality Control
By: Shambel K.
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Project Monitoring is the set of procedures and
management practices used to collect information about
the performance achieved or forecasted in a
project, based on a set of performance metrics.
Performance Analysis: The process of determining
performance variances based on monitored or forecasted
performance.
Project Control: is the establishment of a system to
measure report, and forecast deviations in the project
scope, budget, and schedule.
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Project control is distinguished from project planning:
1) project control yields a set of designs, decisions,
and actions, whereas project planning yields a
design and
2) project control is a real time process during the
implementation not before the implementation
begins.
Project control involves the control of triple constraints
Time (schedule)
Cost (budget, expenses, etc)
Performance (specifications, testing results, etc.)
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There are two types of control patterns, “real-time” and
“trend control”.
Real-time Control is achieved by comparing the actual
value of a performance to its planned value. Control limits
are set to assess the severity of deviations. Deviations that
are larger than a predetermined limit trigger corrective
actions.
Trend Control is achieved based on forecasts of future
performance measure. Actual values are used to
extrapolate future trend of the performance measure, to
detect deviations before they occur. Forecasts of future
deviations trigger preventive actions designed to
minimise future problems.
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Schedule Control is concerned with:
a) Influencing the factors that create schedule
changes to ensure that changes are agreed up on.
b) Determining that the schedule has changed,
c) Managing the actual changes when and as they
occur.
Schedule control must be thoroughly integrated with
the other control process, integrated change control.
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Inputs Tools &
1. Project schedule
Techniques
2. Performance
reports 1. Schedule change Outputs
control system
3. Change requests 1. Schedule
2. Performance updates
4. Schedule measurement
management plan 2. Corrective action
3. Additional
5. Progress 3. Lessons learned
planning
monitoring curve 4. Progress curve
4. Project
update
management
software
5. Variance analysis
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Project Schedule:
Include the planned start and expected finish dates for
each activities.
The project schedule may be presented in summary
form (the master schedule), or in detail. Although it
can be presented in tabular form, it is more often
presented graphically.
The approved project schedule is called the schedule
baseline , which must feasible technically and interims
of resource
It is the base for measuring and reporting schedule
performance.
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Performance Reports
involves collecting and disseminating performance
information to provide stakeholders with information
about how resources are being used to achieve project
objectives.
Performance reports provide information on schedule
performance, such as which planned dates have been
met and which have not.
Performance reports may also alert the project team to
issues that may cause problems in the future.
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Change Requests
Change requests may occur in many forms—oral or
written, direct or indirect, externally or internally
initiated, and legally mandated or optional.
Changes may require extending the schedule or may
allow accelerating it.
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Schedule Management Plan
A schedule management plan defines how changes to
the schedule will be managed.
It may be formal or informal, highly detailed or broadly
framed, based on the needs of the project.
It is a subsidiary element of the overall project plan
Progress Monitoring Curves
The progress monitoring curves are part of the
performance reports.
Progress monitoring is evaluating actual project progress
compared to the baseline.
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Schedule Change Control System
A schedule change control system defines the
procedures by which the project schedule may be
changed.
It includes the paper work, tracking systems, and
approval levels necessary for authorizing changes.
Schedule change control should be integrated with the
integrated change control system.
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Performance Measurement
Performance measurement techniques help to
assess the magnitude of any variations that do occur.
An important part of schedule control is to decide if
the schedule variation requires corrective action.
E.g. , a major delay on a noncritical activity may have little
effect on the overall project, while a much shorter delay on a
critical or near-critical activity may require immediate action.
Additional Planning
Prospective changes may require new or revised
activity duration estimates, modified activity
sequences, or analysis of alternative schedules.
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Project Management Software
is widely used to assist with schedule development.
These products automate the calculation of the
mathematical analysis and resource leveling, and thus
allow for rapid consideration of many schedule
alternatives.
The ability to track planned dates versus actual dates and
to forecast the effects of schedule changes, real or
potential, makes it a useful tool for schedule control.
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Variance Analysis
Comparing target dates with the actual/forecast start
and finish dates provides useful information for the
detection of deviations and for the implementation of
corrective solutions in case of delays.
The float variance is also an essential planning
component to evaluate project time-performance.
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Schedule Updates
is any modification to the schedule information.
Revisions are a special category of schedule updates.
Revisions are changes to the schedule start and finish dates
in the approved project schedule. These changes are
generally incorporated in response to scope changes or
changes to estimates.
In some cases, schedule delays may be so severe that
rebaselining is needed to provide realistic data to measure
performance.
Rebaselining should only be used as a last resort in
controlling the schedule; new target schedules should be
the normal mode of schedule revision.
