Work Unit Tracking Curves a Method

Another approach to measuring productivity is recording actual manhours (incremental and cumulative) against physical units of completed work (e.g., lineal feet of piping, cubic yards of concrete, tons of steel, etc.). These rnanhours per unit are an absolute measure of productivity in contrast to the relative measure previously outlined. This technique can resolve a prob-

Figure 7-16. Field Supervision Listing & Schedule.

Figure 7-16. Field Supervision Listing & Schedule.

5* s lem of budget abnormalities and also enables cost engineers to readily compare performance in different geographical locations.

b) Piping Erection

Figure 7-17 shows typical tracking curves for above-ground pipe erection. Incremental and cumulative performance is monitored. This example shows a budgeted level of 5.4 manhours/unit and a current cumulative rate of 4.8-currently a good performance. Based on this performance and judgment of future conditions, a good forecast could be made. As above-ground piping is the major element of the piping account and piping usually represents 35% of a field budget, piping tracking curves are important control tools.

When required, work unit tracking curves should be prepared early in the engineering and/or construction phases. Significant deviations (e.g., +/— 10%)from the budget should be investigated.

Selection of individual work units for control will depend on need, the size of the project, the amount of money involved, and the ease of gathering data. This type of data is also very useful for historical purposes.


a) Purpose of Performance Evaluation

Performance evaluation is a technique to measure a subcontractor's profitability. If a subcontractor is in financial difficulty due to poor performance, or due to "buying" the work with a low bid, this can lead to schedule and cost problems for the entire project. When this performance evaluation technique is properly used, it can provide early warning of potential problems.

Early warning provides time to evaluate actions which might alleviate the subcontract situation or at least provide lead time for bringing in other subcontractors.

b) Performance Evaluation Method

1) Performance factor (labor) equals contract billings

—--, equals dollars per manhours expended

Figure 7-17. Tracking Curves for Above-Ground Erection.

Figure 7-17. Tracking Curves for Above-Ground Erection.

2) Assess the subcontractor's operational cost by building up field costs, equipment costs, overhead, etc. onto the base labor cost: equals dollars per manhour

3) Ensure that billings truly represent work accomplished

4) Ensure that the manhour report is accurate

5) If the subcontract has a material supply, evaluate it for profit on material to add to the profit-loss of the labor element

6) Efficiency equals performance factor all-in cost

7) If the cumulative efficiency is less than 1.0, the subcontractor is in a labor loss position. This can lead to schedule extensions and claims. This is a relatively simple procedure and requires up-to-date billings, an estimate of the subcontractor's all-in labor cost, actual manhours expended, and an assessment of profit on material supply.

c) Typical Report

Figure 7-18 illustrates a typical report. On large subcontract projects, this report can be an effective management technique and should be required.


a) Defining the Program

A CTR program is the best method for managing projects that have little scope definition, such as:

1) R&D projects

2) Engineering/feasibility studies

3) Computer/software control projects

4) Subsea technology

5) Fabrication/modular construction (no experience)

6) Shutdowns and retro-fits

By "creative brain-storming" in a group session of technical experts, a potential list of work activities is developed. These activities are then grouped together in a series of logic diagrams and schedules. The cost, time and resources are then evaluated for each activity. A weekly cost/schedule report is produced,

Figure 7-18. Subcontract Performance Report.

Figure 7-18. Subcontract Performance Report.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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