Controlling Project Integration & Work [5 Hours]

Project scope control covers the processes required to ensure the project includes all the work required, and only the work required, to complete the project successfully. It focuses on the project scope of work and its components.

Scope Control Process (4 steps):

1. Define Scope: Clearly define project purpose, objectives, WBS, execution methodology, milestones, cash flow pattern, project organization, and potential risks
2. WBS Breakdown: Break the project scope into manageable work packages through Work Breakdown Structure
3. Verify Scope: Formal acceptance of deliverables by checking that all work was completed satisfactorily
4. Control Changes: Implement a formal change control process to evaluate, approve/reject, and document all scope changes

To control frequent changes:

• Establish baselines for measuring performance
• Timely approval of designs and drawings
• Work quality control, time and cost control
• Resources productivity control
• Scope verification of contracts
• Account for performance by measuring and reporting performance
• Analyze performance variances and identify trends
• Communicate information and maintain records

Project scope control covers the processes required to ensure the project includes all the work required, and only the work required, to complete the project successfully. The typical scope-related parameters controlled are: design, contracts, quality, time, and cost.

Scope management = Application of knowledge, skills, tools, and techniques to meet or exceed project work scope objectives within quality constraints.

Project control follows a systems approach. Each organizational unit (responsibility center) can be viewed as a sub-system. It can be achieved through:

1. Step 1: Define the parameters to be controlled
2. Step 2: Establish baselines for measuring performance
3. Step 3: Account for performance by measuring and reporting
4. Step 4: Analyze performance variances and identify trends
5. Step 5: Communicate information and record-keeping

A typical project scope definition covers: project purpose, WBS, outline execution methodology, milestone and one-time plan, cash flow pattern, project organization, and potential risks.

Scope control includes: timely approval of designs/drawings, work quality control, time and cost control, resources productivity control, and scope verification of contracts.

Work scope control is important in construction projects because:

• Ensures that planned works are done to achieve the stated purpose of the project
• Ensures the project includes all the work required, and only the work required, to complete successfully
• Prevents scope creep from unauthorized changes that lead to cost overruns and delays
• Controls critical parameters: design, contracts, quality, time, and cost
• Enables timely approval of designs and drawings
• Facilitates work quality control and resources productivity control
• Helps verify contracts and deliverables
• Provides systematic approach to measure, analyze, and communicate project performance
• Assists in maintaining project baselines and controlling deviations

Work scope control is the process that aims at ensuring that planned works are done to achieve the stated purpose of the project. It focuses on the project scope of work and its components.

It covers the processes required to ensure the project includes all the work required, and only the work required, to complete the project successfully. The typical scope-related parameters controlled are: design, contracts, quality, time, and cost.

Quality management involves processes required to ensure the project satisfies the needs for which it was undertaken. In a large-sized project, quality control is met by an equipped and staffed quality control department as an organizational unit.

Quality-related processes:

• Quality Planning: Identifying quality standards relevant to the project and determining how to ensure conformance
• Quality Assurance: Planned and systematic activities to provide adequate confidence that the entity will fulfill quality requirements
• Quality Control: Operational techniques and activities which sustain the product/service quality to specific requirements
• Quality Inspection: Determines acceptability through measuring, examining, and testing
• Quality Audit: Systematic and independent examination to determine whether quality activities comply with planned arrangements
• Quality Improvement: Actions to increase effectiveness and efficiency of activities and processes

Quality control measures include: creating quality consciousness, mobilizing resources, setting up site testing labs, training staff, implementing quality plan, testing materials, monitoring performance, investigating quality failures, formulating re-work plans, and feedback for improvement.

Labor Productivity = Ratio of output to input (the ability to produce). Input can be measured in physical quantities, monetary value, or a combination of both.

Labor Productivity Variance = Actual Labor Productivity − Standard Labor Productivity

Labor Productivity Index = Actual Labor Productivity / Standard Labor Productivity

If Index > 1: better than standard; If Index < 1: worse than standard.

