Project Progress and

Cost Control Project

PO6 (Delta Mesh Network)

Project

Prepared BY:
Eng. Amal Abd EL Hafeez Bakry

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‫‪Table of Contents‬‬
‫‪Page‬‬
‫‪Item‬‬
‫‪no.‬‬

‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‪1. Necessary Background‬‬ ‫‪3‬‬

‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‪2. Project Description‬‬ ‫‪4‬‬

‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‪3. WBS‬‬ ‫‪5‬‬

‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‪4. Activity List‬‬ ‫‪6‬‬

‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‪5. Project Baseline Bar Chart‬‬ ‫‪7‬‬

‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ‪6. Project Precedence Diagram‬‬ ‫‪8‬‬

‫ـــــــــــــ ‪7. Project activities baseline list with resources / costs / duration loaded‬‬ ‫‪9‬‬

‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ ‪8. Project Time phase budget‬‬ ‫‪10‬‬

‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ ‪9. Updated Schedule At DD : 30/9/2015‬‬ ‫‪11‬‬

‫ــــــــــــــــــــــــ‪10.Project Status Overview (DD: 30/9/2015) &Cost Variance Analysis‬‬ ‫‪13‬‬

‫ـــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ ‪11.Earned Value Analysis‬‬ ‫‪14‬‬

‫ــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــــ ‪12.Earned Value Discussion‬‬ ‫‪16‬‬

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1. Necessary Background
1.1 Background bout Telecom Egypt Company:

Telecom Egypt Company in the last 2 years have strategic project called MSAN
(Multi Service Access Node) Project. All Sectors inside Telecom Egypt Company like
(switching , transmission , Power , O&M …..etc.… ) are working in this project

There are many purposes of this project which are:

Replace the old and exhausted copper network with fiber network. This will
lead to reduce the theft of copper cables in addition to unlimited bandwidth
of fiber cables.

Replace the Exchange Building with a cabinet and this lead to saving the cost
of constructing a new Exchange.

MSAN Cabinet Support ADSL Service of ISP (internet Service Provider)

Companies and expanding of MSAN Cabinet will lead to expanding in
internet service in Egypt especially in Delta and Upper Egypt.

MSAN will work as a backhaul for the Telecom Egypt Mobile Network (which
is still under Negotiations with NTRA)

So for the above reasons MSAN Project is the most strategic project for Telecom
Egypt Company in the last 2 years and perhaps for the next 3 years.

1.2 Background bout me:

I work in the transmission execution sector and the role of my sector is to

deliver the bandwidth required for MSAN Cabinets.

In simple words deliver band width to MSAN Cabinet means installing Shelf
Equipment that contains GE (Giga Ethernet) Cards in the nearest exchange to
MSAN Cabinet to establish a connection between the MSAN Cabinet and the
Soft Switch where the subscribers exist through the backbone of Telecom
Egypt.

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2. Project Description

2.1 Project Goals /Objectives

1. Establishing Core Network (DWDM Ring) of TE Backbone with 100G

instead of 10G in sharkia Governorate by the end of October 2015.

The Core Network consists of sites (Belbes – Zazig West – Abo

Hamd).where the (1830 DWDM Shelves) will installed and tested.

There is another benefit of this DWDM Ring which is to connect the 75

MSAN Cabinets (2015 Q4 MSAN Plan)to Sidi Gaber Soft Switch.

2. Achievement of Telecom 2015 quarter 4 (Q4) Plan to deliver bandwidth

required for 75 MSAN Cabinets in Sharkia Governorate During 4 Months
Starting From 1 July 2015 To 30 Oct. 2015

This objective will achieved by installing and testing 1662 SDH Shelves
with GE Cards ) in sites (Kafr Agiba - Meet Habib - Qasaseen EL Azhar ).

The Bandwidth Required for the 75 Cabinets should be available at the

end of October 2015 because the Process of Fiber pulling and splicing
from MSAN Cabinet to nearest exchange will start after the availability
of Bandwidth so the Bandwidth should be available before the end of
Q4 by 2 months

2.2 Project Budget

The project budget is 300,000 $.

