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Progress Recording,
Cost Optimisation &Acceleration
PRODUCTION ORGANISATION & HUMAN RESOURCE MANAGEMENT
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
11th August 2010
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Project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Project Stages
Appraisal Proposals DesignProductionInformation
ConstructionPhases
PostConstruction
Pre-tender
Pre-contract
Contract
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BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Planning tools
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Project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Planning tools
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Project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Planning tools
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Why do you need to plan?
Time
Quality
Cost
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BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Monitoring & Controlling Progress
PrepareMaster
Programme
MeasurePerformance
Assess
Deviation
DetermineAction
Compare
actual withplanned
Ahead/Behind
Replan and
implement
Denyer, 1972
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Control of Progress
Control is comparing, at regular intervals, the actual workachieved with that planned
Necessary corrective action can be taken to bring workback on schedule
Use of monthly and weekly meetings are invaluable in
helping control progress work not proceeding as planned can be considered in
detail explanations can be assessed best solutions can be discussed and implemented
Communications on progress can be made with otherparts of the organisation
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Progressing work and
updating information directlyon a network
Progressing activities on a
precedence diagram
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Assigning
target
dates to
activities
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Updating
activities in-
line with
actual
progress
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Network
showing
completed,
started and
remaining
activities
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Controlling Costs
Cost control should enable the cost of each stage, activity or unit to bedetermined and compared with target costs to ascertain any deviations
The timing of cost information is all important and ideally should be done as
work is being carried out
Problems can be identified early and remedial action taken as appropriate
Most project management systems provide for this and enable resources and
resources representing sections of work to be assessed in terms of cost and
income
The collection of cost information may be carried out via time sheets, weekly
summary sheets and the measurement of work completed
Cost control information is also be useful for the estimation of costs on future
projects
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Time/Cost optimisation
A technique used to find the most economical way ofcarrying out a project in terms of time and cost
The cost of a project can be considered a combination of
direct and indirect costs
The variation in duration of critical activities will affect
these cost and the total cost of the project
To accelerate activities is more expensive in terms of
direct costs
As a project duration increases so will the indirect costs
Time/Cost optimisation is concerned with establishingproject duration at minimum cost
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Time/Cost optimisation
The reduction in duration of an activity can be achieved
through increased resources, working overtime or
additional shifts
The reduction in time is termed crashing for which there
will be an associated crash cost
Cost slope for activities can be determined by as follows cost slope = (crash cost - normal cost) / (normal duration -
crash duration)
Critical activities can be accelerated in the order of least
cost slope Direct and indirect costs can be calculated for each project
duration to obtain the optimum cost
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Linear relationship
between time and cost for
an activity
Multi-linear relationship between time
and cost for an activity
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Discrete timeand cost
relationship for
an activity
Non-linear
relationship betweentime and cost for an
activity
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Cost curves to establish the least cost for optimum
project duration
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Activity Duration
(days)
Maximum
Compression
(days)
Normal
Cost
()
Cost
Slope
)
A 20 5 4,700 20
B 54 - 5,485 -
C 11 4 6,536 First 3 days
35 per day
85 per day
thereafter
D 15 5 3,400 First 2 days
40 per day
95 per day
thereafter
E 26 10 3,950 55F Method (1) 20
Method (2) 13
10
3
1,100
1,400
90
150
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Activity Duration
(days)
Maximum
Compression
(days)
Normal
Cost
()
Cost
Slope
)
A 20 5 4,700 20
First Compression
Compress activity A by 5 days = 5 x 20 = 100
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Activity Duration
(days)
Maximum
Compression
(days)
Normal
Cost
()
Cost
Slope
)
C 11 4 6,536 First 3 days
35 per day
85 per day
thereafter
E 26 10 3,950 55
Second Compression
Compress activity C by 3 days = 3 x 35 = 105
Compress activity E by 3 days =3 x 55 = 165
Total 270
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Third Compression
Compress activity D by 2 days2 x 40 = 80
Compress activity E by 2 days
2 x 55 = 110
Total 190
Fourth Compression
Compress activity E by 1 day1 x 55 = 55
Compress activity C by 1 day
1 x 85 = 85
Total 140
Fifth Compression
Compress activity E by 3 days3 x 55 = 165
Compress activity D by 3 days
3 x 95 = 285
Total 450
Sixth Compression
Method (2) selectedCompress activity F by 3 days
3 x 150 = 450
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Compression Compression
cost ()
Normal
Cost ()
Direct
Cost ()
Indirect
Cost ()
Total
Cost ()
Duration
(Days)
Normal None 25,471 25,471 7,080 32,551 59
First
compression
100 25,571 6,480 32,051 54
Second
Compression
270 25,841 6,120 31,961 51
ThirdCompression
190 26,031 5,880 31,911 49
Fourth
Compression
140 26,171 5,760 31,931 48
Fifth
Compression
450 26,621 5,400 32,021 45
Sixth
Compression
450 27,071 5,040 32,111 42
In-direct cost are 120 per day. The optimum cost is 31,911 with a duration of 49 days
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Summary
Progress recording is an essential part ofcontrolling work in order to identify problems
and initiate remedial action
Recording progress can be carried out in
connection with bar charts and networks
Cost optimisation is a technique used to find
the most economic way of carrying out a
project in terms of time and cost
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project | control | progress recording | cost | acceleration | summary
BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Activity
The construction of part of a commercial development isrepresented by the activities shown in Table 1.
Activity
Reference Duration
(weeks)
Crash
Duration
(weeks)
Cost
()
Crash
Cost
()
A - B *
A - CA - D
B - C *
B - F
C - E *
D - H
E - H *F - G
G - H
14
625
17
12
14
8
811
13
11
617
15
11
12
7
710
10
7300
910015100
9100
4100
5600
11100
20007600
2300
7600
910019100
11100
4600
6300
12100
23008300
2300
* critical activities
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BSc (Hons)
BUILDING CONSTRUCTION MANAGEMENT
Activity
The indirect costs associated with the development are 1700 perweek.
1. Using cost optimisation techniques, determine the optimum
duration and cost for the work.
2. Describe three situations where cost optimisation techniques
may be used in practice.