CONTROLLING OF TIME AND COST

IMPLEMENTATION
BY USING EARNED VALUE ANALYSIS
(Case Study: Shrimp Cultivation Development Project with Area-
Based in Kebumen Regency)

By
ADILA CHILMAYANTI
D100 184 301
Supervisor Lecture

Ir. H. Muh. Nur Sahid, M.T., M.M

BACKGROUND
Construction management is planning, scheduling, and controlling projects to achieve the project's
objectives without any deviation. Construction project management is not only needed when the
project is executed but since the project is planned.

According to the contract letter number 3761/DPB/PL.110/K.D2/IV/2022 which was ratified on

April 20, 2022, the development project for shrimp cultivation based on the Kebumen Regency
area will be completed in 265 calendar days with a contract value of Rp. 167,496,914,527.35
(including VAT) (One hundred and sixty-seven billion four hundred and ninety-six million nine
hundred and fourteen thousand five hundred twenty-seven thousand and thirty-five rupiahs).

Based on the description above, controlling the implementation of time and cost in the
development project of shrimp farming based in the Kebumen Regency area is carried out using
the earned value analysis.
 PROBLEM STATEMENT

1 How is the implementation of the project seen by work and

cost planning and implementation?

2
What are the problems encountered in implementing the project
and what are the solutions?

How are the project time and cost controlled by using

3 earned value analysis?
 RESEARCH
PURPOSES
Analyzing the project time and costs
planning and implementation in the Shrimp
1 Cultivation Development Project with Area-
Based in Kebumen Regency.
2 Analyzing the problem faced and providing
solutions.
3 Finding how to control project time and costs
with the earned value analysis
RESEARCH
LIMITATION
Calculation indicator by using earned value
1 analysis.
The project reviewed in this study is an
2 Shrimp Cultivation Development Project with
Area-Based
Performance analysis includes Cost Variance
(CV), Schedule Variance (SV), Cost
3 Performance Index (CPI), and Schedule
Performance Index (SPI).
4 Budget Plan and S curve.
RESEARCH AUTHENTICITY
 BASIC THEORY
PROJECT

Project activity can be defined as a temporary activity that lasts

for a limited period of time, with the allocation of certain
resources intended to carry out tasks whose targets have been
clearly outlined. The task can be in the form of building a
factory, making new products or conducting research and
development. There are limitations that need to be determined,
namely the amount of costs (budget) allocated, the schedule and
the quality that must be met. These three constraints are called
the triple constraint (Soeharto, 1999).

Triple Constraint of Project

 MANAGEMENT

The definition of management according to experts, it can be concluded that management is a

process that starts from planning, organizing, leadership, implementing, controlling, and
evaluating the steps or stages taken to achieve a goal.

In the “Manajemen Proyek” book compiled by (Nurjaman and Dimyati, 2014) the
management functions are generally divided into four:

1 Planning
2 Organizing
3
Implementing
4 Controlling
 NET WORKING METHOD

The definition of the network method according to Istimawan Dipohusodo as written in the “Manajemen
Konstruksi” book written by (Widiasanti and Lenggogeni, 2013), is a graphical method used to describe
activities and events that need to be carried out to achieve the project goals that have been set.
According to Callahan in “Manajemen Konstruksi” (Widiasanti and Lenggogeni, 2013), there are four
things that need to be done first in making the network method, namely:

1. Determine activities/activities
2. Determine the duration of the activity/activity
3. Describing activities/activities
4. Define logical relationships
 EARNED VALUE ANALYSIS

The earned value analysis is one method that can be used in controlling time and costs in a
project. In the construction management book written by (Widiasanti and Lenggogeni, 2013),
the earned value analysis has several benefits to increase the level of effectiveness in
monitoring and controlling project activities and can be developed to make estimates or
projections of the future state of the project.

