rimavrvra complete project exercise upto advanced level budget calculation

© August 2017 | IJIRT | Volume 4 Issue 3 | ISSN: 2349-6002
IJIRT 144747 INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY 46
ANALYSIS ON COST, SCHEDULE AND
TRACKING OF RESIDENTIAL PROJECT BY
EARN VALUE MANAGEMENT METHOD USING
PRIMAVERA P6
Chiranjeevi D S1
, Dr. G. Narayana2
, Rajeeva S J3
1
PG Student (M.Tech) Department of civil engineering, SJCIT, Chickaballapur
2
Professor and HOD, Department of civil engineering, SJCIT, Chickaballapur
3
Assistant professor, Department of civil engineering, SJCIT, Chickaballapur
Abstract- Construction industry is the vital industry
in the developing countries like India, as it
contributes to the socio-economic development of
country. Project cost and time is the critical factor
in construction industry as its overrun /under run
impact the total project duration and cost. So, main
preference wants to give for cost & schedule. As a
developing country so much competition is there in
a market for a construction sector in order to
sustain in the market we have to follow the promise
was given to the client & customers of the
completion of the project on the time and within
the budget. We have to think and do our work in a
more sustainable way. The EVM gives the details of
project working from the planned data, actual cost
incurred in project and worth of the work done as
spent the money[EV]. Performance indices data is
given in EVM by using that data we can ladder way
to the project success. Software package primavera
p6 is used in this analysis of cost schedule &
tracking of a project. From this software package
we will get know the performance of project better.
Project management body of knowledge (PMBOK)
is the body giving set of procedure and policies to
maintain in the construction project to make it
better manageable, good vision able and stipulated
to the budgeted cost. As a construction industry is
vulnerable to uncertainties we have to manage a
project in good aspects.
Index Terms- Earn value management (EVM),
Cost, Schedule, PMBOK, Primavera P6.
I. INTRODUCTION
Construction industry is a vital
commercial enterprise at national level and
worldwide level. Construction industry has
contributed 19% (2011-2012) to the national
GDP in India. Numerous construction projects
experience the ill effects of time and cost overrun
because of a multiplicity of elements. Project
cost and calendar are the administering element
in project achievement. To expand profitability
as far as human asset and materials can be done
by using Project management.
Earn value management (EVM). is an
project accomplishment approach that has. been
suitable for utilization in project management.
Baseline plan can be calculated using EVM to
check the progress of the project. EVM operation
helps in giving achievement standard to the
assessment of evolution report of project and it
likewise go about as a command gadget to deal
with budget and time. It gives excelling
fulfilment impression of a project and gives good
outlook of the final finishing cost. Earn Value is
a improvement up conventional procedure of cost
bookkeeping. The system will give best analogy
of estimated cost of work to actual cost. Earn
value dissection award recent signs of venture
conduct to feature requirement for possible
remedial deal.
Generally the estimated cost is assessed
by calculate dissimilarity betwixt actual cost &
planned cost acquire in a project. The attention
was on planned consumption and absolute cost.
Earn Value uncovers favourable circumstances
and it also examines actual proficient. EMV
helps project manager to predict the risky areas,
exact project cost and work on it. It resembles a
caution for the managers to recognize and
command issues by taking timely remedial
process before they turn out impossible to
conquer. Earn Value Evaluation Scheme is a set
of instruction to provide acceptable achievement
of project. It has been. seen that to take care of
cost overwhelm, project organization undergoes
cost lessening either by diminishing the project
scope and quality or by giving extra. Likewise if
there should arise an occurrence of time