Factors affecting labor productivity:

1. Physical-organic factors: Location and technological factors
2. Cultural belief-value: Individual attitudinal, motivational factors
3. International influences: Levels of innovativeness and efficiency of investing companies
4. Managerial-organizational: Wider economic and political-legal environments
5. Level in internal labor markets: Presence/absence of demarcation lines and barriers to occupational flexibility
6. Performance of personnel managers: Communicating with and performance-managing on the basis of pay and other incentives

Example: Masonry wall 1200 m², crew of 8 men: Planned 15 days → Productivity = 10 m²/man-day; Actual 18 days → Productivity = 8.33 m²/man-day; Index = 0.833 (unfavourable)

1. Un-productive time:
   • Rework of defective work done
   • Waiting for material, equipment and/or instructions
   • Absence from work by workers
   • Frequent changes in scope of work methodology
   • Conflicts between supervisors and workers
2. Worker’s low morale:
   • Non-fulfillment of employment terms and conditions
   • Insecurity of employment
   • Sub-standard working conditions
   • Frequent transfers
3. Poor pre-work preparation by supervisors:
   • Excess workers employed for the task
   • Insufficient instructions for execution of work
   • Incorrect sequencing of work activities
4. Directional failures of project management:
   • Failure to set performance targets
   • Failure to make provision for timely resource supply
   • Failure to provide feedback
   • Failure to motivate workers

Labour productivity means the ratio of output to input — the ability to produce. Input can be measured in physical quantities, monetary value, or a combination of both. Labour productivity at a construction site provides a measure of the labor’s efficiency, evaluating how labor was employed between productive work and unproductive time.

Studies reveal that productive time at construction sites varies from 50–70% of total employment time. Remaining time is wasted due to unscheduled resting, late starting, early leaving, finding work instructions, and delays in receipt of tools/materials.

Measures to improve labour productivity:

1. Reduce unproductive time by constantly reviewing and minimizing the contributing causes
2. Replace labor by appropriate equipment, where economically feasible
3. Substitute inefficient working tools by appropriate efficient tools
4. Improve the method of executing work — there is always a better way of doing a task
5. Improve working conditions
6. Employ competent supervisors

Labour productivity measurement involves the following control process:

1. Accounting for the unproductive time of laborers (using time-keeper’s daily records and foreman’s task reports)
2. Comparing actual productivity with the standard
3. Analyzing variations between actual and standard
4. Formulating measures to improve productivity

Key Formulas:

• Labor Productivity Variance = Actual Labor Productivity − Standard Labor Productivity
• Labor Productivity Index = Actual Labor Productivity / Standard Labor Productivity

The project labor accounting system enables computation of accurate pay, provides data for evaluation of labor productivity, facilitates estimation of labor costs, and provides information to all project departments (accounting, costing, planning).

Measures to increase: Reduce unproductive time, replace labor with equipment where feasible, substitute inefficient tools, improve execution methods, improve working conditions, employ competent supervisors.

Definition [2 marks]: Labour productivity is the ratio of output to input, meaning the ability to produce. It provides a measure of the labor’s efficiency at a construction site, evaluating how labor was employed between productive work and unproductive time. Productive time varies from 50–70% of total employment time.

How to improve [4 marks]:

1. Reduce unproductive time by constantly reviewing and minimizing causes (rework, waiting, absence, conflicts)
2. Replace labor by appropriate equipment, where economically feasible
3. Substitute inefficient working tools by appropriate efficient tools
4. Improve the method of executing work — remember there is always a better way of doing a task
5. Improve working conditions — better safety, facilities, and environment
6. Employ competent supervisors who can plan, instruct, and motivate workers effectively

Labor productivity control involves systematic monitoring and improvement of labor efficiency at construction sites.

Definition: Productivity = Ratio of output to input. Labor productivity at a construction site provides a measure of the labor’s efficiency.

Productive vs Unproductive Time: Studies reveal productive time varies from 50–70%. Time is wasted due to unscheduled resting, late starting/early leaving, finding work instructions, delays in receipt of tools and materials.

Labor Productivity Control Process:

1. Accounting for unproductive time (using time-keeper’s daily records, foreman’s task reports)
2. Comparing actual with standard
3. Analyzing variations between actual and standard
4. Formulating measures to improve productivity

Key Formulas: Productivity Variance = Actual − Standard; Productivity Index = Actual / Standard

Causes of low productivity: Unproductive time (rework, waiting, absence), worker’s low morale (unfulfilled terms, insecurity), poor pre-work preparation (excess workers, insufficient instructions), directional failures (no targets, no feedback).

Improvement measures: Reduce unproductive time, replace with equipment, better tools, improve methods, improve conditions, competent supervisors.

Equipment Productivity [1 mark]: Equipment productivity control is based on employment time, output achieved, and expenditure. The main purpose is to minimize wastage in utilization.

