Improving Project Time and Cost Performance Based On Limited Budget
Improving Project Time and Cost Performance Based On Limited Budget
Improving Project Time and Cost Performance Based On Limited Budget
ISSN No:-2456-2165
Abstract:- During project implementation, deviation cost and time [4]. With the required specifications, and in
from schedule is unavoidable due to uncertainty and terms of achieving the final output with the satisfaction of the
limited budget. The actual value of the project being stakeholders the project is considered successful [5]
worked on is still below the predetermined target, there
is a difference (gap) between the actual value and the Quality of time and cost as interrelated concepts occur
planned value. This study using Earned Value because, all three have become central in the construction
Management (EVM) and add a dimension of Quality by literature [6]. Each project is a combination of different
allocating budget control for each activity and tracking activities that are interconnected and have several success
period. This research focuses on providing an overview criteria, including time, cost and quality which are more
of project efficiency and effectiveness to provide project significant in project completion, because they have a
quality requirements based on the time spent and costs significant effect on the results obtained. On the other hand,
incurred. Tracking throughout the implementation quality is the final key that confirms success [7]
phase of the project. Quality is almost stable from week
13 to week 19. A control budget allocation approach is Monitoring and controlling schedule and cost
proposed to determine the amount of budget performance is very important in any job production process.
consumption allowed in each phase of project or activity boosting performance and progress in a timely manner is
control. In terms of cost-effectiveness, the hybrid essential to ensure project success, as it makes it possible to
strategy has the highest performance (0.062 compared to identify and anticipate problems and adapt ways to reduce
0.029 and 0.028. Meanwhile, in terms of time efficiency quality and cost deviations (Oliveira, 2019).
the hybrid strategy has the highest performance (0.126
compared to 0.088 and -0.013 for intervention and Separating schedule and cost performance measures
preventive strategies following each Earned Value and developing a number of indices to measure progress and
Management value) schedule and cost performance, as well as plan effectiveness
and efficiency at each project level (Khamooshi &
Keywords : Cost, Earned Value Management, Quality Golafshani, 2014). Project forecasting is an important aspect
Performance, Project Management, Time. of project control to accurately predict project ending
duration and costs (de Andrade et al., 2019). Project control
I. INTRODUCTION requires that project progress is monitored during project
execution to predict project final results and to take
In the implementation of construction projects, the corrective actions that will conducted by Perdana Home.
objectives of project management or contractors (project
management) in addition to meeting quality requirements are The project being implemented by Perdana Home is a
costs and schedules. The construction industry relies heavily Classic American Residential House with a value of IDR
on the subcontracting model of project organization and 2,700,000,000, - with a duration of 37 weeks. The value of
subcontractors are responsible for between 80% and 85% of the planned work is still below the target that has been
all construction work [1]. In architectural, engineering, and planned with a cumulative value of the fifth week of 4.74%
construction projects are often criticized for the while the target value is 6.6% or if it is cashed, Perdana
ineffectiveness of delivering the goals that have been set [2]. Home will experience an overpayment of IDR
Construction projects in Indonesia are also often criticized by 51,879,927.64. Project expansion is mainly related to time
stakeholders for having poor construction quality (Willar et and cost expansion. The traditional way of estimating the
al., 2015). Many obstacles during the project process such as budget expenditure plan is to explore the difference between
uncertainty and risk often cause delays and budget overruns the projected costs and the actual costs incurred by the
during the project. That error caused by measuring progress Perdana Home project, facing many projects that are being
decreases over time, which can be explained by the reduction implemented due to great uncertainty as shown in Figure 1.
in uncertainty as the amount of work performed increases in
.
B. Control Budget
Budgetary control is a widely applied mechanism for 1 i𝑓 𝑆𝑖 < t ≤ 𝑆𝑖 + d𝑖
1𝑖 (𝑖, 𝑡) = {
assessing the performance of subordinates and for 0, 𝑖𝑓 𝑛𝑜𝑡
communicating the goals, strategies, and planning processes
by which the organization can achieve thedesired results Step 3. Total project activity risk value
while monitoring expenditures. Therefore, this is also often TAR = ARPD (7)
used by organizations as a tool to shape, process and shape
the behavior of officials so that it is aligned with C. Quality Performance
organizational goals (Nylinder, 2009). To illustrate how Time effectiveness and cost effectiveness will be
allowable budget consumption is generally determined measured to evaluate time and cost performance,
according to Figure 2 (Song et al., 2020). respectively. Time effectiveness shows the relative average
reduction in delays that can be achieved on a project
(Vanhoucke, 2019).