overwhelm, they arrange unlimited of activities
or quick tract programs. In this way with the
utilization of earn value analysis framework,
project goals are accomplished in suitable way.
1.1 OBJECTIVES OF STUDY
The vital objective of construction
group is to terminate the project as determined on
record furthermore, inside the estimated with
appropriate use of the considerable number of
assets like labour, money, materials and
equipment, and furthermore to execute the
project with quality. To accomplish the above,
planning is fundamental.
 Planning is done to finish the project on
time and financial profit.
 To study primavera p6 software and to
use the same for the execution of the on-
going project.
 An analysis on cost, schedule, monitor
& tracking of a project by using
primavera p6.
 Work progress will be estimated based
on the baseline created.
 Proper input should be given to
management to take a strict action
against completion of work on time,
data etc.
1.2 SCOPE OF THE STUDY
Earned Value Management (EVM) is a
strategy that equitably impress physical
achievement of work:
 The projects will always have fixed
time, if the project is not completed on
time which will increment the complete
cost of project, to evade delay and to
defeat delay without influencing cost
and budget, can be utilized and project
management can be done.
 EVM is used to predict the prospective
of the project by doing the tracking of
the project and cost analysis.
 EVM anticipate the project by statistical
methods by using present and old
progress of project.
 Stake holders will be benefited by using
EVM method.
 At any stage of project we can get actual
cost, remaining cost and EVM
calculations.
 Cost overwhelming can be reduced by
using proper planning and EVM
together smartly.
 Outline of scope of study is to do perfect
planning, scheduling and updating of
various activities, which is done by
using primavera p6 software. After
scheduling and resource allocation a
baseline is set and project is updated, if
resources are over allocated it is levelled
by levelling option, without affecting
the total duration of project. Finally the
tracking is done by actual start and
actual finish.
II. LITERATURE REVIEW.
Kunal B. Badgujar, B.A.Konnur, Amarsinh B.
Landage “A Review of EVM Analysis with
Primavera” [1]. These authors form an outline
of construction project management by using a
project management software primavera p6. The
main advantage of the primavera software is
tracking of the project, analysis, auditing of a
project can be done easily. The primavera
management software package helps in making a
customized report from the report wizard that
extract a specific data from the data base, many
projects with more number of planners can work
together. This paper include the purpose of
earned value management, input data needed,
earned value forecasting parameter, advantages
& limitations of EVM, application of EVM
toward project because it gives an sign to
managers to correct the project early to get the
project to track. These authors finally concluded
that the analytical procedure and proper schedule
management with EVM will be beneficial.
Anuj dubey “Earn Value Analysis for a
Construction Project” [2]. Anuj dubey has
carried out a case study of bridge constructed on
Pune Solapur highway at Saswad phata pune of
costed INR25cr. He stated that the cost-over run
and schedule over run are the prevalent in the
most of the project; this problem can be reduced
by using construction project management
software like Microsoft project and primavera
p6, in that the efficient use of earned value
method. Finally author concluded three different
durations is obtained with varying the cost.
Hence a solution can be obtained in between
these three values by experience of the project
manager, There is a more cost when the project is
full crash and the less cost when the project is
smoothened. So, the project manager should have
a sufficient experience to make optimal solution
by using earn value analysis.
Harsha H.N, Devanand.R & Shaik
mohammad masood, “An Analysis on
Resource Planning, Cost Estimation and