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 3. WBS

The WBS (Work Break down Structure) of PO6 (Delta Mesh Network) project consists of the following
phases:

Phase Description

Project Milestones Contains two Activities which are (Start Project &End Project)

-Issue a tender with a specific service/equipment demand of TE Company to select a vendor.

Contracting - Review offers from all vendors and then select one vendor and sign the contract to deliver
the materials and equipment.

-Assign places (rooms) for equipment installation.

Sites Survey -Decide requirements for rooms preparations like (painting, false ceiling, raised floor ….etc.).

-Decide Requirements of both Power Needed to feed equipment and HVAC(Air Conditions).

Sites Preparations Perform all sites preparations needed according to signed survey report

Equipment Delivery Receive all the contracted requirements with check list approved

Installation Install all project equipment

Commissioning Pre-test , SW installation, Equipment test, Integration and traffic test

Acceptance Issue and sign of PAC (Primary Acceptance Certificate )

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4. Activity List

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5. Project Baseline Bar Chart

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6. Project Precedence Diagram

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7. Project activities baseline list with Resources / Costs /
Duration loaded

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8. Project Time Phase Budget

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1. Updated Schedule At DD : 30/9/2015
Updated Schedule At DD: 30/9/2015(Figure 1)

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Updated Schedule At DD: 30/9/2015(Figure 2)

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10. Project Status (DD: 30/9/2015) & Cost
Variance Analysis

Project Original Duration = 121 Days

Project Updated Duration = 127 Days

Project Progress by Time = DD/Updated Duration= 92/127=72.4%

PV=184066.67 EGP

EV=176800 EGP

AC=192525 EGP

EAC=234775

CV=EV-AC=176800-192525=-15725

This means the project is over Budget By Cost Equal to 15725EGP

SV=EV-PV=176800-184066.67=-7266.67 EGP

This means the project is Behind Schedule By Cost Equal to 7266.67 EGP

Project Progress by Cost = AC/EAC=192525/234775=82%

The increase in percentage of Project Progress by cost than by Time is due to high in increase
of cost of Tendering and Survey Activities

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11. Earned Value Analysis
(Earned Value Analysis Figure 1)

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(Earned Value Analysis Report Figure2 )

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 12. Earned Value Discussion
The above Earned Value analysis shows that:

The project is running over budget and behind Schedule (SPI =0.96 and
CPI=0.92).

First:

(SPI=0.96) because :

 At DD: 30/9/2015 shows the project will be delayed for 6 days it will
finish on 4 November 2015 instead of 29 October 2015 and this
comes from that Custom Clearance of equipment Activity not
started yet and it was the responsibility of TE Company because
the delivery of Equipment was with FOB (Freight On Board).

To solve this issue as a manger I have two options :

1- Have a close and direct communication with Purchase Sector to finish

the custom clearance activity in the exact finish time of activity or
escalate the delay of custom clearance to the top management board
to contact customs representative to accelerate customs clearance
procedure

2- In the next time Change the contract type to CIF (Cost, Insurance and
Freight-Shipping) instead of FOB.

As a corrective action to overcome the project delay, I will do the following:

Increase no. of teams (Increase Resources) of Installations & Commissioning

activities to ensure project completion on time

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Second:

- (CPI=0.92) Poor Project cost performance is due to :

1- Increase of Kafr Agiba (MSAN_Cabinet) Survey & Preparation activities

and this happens because people living in Kafr Agiba refuse to install the
MSAN Cabinet in this place so we repeat the survey Activity (Survey Cost
increases)to choose another place and the new place needed more
preparation than the planned place (preparation Cost increases)

To solve this issue as a manger :

I have to make Coordination at early time with the people living to insure
their agreement to install the MSAN_Cabinet.

2- Increase of Tendering Activity Actual Cost and by analyzing the reason of

this increase we found the cause is the inflation of Dollar currency rate
exchange.

As manger I think this Cost performance will be enhanced because the

remaining activities cost will be paid in local currency.

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