Why do we use weights to calculate procurement progress?
Say, the tender assigns percentages to each stage. E.g., inquiries, 10%; TBE, 20%; PO, 30%; approvals, 20%; inspection, 20%; dispatch, 10%.
I take a simple example
Suppose there are three items to order and PO cost is as follows.Pipes, 1000$; pump, 4000$; and pressure vessel, 5000$.Total project cost equals the sum of the individual cost i.e., 1000+4000+5000=10,000$. Unit weight for any item equals PO cost divided by total project cost.Pipe unit weight = 1000/10000=0.1.Pump unit weight = 4000/10000=0.4.Vessel unit weight = 5000/10000 = 0.5 If pipes, pump and vessel is 100% complete, pipe progress =100% x 0.1 x 10000 = 1000pump progress = 100% x 0.4 x 10000 =4000vessel progress = 100% x 0.5 x 10000 = 5000Total 1000+4000+5000=10000. I get the same answer if I do not use weights. E.g. If I am 100% complete, I can claim 1000$ from owner. I hope I am clear. I am not a planner, just interested.