Tracking of Project by Earned Value
Management”[3]. These authors carried out
their study on a Duplex apartment in Whitefield,
Bangalore. It’s a real time project; authors states
that the estimation of cost and time for a project
with the progress of the project can be reviewed
through the baseline as set up earlier. For project
planning, EVM calculation and analysis authors
used primavera p6 software. Authors have done
cost estimating and resource planning by
considering parameters involved in EVM. After
the planning and scheduling, they form a project
cost base line by integrating project cost, time,
scope, and technical operation. By comparison
with the base line authors evaluate the project
performance. Necessary action should take if a
project takes a deviation from planned values.
The project is traced by four type of tracking,
Finally concluded that SPI,CPI is negative than
the project is lagging behind prepared schedule
and overwhelmed budgeted, if the SPI,CPI is
equals to zero the project is on planned track.
III. EARN VALUE MANAGEMENT (EVM)
3.1 EARNED VALUE MANAGEMENT
SYSTEM (EVMS) FRAMEWORK
The EVMS framework can be categorized into
three stages
1. Input - what all are things essential to
implement Earn Value.
2. Earn Value Methods –equations,
measurements and execution estimations utilized.
3. Output – revealing necessities (structure,
time-stages, subtle elements).
3.2 ABOUT 32 GUIDELINES OF EARNED
VALUE MANAGEMENT
The ANSI-748 Standard of 32
Guidelines for EVMS is separated into five areas
which are talked about beneath.
1. Project Organization
2. Project Planning, Project Scheduling and
Project Budgeting
3. Accounting Deliberations
4. Project Reports Analysis & Management
5. Data Maintenance & Review
3.3 EARN VALUE ANALYSIS
Earn Value Analysis (EVA) is an
approach to manage assess the measure of work
genuinely performed on a project(i.e., to gage its
empowering) and to figure an endeavors cost and
date of wrapping up. The strategy depends on
upon a key measure known as the earn value (by
and large called the "Budgeted cost of worked
performed" or BCWP). This measure empowers
one to process execution records for cost and
timetable, which tell how well the project is
getting along with respect to its extraordinary
course of action. These records moreover engage
one to figure how the project will do later on.
Earned value truly utilizes three information
esteems, which are dealt with every week,
month, or whatever other period you wish to
utilize.
3.3.1 Earned Value Key Parameter.
 Planned Value (PV):- This is the cost
that we planned to spend on the various activities
of the construction project.
This value gives a cost of how much we planned
to spend as of this date
PV is the physical work booked or "what you
plan to do"
The planned value can be computed by utilizing
taking consecutive formula,
Planned value = % Planned work
finished * BAC
Where,
BAC = Budgeted cost at completion.
 Earned Value (EV):- This is the cost
that shows the worth of the work done as spent
the money in the construction project.
It answers the question "what measure of work
has truly been done?". EV is the estimation of the
"value" of the work done to date or "what you
physically refined".
Earned Value can be ascertained by utilizing
Earned value = % finish effort * Budget at
completion
 Actual Cost (AC):- This is the cost
actually incurred in performing a various
activities of the construction project. This cost is
the total cost that coming from the different
account section of the venture.
It answers the question "what sum have
we really spent?". This is for the most part
chosen from the associations bookkeeping
framework.
Actual cost is the cost caused for executing deal
with a project or "what you have spent".
The actual cost can be ascertained by utilizing
Actual cost = Hourly Rate * Total hour
spent

Fig 3.1 Earned Value Elements
3.3.2 Earned value performance measures
Earned value execution estimations take
a gander at the project cost and timetable
execution by breaking down the cost and
calendar fluctuation alongside cost and timetable
productivity
 Cost Variance (CV):- This is the
variance of cost from worth of the work
done on project to actual cost
accomplished in project. (or) The
distinction between earn value and
actual cost.
Scientifically it is spoken to by,
Cost variance = Earn Value – Actual Cost
If the cost variance is positive the project is
underrun from planned value. And if the cost
variance is negative project is overrun from
planned value & troublesome condition.
 Schedule Variance (SV):- This the
variance of cost from worth of the work
done on project to planned value of the
project. (or) The distinction between
earn value and planned value.
Scientifically it is spoken to by,
Schedule variance = Earn Value – Plan
Value.
If the schedule variance is positive the
project is ahead of schedule and if the
schedule variance is negative the project
is running behind the schedule.
 Cost Performance Index (CPI):- This
is the ratio of worth of work done to
actual cost accomplished in doing a
endeavor.
CPI is spoken to scientifically as,
Cost performance index = Earn Value / Actual
Cost
If the CPI ratio is below one it shows the
activities are consuming more cost to finish the
work. If the CPI is above one the activities
consuming less cost to finish the work as from
plan.
 Schedule Performance Index (SPI):-
This is the ratio of worth of the work done to
planned value
SPI is spoken to numerically as,
Schedule performance index = Earn Value / Plan
Value
If the SPI ratio is below one it shows the
activities are consuming more time to finish the
work. If the SPI is above one the activities
consuming less time to finish the work as from
plan.
3.3.3 Earned value forecasting indicator
 Budget at Completion (BAC):- This is
the cost planned to finish the activities
while planning.
 Estimate at Completion (EAC):- This
is the cost estimated by individual to
complete the project activities at the end
of the project.
 Estimate to completion (ETC):- This
is the estimation of amount of money u
will spend on the project to complete