Equipment Productivity = Output / Time

Utilization Rate = Actual Working Hours / Available Hours × 100%

Causes of low equipment productivity [2 marks]:

1. Insufficient preparation
2. Lack of continuity of task
3. Inadequate operator skill
4. Lack of effective supervision
5. Non-availability of maintenance measures
6. Lack of proper equipment management, especially preventive maintenance
7. Accidents

Remedial measures [2 marks]:

• Proper pre-work preparation and planning
• Ensure continuity of tasks to avoid idle time
• Train operators adequately for the specific equipment
• Provide effective supervision at site
• Implement scheduled/preventive maintenance program
• Maintain proper equipment management system with records
• Implement safety measures to prevent accidents
• Keep spare parts and repair facilities available

Labor Productivity: Ratio of output to input — measures labor’s efficiency. Productive time at sites is 50–70%. Remaining time wasted due to unscheduled resting, late starting, finding instructions, delays in tools/materials.

Factors: Physical-organic, cultural belief-value, international influences, managerial-organizational, internal labor markets, personnel management.

Improvement: Reduce unproductive time, replace with equipment, better tools, improve methods, improve conditions, competent supervisors.

Equipment Productivity: Based on employment time, output achieved, and expenditure. Purpose: minimize utilization wastage.

Accounting uses daily equipment time-cards recording: engine operating hours, received fuel data, and repairs carried out. Weekly productivity sheets track equipment type, ID, total hours, work hours, waiting hours, and quantity/hours productivity.

Equipment productivity analysis charges items of work at an hourly rate considering owning and operating costs. Records include equipment identification, purchase cost, repair history, employment history, and operator’s record.

Causes of low productivity: insufficient preparation, lack of task continuity, inadequate operator skill, poor supervision, lack of maintenance.

Equipment productivity control is the process of controlling the utilization of construction equipment based on three key parameters: employment time, output achieved, and expenditure. The main purpose is to minimize wastage in utilization.

It involves:

• Equipment productivity accounting: Tracing employment time, expenditure, and corresponding quantity of work for each major equipment item
• Daily equipment employment accounting: Using equipment time-cards (engine hours, fuel data, repairs) — filled by foreman and handed to equipment cost center
• Weekly equipment productivity reports: Summarizing equipment type, time account (total/work/waiting hours), and productivity (qty/hours)
• Equipment productivity analysis: Charging hourly rates, maintaining records of identification, purchase cost, repair history, employment history, and operator records

Labor Productivity Improvement:

1. Reduce unproductive time by constantly reviewing and minimizing contributing causes
2. Replace labor by appropriate equipment, where economically feasible
3. Substitute inefficient working tools by appropriate efficient tools
4. Improve the method of executing work — there is always a better way
5. Improve working conditions
6. Employ competent supervisors

Equipment Productivity Improvement:

• Proper pre-work preparation and planning
• Ensure continuity of tasks (avoid idle/waiting time)
• Train operators adequately
• Provide effective supervision
• Implement preventive maintenance program
• Maintain proper equipment management system
• Keep equipment in serviceable condition — actual productivity gradually improves provided equipment is well-maintained
• Implement safety measures to prevent accidents

Materials productivity control aims at minimizing wastage. Control at the construction responsibility level is broadly divided into:

1. Accounting for materials: Documents materials procurement data, materials inventory for incoming materials, and the issue of materials to the site
2. Analyzing variances: Determine causes of wastage using the formula: Materials usage variance = Actual materials consumed − Standard acceptable material wastage
3. Implementing measures: Minimize wastage through proper handling, storage, accounting, and training

The accounting system uses stock record cards (bin cards) showing stock code, description, unit, location, stock levels (min, max, re-order), source of supply, lead time, and sequential receipt/issue records.

Materials are obtained from project central stores or delivered directly. The materials requisition note is used for issues, and the goods received note (GRN) is signed on receipt.

Material productivity control is necessary in construction projects because:

• Materials represent a significant portion of project cost (typically 50–60%)
• Wastage occurs at every stage: procurement (wrong specs, over-buying), storage (damage, theft, weather), and usage (breakage, poor coordination)
• Ensures right quantity and quality of materials available at the right time and place
• Keeps inventories low to minimize investment and holding costs
• Minimizes losses from theft, obsolescence, and wastage
• Avoids occupation of excessive storage space
• Enables accurate cost evaluation for billing and financial management
• Assists in updating cost estimates and expenditure on materials
• Monthly stock-taking helps reconcile stock and control discrepancies

Material productivity control aims at minimizing wastage of construction materials through systematic accounting, analysis, and corrective measures.

