Académique Documents
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Engineering Services
Instructors:
Dr. Adel El Shabrawy Dr. Attia H. Gomaa
Industrial Eng. Dept. - Head of Industrial Eng. Dept. -
High Technology Institute Fayoum University
attiagomaa@yahoo.com
April 2006
AUC- Engineering Services
Authors:
Dr. Adel El Shabrawy Dr. Attia H. Gomaa
Industrial Eng. Dept. - Head of Industrial Eng. Dept. -
High Technology Institute Fayoum University
attiagomaa@yahoo.com
Objectives:
To define concepts, methods, and indicators of performance
evaluation.
To develop the participants capabilities in measuring and
analyzing performance indicators in different areas.
To raise the skills of participants in planning, implementing and
following-up performance improvement programs.
Course Outline:
Definition and nature of performance evaluation & productivity.
Performance evaluation & productivity methods.
Productivity analysis
Technical indicators.
Economic and financial indicators.
Analysis of performance indicators.
Performance & productivity improvement techniques.
Planning and following-up of performance
Project risk management
Case studies.
INTRODUCTION
1. PRODUCTIVITY CONCEPT
Waste
Input Output
In short, higher productivity means that more is produced with the same
expenditure of resources, i.e. at the same cost in terms of land, materials,
Quesnay, 1766, the word productivity appears for the first time.
Production process
Input Output
Update
Scope
5) Actions: Requirements 1) Policy
Proactive Targets
Preventive Constraints
Corrective WBS 2) Master
Plan
PM
4) KPI
3) Action
DM RM CM PM SM Plans
3) P.E.
Review Site
Constraints
Target Products/
Information Processes Services
Resources
Control
- Technical constraints
- Financial constraints
Production
performance
indicators
Materials that can be converted into products to be sold. They include fuel,
chemicals for use in the processes of manufacture, and packing materials.
The use which is made of all these resources combined determines the
productivity of the enterprise. The resources consist of real things and
services. When they are used up in the process of production, real costs
are therefore incurred. Their cost may also be measured in terms of money.
Since higher productivity means more output from the same resources, it
also means lower money costs and higher net money returns per unit of
output.
Who is responsible for making sure that the best use is made of
all these resources?
- Maximization Targets:
Cost Wise: Profit, Value added
- Minimization Targets:
Cost Wise: Cost elements
Quantity Wise: WIP
Material Wise: Mat. scrap
Manpower Wise: Unused capacity
Machines Wise: Unused capacity
Quality Wise: Rejected
Project Planning:
What is to be achieved? "Project description"
Why? "Target"
How? "Method"
Who? "Resources"
When? "Schedule"
Where? "Location"
Project Time Plans:
Long term 2 to 10 y Risk 15 to 25%
Medium term 6m to 1 y Risk 7 to 10%
Short term 1w to 3 m Risk 3 to 5%
Operational plan
Urgent plan
Project Information:
Complete information "Overall planning"
Incomplete information "Partial planning"
Without information "Trial & error"
Project data:
Certain data "Deterministic"
Uncertain data "Probabilistic"
Budget Calculation:
Direct cost (materials, labor, equipment)
Indirect cost (overhead)
Total cost = direct cost + indirect cost
Simulation
Information
Long-run Plans
Management Action
Control Implementation
Quality Quantity
Cost Time
Resources
2- Time control
Behind schedule (late)
Ahead schedule (early)
3- Cost control
Cost overrun
Cost underrun
4- Quality control
Acceptable level
Non-acceptable level
5- Inventory control
Over estimation
Under estimation
6- Resources control
Over estimation
Under estimation
Control Steps:
1- What to control?
2- What is the standard (target) performance?
3- What is the actual performance level?
4- Comparison between the actual & target.
5- Detection of variance
6- Identification of causes of variance
7- Corrective actions
8- Learned lessons.
4- Project 5- Project
Resource Cost
Management Management
6- Project 7- Project
Quality Contractors
Management Management
8- Project 9- Project
Communications Procurement
Management Management
6. PRODUCTIVITY ANALYSIS
EFFICIENCY
Productivity Dimensions
Time Quantity Quality Cost
Effectiveness Efficiency
Effectiveness:
It is related to performance.
Efficiency:
Productivity:
Productivity index
= f (Effectiveness) / f (Efficiency)
8. TYPES OF PRODUCTIVITY
Total productivity is the ratio of total output to the sum of all inputs
factors.
It is a relationship between production volume and all production
elements consumed to achieve it.
Such as:
Material productivity = Total output / Material cost
The factors affecting the productivity of each organization are many, and
no one factor is independent of others. The importance to be given to the
productivity of each of the resources (land, materials, machines or men,
etc.) depends on the enterprise, the industry and possibly the country.