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Corrective Action
is anything done to bring expected future schedule
performance in line with the project plan.
involves expediting special actions taken to ensure
completion of an activity on time or with the least
possible delay.
Frequently requires root cause analysis to identify the
cause of the variation, and schedule recovery can be
planned and executed for activities delineated later in
the schedule and need not only address the activity
causing the deviation.
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Lessons Learned
The causes of variances, the reasoning behind the
corrective action chosen, and other types of lessons
learned from schedule control should be documented, so
that they become part of the historical database for both
this project and other projects of the performing
organization.
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Progress Curves Updates
A progress curve update is any modification to
progress information caused by a modification in the
project schedule, the WBS, or both.
Appropriate stakeholders must be notified as needed.
Progress curves updates may or may not require
adjustments to other aspects of the project plan.
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The early detection of actual or potential cost overruns in field
construction activities is vital.
It provides the opportunity to initiate remedial action and
increases the chance of eliminating such overruns or
minimizing their impact.
Cost overruns increase project costs and
diminish profits
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Project Cost Management includes the processes required to
ensure that the project is completed within the approved budget.
Resource Cost Cost Cost
Planning Estimation Budgeting Control
Determining what Developing Allocating the Controlling
resources estimate of the overall cost changes to
(Peoples, costs of the estimates to the project
Materials, resources individual work budget.
Equipments) and needed to packages to
what quantities of completed establish a cost
each should be project baseline for
used to perform activities measuring project
project activities. performance.
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Cost control is concerned with:
a) Influencing the factors which create changes to the cost
baseline to ensure that changes is beneficial,
b) Determining that the cost baseline has changed, and
c) Managing the actual changes when and as they occur.
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Cost control includes:
Monitoring cost performance to detect variances from
plan.
Ensuring that all appropriate changes are recorded
accurately in the cost baseline.
Preventing incorrect, inappropriate, or unauthorized
changes from being included in the cost baseline.
Informing appropriate stakeholders of authorized
changes.
includes searching out the “whys” of variances.
It must be thoroughly integrated with the other control
processes (scope change control, schedule control,
quality control, and others.
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Inputs Tools &
Outputs
1. Cost baseline
Inputs Techniques
Tools &
1. Revised cost
[Link]
1. Performance
baseline [Link]
Cost change
estimates
reports
2. Performance [Link]
Cost change
system Outputs
reports
3. Change control system
2. Performance 12. Budgetcost
. Revised
3. Change 2. Performance updates
estimates
requests measurement
requests measurement [Link]
Corrective
updates
4. Cost 3. Earned value
4. Cost 3. Earned value [Link]
Corrective action
management analysis
analysis (EVA)
(EVA) [Link] at at
management plan Estimate
plan 4.4. Additional
Additional completion
completion
planning
planning [Link]
Lessonslearned
5.5. Computerized
Computerized
learned
tools
tools
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Cost Baseline
A time phased based budget that will be used to measure
or monitor cost performance on the project.
It is developed by summing estimated costs by period and
is usually displayed in the form of S-curve.
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Performance Reports
Provides information on project scope and cost
performances, such as which budgets have been met
and which have not.
Reports should provide the kinds of information and the
levels of detail required by various stakeholders, as
documented in communication management plans.
Common formats for performance reports include; bar
chart (Gantt chart)s, S-curve, histograms, and tables.
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Planned % Work Execute In previous Work Executing this
Value as % Total work Executed
Contract up to the months reporting period
Description of total
Amount reporting
work Amount % Amount % Amount %
month
Sub Structure
Excavation Work 646,447.50 7.72 100 471,264.46 72.90 21,200.00 3.28 492,464.46 76.18
Concrete Work 1,883,660.94 22.50 99 891,094.58 47.31 32,000.00 1.70 923,094.58 49.01
Masonry 522,352.40 6.24 100 205,564.40 39.35 50,000.00 9.57 255,564.40 48.93
Sub Total 3,052,460.84 36.46 1,567,923.44 51.37 103,200.00 3.38 1,671,123.44 54.75
Super Structure -
Concrete Work 3,650,491.41 43.61 99 32,832.18 0.90 55,000.00 1.51 87,832.18 2.41
Block work 1,668,470.00 19.93 100 0.00 0.00 432,134.00 25.90 432,134.00 25.90
Sanitary 1,739,901.50 20.78 0 0.00 0.00 - - - -
Installation
Electrical 2,536,087.00 30.29 0 13,142.52 0.52 - - 13,142.52 0.52
Installation
Sub Total 5,318,961.41 63.54 45,974.70 0.86 487,134.00 9.16 533,108.70 10.02
8,371,422.25 100.00 1,613,898.14 19.28 590,334.00 7.05 2,204,232.14 26.33
Total
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Performance Reports: S -curve
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Change Requests
Change requests may occur in many forms-oral or written,
direct or indirect, externally or internally initiated, and
legally mandated or optional.