There are three basic elements that serve as a reference in analyzing the performance of a
project based on the concept of result value, namely:
• BCWS (Budgeted Cost for Work Scheduled)
• BCWP (Budgeted Cost for Work Performed)
• ACWP (Actual Cost for Work Scheduled)
 RESEARCH METHODOLOGY
Research Time and Place
Data Collection
Location : Kebumen Regency
Research Time : July 2022 1.Primary Data :
– October 2022
Type of Research
 Interview
 observation method
Quantitative research
2.Secondary Data :
 Weekly report
Object of Research  S .curve
 RAB
1. Materials used
 Contract documents
2. Human resources
3. Equipment used
4. Implementation methods
R F
E L
S O
E W
A C
R H
C A
H R
T
ANALYSIS & DISCUSSION
implementation ‘s’ curve plan
 First addendum (1), changes made to the first addendum based on a meeting
between the Commitment Making Officer and PT. Adhi Karya (Persero) Tbl. on
April 6, 2022 according to the results of the meeting minutes regarding
adjustments to the budget, it is necessary to hold discussions regarding
adjustments to the planned budget costs stated in the contract. Based on this, PT.
Adhi Karya (Persero) Tbk. has made adjustments to the volume to be built with
the price of the work unit where the initial contract value is Rp.
167,496,914,000.- proposed change to Rp. 127,972,308,000.-
‘s’ curve after 1st Addendum
Second Addendum (2), in the implementation of the second
addendum there is a change in the contract value. After the
first addendum agreed that the contract value was
Rp.127,972,308,000.-, in the second addendum the project
value was changed to Rp. 138,977,125,000.00 (Incl. VAT).
‘s’ curve after 2nd Addendum
 Third addendum (3), in the implementation of the third addendum there was a
change in the contract value which was initially Rp. 138,977,125,000.00 (Incl.
VAT). - to Rp. 140,273,517,000.00 (Incl. VAT).-.

After adding the addendum three times, it can be seen that the realization of the work in the
field is faster than the project plan on the S curve. With three addendums in the project
implementation, to carry out an analysis with earned value must adjust the value of the
applicable contract in each period.
PROJECT ACTUAL COST RECAPITULATION
Analysis by using Earned Value Method

Based on the ‘s’ curved and weekly report in 15 th

week, the value of planning percentage : 1,
463
So the BCWS value = % planning x Budget
Plan
=
= Rp 2,052.201.554
Based on the ‘s’ curved and weekly report in 15 th
week, the value of realization percentage : 1, 903
So the BCWP value = % realization x Budget
Plan
=
= Rp
2,02.644.734.689
 Calculating CV values using BCWP and ACWP data. If the
CV value is negative, it indicates that the actual costs are
greater than the planned costs or it is commonly called Cost
Overrun. Meanwhile, if the CV value is positive, it indicates
that the actual costs are less than the planned costs or are
commonly called Cost Underruns.
CV = BCWP – ACWP
= Rp 2.644.734.689 - Rp 2.383.323.234
= Rp 261.411.455

Calculating SV values can use BCWP and BCWS data. If the

SV value is positive, it indicates that project implementation is
faster, while a negative SV indicates that there is a delay in
project implementation.
SV = BCWP – BCWS
= Rp 2.644.734.689 – Rp 2.052.201.554 =
Rp 592.533.135
 Graph of CPI in 1st week until 20th week Graph of SPI in 1st week until 20th week

CPI calculations are performed using BCWP and ACWP data to SPI calculations are carried out using BCWP and BCWS data to
determine the efficiency of project resource use. If the CPI value < 1 determine the efficiency of project resource use. If the SPI value > 1
indicates that the costs incurred in project realization are greater than the indicates that the project realization time is faster than the planned
planned costs. Meanwhile, if the value > 1 indicates that the costs time. Meanwhile, if the value < 1 indicates that the implementation
incurred are less than the planned costs. time is slower than the planned time.
CPI = SPI =
= =
= 1,289
= 1,10968
 Calculating the ETC Value
The ETC value is obtained by using the equation below:
ETC = (Total Budget Plan – BCWP)/CPI
Below is the calculation of ETC Value in week 15 th :
ETC = (Rp 140.273.517.000– Rp )/1,10968
= Rp 105.660.846.685
Calculating the EAC Value
EAC = ACWP + ETC
= Rp 2.383.323.234 + Rp 105.660.846.685
= Rp 108.044.169.919
Based on the calculation above, in the 15th week, the estimated final
project completion cost is IDR 126,408,570,824. The graph below
shows the estimated cost of final project completion every week,
starting from the first week to the 20th week.
Calculating the ETS Value Calculating the EAS Value
RESCHEDULE

After doing calculations using

the concept of value of results, it
was found that the project could
be completed 2 weeks faster
than the plan made. So that a
gant chart and project work
network will be displayed with a
duration of 2 weeks faster.
R
E
S
C
H
E
D
U
L
e
 CONCLUSIONS & SUGGESTIONS

CONCLUSIONS

1. Project implementation from the first week to the 20th week did not over budget.
2. The remaining costs needed to complete the remaining work in the 20th week are IDR
82,797,929,739 in 12 weeks.
3. The project can be completed 2 weeks earlier than planned without increasing the
number of workers and days if the worker's performance is the same as the previous
weeks
 CONCLUSIONS & SUGGESTIONS

SUGGESTIONS

Evaluation of project implementation as an effort to control costs and time should be

carried out intensively every week to determine the performance of project
implementation.

Work on the critical path must be an important highlight to ensure project performance is
in accordance with the planned schedule.

This study uses the PDM and earned value analysis. For further research, several
more methods may be used to make it more complex.
THANK
YOU