Employers and workers also have vital parts to play. The main
responsibility for raising productivity in an individual enterprise rests with
the management. Only the management can introduce and create a
favorable climate for a productivity programme and obtain the co-
operation of the workers which is essential for real success, though this
requires the goodwill of the workers too. Trade unions can actively
encourage their members to give such co-operation when they are satisfied
that the programme is in the interests of the workers, as well as of the
country as a whole.
9. PRODUCTIVITY TERMS:
Measuring unit
Measuring process
Standard
Performance
Performance standard
Objective
Norm
Material utilization factor
Ratio
Index
4. The consumer has to pay relatively low prices because the cost of
manufacture is reduced through higher productivity.
The price must be specified as either the whole sale, retail, or discounted
price. Also when comparing productivity indices at different periods, a
base period must be used to account for inflation and other changes effects.
The production, as measured, includes the value of all input elements (raw
material, semi-finished products, standard parts, etc.) purchased from other
sectors. The effect is such that the output of one sector, that will be
purchased by another, will also be considered as part of the production for
the other sector, and thus inflating the total value of production on the
national Level. This phenomenon also occurs on the corporation level.
Input elements for a corporation purchased from other corporations will be
included in the value of production of this corporation, while the value of
these elements do not represent actual contribution by it.
A better approach that has been suggested is to use the value added (or not
value added) to express production. The Value added concept expresses
production (P) as the total value of production less the value of input
elements purchased from outside. The advantage of this concept is that it
accounts for the actual contribution of a given system only.
Two forms are used, the value added (VA) and the net value added (NVA):
n m
VA
ij
i 1
q p
i i I j c j
j 1
where,
Ij: number of units purchased of the J th input element
Cj: Cost/unit of input element j.
Dk: depreciation cost for the fixed asset.
of the jth labor plan to produce P; lij labor consumed of the jth labor class to
produce the i th product; and tij is the time per unit consumed of the jth
labor class to produce qi of the i th product.
class effects. The time consumed by each labor class is weighted by the
average wage rate for this class:
m
w j l j
j 1
L m
wj
j 1
where wj is an average wage weighing factor for the i th labor class, and lj
is the time consumed by labor class j to produce P.
where ti., tj are the actual time and standard time of labor consumed per
unit of product i.
Output units:
- Physical units (ton, unit, m3)
- Standard physical units
- Monetary unit ($, L.E.)
Input units:
- Physical units (man, man-hour, ton, unit, m3)
- Monetary unit ($, L.E.)
Measurement of Labor:
1- Physical Method:
Labor units used in this method are man-hours or man-days, necessary to
produce a particular quantity Any of the following forms can be used.
n
L li
i 1
n
L l j
j 1
n m
L lij
i 1 j 1
n m
L qi lij
i 1 j 1
where wj is the wage paid to the jth labor class to produce production
volume P. Some few problems are associated with this method. The wages
considered could be gross wage, basic wage, net wage or wages plus fringe
benefits. Also wage systems are different from an enterprise to another and
from a native currency to a foreign one. These limitations should be
Ton / unit
Monetary unit Ton / L.E. L.E. / L.E.
(L.E.) Unit / L.E.
There are many industries in which the cost of raw material represents 60
per cent or more of the cost of the finished product, the balance of 40
Percent divided between labor and overhead costs. Many countries have to
import a very large proportion of their basic raw materials and pay for them
in scarce foreign currencies.
Output unit
Machine unit Physical unit Monetary unit
(Ton, unit, ..) (L.E.)
Physical unit Ton / machine L.E. / machine
(machine, Unit / machine L.E. / m/c-hour
m/c-hour, ..) Ton / m/c-hour
Monetary unit Ton / L.E. L.E. / L.E.
(L.E.) Unit / L.E.
Ton / L.E.
System Effectiveness
Efficiency Availability
- Maintenance Follow-up
- (Actual/Plan)
S d
Availability = A = x 100%
S
S d
Mean time between failures = MTBF = f
df
Mean time to repair MTTR = f
Where, S = Scheduled production time
d = Downtime f = Number of failures.
df = Downtime delays from failures.
Example:
Scheduled production time = 31 day
Downtime = 6 day
Number of failures = 3 failure/month
31 6
A = 31 x 100% = 80.6 %
Id = 100 - 80.6 = 19.4%
31 6
MTBF = = 8.33 days
3
6
MTTR= = 2 days
3
Good PM Program 60 80 %
Good bonus & incentive system
Good PM Program based on RCM
Good bonus & incentive system More than 80 %
Risk Radar will assist Risk Officers to identify the highest-priority risks
and to keep attention focused on them as a project evolves over time.