Basic reasons for material productivity control:

Wastage during procurement:

1. Buying materials of wrong specifications
2. Buying more than actual requirements
3. Unnecessary buying for unforeseen eventualities
4. Untimely buying of short-lived materials
5. Improper and unnecessary handling of materials
6. Wastage in transportation

Wastage during storage:

1. Damages and breakages during handling
2. Deterioration due to incorrect storage conditions and short-shelf life
3. Losses due to fire, thefts, and exposure to weather

Wastage during use: Excess estimation, theft/pilferage, breakage, poor coordination, inferior quality, poor accounting, negligent supervisor, unforeseen circumstances, deterioration from long storage, over-issues from stores.

Material productivity control is important because:

• Cost control: Materials form a major portion of total project cost — minimizing wastage directly reduces project costs
• Timely availability: Ensures right quantity and quality at the right time and place through proper planning
• Inventory optimization: Keeps inventories as low as feasible to minimize investment and holding costs
• Loss prevention: Minimizes losses from theft, obsolescence, breakage, and wastage
• Accurate costing: Enables cost evaluation for billing, financial advance, and updating cost estimates
• Stock reconciliation: Monthly stock-taking helps identify and control discrepancies between physical stock and records
• Quality assurance: Ensures materials of proper quality are used in construction

Preventive measures: Proper handling and transportation, proper and secure storage, correct accounting, fire precautions, education and training of staff and workers.

Materials productivity control aims at minimizing wastage of construction materials.

Three-step approach:

1. Accounting: Materials accounting system documents procurement data, inventory, and issue to site. Uses stock record cards (bin cards) showing stock code, levels, receipt/issue quantities.
2. Analysis: Materials usage variance = Actual consumed − Standard acceptable wastage. Causes of discrepancies: wrong types received, quantity differences, undocumented transfers, unaccounted breakages, clerical errors.
3. Implementation: Preventive measures — proper handling/transportation, secure storage, correct accounting, fire precautions, training.

Key documents: Bin card (stock record), materials requisition note, goods received note (GRN), stores ledger sheet.

Monthly stock-taking enables: cost evaluation for billing, costing inventory, mobilization status, reconciling stock, and controlling discrepancies.

Wastage occurs during: Procurement (wrong specs, over-buying), Storage (damage, fire, theft), Usage (excess estimation, breakage, poor coordination, negligent supervision).

Earned Value Analysis (EVA) is a tool that compares the value of work done with the value of work that should have been done. It measures the amount of work actually completed in a project and forecasts a project’s cost and date of completion.

Three Key Budget Parameters:

• BCWS (Budgeted Cost for Work Scheduled): Cumulative time-phased cost budget for activities scheduled. Answers: “How much work should have been completed by now?” Also called Planned Value (PV). BCWS = SQ × SR
• BCWP (Budgeted Cost for Work Performed): Value earned from progress — the cumulative cost budgeted for work completed. Also called Earned Value (EV). BCWP = AQ × SR
• ACWP (Actual Cost of Work Performed): Cumulative actual cost incurred. Answers: “How much have we actually spent?” ACWP = AQ × AR

Performance Control using EVA:

Variance Formulae:

• Cost Variance (CV) = BCWP − ACWP (+ve = under budget, −ve = over budget)
• Schedule Variance (SV) = BCWP − BCWS (+ve = ahead, −ve = behind)

Performance Indices:

• CPI (Cost Performance Index) = BCWP / ACWP (>1 = under budget, <1 = over budget)
• SPI (Schedule Performance Index) = BCWP / BCWS (>1 = ahead, <1 = behind)

Forecasting:

• EAC (Estimate at Completion) = BAC / CPI
• SAC (Schedule at Completion) = Original Duration / SPI
• VAC (cost) = BAC − EAC; VAC (schedule) = Scheduled Duration − SAC

The manager uses these indices to decide: if CPI < 1 and SPI < 1, the project is both over budget and behind schedule, requiring corrective action such as resource mobilization, cost reduction measures, or scope revision.

EVA is a tool that compares the value of work done with the value of work that should have been done. It measures progress and forecasts cost and date of completion.

Key parameters: BCWS (Planned Value), BCWP (Earned Value), ACWP (Actual Cost)

Example: Er. Gautam responsible for 125 m³ concreting in 10 days, budget Rs 12,50,000. At end of day 3: 40 m³ completed, Rs 3,75,000 spent.

