Arab Academy for Science & Technology & Maritime Transport

Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

Term Project

Aim and Description

The function of monitoring and controlling projects is essential to project managers to
achieve successful project. In the increasingly competitive business environment, time and
cost components are particularly important requirements across projects. Project progress
information and time/cost control are used as important management tools to achieve the
required project completion date and budget. This term project aims to apply the concepts of
project progress and control to a real life project of your choosing, preferably in your line of
work. The idea is to bridge the gap between theory and application and to evaluate your
managerial decisions and approach. The project will include the development of a project
detailed schedule, project budget, a schedule update, cost control report and Earned Value
Analysis. The term project will be produced using the project management software of your
choice and presented in a report. Recommended project management software is Microsoft
Project or Primavera Project Management.

The term project is divided into five tasks based on topics discussed in lectures and
submitted/discussed during the course. A final report is produced at the end of the course
including the five tasks presented in a professional manner and including the managerial
evaluation of project time schedule.

Task 1 (Due by Lecture 5)

Select a suitable project, develop a suitable work breakdown structure (WBS) and develop
the list of activities for the project. Review your structure for inclusion of all relevant project
activities. Evaluate the relationships of activities and enter the predecessor/successor
relationships. Run the schedule and print the Precedence (PERT) diagram and the Bar Chart
of the project. Use a calendar of your choice for the project.

Task 2 (Due by Lecture 7)

Load the project costs, print the cost/resource loaded schedule and show the project time-
phased budget.

Task 3 (Due on Lecture 8)

Assume actual time data at an intermediate time within the project (a data date). Enter the
actual time data and show the project time progress. Develop a suitable lookahead schedule
for coordinating imminent and near futuristic activites. Comment on the project time
performance and the necessary managerial actions to be taken.

Task 4 (Due on Lecture 9)

Assume actual cost data at the data date. Enter the actual cost data and show the project cost
progress and perform a cost control analysis. Comment on the project cost performance and
the necessary managerial actions to be taken.

Task 5 (Included in Term Project)

Perform an Earned Value Analysis and comment on the necessary actions to be taken
Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

Term Project Report (Due a week after Final Exam)

Submit a report entailing the work performed on each task of your term project including the
following items:
• Cover page mentioning all necessary project information
• Executive summary
• Project description
• Detailed schedule (Gantt Chart) Grouped by WBS
• Project time-phased budget
• Project updated schedule
• Project Cost Control/Earned Value Analysis
• Critical discussion of project time/cost status and the managerial decisions to be taken

Marking Scheme

Element Weighting (%)

Project description 10
Report format 10
Project budget development 20
Project updated schedule development 20
Cost Control/Earned Value Analysis report 20
Critical discussion of project time/cost status 20
& managerial decisions to take
Total 100

Submittals
• Report in .pdf and .doc word documents
• Primavera .xer or Microsoft Project files
• Any layout files (e.g. .plf file)
Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

PROBLEM SET 1

1)
Draw the planned and Remaining
Depend- Durat- Actual Actual
one month updated Activity Duration
ency ion (d) Start Finish
schedules for the given (d)
project. Assume a typical A --- 10 0 10 0
month has approximately B A 15 11 --- 4
25 working days. C A 10 12 22 0
Calculate the project D B 5 --- --- 7
progress.

2)
Prepare an updated schedule for the given project, after one month of the project, assuming a
month has approximately 25 working days. Discuss the project progress and the managerial
decisions you might take.

Activity Depend- Original Actual Actual Remaining

ency Time (d) Start Finish Time (d)
A --- 10 0 10 ---
B A 20 12 --- 5
C A 60 13 --- 50
D A 30 9 --- 22
E B, C, D 50 --- --- 50

3)
Consider the previous problem if the following data was availabe instead of the “Remaining
Time”.
- Progress of activity A and B are measured using the fixed formula method. Activity A
being 0/100 and activity B being 50/50.
- Activity C uses an employee whose level of effort is estimated to be 60 workdays. After
the first month, the new estimate is 70 workdays. The timesheets of the programmer show
10 workdays on this project.
- Activity D is measured by a subjective percent complete of 34%.
- Activity E uses an objective indicator whose estimate is 500 units and none of these units
have been performed yet.

