Project Cost & Schedule Monitoring Process Using MS Excel & MS Projectsrujancms.com/Profile/Srujan...

Project Cost & Schedule Monitoring Process Using

SrujanConstruction Management SolutionsConstruction Management Solutions

Monitoring Process Using MS Excel & MS Project

Presented by: Rajesh Jujare

About Us� Srujan Solutions is founded with objectivesa. To share its expertise and experiences to overcome the challenges faced

by the construction companiesb. To help them to meet their ambitious goalsc. To fill the gap between the Need and Availabilityd. To provide right information at right time to create impact through correct

decision makinge. Our Solutions shall be to provide the required data to our esteemed


e. Our Solutions shall be to provide the required data to our esteemedClients by which they can create impact through their decisions.

� The founder of the Company Mr. Rajesh Jujare, has over 18 yearsrich experience in Project Management, Business Development,Tendering, Site & Construction Management, Planning &Scheduling, Quantity Surveying, Contract Management and ERPimplementation as project head with well known organizations.With an aspiration to excel and share his expertise, he has venturedin this consultancy business.

Advantages of Cost Estimation Solutions

� The construction cost shall be determined along with the designprocess. Major cost savings in construction cost can be achievedusing Value Engineering techniques.

� Along with the cost definition, alternative materials, constructionmethodologies and machinery etc. compared to achieve optimizedcosting. Hence lot of execution time can be saved as properplanning can be done using the well defined data.


planning can be done using the well defined data.

� As the specifications are mostly final, bench marks can be establishedfor quality parameter. This also saves a lot of Time and Cost indecision making.

� With accuracy in data procurement is more simple which can save onmaterial and labour costs.

� With pre-decided specifications and design lot of time in co-ordination and decision making can be saved.

Advantages of Schedule Management Solutions

� The well planned schedule with time and cost shall serve as a benchmark to measure the project performance.

� The cost variations can be easily known, hence timely measures canbe taken to control the costs.

� Time deviations can be easily measured and the project performancecan be judged. This helps control the remaining activities to


can be judged. This helps control the remaining activities tocomplete the project in desired time.

� The cost and time tracking gives projected costs and projected timerequired. This helps to establish the IRR (Internal Rate of Return).

� The projected cost also helps to establish the selling price of theproject.

� The interests on the capital employed can also be controlled withtimely knowledge of the escalations in costs and delays in time.

Introduction� The project needs to be tracked on three different aspects i.e. Time,

Cost and Quality

� In the proposed system the Time and Costs are monitored to controlthe cash flow

� The bench marks (time schedule and budgets) needs to be created


� The bench marks (time schedule and budgets) needs to be createdagainst which the time and cost data needs to be compared to monitorthe progress

� The assumptions/ projections made for the schedule and budgetsshall be validated timely and necessary changes shall be made tocorrect the bench marks

� The present system is mainly for providing data to take decisions tooptimize the cash flow.

Proposed SolutionsProject Estimation Solutions� Detailed estimates of Conceptual Designs along with recording

assumption� Value Engineering to optimize the estimated costs by applying

suitable designs, using new technology & materials and specifications� Assisting in finalizing the design, specifications and materials� Deriving detailed final estimates and creating Project Budget

based on finalized working drawings and specifications


based on finalized working drawings and specifications� List and record all Assumptions & Constraints

Project Scheduling Solutions� Preparing detailed project schedule and linking all costs derived in

the Budget� Creating bench marks of Scheduled Time and Budgeted Costs to

measure the project performance� Measure the project performance by entering the daily reports to

check variance in Time & Cost� Validating the assumptions and constraints from time to time

Proposed SolutionsContract Management� Preparing Tender Documents along with all the terms & Conditions� Pre-Qualification of Vendors as per the work package requirement� Inviting, negotiating, finalizing & awarding contract� Contract Administration i.e. ensuring the contractual obligations are

met by the Vendors� Recommendation & Certification of Payments to the Vendors� Negotiate & Certify claims for extra cost & time


� Negotiate & Certify claims for extra cost & time� Ensuring proper closure of the contract

A very detailed list of the Solutions is given in our profile

Cost Estimation � The project costing is a tread-bare costing by identifying the smallest detail

which is affecting on the cost.