• Cost per day = Rs 1,25,000; Cost per m³ = Rs 10,000
• BCWS = Rs 1,25,000 × 3 = Rs 3,75,000
• BCWP = Rs 10,000 × 40 = Rs 4,00,000
• ACWP = Rs 3,75,000
• CV = 4,00,000 − 3,75,000 = +25,000 (under budget)
• SV = 4,00,000 − 3,75,000 = +25,000 (ahead of schedule)
• CPI = 1.06 > 1 (under budget); SPI = 1.06 > 1 (ahead)
• EAC = 12,50,000/1.06 = Rs 11,79,245; SAC = 10/1.06 = 9.43 days

Conclusion: Project is performing well — both ahead of schedule and under budget.

EVA Terms:

• BCWS (PV): Budgeted Cost for Work Scheduled — planned value of work to be done by a given date
• BCWP (EV): Budgeted Cost for Work Performed — earned value from actual progress
• ACWP (AC): Actual Cost of Work Performed — actual money spent
• CV: Cost Variance = BCWP − ACWP (positive = under budget)
• SV: Schedule Variance = BCWP − BCWS (positive = ahead of schedule)
• CPI: Cost Performance Index = BCWP/ACWP (>1 = under budget)
• SPI: Schedule Performance Index = BCWP/BCWS (>1 = ahead)
• BAC: Budgeted Cost at Completion — total scheduled cost
• EAC: Estimate at Completion = BAC/CPI
• SAC: Schedule at Completion = Original Duration/SPI
• VAC: Variance at Completion: Cost VAC = BAC − EAC; Schedule VAC = Duration − SAC
• CV%: (BCWP − ACWP)/BCWP × 100
• SV%: (BCWP − BCWS)/BCWS × 100

Performance Control Process: Calculate BCWS, BCWP, ACWP at a given date → Compute CV, SV, CPI, SPI → Forecast EAC, SAC → Determine corrective actions if indices are unfavourable.

A manager uses EVA to take decisions by comparing three key budget parameters at any monitoring date:

1. Calculate BCWS, BCWP, ACWP at the monitoring date
2. Compute variances: CV = BCWP − ACWP and SV = BCWP − BCWS
3. Compute indices: CPI = BCWP/ACWP and SPI = BCWP/BCWS
4. Forecast completion: EAC = BAC/CPI and SAC = Original Duration/SPI

Decision Making:

• If CPI > 1 and SPI > 1: Project performing well — continue current pace
• If CPI < 1: Over budget — initiate cost reduction, value engineering, reduce wastage
• If SPI < 1: Behind schedule — mobilize more resources, revise schedule, crash critical activities
• If both < 1: Critical situation — major corrective action needed, possibly scope revision

EVA results are plotted as S-curves showing BCWS, BCWP, ACWP over time. The gap between curves visually indicates schedule and cost performance.

Earned Value Management (EVM) is a technique that integrates scope, time, and cost to measure project performance. It compares the value of work done with planned value and actual cost.

Key formulas:

• BCWS = SQ × SR (Standard Quantity × Standard Rate)
• BCWP = AQ × SR (Actual Quantity × Standard Rate)
• ACWP = AQ × AR (Actual Quantity × Actual Rate)
• CV = BCWP − ACWP; SV = BCWP − BCWS
• CPI = BCWP/ACWP; SPI = BCWP/BCWS
• EAC = BAC/CPI; SAC = OD/SPI

EVA Graph: Plot Cost (Y-axis) vs Time (X-axis). Three S-curves:

• BCWS curve (Planned Value): Shows planned cost over time — baseline
• BCWP curve (Earned Value): Shows actual progress in budgeted cost terms
• ACWP curve (Actual Cost): Shows actual expenditure over time

At any monitoring date: Gap between BCWP and BCWS = Schedule Variance; Gap between BCWP and ACWP = Cost Variance. If ACWP curve is above BCWP → cost overrun. If BCWP is below BCWS → behind schedule.

EVA is a powerful tool for project cost control. It compares budgeted cost (BCWS), earned value (BCWP), and actual cost (ACWP) to determine project health.

Cost control indicators:

• CV = BCWP − ACWP: Positive means under budget
• CPI = BCWP/ACWP: >1 means under budget, <1 means over budget
• CV% = (BCWP − ACWP)/BCWP × 100: Shows percentage cost deviation
• EAC = BAC/CPI: Forecasts total project cost at current rate
• VAC = BAC − EAC: Shows expected cost overrun/underrun at completion

Manager can use these to take corrective actions: reduce wastage, improve productivity, negotiate better rates, or revise scope if needed.