Changes may require increasing the budget or may allow
decreasing it.
Cost Management Plan
Describes how cost variances will be managed.
May be formal or informal, highly detailed or broadly
framed, based on the needs of the project stakeholders.
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Cost Change Control System
defines the procedures by which the cost baseline may be
changed.
It includes the paperwork, tracking systems, and approval
levels necessary for authorizing changes.
Performance Measurement
A technique which helps to assess the magnitude of any
variations which do occur.
Earned value analysis, is especially useful for cost control.
An important part of cost control is to determine what is
causing the variance and to decide if the variance requires
corrective action.
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Additional Planning
Prospective changes may require new or revised cost
estimates or analysis of alternative approaches.
Computerized Tools
Computerized tools such as project management software
and spreadsheets are often used to track planned costs vs.
actual costs, and to forecast the effects of cost changes.
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Revised Cost Estimates
Revised cost estimates are modifications to the cost
information used to manage the project. Appropriate
stakeholders must be notified as needed.
Budget Updates
Budget updates are changes to an approved cost baseline.
In some cases, cost variances maybe so severe that “re-
baselining” is needed in order to provide a realistic
measure of performance.
Corrective Action
Corrective action is anything done to bring expected future
project performance into line with the project plan.
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Estimate At Completion …(see on EVM portion)
An estimate at completion (EAC) is a forecast of total project
costs based on project performance.
will provide the project management team with a signal if
the EAC forecasts go beyond acceptable tolerances.
Lessons Learned
The causes of variances, the reasoning behind the
corrective action chosen, and other types of lessons learned
from cost control should be documented so that they
become part of the historical database for both this project
and other projects of the performing organization.
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Originally implemented by the Department of Defense in the
late 1970s to help better control complex projects. The system
was called the Cost and Schedule Control Systems Criteria or
C/SCSC.
Earned Value Management (EVM) is a project management
technique that objectively tracks physical accomplishment of
work.
This system of determining project progress addresses
both schedule status (e.g., on schedule, behind schedule) and
cost status (e.g., over budget, under budget)
EVM can be used to show the past and the current performance
of a project and predict the future performance of the project by
the use of statistical techniques.
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Three quantities form the basis for schedule and cost
performance measurement using EVM are:
1. Planned Value (PV) or Budgeted Cost of Work Scheduled
(BCWS)
The sum of budgets for all work packages scheduled to be
accomplished within a given time period.
2. Earned Value (EV) or Budgeted Cost of Work Performed
(BCWP)
The sum of budgets for completed work packages and
completed portions of open work packages.
3. Actual Cost (AC) or Actual Cost of Work Performed (ACWP)
The actual cost incurred in accomplishing the work
performed within a given time period.
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Earned Value Analysis, EVM
Current Planned Actual
Situation Forecast Cost
Completion Completion Overrun
EAC
Over budget V
C cash flow A
C ETC
O
S
BAC
T BCWS
(PV)
ACWP
(AV) CV
Forecast Time
Overrun
BCWP (EV)
SV TIME
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Term Description Interpretation
PV (BCWS) Planned Value What is the estimated value of the
work planned to be done?
EV (BCWP) Earned Value What is the estimated value of the
work actually accomplished?
AC (ACWP) Actual Cost What is the actual cost incurred?
BAC Budget At Completion How much did you BUDGET for the
TOTAL JOB?
EAC Estimate At Completion What do we currently expect the
TOTAL project to cost
ETC Estimate To Complete From this point on, how much
MORE do we expect it to cost to
finish the job?
VAC Variance At Completion How much over or under budget do
we expect to be?
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Name Formula Interpretation
Cost Variance (CV) EV – AC NEGATIVE is Over Budget
POSITIVE is Under Budget
Schedule Variance (SV) EV – PV NEGATIVE is Behind Schedule
POSITIVE is Ahead Schedule
Cost Performance Index EV/AC I am (only) getting ------- cents out of
(CPI) every $1
Schedule Performance EV/PV I am (only) progressing at------- % of
Index (SPI) the rate originally planned.
As of now how much do we expect
Estimate At Completion the total project to cost $--------.
(EAC) BAC/CPI •Used if no variances from the BAC
have occurred.