� While doing the detailing the procedure is kept simple and effective as the

details are organized properly

� The assumptions are recorded separately which are lined to measurements. The

changes in assumptions then easily gives effect till the final cost. This also helps

to validate the assumptions at the time of actual execution

� The Resource rates are also recorded in separate sheet. The escalation and the


� The Resource rates are also recorded in separate sheet. The escalation and the

taxes are considered which helps to minimize the errors due to unpredictable

data. This also can be validated at the time of actual execution

� The quantities are calculated to its minutest detail and with proper identification

� Instead of doing a rate analysis for each item the resource quantities are

calculated separately which gives a overlook of the cost accrual and helps to

avoid the unnecessary details

� The budget sheet is the highlight point which gives all the information regarding

the cost in single sheet, thus the decision making can be more simpler

� With this process the value engineering is very simple

The assumptions are

recorded in separate

sheet which are linked to

measurement sheets. The

changes in assumptions

then helps to check the

impact. Also these records

helps to validate the same

Cost Estimation Process – Recording Assumptions


helps to validate the same

at the time of execution

The resource rates are

Cost Estimation Process – Basic Rates of Resources


The resource rates are

recorded separately which

are linked to project

abstract. The escalation for

the project period is

considered here.

Resources are calculated based on the

quantities taken off.

The resources and its rate are linked over

here. This single page budget sheet gives

a detailed idea of the cost accruals. Also

the changes in assumptions or basic rates

give immediate effect of the changes

Cost Estimation Process – Budget Sheet


All these linkages are

helpful to check the effects

of value engineering and

makes it very easy. With

this method the costing can

be used to its fullest

efficiency

Cost Estimation Process – Value Engineering Statement


This is the detailing of the

value engineering exercise.

Cost Estimation Process – Details of Value Engineering


value engineering exercise.

Project Scheduling Process� Execution strategy for executing the project shall be decided

� The Work Breakdown Structure (WBS) is created till the Activity Definition

� The period required to complete the activity is calculated based on the

volume of work to be completed

� The logical sequencing of the activities shall be defined to create the

schedule


� The time schedule shall be created using Microsoft Project

� The Resource data then shall be linked to MS Project to get the resource

schedule and Cash flow

� The assumed rates shall be incorporated in MS Project to arrive to the

Project Cost and Cash Flow Projections

� This process shall be iterated till arriving to final Costing & Schedule

� The finalized Time schedule and Resources then shall be saved as

Baseline schedule and used as bench mark to measure the progress and

deviations

Creating Project Schedule using MS ProjectProject Scheduling Process

Srujan Construction Management SolutionsConstruction Management Solutions

Project Planning Process - Cost & Schedule Merging

� The project costing which defines the resources through Items and project

scheduling which defines the Activities are done separately.

� The resource quantities are to be attached to he Activities defined. The resource

quantities are calculated for items which needs to be converted in Activities. E.g. for

1st slab activity concrete, reinforcement and labor resources are required in

combination, but in project costing the same is calculated in separate items. Also the

quantities are calculated in toto e.g. concreting for slab, which needs to be broken

down for activities like 1st slab, 2nd slab and so on…


down for activities like 1st slab, 2nd slab and so on…

� Most project schedules are incomplete due to non linking of resources to the

activities for the problems mentioned above.

� Mostly the costing is done using spreadsheets like MS Excel and the scheduling is

done using scheduling software like MS Project.

� The changes done in costing reflects changes in resource requirements and the

same is easy in spreadsheets. But the difficult part is to change the resource

requirement in MS Project as the data entry is manual.

