Project Cost Control in P3
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Dear Sir/Madam,
I am a fulltime diploma student currently trying to complete an assignment on project managemnt subject.
I had been using P3 since the beginning of this new semester i.e. 9 days ago.
Whilst the input to the website are massive from various parts of the world, I am still couldn’t find the solution to my problem regarding scheduling matters in P3.1.
The problem:
I have this dummy project about 10 activities with each Ori.Duration.
In order to execute each activity I build up Resources: Labour(no), Equipment(no) and Material.
I had also assigned cost to each resources above, by daily wages.
Some of the activity are Lump Sum so I have to assigned only cost ONLY in respective activity .
Well, those are the cost that the contractor will or need to spend in order to complete the physical activities till completion contract date.
Now, the contractor also has an Income to the project. The income will be base on the claim made through BQ(bill of quantities) on the % of work completed. From the BQ, I
Breakdown the cost to fit the each activity in P3 schedule i.e. assigned each cost to each activity.
My plan is that during the tracking of the cost project, I wish I could have these information below:
Act ID
Act Description
OriDur
ES EF
LS LF
TotFloat
ResourceCost (Spend)
(a)Target
(b)Actual
Claimed fr BQ (Income)
(c )Target
(d)Actual
Variances:
1. Res.Variance (b) & (a)in % and $.
2. Claimed Variance (c) & (d) in % and $
3. Actual Variance (cost spend) vs (actual claimed fr BQ).
Key
( a) The total cost of all resources needed in each activity or
to each activity in Lump Sum.
(b) Actual cost of (a) used.
Calculation, (b) = % completion in each activity x (a).
( c) Cost breakdown to each activity extract from BQ.
(d) Actual cost of ( c) claimed
Calculation, (b) = % completion in each activity x ( c).
The challenge:
I tried to get the above info (cost) in P3 using Activity Detail Form , Resource, Budgets, Cost; but it drives me crazy. The cost ( Target claimed from BQ (c ) ) did not come out in columns.
In P3, there are various definitions like Budgeted Cost, BCWS, BCWP, ACWP, Planned Value etc. The only cost input during the scheduling task are in Resource, then from Activity Detail Form (as described). When I list down all the above in columns , the only cost appeared in the layout Gantt is Budgeted Cost i.e. taken from resource cost. How am I going to assigned ( c) ?
I thought (a) = BCWS, but in column BCWS there nothing except Budgeted Cost.
Could you please help me on how am I going to incorporate the above info in P3.
Normally in forum its only stated on philosophical aspect and NOT the core of scheduling task i.e. the actual step on how to get what we actually need.
Your help and cooperation are all highly appreciated.
Yours Sincerely,
Taram Hantam
Full Time Student
Diploma Building, UiTM
Shah Alam
Malaysia
e-mail: hippietrail111@yahoo.co.uk
I am a fulltime diploma student currently trying to complete an assignment on project managemnt subject.
I had been using P3 since the beginning of this new semester i.e. 9 days ago.
Whilst the input to the website are massive from various parts of the world, I am still couldn’t find the solution to my problem regarding scheduling matters in P3.1.
The problem:
I have this dummy project about 10 activities with each Ori.Duration.
In order to execute each activity I build up Resources: Labour(no), Equipment(no) and Material.
I had also assigned cost to each resources above, by daily wages.
Some of the activity are Lump Sum so I have to assigned only cost ONLY in respective activity .
Well, those are the cost that the contractor will or need to spend in order to complete the physical activities till completion contract date.
Now, the contractor also has an Income to the project. The income will be base on the claim made through BQ(bill of quantities) on the % of work completed. From the BQ, I
Breakdown the cost to fit the each activity in P3 schedule i.e. assigned each cost to each activity.
My plan is that during the tracking of the cost project, I wish I could have these information below:
Act ID
Act Description
OriDur
ES EF
LS LF
TotFloat
ResourceCost (Spend)
(a)Target
(b)Actual
Claimed fr BQ (Income)
(c )Target
(d)Actual
Variances:
1. Res.Variance (b) & (a)in % and $.
2. Claimed Variance (c) & (d) in % and $
3. Actual Variance (cost spend) vs (actual claimed fr BQ).
Key
( a) The total cost of all resources needed in each activity or
to each activity in Lump Sum.