the remaining work except the actual
cost spent.
 Variance at Completion (VAC):-
Forecast of final cost variance
Variances will be available later on = AC+(BAC-
EV)/CPI
Variances are typical=AC+ (BAC-EV)
Past evaluating suppositions are not substantial
=AC+ETC (Estimate to complete)
Fig 3.2 Indicates The Ideal Graph Of EVM Elements.
IV. CONSTRUCTION SITE DETAILS
The vajram elina is located at Shree
Vijayaraja Estate, Chokkanahalli Thanisandra
Main Road, Yelahanka Hobli,Bengaluru. It is a
G+10 apartment with 2 blocks named as A&B. it
has a total of 87flats. The apartment is comprised
of premium 2 & 3 BHK homes. The construction
began in June 2015. The structural part is done in
February 2017. It is to be available for
possession by September 2017. This apartment is
a client financed project. But, the various
activities of the project are done by the following
consultancies.
V. METHODOLOGY
The construction projects are
tremendous & composite in nature and hence for
improvement of endeavor, utilization of
programming tool appeared. The project is
planned and monitored utilizing Primavera P6
software. The work breakdown structure is
prepared for the project and falling activities for
WBS are recognized. The span of the activities
are predicted on premise of ancient information,
consultation with project chief, applying labor
production formula and utilization of bureau of
Indian standards. The connections are analyzed
and connected to the activities.
The accompanying strategy required in
scheduling and monitoring projects.
1. Open Primavera & Create Project.
2. Define Work Breakdown Structure.
3. Creating Calendars for Activities &
Resources.
4. Define The Activities Coming in
Project.
5. Appointing Activity Durations.
6. Assigning Logic Links.
7. Performing Scheduling.
8. Allocating Resources/Budgeting
For Activities.
9. Creating Baseline for the Project.
10. Updating schedule.
11. Tracking / Earned Value Analysis.
12. Publishing Reports for the Project.
5.1 OPEN PRIMAVERA & CREATE
PROJECT.
Steps to create a new project in
primavera are as shown below
i. Login to primavera
ii. Click Add Button & Select EPS

Fig 5.1 Primavera Home
Fig 5.2 Selecting EPS
iii. Project Id & Project Name
Fig 5.3 Project Id & Project Name
iv. Then select planned start and finish for the
project and assign Responsible manager for
project from the organizational breakdown
structure of an enterprise.
v. Afterwards assign rate type then run a
project as an architect or non-architect.
Project creation will finished and appear a
congratulations wizard
vi. Open project

Fig 5.4 Select New Project and Open the Project
5.2 DEFINE WORK BREAKDOWN STRUCTURE (WBS)
Work Breakdown Structure is a gadget for describe the hierarchical breakdown of
responsibilities and work in a project. To make better control over the break downed activities.
Fig 5.5 WBS of a project
5.3 CREATING CALENDAR FOR
ACTIVITIES AND RESOURCES
The project calendar drafts the time
layoff in which activities or resources can or
cannot be scheduled.
For creating calendar go to enterprise
in the tool bar and select calendar, there is a three
type of calendar available in primavera that is
global calendar, project calendar & resource
calendar. For this project I selected global
calendar.
Select calendar if we want to change
the working day like introduce holiday, changing
in working hours, then select modify option and
modify the calendar working hours & days.
Fig 5.6 Selecting Calendar Option in Enterprise Tool

Fig 5.7 Selecting Calendar
Fig 5.8 Changing Working Days and Working Week Option
5.4 DEFINE THE ACTIVITIES COMING
IN PROJECT
The Activity is a particular effort essential for the
achievement of a project.
To create an activities in project select
activity option in directory button afterwards
press add the activities in command bar button it
will create with individual activity Id.
Fig 5.9 Activities List of a Project
5.5 APPOINTING ACTIVITY
DURATIONS
Activity duration specifies the length
of the time that it takes to complete an activity.
After creating activity in activity duration
column enter the duration for each activity.
5.6 ASSIGNING LOGIC LINKS
Assign logical links is nothing but
assigning interdependency of each activity.

