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% of progress (Mhrs versus EVA)

2 replies [Last post]
Tue, 2006-06-13 14:38
Bader Issam
User offline. Last seen 17 years 45 weeks ago. Offline
Joined: 13 Jun 2006
Posts: 3
Groups: Petro-Chem / Oil & Gas
Hello guys here is my exercise.

I am preparing an internal procedure to truck the % of progress of my project

The company asked to tuck progress on a weekly basis where the activity are weighted by man-hours.

To make it simple let’s say I have only two activities loaded as below

Activity 1

duration 100 days
Total Man hours = 10.000 (100 Mhrs per day)
Skill= welder (50 $ x hrs)
BCWS= 500.000 $


Activity 2

duration 100 days
Total Man hours = 1.000 (10 Mhrs per day)
Skill=: general labour (10$ x hour)
BCWS= 10.000 $


1) If after 4 weeks I have completed 20% of activity 1 and 60 % of activity 2 my % of progress for the entire project will be:

0.2 x 10.000 + 0.6 x 1000 = 2600 mhrs equal to 2600/11000 = 23.63%

2 ) Now I have also been asked to apply the EVA on a monthly basis (just for the monthly cost analyse report) using the cost parameters

Then it will be..

0.2 x 500.000 + 0.6 x 10.000 = 106.000$ equal 106.000/510000 = 20,78%

Can I continue to use both method? If yes How can I justify this difference of % if I compare the 2 reports that, let’s say by coincidence, refers to the last day of the month?

Any help will be appreciated. Thanks in advance
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Replies

Wed, 2006-07-26 03:45
#1
Lakshmana Yarlag...
User offline. Last seen 15 years 2 days ago. Offline
Joined: 17 Jul 2006
Posts: 4
Groups: Petro-Chem / Oil & Gas
Dear Friend,
Difference encountering simply because per cost is different for both and %complete is also both..if u consider invidual cases u will get the same %complete(that is activity 1 its self 100% abd activity 2 100%). But if u going as cumulative natuaraly the problem arises.
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Wed, 2006-06-14 06:18
#2
Svein Myklebust
User offline. Last seen 15 years 25 weeks ago. Offline
Joined: 27 May 2006
Posts: 25
Groups: Petro-Chem / Oil & Gas
Yes - you can use both methodes.

If the management can’t see the difference in
% of manhours and
% $ budget
the should look for a job in accounting,
where they can consentrate on the money.

To help them see this you should clearify it in your setup.
e.g.
23.63% of manhour budget
20,78% of manhour-costs budget

or

you can switch to average manour costs and loose control over the costs.
But the % will at least be the same.....

Svein
in transit - Amsterdam

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