4)
Adequate project time completion is usually a vital requirement of projects, and thus the
importance of project time control in determining project progress.
i. Critically discuss the effect of level of detail of activities on the
accuracy/administrative effort of project time control.
ii. Critically discuss the methods of measuring work element progress in terms of
their appropriateness to your line of work.
Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015
5)
For the second monthly status report of a project. Calculate the percent complete of each
activity and of the project. Estimate a month having 22 working days.

Dur. Upd
Activity Dep. AS AF
(day) Dur.
A --- 10 0 10 10
B A 12 11 22 11
C B 15 22 35 13
D A 18 10 27 17
E B 16 22 39 17
F C, D 22 36 --- 24
G D 27 27 --- 25
H D 15 27 42 15
I H 7 42 --- 8
J E 14 39 --- 14
K F, G 15 --- --- 15
L K 26 --- --- 26
M J, K 14 --- --- 14

Activity Progress Measurement Data:

- Activity J is calculated using the start/finish method where PCT during activity is 30%.
- Activity I is calculated using the units completed method, where actual units performed are
160 units, total units planned are 630 units.
- Activity G has the “Code module” milestone completed, and is currently in the “Testing
module” phase. The following are the milestones of the activity.
Milestone Weight
Specify module 0.1
Design module 0.3
Code module 0.4
Test module 0.2
- The percent complete of all other activities are calculated using the level of effort method in
terms of project days.
Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

PROBLEM SET 2
1) Calculate the cost variance and
the estimated project cost at Estimated Actual
Percent
completion for the following cost Contract Item Total Direct Cost to
Complete
data. The cost performance of R.C. Cost (EP) Date (EP)
Skelleton is assumed to continue in Earthworks 20,000 100 22,000
the same manner. However, a
problem in the bricks being Foundations 30,000 100 34,000
supplied was found to cause the R.C.
poor cost performance of 60,000 75 44,000
Skelleton
brickwork. A new supplier and Brickwork 15,000 30 5,000
brick is being used that conforms to
standards. Finishing 30,000 0 0

2) Perform a cost variance analysis and Control Estimated Percent Actual

calculate the project progress by cost and Account Cost (EP) Complete Cost (EP)
the estimated project cost at completion, A 200,000 100 205,000
if past cost performance is expected to
D 90,000 60 50,000
continue.
C 50,000 25 23,000
B 200,000 26 44,000
E 500,000 0 0

3) The given project information is after one month. Calculate project progress from the
updated schedule based on time and man-hours. Use effort-based percent complete for
activities in terms of man-hours. Assume a month has 25 working days. Discuss which
progress calculation method you prefer and why?

Planned Updated Original

Act- Depend- Actual Actual Actual
total total Dur.
ivity ency manhours Start Finish
manhours manhours (days)
A --- 100 100 100 10 0 10
B A 190 200 130 20 12 ---
C A 500 520 120 60 13 ---
D A 450 480 230 30 9 ---
E B, C, D 500 500 --- 50 --- ---

4)
Project cost control is an important aspect of project management. Planned costs are
compared to actual costs, and deviations indicate areas of project management concern.
i. Critically review the decision of defining control accounts
ii. In your line of work/company critically evaluate the expected obstacles to
gathering actual cost information.
 Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

5) The given project information is after one month of progress. Assume a month has 25
working days.
i. Calculate the project progress by time.
ii. Calculate the cost variance at the activity level and estimated project cost at
completion. Assume past cost performance will continue for activities D and C, but
the planned performance is to be expected of B.
iii. Calculate the project progress by cost and comment on cost and time performances.