Risk Radar does not discover risks; the project team must do that. But
once a risk is identified.
Risk Radar allows the risk to be fully described and prioritized relative
to the other risks a project faces. The key to successful use of Risk Radar
is to keep the highest-priority risks at the top of the risk-ranking list and to
focus mitigation efforts on them.
With Risk Radar a risk can be described; prioritized relative to all the
other risks in the database; a risk mitigation plan can be developed; and
events and decisions recorded that affect the risk over time.
Risk Radar includes a full set of standard short- and long-format reports
as well as a viewgraph-formatted report for communicating risk priorities
and mitigation efforts to upper management and the entire project team.
Risk Radar then calculates a Risk Exposure for each risk. Consistent with
government and commercial best practices.
Risk Radar defines the Risk State using two qualitative values (1)
Probability and (2) Impact and then the Risk Exposure is calculated from
the Probability and Impact. The Probability and Impact fields are provided
as drop-down boxes.
Risk Radar uses risk exposure as a means to help rank risks relative to
one another, but it assumes these numbers have little or no meaning in an
absolute sense. In most cases, it would be inappropriate to compare
risks across projects based solely on numerical factors such as
probability, impact, or exposure. The best that can be hoped for is that
the project team will use numerical risk values consistently over the life of
the project so there is a consistent ranking of risks to keep the most
important ones at the top of the list.
Probability
Level Criteria Probability
A Remote 0.1
B Unlikely 0.3
C Likely 0.5
Impact Definitions
Financial Administration
Activities Activities
Law
Activities ..
..
ACTIVITIES
Targets Measures
Maximize: - Yield %
- Yield - Scrap %
- Rework %
Minimize: - Rejected %
- Scrap - Material cost %
- Material cost
Targets Measures
Maximize: - Labor productivity
- Output per man-hour (Output per Man-hour)
- Used capacity - Labor utilization factor %
- Labor idle time %
Minimize: - Labor cost %
- Idle time
- Labor cost
Targets Measures
Maximize: - Machine productivity
- Machine output (Output per Machine-hour)
- Used capacity - Machine utilization factor %
- Machine idle time %
Minimize: - Machining cost %
- Idle time
- Machining cost
Targets Measures
Maximize: - Average availability %
- Availability - Average reliability
- Reliability - MTBF / MTTF / MTTR
- Down time due to maintenance
Minimize: - Corrective maintenance %
- Down time - Maintenance cost %
- Maintenance cost - Losses due to maintenance
Targets Measures
Maximize: - Material Inventory availability%
- Material availability - Material Inventory rejected%
- Down time due to inventory
Minimize: - Losses due to inventory
- Rejected
- Computer Applications
- Computer Graphics (Auto-Cad)
- Computer Aided Design (CAD)
- Computer Aided Process Planning (CAPP)
- Computer Aided Manufacturing (CAM)
- Group Technology
- New Production lines / Machines
- Rebuilding old machines
- Maintenance planning & control
- Layout
- Inventory control
- Material Requirements Planning (MRP)
- Quality control
- Material handling improvement
- Material reuse & recycling
- New materials
- Work study
- Job evaluation
- Job safety
- Marketing Management
- Production Management
- Quality Management
- Cost Management
- Maintenance Management
- Material Management
- Resource Management
Phase I: Measurement
Data collection & analysis
Productivity indicators
Determination of problems types
Determination of problems priorities
Information collection & analysis
System analysis
Proposal solutions
Case Studies
M-1-1- Planning:
M-1-1-1- Next year predictions
M-1-1-2- Risk analysis
M-1-1-3- Work Breakdown Structure (WBS)
M-1-1-4- Master plans
M-1-1-5- Master budget analysis
M-1-1-6- Critical resource analysis
M-1-2- Control:
M-1-2-1- Annual performance evaluation (target / actual)
M-1-2-2- Annual performance evaluation for last two years
M-1-2-3- Annual performance eval. for last multi years