EVA measures project performance by comparing planned, earned, and actual values. Three parameters: BCWS (what should have been done), BCWP (what was actually done, in budget terms), ACWP (what was actually spent).

Performance indicators:

• CV = BCWP − ACWP: +ve = under budget, −ve = over budget
• SV = BCWP − BCWS: +ve = ahead, −ve = behind schedule
• CPI = BCWP/ACWP: >1 good, <1 bad
• SPI = BCWP/BCWS: >1 good, <1 bad

Forecasting: EAC = BAC/CPI (estimated final cost); SAC = OD/SPI (estimated final duration).

Presented as S-curve diagrams showing BCWS, BCWP, ACWP over time. Helps identify problems early and take corrective action before project completion is significantly affected.

Approach (General method for activity-based EVA):

1. For each activity, determine the planned cost (from budget) and % of work scheduled by monitoring date
2. BCWS = Sum of (planned cost × % scheduled) for all activities at monitoring date. If costs are linearly distributed: BCWS = Total cost × (monitoring day / total days)
3. BCWP = Sum of (planned cost × % actually completed) for all activities
4. ACWP = Sum of actual costs incurred for all activities
5. Calculate: CV = BCWP − ACWP; SV = BCWP − BCWS
6. Calculate: CPI = BCWP/ACWP; SPI = BCWP/BCWS
7. Forecast: EAC = BAC/CPI; SAC = Original Duration/SPI

Refer to Example 2 in the chapter below for a detailed worked solution of a multi-activity EVA at end of 5th day.

Given: Road length = 8.7 km, Cost = Rs 1.5 million/km, Duration = 1.5 years (18 months). After 6 months: 2.3 km completed, Rs 4.6 million spent.

Solution:

• Total project cost (BAC) = 1.5 × 8.7 = Rs 13.05 million
• BCWS = (13.05/18) × 6 = Rs 4.35 million (work scheduled for 6 months)
• BCWP = 1.5 × 2.3 = Rs 3.45 million (value of 2.3 km completed)
• ACWP = Rs 4.6 million (actual expenditure)

Variances:

• CV = 3.45 − 4.6 = −1.15 million (cost overrun)
• SV = 3.45 − 4.35 = −0.9 million (behind schedule)

Indices:

• CPI = 3.45/4.6 = 0.75 < 1 (over budget by 25%)
• SPI = 3.45/4.35 = 0.79 < 1 (behind schedule by 21%)

Variance %:

• CV% = −1.15/3.45 × 100 = −33.33% (over spending by 33%)
• SV% = −0.9/4.35 × 100 = −20.68% (behind by ~21%)

Forecast:

• EAC = 13.05/0.75 = Rs 17.4 million
• SAC = 18/0.79 = 22.78 months
• VAC (cost) = 13.05 − 17.4 = −4.35 million (overrun)
• VAC (schedule) = 18 − 22.78 = −4.78 months (delay)

Conclusion: The project is NOT performing well. Both CPI and SPI are less than 1 indicating cost overrun and schedule delay. If the same pattern continues, the project duration will be prolonged to 22.78 months (from 18) costing Rs 17.4 million (from 13.05 million). Immediate corrective action is needed.

Approach:

1. From the given activity data, calculate BCWS by determining what cost should have been incurred by day 5 based on planned schedule
2. Calculate BCWP = Sum of (Budget cost × % complete) for each activity
3. Determine ACWP from actual costs given

Refer to Example 2 in the chapter below:

For a 4-activity project with total cost Rs 35,000 monitored at day 5:

• BCWS = Rs 23,000 (linearly distributed for 5 out of 8 days)
• BCWP = Rs 18,250 (sum of earned values per activity)
• ACWP = Rs 18,100 (actual expenditure)
• CV = 18,250 − 18,100 = +150 (slight cost underrun)
• SV = 18,250 − 23,000 = −4,750 (behind schedule)
• CPI = 1.008 > 1 (marginally under budget)
• SPI = 0.793 < 1 (significantly behind schedule)
• EAC = 35,000/1.008 = Rs 34,722 (slight saving)
• SAC = 8/0.793 = 10 days (project prolonged by 2 days)

Comment: Project is slightly under budget but significantly behind schedule. The project will take approximately 10 days instead of 8 days. Schedule recovery measures are needed.