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Earned Value in Architectural Design

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Gareth Hughes
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Hello, I am new to the forum so apols if this is not the right place to ask this question! I am about to embark on a dissertation, the subject being the use (or lack of) of EV in the Architectural Design process. That is taking the process of design in isolation from construction & measuring progress (generally) by % completion of architectural drawings via drawing lists. Does any body out there have any experience of the use of EV in this industry? I am not able to find an architectural design organisation other than one that uses the EV method. Any guidance at all woluld be much appreciated. A ’no’ reply is as valid as any as it backs up the hypothesis that it is not really used by the industry. thanks Gareth

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James Griffiths
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Oh Peter, you sound so virtuous!!

In principle you’re right, and it’d be interesting to see what would happen if they ever were on a fixed-price. You must remember, though, that most of what we do is one-off. Therein, the scope is often poorly defined, and the client often just wants us to get on with it, without too much time allowed for negotiation on the price & programme. Ultimately, this leads to changes in safety schedules and cardinal-point specifications etc.etc. with scant regard for the implications for cost and programme. Perhaps the Directors are insufficiently contractual; but do they need to be if the contracts allow such cost margins? Maybe they prefer to work in a "you-scratch-my-back" environment

Personally, working in this environment poses a number of professional challenges that conflict with the expected skills and roles of a Planner. However, in nearly all my working situations, there have been policies and cultural elements that seem to seriously prejudice the ideal concept of business administration. If you know of a company that can fulfill all such Utopian elements, please give me a call.

Cheers.

James :-)
Peter Holroyd
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James,
thats great if you can find enough Clients who can afford the target cost and are willing to come back to you time after time when you fail to meet it.
The rest of us just find that the Client refuses to pay above the target cost and moves on to a competitor for the next job and asks for some money back to cover his expenses/costs involved in your failure to meet what was promised.

Its nice to know that some pockets of the industry are still shielded from reality!
James Griffiths
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Peter,

I ask myself the very same question!!

I believe that it all comes down to the type of contract. Briefly:

1. If we achieve Target Cost - it equals profit.

2. If we exceed Target Cost, up to a certain level - it kills the profit but covers the cost

3. If we exceed that "certain level" - we carry the cost ourselves, apportioned across the Alliance Partners in accordance with whatever has been agreed.

After that, it’s all in the hands of the accountants.

James.
Peter Holroyd
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James,
well how do you stay in business?

Perhaps your management have higher considerations besides budget control and manpower resourcing to make a profit (thats if you need to make one)
James Griffiths
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Peter - yep, you’re bang-on! We work in precisely that way. It’s just unfortunate that the initial budgets are unrealistic - possibly because the inital tender was derived at too high a level - where it’s easy to be mislead. In fact, I discovered precisely that with one of our projects. A.N.Other compiled the tender programme. He was seconded elsewhere. I then expanded the programme by a factor of 10 - applied the tender hours - and thought: Oh Sh*t!! It was just so obvious that there was absolutely no way that there were enough hours. Current situation: - case proved!

Going back to booking directly against drawings: At any point in time, how many "options" did you have on your timesheet? Most of our guys tend to have between 20-50 - and that’s for booking only at sub-assembly level. Can you imagine the number of options available if they were to book to each drawing. It would probably work Ok if they had the discipline to record their time twice a day - but that’s another cultural issue.

Gareth: The current version is called Project Server or Enterprise. The principle behind it is very good. If you can get the top management to champion the system, it’ll certainly help to get it implemented and used properly.

James.
Peter Holroyd
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Didn’t keep an old timesheet as an example unfortunately for bookings to drawings.

Your point about Management control is the key - if you don’t manage manhours effectively how do you stay in business?

The budget for each discipline & work package is set from the sold hours. The PM opens only those WP’s which are being worked on and the guys have to choose an open WP code when booking. We get weekly reports on Monday am at the WP level. The Lead Engineer has total responsibility thro the PM.


Gareth Hughes
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Thanks to every one chipping in here, it is very interesting to hear the different experiences etc that you all have in design related industries. Generally (sorry if teaching you to suck eggs) architecture’s (in the UK at least) deliverables are divided into the RIBA stages, A/B being feasibility C/D Concept & scheme design & E/F Detail design & production information. Key exit milestones are generally the delivery of a report/presentation at the end of each stage.

During stage F however the deliverables do tend to be in a workpackage basis to allow the letting of the works to subcontractors on this basis. ie X amount of drawings for blockwork, X amount for Steel frame etc.

At present job costing systems tend to drill down to the RIBA stage level at the most & often just pick up three categories A/B - C/D - E/F. Anecdotally it has always been difficult to get those pesky architects to book correctly. Work plans, programmes and drawing lists however go down to drawing & workpackage level & ideally i would like to be able to pick up cost information relating to the workpackages to complete the picture to allow performance monitoring of individuals & enable future planning against the WP’s. At present however the facility does not exist in the system to do so. Interestingly from your replies it would appear that such systems do exist.
James Griffiths
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Peter,

I agree with the principle behind your statement. Moreover, I’d be extremely interested to see an example programme where the DO engineers were booking their time against each individual drawing. Please, please send me one!