Select an activity and in bottom layout select
relationship button it will show predecessor,
successor, lag and relation. If we want to assign
the predecessor select, select button all activities
are appear in a wizard in that assign a required
activity.
Predecessor
The preceding activity for an a specific
activity is called predecessor
Successor
The succeeding activity for an specific
activity is called successor
There are four type of relationship are available
they are as follows
Finish to Start (FS)
It is the default relationship followed in
primavera; here the activity starts the completion
of the previous activity.
Start to Start (SS)
It indicates that the current activity and
its predecessor will start on the same date.
Finish to Finisha(FF)
Finishato finish indicates that the
current activity and its predecessor will finish on
the same date.
Start to Finish (SF)
SF indicates that the current activity
finish date and the predecessor activities start
date will be same.
Fig 5.10 Activities and it Relationships
5.7 PERFORMING SCHEDULE
Schedule is the activity of choosing
when extend exercises will occur depends upon
on characterized terms and point of reference
exercises.
Scheduling is done by pressing the F9 button.
Fig 5.11Scheduling of a Project
5.8 ALLOCATING
RESOURCE/BUDGETING
A resource is all that is attached to an
activity or essential to complete an activity.
Resources are of three types they are labor,
equipment & material.
To create resource, select resource
option in directory layout button. Then we have
to select type of resource labor, material and
equipment in a resource wizard

Fig 5.12 Resource Wizard
5.9 CREATING BASELINE
Baseline is a standard benchmark
based on this the performance of a project is
measured. To create a base line select project
option in activity tool bar and then select
maintain base line. After creating baseline assign
baseline to the project.
Fig 5.13 Creating A Baseline
5.10 UPDATING SCHEDULE
After assigning a base line again made
a schedule to update the project baseline to
project for analysis
5.11 TRACKING / EARN VALUE
ANALYSIS
Earn Value Analysis (EVA) is a
venture execution evaluation methodology that
has been balanced for application in venture
organization. Earned esteem investigation (EVA)
is the way toward measuring execution of
venture struggle with a pattern task. Earned
esteem investigation (EVA) application helps in
giving execution standard to the assessment of
propel report of venture and it comparatively go
about as a control gadget to oversee time and
cost arrange. It gives better execution photograph
of a wander and gives better point of view of the
last fulfillment cost.
To perform earn value analysis goes to
customize column option and introduce earned
value elements for analysis of a project.
It will give the performance picture of
a project by knowing that we can improve
perceptive behaviour of a project in terms of cost
and schedule. If needed remedial action should
be taken

Fig 5.14 Earned Value Customizing Column
5.12 PUBLISHING REPORTS
The primavera project management
software package helps in making a customized
report from the report wizard that extract a
specific data from the data base.
To create report in primavera select
report option in directory button layout that
opens the report wizard in that we can take a
required report.
Fig 5.15 Report Sample
Fig 5.16 Activity Network Diagram

Fig 5.17Tracking Values of an Activities
VI. FINDINGS AND OBSERVATIONS
The Vajram Elina construction project is a 716 days and 16,47,01,985 rupees budgeted project
estimated to complete on September 2017. The project is tracked in 3 duration to know about the
performance picture of project, the founded results are all listed in below tables.
Table 6.1- Primavera results after tracking
EVM Parameter 1st
Tracking 2nd
Tracking 3rd
Tracking
Tracking Date 1-Jan-2016 1-Aug-2016 4-Apr-2017
Original Duration 716 716 716
Remaining Duration 532 349 138
Budgeted Total Cost 16,47,01,985 16,47,01,985 16,47,01,985
Planned Value 2,29,62,344 7,28,36,242 15,33,21,871
Earned Value 2,22,18,184 7,02,18,484 15,15,05,788
Actual Cost 2,37,86,283 7,61,57,143 17,22,88,789
Schedule Performance Index 0.97 0.97 0.98
Schedule Variance -7,44,160 -26,17,758 -18,16,083
Cost Performance Index 0.93 0.92 0.88
Cost Variance -15,68,099 -59,38.660 -2,07,83,000
Schedule % Complete 13.94% 44.2% 93.09%
Budget At Completion 16,47,01,985 16,48,01,985 16,47,01,985
Estimate At Completion 16,47,01,985 16,93,24,985 18,51,84,985