Estimated Actual
Original Remain- Cost
Act- Depend- Actual Actual Total Direct
Dur. ing Time Percent
ivity ency Start Finish Direct Cost to
(days) (days) Complete
Cost (EP) Date (EP)
A --- 5 0 5 --- 100 20,000 22,000
D A 20 6 --- 5 67 40,000 34,000
C A 60 7 --- 45 23 120,000 64,000
B A 30 5 --- 12 45 60,000 25,000
E D, C, B 40 --- --- 40 0 80,000 0
 Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

PROBLEM SET 3
1)
The given project information is after one month. Assume a month has 25 working days.
Activity progress is by the duration method.
i. Calculate the baseline and one month updated schedules.
ii. Evaluate the project progress by time using the updated schedule.
iii. Conduct a Cost Variance Analysis for each activity and evaluate the project progress
by cost, if past cost performance is expected to continue.
iv. Compare between the project progress by time and by cost, and comment on which
you prefer to reflect project overall progress and why?
v. Perform an Earned Value Analysis for the project built from the activity level.
vi. Compare between the expected project cost calculated from the Cost Variance
Analysis and from the Earned Value Analysis. Should their values be equal or not and
why?
vii. Comment on the estimated project completion time between the Earned Value
Analysis and Schedule Update. Should they provide similar values and why? Which
do you think is preferred to reflect project time progress and why?

Activity Dependency Estimated Actual Original Actual Actual Remain-

Cost (EP) Cost Dur. Start Finish ing Time
(EP) (days)
A --- 200,000 205,000 5 0 9 0
D A 90,000 70,000 20 12 --- 7
C A 50,000 16,000 40 13 --- 28
B A 110,000 67,000 30 9 --- 14
E D, C, B 50,000 0 20 --- --- 20

2) The given project information is after one month of the project. Assume a month has 25
working days. Perform an Earned Value Analysis built from the activity level for the
project. All percent completes of activities are calculated based on project duration.

Act- Depend- Original Actual Actual Remain- Estimated Actual

ivity ency Dur. Start Finish ing Time Total Direct
(days) Direct Cost to
Cost Date
A --- 5 0 5 --- 20,000 22,000
D A 20 6 --- 5 40,000 34,000
C A 60 7 --- 45 120,000 64,000
B A 30 5 --- 12 60,000 5,000
E D, C, B 40 --- --- 40 80,000 0

3)
The project information in Table 4 is after one month. Assume a month has 25 working days.
All activities' progress are measured using the duration method.
i. Prepare the project baseline schedule.
ii. Prepare an updated schedule for the given project, after one month of the project.
 Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015
iii. Perform an Earned Value Analysis for the project, built up from the activity to project
level.
iv. Critically interpret your managerial decisions based on the Updated Schedule and
Earned Value Analysis.

Table 4: (All durations are in project days and all costs are in Egyptian Pounds)
Activity Dependency Estimated Actual Original Actual Actual Remaining
Total Cost Cost Duration Start Finish Time
A --- 200,000 210,000 5 0 9 0
D A 90,000 50,000 20 12 --- 6
C A 56,000 23,000 40 13 --- 30
B A 200,000 67,000 30 9 --- 17
E D, C, B 500,000 0 20 --- --- 22

4) For the second monthly status report of a project:

i. Calculate the percent complete of each activity and of the project;
ii. Provide an earned value analysis built from the activity level of the project;
iii. Plot the project progress graphically and show the cost and schedule variances;
iv. What is the updated TF of the critical path, if the project must end in 100 days, and
what does it show?