The negative value of the cost variation indicates that Table.1 Total Risk Activity
the costs incurred are greater than the actual value of the Critical Index : 52%
work done. Project Duration : 259 day
SPI Value : 0.987
CPI (Cost Performance Index) No Activity Druration of Activity SSI Value
Obtained from the ratio between BCWP and ACWP
1 A31 7 0.086 0.999
= BCWP / ACWP
= IDR 1,301,265,000 - IDR 1,346,895,000 2 A32 20 0.145 1.006
= 0.966 3 A33 7 0.086 1.019
4 A34 4 0.065 1.035
An achievement score of less than 1 (<1) indicates a 5 A35 7 0.086 1.047
cost performance that exceeds not according to plan,
6 A36 7 0.086 1.059
because the costs incurred (ACWP) are greater than the
expected value (BCWP) or in other words there is an 7 A37 30 0.177 1.065
increase in costs of IDR 45,030,000. 8 A38 14 0.121 1.074
9 A39 25 0.162 1.080
B. Estimate To Complete 10 A40 28 0.171 1.086
Besides being able to be used to analyze project
11 A41 7 0.086 1.099
performance, it can also be used to estimate costs and
project completion time. This forecast can be useful to 12 A42 10 0.102 1.109
provide an early warning about what will happen in the 13 A43 24 0.158 1.115
future. The following is the estimated final cost of the 14 A44 15 0.125 1.124
project at the 50% Stage: 15 A45 15 0.125 1.132
ETC = (RAB-BCWP) / CPI
16 A46 14 0.121 1.141
= (IDR 2,700,000,000- IDR 1,301,265,000 ) / 0.966
= IDR 1,447,965,850 17 A47 14 0.121 1.149
EAC = ACWP + ETC 18 A48 10 0.102 1.160
= IDR 1,346,895,000 + IDR. 1,447,965,850 19 A49 10 0.102 1.170
= IDR 2,794,860,850 20 A50 7 0.086
1.182
TAR
Based on the calculation above, the estimated project
completion cost is IDR 2,794,860,850, and the estimated
cost of completion (EAC) of IDR
3 A33 7 0.086 6
4 A34 4 0.065 4 DelayNo
= ∑ARPCtp>50% (Activity value after tracking period)
5 A35 7 0.086 6
based on Table 1Risk Activity Value) = 0.999 + 1.006 +
6 A36 7 0.086 6
1.019 + 1.035 + 1.047 + 1.059 + 1.065 + 1.074 + 1.080 +
7 A37 30 0.177 25
1.086 + 1.099 + 1.109 + 1.115 + 1.124 + 1.132 + 1.141 +
8 A38 14 0.121 12 1.149 + 1.160 + 1.170 + 1.182 = 20.310
9 A39 25 0.162 21
10 A40 28 0.171 23 DelayYes
11 A41 7 0.086 6 =∑ARPCtp<50% (Activity value before tracking period)
12 A42 10 0.102 9 based on Table 4.5 Performance Index Recap from Cost
13 A43 24 0.158 20 Perspective of Week 19) = 0.649 + 0.854 + 0.573 + 0.653 +
14 A44 15 0.125 13 0.712 + 0.807 + 0.865 +0.899 + 0.743 + 0.852 + 0.801 +
15 A45 15 0.125 13 0.793 + 0.911 + 0.990 + 0.964 + 0.928+ 0.954+ 0.972 +
16 A46 14 0.121 12 0.987 = 15.906
17 A47 14 0.121 12
18 A48 10 0.102 9 With this can compare the presence of workers and the
19 A49 10 0.102 9 absence of work in the period before and after tracking. The
20 A50 7 0.086 6 higher the index value of an activity indicates that the
Time Total 238 activity is running effectively. With equation no.7, positive
value of 0.216 is obtained.
ABM20 = (PCM19+1 – PC19) × (control budget + w19
budget) Cost Effectiveness at Project Completed
= (53.788% - 49.885%) x (13500000 + 3105000) Based on Formula (11), you can find out how effective
= 70335000 the development work process is, in terms of the costs that
will be used.
Table 3. Allocation of Project Budget Control at the time of
CostNo − CostYes 147097939.5−73050000
tracking. Cost effectiveness = =
Effort∈ 1314900000
Budget Targe Budget Control = 0.062.
Week (Rp) t (%) Allocations CSI The calculation uses the formula that has been
W19 3105000 48.81 calculated in Formulas (12), (13) and (14). and Effort ∈ is
W20 53.79 70335000 1.023 effort in allocating costs as shown in Table 3.
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