•Actual plus a new estimate for
Note: there are many AC + ETC remaining work. Used when original
ways to calculate EAC estimate was fundamentally flawed.
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Name Formula Interpretation
(…cond) Actual to date plus remaining
AC + BAC – EV budget. used when current
Estimate At variances are typical
Completion (EAC)
Actual to date plus remaining
AC + (BAC – EV)/CPI budget modified by
performance. when current
variances are typical
Estimate To EAC – AC How much more will the project
Completion (ETC) cost?
Variance At How much over budget will we
Completion (VAC) BAC – EAC be at the end of the project?
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6 possibilities of Earned Value Analysis, EVM
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Given:
• 5 km road project
• 5 month contract time of completion
• Budget cost of Birr 500 M.
Scheduled (time and cost)
• 1km1month100M. Br.
Physical progress:
• At the end of 2nd month1.5km
• Earned value = 150M. Birr
• Actual cost of 180M. Birr
Question:
• Under spending or over spending?
• Behind schedule or ahead of schedule?
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Soln:
• PV (BCWS) = Birr 200M.
• EV(BCWP) = Birr 150M.
• AC (ACWP) = Birr 180M.
Variance:
• Schedule Variance (SV) = EV – PV
= 150 – 200 = -50M.(Behind Schedule)
• Cost Variance (CV) = EV – AC
= 150 – 180 = -30M.(Over Budget)
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Performance Index
• CPI = EV/AC = 150/180 = 0.83;
“I am getting $0.83 out of every $1.00 budgeted.”
• SPI = EV/PV = 150/200 = 0.75;
“I am progressing at 75% of the planned rate.”
Estimate At Completion (EAC)
BAC = Birr 500M.
New estimate for the remaining, ETC = 350M
i. EAC = BAC/CPI = 500/0.83 = 602.41
ii. EAC = AC + ETC = 180+350=530
[Link] = AC + BAC – EV = 180+500-150 = 530
[Link] = AC + (BAC – EV)/CPI
= 180+(500-180)/0.83 = 601.69
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• Which one is the exact estimate?
• Assumption: current variances are typical
• Thus; EAC = AC + BAC – EV = 180+500-150 = 530
Variance At Completion (VAC)
• Variance At Completion (VAC) = BAC-EAC
= 500 – 530 = -30M.
Conclusion:
• As the SV and CV are negative, indicates the project
is overspending and as well as lagging behind the
schedule.
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Example-2:
Figure presents a fragment of a construction project’s
schedule – a number of tasks of the first stages of the project.
Table contains input data collected by the end of the seventh
week of the schedule and status indicators calculated on their
basis. Inputs are marked grey:
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Table. Earned Value calculations – project “Factory”, end of week 7
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Quality is “the totality of characteristics of an entity that bear
on its ability to satisfy stated or implied needs”
Stated and implied needs are the inputs to developing
project requirements.
Quality in its simplest form can be defined as: ‘meeting the
customer’s expectations,’ or ‘compliance with customer’s
specification.’
ASCE, 2000 defines quality as:
‘the fulfillment of project responsibilities in the delivery of
products and services in a manner that meets or exceeds the
stated requirements and expectations of the owner, design
professional and constructor’.
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The project management team must be careful not to confuse
quality with grade.
Grade is “a category or rank given to entities having the
same functional use but different technical characteristics”.
Low quality is always a problem; low grade may not be.
For example, consider office buildings:
Office Building-1: High Quality, Low Grade
High quality (appropriate floor layout, absence of leakage,
functioning mechanical and electrical systems) and low
grade (no wood trim or marble floors), or of
Office Building-2: Low Quality, High Grade
Low quality (floor space difficult to use, roof leakage,
improperly balanced heating and ventilation system) and
high grade (wood trim and marble floors).
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Project Quality Management includes the processes required to
ensure that the project will satisfy the needs for which it was
undertaken.
Project Quality Management
Quality Planning Quality Assurance Quality Control
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1) Quality Planning:
Identifying which quality standards are relevant to
the project and determining how to satisfy them.
In the construction industry quality standards are
usually referred to as project specifications, which
consists of the customer's requirements and all of
the stated and implied regulatory requirements.
The project team should be aware of one of the
fundamental tenets of modern quality
management: quality is planned in, not inspected
in.
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2) Quality Assurance:
Quality Assurance is all the planned and systematic
activities implemented within the quality system to
provide confidence that the project will satisfy the
relevant quality standards.
In a construction project, quality assurance is
everybody's responsibility (the project management
team, as well as the construction manager,
superintendent, foremen and skilled trades).
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3. Quality Control:
Quality control involves Monitoring specific
project results to determine if they comply with
relevant quality standards and identifying ways to
eliminate causes of unsatisfactory performance.
