1. COLLEGE OF ENGINEERING
Construction Management
Group 3
By
1- Saleh Aladdadh
2- Naif Alharbi
3- Salman Almansor
Submitted to .Dr.
Tomas Ucol Ganiron, Jr

2. PROJECT CONTROL PROCESS
- What is Controlling Process
- PM responsibility
2

3. Advanced Control: An
Overview
I attribute my success to
this: I never gave or took
an excuse.
Florence Nightingale
3

4. PROJECT CONTROL PROCESS
Purpose : to ensure that project objectives are met by monitoring and
measuring progress and taking corrective actions when necessary
4

5. Progress Measurement
If we don’t change our
direction, we are likely to end
up where we’re headed.
Anonymous
5

6. Traditional Approaches to Progress
Measurement
• Budget vs. actual
• Percent complete
• “Trust me”
6

7. Modern Approaches
• Smaller projects or projects with unstable
scope:
– Weekly or biweekly deliverables
– Done or not done
• Larger projects:
– Earned value
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8. Earned Value Concepts
8

9. Earned Value Mechanics
• Build (and plot) your baseline
• Record (and plot) the actuals
• Measure (and plot) progress
9

10. Build Your Baseline
• Information developed by planning:
– WBS with 108 technical activities and 18
management activities.
– Estimates show that all 126 activities will
require 1 person for 1 week.
– You are constrained to have three full-time
staffers plus one half-time project manager.
– Staff and PM both cost $1,000 per week.
10

11. Build Your Baseline
Month Staff PM Total
1 $12,000 $2,000 $14,000
2 $12,000 $2,000 $14,000
… … … …
9 $12,000 $2,000 $14,000
$108,00 $126,00
Total $18,000
0 0
11

12. Plot Your Baseline
Scheduled Cost
($126,000)
Cumulative
Values
Time
12

13. Record Your Actuals
Month # Staff Staff $ PM Total
$12,00 $14,00
1 3.5 $2,000
0 0
$12,00 $14,00
2 3.5 $2,000
0 0
$16,00 $19,00
3 4.7 $3,000
0 0
$16,00 $18,00
4 4.5 $2,000
0 0
n/a $56,00 $65,00
Total $9,000
0 0
13

14. Plot Your Actuals
Scheduled Cost
($126,000)
Cumulative
Values
Actual
Cost
($65,000)
Time
14

15. Measure Your Progress
Earned value = budget for completed item
Mo. Done Not Staff PM Total
$12,00
1 10+2 2 $10,000 $2,000
0
$11,00
2 9+2 5 $9,000 $2,000
0
$15,00
3 13+2 4 $13,000 $2,000
0
$18,00
4 16+2 0 $16,000 $2,000
0
$56,00
Tot. 56 n/a $48,000 $8,000 15
0

16. Plot Your Progress
Scheduled Cost
($126,000)
Cumulative
Values
Actual
Cost
($65,000)
Earned Value ($56,000)
Time
16

17. Use Ratios to
Estimate Completion
• Cost Performance Index (CPI) =
Earned Value / Actual Cost
• Cost Estimate At Completion (Cost EAC) =
Total Scheduled Cost / CPI
• Schedule Performance Index (SPI) =
Earned Value / Scheduled Cost
• Schedule EAC = Planned Duration / SPI
17

18. Sample Earned Value Calculations
• Cost Performance Index (CPI) =
56,000 / 65,000 = 0.86
• Cost Estimate At Completion (Cost EAC) =
126,000 / CPI = 126,000 / 0.86 =
146,500
• Schedule Performance Index (SPI) =
56,000 / 56,000 = 1.00
• Schedule EAC = 9 months / 1.0 = 9 months
18

19. Other Earned Value Acronyms
• SC = BCWS = PV
– Budgeted Cost of Work Scheduled
– Planned Value
• AC = ACWP
– Actual Cost of Work Performed
• EV = BCWP
– Budgeted Cost of Work Performed
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20. More Earned Value
Acronyms
Estimate
Budgeted At Completion
d
(BAC)
Overrun
Estimate To
Actual Cost
Complete (ETC)
Estimate At Completion (EAC)
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21. Sample Values
Total Scheduled Cost = 3,500
Cumulative
Values
Actual Cost = 1,800 Duration =
12 months
Budgeted Cost = 900
Earned Value = 600
Time
21

22. Sample Earned Value Calculations
• Cost Performance Index (CPI) =
600 / 1,800 = 0.33
• Cost Estimate At Completion (Cost EAC) =
3,500 / CPI = 3,500 / 0.33 = 10,500
• Schedule Performance Index (SPI) =
600 / 900 = 0.67
• Schedule EAC = 12 months / 0.67 = 18 months
22

23. … continued
Budget =
Estimated Overrun = 7,000
3,500
Actual
Cost Estimate To Complete (ETC) =
=
8,700
1,800
Cost Estimate At Completion (EAC) = 10,500
23

24. Interpreting Results
• Negative is bad:
– If CV < 0, you are over budget.
– If SV < 0, you are behind schedule.
• Less than 1.0 is bad:
– If CPI < 1.0, you are over budget.
– If SPI < 1.0, you are behind schedule.
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25. Time Variance
• Earned Schedule (ES) — the number of
periods planned for the current Earned Value.
• Actual Time (AT) — the number of periods
that have elapsed since the project started.
• TPI (Time Performance Index) = ES / AT
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26. … continued …
Scheduled Cost
Cumulative
Values
AT = 22
PD = 52
ES = 18
Earned Value
Time
26

27. … continued
• Time to Complete (TC) =
Planned Duration / TPI =
52 / 0.8 = 65 = 13 weeks late
• SPI will give similar results early in the project,
but becomes less reliable later.
27

28. Summary of
Key Points
• Earned value is the most reliable approach to
progress measurement when scope is
reasonably stable.
• Keep work-items small and short to avoid
measurement errors.
28