Variance At Completion 0 45,23,000 -2,04,83,000
Estimate To Completion 14,09,15,702 9,31,67,842 1,28,96,196
To Complete Performance Index 1.01 1.02 1.02
Table 6.2- Cumulative Cost after Tracking from Primavera P6
EVM Parameter 1st
Tracking 2nd
Tracking 3rd
Tracking
Tracking Date 1-Jan-2016 1-Aug-2016 4-Apr-2017
Planned value cost 2,29,62,344 4,98,73,898 8,04,85,629
Cumulative Planned value cost 2,29,62,344 7,28,36,242 15,33,21,871
Earned value cost 2,22,18,184 4,80,00,300 8,12,87,304
Cumulative Earned value cost 2,22,18,184 7,02,18,484 15,15,05,788
Actual cost 2,37,86,283 5,23,70,860 9,61,31,646
Cumulative Actual cost 2,37,86,283 7,61,57,143 17,22,88,789
 1st
Tracking on Jan-1-2016
Fig 6.22 Activity usage profile of 1st
tracking up to Jan-01-2016
 2nd
Tracking on Aug-1-2016
Fig 6.23 Activity usage profile of 2nd
tracking up to Aug-01-2016

 3rd
Tracking on Apr-4-2017
Fig 6.24 Activity usage profile of 3rd
tracking up to Apr-04-2017
VII. CONCLUSION
The Earn value management is a
program evaluation approach which is evaluated
and tracks a project in better manner. This
project report indicates significance, execution
and particular components of earned value
management that advantages extend director
&eventually brings about project achievement.
The project is tracked on 3 durations
from 1-June-2015 to 1-Jan-2016, 1-Jan-2016 to
1-Aug-2016 and 1-Aug-2016 to 4-Apr-2017 in
all that we obtained Plan Value (PV), Earn Value
(EV) & Actual Cost (AC) from these 3 basic
specification the Earned Value Performance
measurement indices obtained. The Earned Value
Performance index shows the performance of a
project.
 As on third tracking 138days are
remaining to complete the activities, the
schedule performing 98% (SPI 0.98) as
planned value under 1 show the project
is under running from planned schedule
value. And cost performing 88% (CPI
0.88) as budgeted cost, it shows the
project cost is overrunning.
 Cost variance of project is -2,07,83,000
the negative sign shows the project cost
is over run. If the cost variance is
positive the project is underrun from
planned value. And if the cost variance
is negative project is overrun from
planned value & troublesome condition.
 93.09% of planned schedule is
completed
 Cost requires to complete remaining
activities is 1,28,96,196
 To complete project on scheduled time
the project has to perform in 1.02%
speed of planned value.
VIII. SCOPE FOR FUTURE WORKS
The future research when all is said in
done will incorporate most likely new
measurements in the EVM analysis to consider
Quality and technical performance for an
effective project control and issues alike Risk
Analysis. EVM analysis habit makes part of
additional work where it is hard to mix of
company’s planning, scope, scheduling &
budgeting. So, future research ought to be
expected to diminish the additional work. And to
eliminate the uncertainties as to carried through a
various stages of project.
REFERENCES
[1]. Kunal B. Badgujar, B.A.Konnur, Amarsinh
B. Landage “A Review of EVM Analysis with
Primavera”; International Journal of Engineering
Research ISSN:2319 6890(online),2347-5013
Volume No.5, Issue Special 1 pp : 164-167 8 & 9
Jan 2016
[2]. Anuj dubey “Earned Value Analysis For A
Construction Project”; Journal Impact Factor
(2015): 9.1215
[3]. Ms. Radhika R. Gupta, Prof. Parag S.
Mahatme, Prof. Taran C. Bhagat “The cost
controlling and monitoring of Construction
project through earned Value management
system” International Journal of Advanced
Technology in Engineering and Science
www.ijates.com Volume No 03, Special Issue
No. 01, March 2015 ISSN (online): 2348 – 7550
[4]. Ankur Verma, K.K. Pathak, R K Dixit
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at Rashtriya Sanskrit Sansthan, Bhopal”;
International Journal of Innovative Research in
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[5]. T. Subramani, D. S. Stephan Jabasingh, J.
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[6]. Radhika Gupta “Earned Value Management
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[7]. Shaik mohammad masood, Devanand.R,
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[8]. Sagar K. Bhosekar, Gayatri Vyas “Cost
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[9]. A guide to the project management body of
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[10] K K Chitkara “Construction Project
Management Planning, Scheduling and
Controlling” Second Edition, Tata McGraw Hill
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