It should be performed throughout the project.
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Outputs
Tools and
1. Quality
Inputs Techniques improvement
1. Work results 1. Inspection 2. Acceptance
2. Quality 2. Control charts decisions
management 3. Pareto 3. Non conformance
plan diagrams reports
3. Operational 4. Statistical 4. Rework
definitions sampling 5. Completed
4. Checklists 5. Flow-charting checklists
6. Trend analysis 6. Process
adjustments
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Work Results:
Work results are the outcomes of the activities performed
to accomplish the project.
Information on work results—which deliverables have
been completed and which have not, to what extent
quality standards are being met, what costs have been
incurred or committed, etc.
Work results include both process results and product
results. Information about the planned or expected results
should be available along with information about the
actual results.
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Quality Management Plan
Describe how the project management team will
implement its quality policy.
In ISO 9000 terminology, it should describe the project
quality system: “the organizational structure,
responsibilities, procedures, processes, and resources
needed to implement quality management”.
The quality management plan may be formal or informal,
highly detailed, or broadly framed, based on the
requirements of the project.
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Operational Definitions
Describes what something is and how it is measured by the
quality control process.
For example, it is not enough to say that meeting the
planned schedule dates is a measure of management
quality; the project management team must also indicate
whether every activity must start on time or only finish
on time; whether individual activities will be measured,
or only certain deliverables, and if so, which ones.
Operational definitions are also called metrics in some
application areas.
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Checklists
A checklist is a structured tool, usually item specific, used
to verify that a set of required steps has been performed.
Checklists may be simple or complex.
They are usually phrased as imperatives (“Do this!”) or
interrogatories (“Have you done this?”).
Many organizations have standardized checklists
available to ensure consistency in frequently performed
tasks.
Refer Check list formats
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Inspection
includes activities such as measuring, examining, and
testing undertaken to determine whether results conform
to requirements.
Inspections may be conducted at any level (e.g., the
results of a single activity may be inspected, or the final
product of the project may be inspected).
Some customary inspections in construction include
construction sampling, and non destructive testing
procedures such as ultra sound and x-rays.
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Comp.
Test Dimension Weight Volume Failure Load Strength Unit Wt.
No. ( Days ) L W H ( gm Cm3 (KN) (Mpa) gm / cm3
1
2 3
3
Mean
Comp.
Test Dimension Weight Volume Failure Load Strength Unit Wt.
No. ( Days ) L W H ( gm Cm3 (KN) (Mpa) gm / cm3
1
2 7
3
Mean
Comp.
Test Dimension Weight Volume Failure Load Strength Unit Wt.
No. ( Days ) L W H ( gm Cm3 (KN) (Mpa) gm / cm3
1
2 28
3
Mean
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Statistical Sampling
Statistical sampling involves choosing part of a population
of interest for inspection.
Appropriate sampling can often reduce the cost of quality
control. it is necessary for the project management team to
be familiar with a variety of sampling techniques.
This technique is used for construction projects. Probably
the most common use is in sampling concrete for strength
control and there are other sampling applications as well.
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Trend Analysis
involves using mathematical techniques to forecast future
outcomes based on historical results. Trend analysis is
often used to monitor:
Technical performance—how many errors or defects
have been identified, how many remain uncorrected.
Cost and schedule performance—how many activities
per period were completed with significant variances.
Useful in specific areas of construction to predict the
effectiveness of the quality control program
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Quality Improvement
Quality improvement includes taking action to increase
the effectiveness and efficiency of the project to provide
added benefits to the project stakeholders.
In most cases, implementing quality improvements will
require preparation of change requests or taking of
corrective action, and will be handled according to
procedures for integrated change control.
Acceptance Decisions
The items inspected will be either accepted or rejected.
Rejected items may require rework
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Non-Conformance Reports
Items that are inspected and found not to conform to
requirements commonly have a nonconformance report
prepared outlining the deficiencies.
The report may also indicate the action needed to bring the
items into conformance.
Rework
is action taken to bring a defective or nonconforming item
into compliance with requirements or specifications.
is a frequent cause of project overruns in most application
areas. The project team should make every reasonable effort
to minimize rework.
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Completed Checklists
A checklist is a structured tool, usually item specific, used to
verify that a set of required steps has been performed.
When checklists are used, the completed checklists should
become part of the project’s records.
Process Adjustments
Process adjustments involve immediate corrective or
preventive action as a result of quality control
measurements.
In some cases, the process adjustment may need to be
handled according to procedures for integrated change
control.
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Thank you!!!
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