Four years ago, the company introduced Project Central. This has the potential to allow Engineers to book their time at whatever level of detail was required, directly against task descriptions that reside in the project programme. The system then automatically incorporates all their timesheets - thus saving absolutely enormous amounts of time. In fact, what it does is disperse the "timesheet data input" across the whole team. The problem we encounter, though, is that the individual engineer doesn’t record his time particularly accurately. It’s difficult enough to get them to book accurately at the sub-assembly level, never mind the individual drawing level. Unless we can get a complete cultural change, all you’d be doing is dead-horse-flogging. Unfortunately the management culture also seems to pay little more than lip-service to planning & control.

Peter: your experiences please.

James.
Peter Holroyd
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James,
surprised that in a design organisation your disciplines don’t split their work into work packages for time recording / budget / benchmarking purposes. Also its not uncommon in DO’s for the guys to book to the individual drawing within these work packages. We operate a similar system for the CAD Model.

I work for an American A/E which has a common world wide WBS for design utilising this approach. How else can you control things?
James Griffiths
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Gareth,

EV is a perfectly good method for use in the Design environment, on the assumption you use the appropriate measurement unit. We use man-hours, owing to the fact that it is the most straight-forward, is equally as accurate (or inaccurate as the case may be) and minimises the administrative burden of measurement. We do not attempt to derive the number of drawings and a weighted man-hour value against each one due to the fact that it would be so onerous and not any more accurate. However, probably the most significant elements of project progress calculation are the levels of detail at which you need to report, or wish to dissect the EV, and the accuracy at which you want to monitor.

Many, many clients, who are predominantly from the “construction” arena, still have this mental block about using man-hours as a form of measurement, and they attempt to impose a “physical quantity” measurement unit – usually: “quantity of drawings”. But is just doesn’t work. This is mainly because, at the outset of any design process, you just have no real idea as to how many drawings are going to be produced. This is especially true in our environment because most of what we do is one-off custom engineering. The construction industry may be different because they have a lot of historical data upon which they can call. Moreover, there is probably a standard correlation between the size of the building and the total quantity of drawings produced.

Our current, basic process is: Produce 3D model – Check Model Integrity – Produce Initial Drawings – Check Initial Drawings – Update Model – Update Drawing – Final Check of Drawing. In parallel with this process, there are ongoing structural and engineering calculations, Design Reviews and Manufacturing Reviews, all of which induce alterations to the models and drawings. This is generally programmed at the sub-assembly level, using man-hours only to deliver a suite of drawings (approximately analogous to a single room of a small, multi-story office block. This could be considered excessive, but I am performing an experiment to determine where the real time is spent, thus improve our estimating capabilities.). However, we only calculate the EV at the Assembly level (analogous to a complete floor of the office block).

The next logical level of detail would be the individual drawings. However, at the next level down, this would probably increase the programme size by anywhere up to a factor of 100 – which then requires an army of administrators to manage. This is due to the fact that, if you are using the quantity of drawings to measure the progress, you would have to know where, in the basic process, each one of those drawings was and have calculated an approximate value for each step of each drawing. Bear in mind that some drawings will have ten-times as much work as others.

Ultimately, you want to keep it as simple as possible, consistent with your needs. In the end, everything is merely an estimate, so you won’t want to get bogged-down in minuscule detail that serves no purpose. Moreover, when you examine an EV curve (SPI or CPI) you are looking at the TREND of the curve, not the accuracy or precision of the absolute value.

As an aside; point 4 of Peter’s posting is an interesting one. Thinking is a very important part of the design process – albeit it an intangible one. We can all scribble lines on a paper and achieve an output – but at what level of quality? Spending 50% of the budget just thinking about something – before you put pen-to-paper – could save you thousands later on. This is one of the flaws of an EV system in that it rewards physical output regardless of the quality. This is partially why using man-hours is very useful – because who gives-a-stuff how much of the time you spend thinking about it, relative to pressing buttons - as long as it costs you exactly the same. However, if you have to build another one, your costs should be substantially less because most of the “thinking” costs won’t need to be incurred.

Please feel free to raise issues that require further clarification.

James.
Peter Holroyd
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Generally you need to develop a Progress Monitoring System for each design deliverable and then allocate a percent progress to the stages each deliverable goes through leading upto IFC. You than weight each deliverable by the estimated manhours (or cost) to give an overall percent.
Key things are:
1 Same system across all projects so you can compare outputs to see which team does best - great for comparing planning norms for the next bid
2 Choose stages when a deliverable happens so there is no doubt has to whether it has been achieved
3 Draw the planned EV on the same basis
4 Don’t give credit for sitting at the desk only for a delivered output
Gareth Hughes
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Sorry ignore my question on use of EV i see you have answered that all ready.
Gareth Hughes
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Most certainly! Waffle away. I am interested in any problems you find with the process, for instance guaging acccuracy of % completion of drawings etc.

Do you use an earned value process in your company/industry?

many thanks
James Griffiths
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Gareth,

I’d imagine that Architectural Design utilises the same principles as any other “Design” process, with the initial output being a set of drawings from which the physical entity can be manufactured or built. If you’re happy with this interpretation, then I’m more than happy to waffle-on with regard to my six years’ experience of using EV in the Design Planning environment.

Let me know.

James.