Estimate a month having 22 working days. The percent complete of activities are calculated
using the duration method, except for activities G, I, and J:

- Activity G is calculated using the level of effort method, due to its dependency on a
particular resource. Total planned work hours for the resource are 112 hours, actual hours
performed to date are 30 hours, and planned hours of resource to date are 33 hours.
- Activity I is calculated using the start/finish method where PCT during activity is 30%.
- Activity J is calculated using the units completed method, where actual units performed are
320 units, total units planned are 630 units, planned units to date are 390 units.
Planned Actual
Activity Dep. Cost
Dur (dy) Cost (EP) AS AF RD
(EP)
A --- 10 6,000 0 10 --- 6,100
B A 12 13,000 11 22 --- 13,300
C B 15 21,300 22 35 --- 22,000
D A 18 15,600 10 27 --- 15,100
E B 16 25,600 22 39 --- 24,700
F C, D 22 30,100 36 --- ??? 7,500
G D 27 28,000 27 --- ??? 14,100
H D 15 15,500 27 42 --- 15,800
I H 7 5,000 42 --- ??? 1,500
J E 14 12,000 39 --- ??? 2,500
K F, G 15 13,000 --- --- 13 ---
L K 26 45,000 --- --- 30 ---
M J, K 14 7,500 --- --- 14 ---
 Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

5)
A. How does Earned Value Analysis perform in terms of measuring schedule progress? Is
the answer the same for the beginning and towards the end of the project? Does the
answer differ if the project is on, behind or ahead of schedule?

B. Data date is 1st of June 2014; BAC = 500,000 EGP; Project Original Duration = 9
months. Project started 1st October, 2013.
i. Calculate the the estimated project completion time resulting from the Earned
Value and Earned Schedule Analyses for the given project.
ii. Which of the two answers of Q5-B-i do you think is preferred to reflect project
time progress and why?The following information is given for the project:
1st of April, 1st of May, 1st of June,
2014 2014 2014
Planned Value (EGP) 240,000 367,500 460,000
Earned Value (EGP) 200,000 317,000 410,500
Actual Cost (EGP) 205,000 336,000 430,000

C. Given the results of Q5-B, interpret these results as a project manager showing your
possible managerial actions.

Useful Equations
Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

PROBLEM SET 4

Q1)
Consider The given project in Table 1, showing the WBS elements comprising the entire
scope of a project, budgeted costs, planned dates in baseline schedule, actual/planned dates in
updated schedules, and actual costs. The project’s planned duration was 100 days and was
delayed to 130 days. Activity pogress is by the duration method. All dates are in project days
and all monetary amounts are in EGP.
i. Calculate the Planned Value at the 3rd Data Date (DD)
ii. Calculate the Earned Value at the 3rd DD
iii. Perform an Earned Value Analysis for the project at the 3rd DD
iv. Based on your caculations above at the 3rd DD, what improvements or actions do you
recommend as a project manager.
v. Calculate the Estimated Project Completion Time (in days) at the 5th DD using each
of Earned Value Analysis and Earned Schedule Analysis techniques.
vi. Which of the two answers of the previous question (Q1-v) do you think is preferred
to reflect project time progress and why?
Table1:
Schedule Update 3 Schedule Update 5
Baseline Schedule
(DD = 75d) (DD = 125d)
WBS
Element Actual Actual
Start Finish Budgeted Start Finish Start Finish
Cost Cost
(d) (d) Cost (EGP) (d) (d) (d) (d)
(EGP) (EGP)
A 0 10 30,000 0-A 11 - A 33,000 0 - A 11 - A 33,000
B 10 20 50,000 10 - A 23 - A 49,000 10 - A 23 - A 49,000
C 10 70 150,000 11 - A 77 160,000 11 - A 80 - A 163,000
D 10 40 80,000 12 - A 51 - A 81,000 12 - A 51 - A 81,000
E 70 100 70,000 77 115 0 80 - A 130 69000
Totals 350,000 323,000 395,000
* "A" denotes an actual date, e.g. "11 - A" means an actual start on day 11. All other dates are
planned

Q2)
A. Project progress can be quantified in many ways. The most common of which is the cost
method where actual project cost progress is compared to planned project cost progress.
Critically discuss this method of project control in terms of: its reflection of project
progress; and its ability to isolate problem areas.
B. Out of all of the methods used to control projects, critically discuss the most appropriate
method or combination of methods to control a project in your line of work, or a line of
work of your choice (Hint: describe the line of work and discuss how one or more
methods are appropriate, and how they should be implemented)
Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo
PMD 913 Project Progress and Cost Control
Prof. Hesham Bassioni April 2015