(b) Actual cost of (a) used.
Calculation, (b) = % completion in each activity x (a).
( c) Cost breakdown to each activity extract from BQ.
(d) Actual cost of ( c) claimed
Calculation, (b) = % completion in each activity x ( c).
The challenge:
I tried to get the above info (cost) in P3 using Activity Detail Form , Resource, Budgets, Cost; but it drives me crazy. The cost ( Target claimed from BQ (c ) ) did not come out in columns.
In P3, there are various definitions like Budgeted Cost, BCWS, BCWP, ACWP, Planned Value etc. The only cost input during the scheduling task are in Resource, then from Activity Detail Form (as described). When I list down all the above in columns , the only cost appeared in the layout Gantt is Budgeted Cost i.e. taken from resource cost. How am I going to assigned ( c) ?
I thought (a) = BCWS, but in column BCWS there nothing except Budgeted Cost.
Could you please help me on how am I going to incorporate the above info in P3.
Normally in forum its only stated on philosophical aspect and NOT the core of scheduling task i.e. the actual step on how to get what we actually need.
Your help and cooperation are all highly appreciated.
Yours Sincerely,
Taram Hantam
Full Time Student
Diploma Building, UiTM
Shah Alam
Malaysia
e-mail: hippietrail111@yahoo.co.uk
3 replies
Oldest first- 0Steven Oliver ·How did you allocate the BoQ costs ?.
I would normally use the Cost Account features, and then organise by Cost Account.
I would also query your definition b), your definition equates to the earned value for the activity, not the actual cost.
BCWS (the Budget Cost of Work Scheduled) refers to the distribution of cost in your original schedule and is used in EVA to generate the Schedule Performance Index.
I would recommend that you do a little bit of background reading. - 0Forum Guest ·How did you allocate the BoQ costs ?.
There are 2 documents given in this assignment, one is the drawings (structural & architectural)which cover building and external to landscaping works and the other is BQ indicates the tendered cost of the works.
I did taking-off the whole drawings in order to generate specific quantities. These could be used for
i. material purchase
iii. derived what types of manpower and machineries need to execute each activity.
iv. from (iii), I obtain info. on the cost of manpower & machineries plus material need to execute in each activity.
From all the above I would approximately know what is the actual cost need to complete in each and the whole activities in the project.i.e. cost I would spend to complete each and the whole activities. For this, I categorised it as TARGET COST RESOURCES (as baseline).
Another use of BQ is to breakdown the cost in each works according to the schedule activities in P3 i.e. the income (cost) of of each activity in comparison to resources (manpower,machineries,material) spend. For this I categorised it as TARGET INCOME fr BQ (as baseline).
When I shceduled the P3, I hope to get the above as a baseline.
When the project progress and updated, then I would foresee to get another 2 things:
ACTUAL COST RESOURCES (as actual spending on the project).
and
ACTUAL INCOME fr BQ (as actual claim made from the work progress).
Then from all the above I hop that I could track and identify which are the activity that have a negative or positive impact onto the project in terms of resources, productivity/performance, cost which will be incorporate in another syllabus/subject in the next semester under project risk analysis.
The end product I hope to obtain from the P3 is :
A. TARGET COST RESOURCES (as baseline)vs ACTUAL COST RESOURCES
B. TARGET INCOME fr BQ vs ACTUAL INCOME fr BQ.
From B, I could calculate the EV (as inmcome from the Client) for the project.
From A, (as from the side of contractor) this is to control the resources.
This is the challenge I face to get all the above incorporate in P3.
"I would normally use the Cost Account features, and then organise by Cost Account."
I am a bit unclear about Cost Account. The training manual fr P3 do not cover much to play around with it. I thank you for your advice. I ’ll try.
"I would recommend that you do a little bit of background reading."
Thank-you. Its not that easy thou, asI just obtain a trails of CDs titled "Only Fools and Horses". It suck up my time.
Hantam
Diploma in Building, UiTM
Shah Alam
Malaysia
E-mail: hippietrai111@yahoo.co.uk
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