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PM Mba 10 Planning Cost
PM Mba 10 Planning Cost
project must be. An estimate (an intelligent quest) noramally take into
account time and additional cost required to overcome delays,
inefficient workforce and other factors outside the management
control.
Time and money is inter-related.
Scheduling - cost
Variable costs
Include costs of labour, SOCSO dan EPF, utilities, TNT, bils
(Telekom, TNB etc), couriers and transport etc.
Scheduling - cost
For the purpose of estimating, the above costs are divided into:
Cost
(RM)
40,000.00
420,000.00
120,000.00
220,000.00
420,000.00
80,000.00
90,000.00
40,000.00
40,000.00
200,000.00
450,000.00
40,000.00
240,000.00
2
13
6
10
6
4
9
2
7
6
6
4
10
Cost/week
(RM)
Scheduling - cost
Work Activity
Estimated
Time
(Week)
$ 20,000.00
40,000.00
20,000.00
22,000.00
70,000.00
20,000.00
10,000.00
20,000.00
5,714.00
33,333.00
75,000.00
10,000.00
24,000.00
Scheduling - cost
4
Scheduling - cost
5
Design
structural steel
Scheduling - cost
(a)
Key:
20 x 2 = 40
22 x 3 = 66
Design
Design
mechanical eq.
electrical eq.
Construct
Phase I building
20
Design Building
120
40 x 5 = 200
40
20 x 5 = 100
Design
electrical
equipment
20
20
Design interior
items
406
0
Procure
electrical
equipment
Fabricate
mechanical
equipment
33.3
Construct
Phase II building
75
Install interior
items
5.7
10
Install electrical
and mechanical
equipment
10
20
Procure
interior items
20
Cost in $(000)
70
Design
mechanical
equipment
80
24
15
Week
20
25
30
600
511,427
510,000
2,499,997
474,571
500
Scheduling - cost
RM(000)
2,199,997
406,000
1,901,998
400
1,390,571
297,9999
300
300,000
200
916,000
100
406,000
0
10
15
(a)
(b)
20
25
30
Scheduling - cost
$2,000,000.00
Cost (RM)
$1,500,000.00
Cost
$1,000,000.00
$500,000.00
$0.00
1
10 11
12
13 14 15 16 17 18
19 20 21 22 23
24 25
Time
Scheduling - cost
9
Design mechanical
equipment
20 x 2 = 40
Design
structural steel
3EN,20SP
Duration
22 x 3 = 66
20
22
(daily)
Construct
Phase I building
Design Building
40 x 5 = 200
20 x 1 = 20
Design
electrical
equipment
20 x 4 = 80
20
20
20 x 4 = 80
EN Engineer
DE Designer
70
40
Design
mechanical
equipment
Personnel allocation
Scheduling - cost
Key:
Install electrical
and mechanical
equipment
Procure
electrical
equipment
AR Architect
SP Skilled Personnel
Construct
Phase II building
5.714
Fabricate
mechanical
equipment
20
Design interior
items
Procure
interior items
Install interior
items
40
506
0
10
15
20
25
30
Week
10
Scheduling - cost
600
506,000
500
402,571
415,427
400
396,000
369,999
300
200
100,000
100
Design
structural steel
Scheduling - cost
(a)
Key:
22 x 2 = 44
20
Construct
Phase I building
Design Building
40 x3 = 120
Design
Design
Mechanical eq.
electrical eq.
120
80
Cost in $(000)
70 x 2 = 140
Design
mechanical
equipment
Design
electrical
equipment
Procure
electrical
equipment
70
Install electrical
and mechanical
equipment
Construct
Phase II building
5.7 x 5 = 28.5
20
10 x 5 = 50
20
Design interior
items
20
402,571
5.7
33.3
10
Procure
interior items
10 x 2 = 20
0
Fabricate
mechanical
equipment
Install interior
items
24
10
10
75
15
Week
20
25
30
12
Scheduling - cost
COST MINIMIZING
Scheduling - cost
$(000)
160
Crash
150
Cost:
Time:
140
$140,000
four weeks
130
Normal
Cost:
Time:
120
$120,000
six weeks
110
100
1
Time (weeks)
Scheduling - cost
Step 3 Analyse the network and cost with time reduction with 3-5
kali iteration.
1-2
1-3
1-4*
2-3
3-7
4-5*
4-6
4-8
5-6*
6-7*
7-11
8-9
9-10
2
13
6
10
6
4
9
3
7
6
6
4
10
40,000.00
420,000.00
120,000.00
220,000.00
420,000.00
80,000.00
90,000.00
40,000.00
40,000.00
200,000.00
450,000.00
40,000.00
240,000.00
Crash
Est. Time
(Week)
2
9
4
7
5
3
6
1
5
4
4
3
6
Cost
Unit Cost
(per week)
40,000.00
540,000.00
140,000.00
265,000.00
440,000.00
95,000.00
114,000.00
55,000.00
60,000.00
250,000.00
500,000.00
50,000.00
320,000.00
0.00
30,000.00
10,000.00
15,000.00
20,000.00
15,000.00
8,000.00
15,000.00
10,000.00
25,000.00
25,000.00
10,000.00
20,000.00
Scheduling - cost
i-j
Normal
Est. Time
(Week)
Cost
2,400,000.00
* Critical Activity
Structural
2
2
Building
Mechanical
Electrical
Architectural
Scheduling - cost
Design
structural steel
Design Building
13
9
Design
mechanical
equipment
6
4
Fabricate
mechanical
equipment
9
6
Design
electrical
equipment
4
3
Design interior
items
2
1
Construct
Phase I building
6
5
Construct multi
purpose building
6
4
11
Install electrical
and mechanical
equipment
6
4
Procure
electrical
equipment
7
5
8
Install interior
items
10
6
10
17
7.
Construct the cost schedule and compute the total project cost.
Continue with 2nd iteration (25 weeks) crash the activity design electrical
equipment by 1 week (additional cost RM 15,000) and for this we also need to
crash activity fabricate mech. equipment by 1 week (add. cost RM 8,000). For
the 2nd week its better to speed up the simultenous activity i.e. construcct phase
1 and activity instal M&E equipment. This result in a toatal additional cost of
RM 73,000.
Scheduling - cost
6.
Then, continue with 3rd iteration by crashing another 2 weeksso that the total time
becomes 23 weeks. Refering to the network diagram it can be seen that 5
activities have to be crashed by 1 week each. These activities are:
1. Fabricate
18
29
27
Normal
Cost
Work Activity
No. Node/Details
Reduced Time
(Weeks)
Crash Costs
Normal and
Crash Costs
$2,400,000
25
23
1
1
$15,000
8,000
23,000
25,000
1
1
25,000
15,000
1
1
20,000
30,000
25,000
$20,000
$2,420,000
73,000
2,493,000
110,000
2,603,000
Scheduling - cost
(a)
Activity
Time
(Week)
25,000
1
(b)
Project Pathway
1 4 5 6 7 11
1 2 3 7 11
1 3 7 11
1 4 8 9 10
(a)
Estimated Time
29 27 25 23
29 27 25 23
24 24 24 23
25 25 25 21
22 22
22
Crash
Cost22Calculation
19
Scheduling - cost
20
Scheduling - cost
21