PROBLEM SET 5
Planned Schedule and Cost Estimate:

Activity Activity Dur Cost

Activity Description Dep.
ID Code (days) (EP)
WD10 A Mobilization --- 3 1,400
WD20 B Surveying A 4 2,700
WD30 C Excavation - manholes B 3 3,500
WD40 D Formwork - manholes C 5 6,000
WD50 E Poor concrete - manholes D 5 4,700
WD60 F Excavation - trenches D 10 12,600
WD70 G Strip forms - manholes E 2 2,100
WD80 H Lay pipes F 15 11,250
WD90 I Concrete inspection G, H 1 750
WD100 J Remove trenching equip. H 2 1,400
WD110 K Backfill trenches H 6 3,600

I – Prepare a cost baseline for the project.

II – For each status report of the project and at the end of the project:
a - Calculate the percent complete of each activity and of the project;
b - Provide an earned value analysis;
c - Plot the project progress graphically and show the cost and schedule variances;
d - Provide an earned schedule analysis built from the activity level of the project;
e - Compare between the delay on the project, as per the schedule update, and the results of the schedule portion of the Earned Value Analysis and
Earned Schedule Analysis. Comment on there results.

Consider the week to have 5 working days. The percent complete of activities is calculated using the level of effort in terms of project days. The project
contracted finish time is 46 days.
Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo
PMD 913 Project Progress and Cost Control
Prof. Hesham Bassioni April 2015

Project Actual Data:

First Status Report Second Status Report Third Status Report Fourth Status Report Final Project Report
(10 days) (20 days) (30 days) (40 days) (50 days)
Actual Actual Actual Actual Actual
Activity AS AF RD AS AF RD AS AF RD AS AF RD AS AF RD
Cost Cost Cost Cost Cost
A 1,500 0 3 0 1,500 0 3 0 1,500 0 3 0 1,500 0 3 0 1,500 0 3 0
B 2,200 3 7 0 2,200 3 7 0 2,200 3 7 0 2,200 3 7 0 2,200 3 7 0
C 3,000 7 --- 2 4,000 7 12 0 4,000 7 12 0 4,000 7 12 0 4,000 7 12 0
D --- --- --- 5 8,000 12 17 0 8,000 12 17 0 8,000 12 17 0 8,000 12 17 0
E --- --- --- 5 3,200 17 --- 2 6,200 17 23 0 6,200 17 23 0 6,200 17 23 0
F --- --- --- 10 6,300 15 --- 5 12,600 15 25 0 12,600 15 25 0 12,600 15 25 0
G --- --- --- 2 --- --- --- 2 2,100 23 25 0 2,100 23 25 0 2,100 23 25 0
H --- --- --- 15 --- --- --- 15 2,500 25 --- 11 11,100 25 --- 1 11,400 25 42 0
I --- --- --- 1 --- --- --- 1 --- --- --- 1 --- --- --- 2 1,500 42 44 0
J --- --- --- 2 --- --- --- 2 --- --- --- 2 --- --- --- 3 2,300 42 45 0
K --- --- --- 6 --- --- --- 6 --- --- --- 6 --- --- --- 7 3,400 42 50 0
Arab Academy for Science & Technology & Maritime Transport
Graduate School of Business – Cairo

PMD 913 Project Progress and Cost Control

Prof. Hesham Bassioni April 2015

REPORT 1

Project Key Performance Indicators

Q1)
Key performance indicators are used to measure project performance, and are in turn used to
measure organizational performance. Write a report on the topic including the following:

1. Describe your line of work or a line of work of your choice

2. Describe a project in your line of work
3. Conduct an internet search for examples of KPI in the type of project you described
4. Select appropriate KPI for your described project
5. Discuss the possible alignment of your KPI to the organization’s performance measurement

Report should include the following:

- Cover page mentioning all course and necessary information

- Table of contents including page numbering

- Body of report

- Conclusion

- References