Construction Engineering & Management Department CEM 510 Construction Planning & Scheduling Dr. S. Almohawis Presented By Abdulrahman Alghamdi

Article: Monitoring System And their Effectiveness for Project Cost Control in Construction

Saad H. Al-Jiburi International Journal of Project Management (2003)

 

• project, plans.

• Project plans Vs Actual. • Project monitor and report.

INTRODUCTION

1. Measuring the state of the system.

2. Comparing these measurements with the desired state of the system.

3. Taking corrective action to return the system to its desired stage or to minimize some loss function.

2. Monitoring and control:

A. Monitoring

•Make a plan.•Implement the plan.•Monitor actual out put and record it.•Report actual and planned parameters and their variations.•Take action.

2. Monitoring and control:

B.Control

3. Methods of monitoring projects:

Leading Parameter: this technique to show the deviations of the project performance from the plan, but it does not show the reasons for these deviations.

3. Methods of monitoring projects:

Activity based ratios: The three ratios, which could be achieved, are:  a)     Planned performanceb)     Actual performancec)      Efficiency

Variances and Earned value Analysis:

a) Performance variance – Indicates that the progress of the project is ahead of schedule if it is positive, or behind schedule if it is negative.  b)Efficiency variance – Indicates overspending if the variance is positive and under spending if it is negative.

3. Methods of monitoring projects:

4. 4. Measures of effectiveness of Measures of effectiveness of control:control:

• Project profit. • Performance of the project

• Detailed reports.

5. Model structure:5. Model structure:

The model is designed so that it can provide data about the progress of the project in order to be used by the different monitoring system.

The Scheduler :

Model representation of resources:

MoModel representation of materials:

MoModel representation of finance:

1.1              

Experimentation and Experimentation and findings:findings:

Many experiments are carried out to test the effectiveness of the monitoring systems on cost and progress of the projects. Some changes are made such as increase in the costs of resources and materials with time due to different inflation rates, sudden changes to specific resources and material costs and the use of a more optimistic plan

7.7.ConclusionsConclusionsIn this paper we see several monitoring techniques and their use for project cost control . Comparisons of these system on a theoretical basis have indicated that:

•Different system are suitable for different situation . Example Activity based ratios suitable for short term than the Variance.

•Some techniques are simpler and clearer to interpret than other .