4/1/2020

Estimate to Actual

• crucial comparison :quoted vs did.

• risks including profit losses and even project
failures.
• analyzing numbers to
– determine what changed and why
– Feedback to concern and corrective action.
– For subsequent work, we may need to change vendors,
processes, materials, contractual stipulations, etc

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19 Sunil Kumar © Larsen & Toubro

Power of trends

• Point in time variances, meaning singular occurrences, can

help some. To make real gains, look at trends over time.
• Absolute number may not be of great help, trend is
•
• look at the trend over time. If we see that the negative
variance over time was $0.01, $0.05, $0.10, $0.12 and
$0.25, then we can see that there apparently is a steady
trend of increasing costs and,
• if significant , investigated.
• Yes, this can take a lot of time if done manually.
• spreadsheets and computer systems for real‐time variance
reports incredibly useful
Stay Ahead ‐ Stay Relevant ‐ Stay Connected
20 Sunil Kumar © Larsen & Toubro