CHAPTER THREE

Time and Cost related Performance measurement

Focus areas
 Project time management
 Project cost management
 Tools & Techniques for performance measurement
(Earned value analysis )

2
 Time related Performance management

Project planning
Planning aims at formulation of a time-based plan of action for
coordinating various activities and resources to achieve specified
objectives.
Planning is the process of developing the project plan. The plan
outlines how the project is to be directed to achieve the assigned goals.
 It specifies a predetermined and committed future course of action,
based on discussions and decisions made on the current knowledge and
estimation of future trends.
3
Types of project plans
Planning the entire project from its inception to completion
requires a vast coverage, varied skills, and different types of
plans. The nature of plan encountered in a typical construction
projects are;

Project plan

Inception stage Engineering stage Implementation stage

Project feasibility plan Project preliminary plan Project construction Plan

4
• Planning follows a systematic approach. Various planning techniques are
employed to systematize and transform the mental thought process into a
concrete project plan.
Project Planning Process
Planning data collection Where to look for data? Studying the relevant documents
Planning time What is to be done? Define scope of the work
What are the activities involved? Breakdown project into activities
How it can be done? Developing network plans
When it is to be done? Scheduling work
Where it is to be done? Charting site layout

Planning resource What is needed to do it? Forecasting resource requirement

Planning the 4M’S
Who is to do it? Designing organizational structure
Allocate tasks and resource
Establishing responsibility centers

Planning implementation How to account performance? Designing control systems

How to monitor performance? Formulating monitoring methodology

How to communicate information? Developing project management

information system(PMIS)

5
 3.1 Project Time Management

A. Defining Work Tasks

• The choice of technology ,defining the general method and
defining the various work tasks are the major processes in
planning.
WBS enables splitting of the project work in to hierarchical work
break down levels of
 sub projects
 Tasks
 Work packages
 Activities
 Operational level

6
 Contd…
• These work tasks represent the necessary framework to permit
scheduling of construction activities, along with estimating the
resources required by the individual work tasks, and any necessary
precedence's or required sequence among the tasks.
• Execution of an activity requires time and resources, including
manpower and equipment.
• The time required to perform an activity is called the duration of
the activity.
• The beginning and the end of activities are signposts or milestones,
indicating the progress of the project.

7
 B. Defining Precedence Relationships among Activities
• Once work activities have been defined, the
relationships among the activities can be specified.
• Numerous natural sequences exist for construction
activities due to requirements for structural integrity,
regulations, and other technical requirements.
• Diagrammatically, precedence relationships can be
illustrated by a network or graph in which the
activities are represented by arrows.

8
 Example : Precedence Definition for Site Preparation and Foundation Work

Suppose that a site preparation and concrete slab foundation

construction project consists of nine different activities:
A. Site clearing (of bush and minor debris),
B. Removal of trees,
C. General excavation,
D. Grading general area,
E. Excavation for utility trenches,
F. Placing formwork and reinforcement for concrete,
G. Installing sewer lines,
H. Installing other utilities,
I. Pouring concrete.

9
TABLE: Precedence Relations for a Nine-Activity Project Example

Activity Description Predecessors

A Site clearing ---

B Removal of trees ---
C General excavation A
D Grading general area A
E Excavation for utility trenches B,C
F Placing formwork and reinforcement for concrete B,C
G Installing sewer lines D,E
H Installing other utilities D,E
I Pouring concrete F,G

10
Contd…
• With the previous information, the next problem is to represent
the activities in a network diagram and to determine all the
precedence relationships among the activities.
• The following diagrams show the representation of the
activities on arrow.

11
Activity-on-Branch Representation of a Nine Activity Project
 C. Estimating Activity Duration

• All formal scheduling procedures rely upon estimates

of the durations of the various project activities as
well as the definitions of the predecessor
relationships among tasks.
• A straightforward approach to the estimation of
activity durations is to keep historical records of
particular activities and rely on the average durations
from this experience in making new duration
estimates.

12
 Contd…

• The time required to complete an activity should

depend not only on the quantity of work to be
executed (Q) but also the resources allocated (R) and
the (unit) productivity of the resources (P).
• The experience of the planner comes to the force not
only in cases when such data is not available, but also
when the data is to be interpreted to account for
geographical differences, age of equipment,
operating conditions, etc.

13
Contd…
• Simply put, the time required (T) to complete an
activity can be calculated using the following
relationship, provided care is taken to ensure
proper units for all the quantities.
• T = Q / (RxP)
• For example, the time taken to paint 100 m2 (Q)
using 2 painters (R) and assuming each painter
can do 5 m2 in an hour (P), is simply 10 hours (T).

14
 D. Fundamental Scheduling Procedures
Scheduling means putting the plan on a calendar time scale.
• In addition to assigning dates to project activities, project
scheduling is intended to match the resources of equipment,
materials and labor with project work tasks over time.
• Good scheduling:
– facilitate the timely procurement of necessary resources.
– Insure the completion of a project as soon as possible.
– can eliminate problems due to production bottlenecks

15
• Poor scheduling can result in considerable waste as
laborers and equipment wait for the availability of
needed resources or the completion of preceding
tasks.

The fundamental scheduling techniques

Bar charts
Critical path method
Program evaluation and review technique,
Precedence network analysis
These scheduling techniques have been covered in
other course.(construction planning & scheduling)
16
 E. Review and monitoring (Schedule Control)

• Schedule control is concerned with:

a) Influencing the factors that create schedule changes
to ensure that changes are agreed upon,
b) Determining that the schedule has changed, and
c) Managing the actual changes when and as they
occur.

17
 Schedule control process

Inputs Tools & Techniques Outputs

 Schedule change  Schedule updates

 Project schedule
control system  Corrective action
 Performance  Performance  Lessons learned
reports measurement
 Change requests  Additional
 Schedule planning
management  Project
plan management

18
Inputs to Schedule Control
• Project schedule:
– The approved project schedule, called the schedule baseline
(which must be feasible technically and in terms of resources),
– provides the basis for measuring and reporting schedule
performance
• Performance reports:
– It provides information on schedule performance, such as
which planned dates have been met and which have not.
• Change requests:
– Changes may require extending the schedule or may allow
accelerating it.

19
 Tools and Techniques for Schedule Control

• Schedule change control system:

– A schedule change control system defines the procedures by
which the project schedule may be changed.
• 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.
• Additional planning
– Few projects run exactly according to plan. Prospective
changes may require new or revised activity duration
estimates, modified activity sequences, or analysis of
alternative schedules.

20
  
Outputs from Schedule Control

• Schedule updates:
– A schedule update is any modification to the schedule
information that is used to manage the project.
– Schedule updates may or may not require adjustments to
other aspects of the project plan.
– Revisions are a special category of schedule updates.
– Revisions are changes to the schedule start and finish
dates in the approved project schedule.

21
• Corrective action:
– Corrective action is anything done to bring expected
future schedule performance in line with the project
plan.
– Corrective action in the area of time management
often involves expediting: special actions taken to
ensure completion of an activity on time or with the
least possible delay.
• 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.

22
Generally the project time control aims at timely execution of work as per
the work program and applications of corrective measures in case of
deviations.
The time control process involves the monitoring of time status by
 updating the project network and time schedules,
 reviewing durations of balance activities,
 computing deviations and evaluating the implication of deviations on
project time objective by time-analyzing the project network.
It includes formulating remedial measures including what-if analysis,
time crashing, re-planning, re-forecasting and re-mobilizing resources
under changed situations with a view to accomplish the time objective

23
 ha nk
T
yo u