� A typical and brief flow diagram for Project Scheduling and Costing is given in the

next slide

Item Quantities

Rate Analysis

Resource Calculations

Item (Related to Cost)

Basic Rates

Project Costing

Project Planning Process - Cost & Schedule Merging


Project Schedule

Item (Related to Cost)

Activity (Related to Time)

Activities

Time Period

Resource Schedule

Item Dependencies &

Sequencing

Project Schedule

Project Scheduling Process - Resource Requirement

� After creating the project schedule the activities and items arecombined together to calculate the resource requirements foractivities


� Basic rates are assumed to arrive at a budget which shall betracked further

� The calculated resources then shall be linked to activities in MSProject. The dynamic link provided for this from MS Excel to MSProject shall be useful to append changes till the schedule andcosting is finalized.

� The process is explained in next two slides


Project Scheduling Process - Weekly Resource Requirement

Schedule in MS Project

Project Scheduling Process - Cash Flow Created by MS Project


� After finalizing the initial schedule and the project cost the sameshall be converted as baseline schedule

� MS Project gives facility to enter the day to day resource consumptions

which is used to track the activity performance in terms of time and cost

� As the data is entered the impact is immediately reflected on schedule,

cost and cash flow

� There are three major variables to be tracked to measure the project


Project Scheduling Process – Project Tracking

� There are three major variables to be tracked to measure the project

performance. Those are

Variation in budgeted quantities

Variation in resources consumptions

Escalation in resource rates

Variation in activity duration including

Delay/ gain in start and finish of the activities

� A sample tracking of activities is enclosed in next slide

Tracked Schedule in MS Project – Only Resource Consumptions are entered for Activities



Tracked Schedule in MS Project – Impact on Time Schedule of data entered for Resource Consumptions



Tracked Schedule in MS Project – Impact on Payment Schedule Triggers (Refer the changes in Slab Concreting Dates)



Tracked Schedule in MS Project – Impact on Cash Flow



Changes in Resource Rates Tracing – Limit up to 25 Changes in Rates



Cost Report (Rs. In Lakhs)

Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

Baseline Cost 9.18 21.24 18.78 16.04 14.69 17.46 17.24 16.47 11.39 12.07 8.73 34.67 39.68 21.78 2.53

Actual Cost 5.44 5.28 2.88 0.67

Projected Cost 8.81 35.95 20.39 17.72 14.67 17.13 17.28 16.57 11.69 11.81 9.01 31.82 40.45 23.78 3.11

Cum Baseline Cost 9.18 30.42 49.20 65.24 79.93 97.39 114.63 131.10 142.48 154.56 163.29 197.96 237.64 259.42 261.95

Cum Actual Cost 5.44 10.72 13.60 14.27 14.27 14.27 14.27 14.27 14.27 14.27 14.27 14.27 14.27 14.27 14.27

Cum Projected Cost 8.81 44.76 65.15 82.87 97.54 114.67 131.95 148.52 160.22 172.02 181.04 212.86 253.31 277.09 280.20

Baseline, Actual and Projected Cost Comparison



Conclusion� Although the importance of Project Tracking is known, but due to

non availability of proper system, the same is neglected

� In some cases, the projects are tracked, but the reports are delayeddue to time required for collection and processing of data.

� Proper use of software like MS Excel and MS Project, projectcosting and schedules can be created precisely

� Daily updating of resource consumptions in MS Project, shall enable


to track the project performance in terms of time and cost.

� The tracked schedule shows the projections with respect to time andcost required to complete the project.

� The data entered for past performance gives the revised/ projectedmilestones. These dates can be used to show the impact onscheduled revenue dates.

� Finally the impact of projected time and costs, changes in revenuedates gives an impact on total (expenses and Revenue) Cash Flow.Thus the effect on IRR can be measured and timely decisions canbe taken to maintain the IRR

Project Cost & Schedule Monitoring Process Using MS Excel & MS Projectsrujancms.com/Profile/Srujan...

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