1. By Dr. Awad Hanna Ross Umentum
Project Tracking to Improve Labor Productivity – An Earned Value Approach University of Wisconsin – Madison
By Dr. Awad Hanna
Ross Umentum
Dr. Awad Hanna and Ross Umentum
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2. Dr. Awad Hanna and Ross Umentum
Goals
Accurately measure project percent complete
Measure project performance every reporting period. “Performance Factor”.
Predict project outcomes as early as 25% complete
Improve estimating practices by measuring activity performance
Dr. Awad Hanna and Ross Umentum
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3. Dr. Awad Hanna and Ross Umentum
Goals (Continued)
Identify problem areas
Track change orders and measure impact of change orders
Track project schedule
Determine accurate Earned Value method
Analysis of Trends
Determine optimal project ratios
Dr. Awad Hanna and Ross Umentum
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4. Productivity Analysis
Selected Activity
In Progress
Work hours
Quantities
Productivity
Calculations
Performance
Evaluation
Workhour
Forecast
Analysis of
Trends
Dr. Awad Hanna and Ross Umentum
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5. Dr. Awad Hanna and Ross Umentum
Measuring Output
Subjective Evaluation
Quantity Installed as Measured
Binary Approach
Partial Complete Method
Dr. Awad Hanna and Ross Umentum
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6. 1. Subjective Evaluation
Subjective evaluation of work completed is conducted by the project foreman and/or supervisor.
Subjective evaluation
Dr. Awad Hanna and Ross Umentum
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7. 1. Subjective Evaluation
Guidelines
The work breakdown structure should be established to lend itself to subjective evaluation.
The project must be divided into at least twenty activities or the activities must represent no more than 5% of the manhours.
Do not use accounting or budget report values to persuade the subjective values. These values need to be subjectively determined based on the assigned person’s visual inspection and experience.
Subjective evaluations should be conducted by two or more individuals.
Dr. Awad Hanna and Ross Umentum
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8. 2. Quantity Installed as Measured
Measurement from Drawings/
Invoices
Methods:
Physical Measurement
Reporting:
Actual Manhours
Earned Manhours
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9. 2. Quantity Installed as Measured
Best used for easily measured work when installed or work which is repetitive in nature.
Examples where this technique is applicable
Pipe: Lengths of different sizes are easily measured in field or via invoices and paper records
Fixtures: Installed count is easily maintained
Dr. Awad Hanna and Ross Umentum
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10. Comparison of Earned Manhours to Actual Manhours
Earned Hours = Qty(Installed)x(Estimated Production Rate)
Earned Hours=Qty(Installed)/Qty(Estimated)xBase Hours(Estimated) Or
Earned Hours=Base Hours(Estimated) x Percent Complete
Dr. Awad Hanna and Ross Umentum
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11. Dr. Awad Hanna and Ross Umentum
3. Binary Approach
Rules
Assign 0% complete to tasks which have not started
Assign 50% complete to tasks when they start
Assign 100% complete only after the task is completed
Guidelines
Suitable for tasks that lack readily definable intermediate milestones (Millwright work, Equipment alignment)
Or for projects with extensive breakdowns that each have short durations
Dr. Awad Hanna and Ross Umentum
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12. 4. Partial Complete Method (Incremental Milestone Method)
Guidelines
Useful for sequence work,
When a task is to be completed in a certain fashion every time,
Or, when the task duration is longer than one reporting period.
Divide 100% of the value into subdivisions or milestones as determined by the contractor form experience.
Requires extensive upfront effort
Takes subjectivity out of equation
Dr. Awad Hanna and Ross Umentum
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13. Simple System for Tracking Project Performance
Divide the job into tasks
No task should be more than 5% of your base hours
Enter base hours from your estimate
Ask the foreman to provide you with Subjective Evaluation of % Completion per task
Calculate Earned Hours and enter actual hours
Dr. Awad Hanna and Ross Umentum
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14. Dr. Awad Hanna and Ross Umentum
Code
Description
Base Hr
% Complete
Earned
Actual
Total Estimated Hours
Dr. Awad Hanna and Ross Umentum
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15. Dr. Awad Hanna and Ross Umentum
Project
Code
Description
Base Hrs.
% Complete
Earned Hours
Actual Hours
Prod. E/A
100
Pipe 1”, FLA
1000
50%
500
800
0.625
200
Pipe 2”, FLA
1800
60%
1080
900
1.2
300
Pipe 1’, FLB
30%
240
0.8
400
Pipe 2”, FLB
1200
10%
120
4800
1940
2100
Dr. Awad Hanna and Ross Umentum
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16. Dr. Awad Hanna and Ross Umentum
Project (Continued)
Job % Complete = Σ Earned = = 0.404
Σ Base
Performance Factor = Σ Earned = = Σ Actual
Predicted Hrs at Comp. = Hrs-to-date = = Job % Comp
5198 > 4800, therefore cost overrun to date.
Dr. Awad Hanna and Ross Umentum
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17. Typical Performance Factor Curve
1.0
25%
50%
75%
100%
% Complete
Dr. Awad Hanna and Ross Umentum
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