M-1-2-4- Annual performance eval. for critical projects
M-2-1- Planning:
M-2-1-1- Work Breakdown Structure (WBS)
M-2-1-2- Master projects schedule
M-2-1-3- Resource predictions
M-2-1-4- budget predictions
M-2-1-5- Risk analysis
M-2-1-6- Critical resource allocation
M-2-1-7- Action plans (schedule, resources, cost)
M-2-1-8- Project Planning (schedule, resources, cost)
M-2-1-9- Critical resource analysis for each project
M-2-2- Control:
M-2-2-1- Annual performance evaluation (Target / Actual)
M-2-2-2- Annual performance evaluation for last two years
M-2-2-3- Annual performance eval. for last multi years
M-2-2-4- Annual critical resource productivity analysis
M-2-2-5- Monthly Perf. eval. for the current and last year
M-2-2-6- Project performance evaluation (Target / Actual)
M-2-2-7- Critical resource productivity anal. for each Project
M-3-5- Procurement
M-3-5-1- Material Requirements Planning (MRP)
M-3-5-2- Suppliers selection
M-3-5-3- Procurement planning
M-3-5-4- Procurement control
M-3-6- Inventory
M-3-6-1- Inventory ABC analysis
M-3-6-2- Inventory limits
M-3-6-3- Inventory Lot sizes
M-3-6-4- Inventory transactions
M-3-6-5- Inventory cost analysis
M-3-6-6- Inventory control
(Physical units)
(Physical units)
Available Information:
Output elements:
Production volume
Unit price
Inputs elements:
Labor cost
Material cost
Depreciation
Capital cost
Energy cost
Other expense
Follow-up indicators:
1- Profit = Total output - Total inputs
Profitability = Total output / Total inputs
Performance indicators:
Consider the XYZ company, the data for output produced and
inputs consumed for May 2001 & May 2002 are given below:
(Physical units)
(Physical units)
See M-1-2-1
M-1-2-3- Annual performance evaluation for last multi years
Consider the XYZ company, the data for output produced and inputs
consumed for four last years (from 1999 to 2002) are given below:
See M-1-2-2-
(1): FOLLOW-UP INDICATORS
(2): PERFORMANCE EVALUATION INDICATORS
(3): PRODUCTIVITY ANALYSIS INDICATORS
(4): PERFORMANCE EVALUATION INDICATORS
BASE YEAR 2002
(5): PRODUCTIVITY ANALYSIS INDICATORS
BASE YEAR 2002
(6):RISK ANALYSIS
CLs = 0 Z S 0
X 1 2 3 4 5
Y 1450 1300 1200 1000 ?
XY 1450 2600 3600 4000
n=4
Sum X = 10 Sum X2 = 30
Sum Y = 4950 Sum XY = 11650
4950 = 4 a + 10 b 11650 = 10 a + 30 b
14850 = 12 a + 30 b
a = 1600 b = - 145
X 1 2 3 4 5
A 1450 1300 1200 1000 -
F 1445 1310 1165 1020 875
(A-F) 5 10 35 20
(A-F)2 25 100 1225 400
S = 24 Z=2
CLs = 0 Z S = 0 48
5. Conclusion.
M-2-2-5- Monthly Performance evaluation for the current and last
year
The production plan and the actual production in a power towers fabrication
project are as follows:
Activity ID (work order) A11 A12 A13 A14 A15
Predecessors - - - A11 A13
Target plan:
Actual plan:
Actual production:
2- Resource List:
Resource Resources description Unit Limits/day Price
code Norm. Max. LE/unit
L01 Excavation worker md 3 6 40
L02 Concrete worker md 6 12 60
E01 Excavator eqd 1 2 400
E02 Concrete mixer eqd 1 2 500
M01 Concrete material m3 - - 500
md = man-day eqd = Equipment day
3- Resource Allocation:
Resource/day
Activity ID
1 2 3
1 Mobilization MOB L01, 2
2 Excavation # 1 EX1 L01, 3 E01, 1
3 Excavation # 2 EX2 L01, 3 E01, 1
4 Excavation # 3 EX3 L01, 3 E01, 1
5 Concrete # 1 CO1 L02, 6 E02, 1 M01, 40
6 Concrete # 2 CO2 L02, 6 E02, 1 M01, 50
7 Concrete # 3 CO3 L02, 6 E02, 1 M01, 40
Actual production:
The yearly PM programs information for six similar gas turbines in a power station
are as follows:
The six-monthly maintenance costs ($1000) for a productive system are as follows:
Target Costs:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly
PM Cost:
Spar parts 100 100 100 100 100 100 100
Labor 50 50 50 50 50 50 50
CM Cost:
Spar parts 200 200 200 200 200 200 200
Labor 150 150 150 150 150 150 150
DT Cost 300 300 300 300 300 300 300
Actual Costs:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly
PM Cost:
Spar parts 23 38 49 56 68 65 54
Labor 32 65 96 94 94 90 72
CM Cost:
Spar parts 231 213 181 185 199 196 157
Labor 503 370 293 164 201 193 142
DT Cost 407 397 320 290 330 320 362
9 6 3 2
W01 W02 W03
1- Activity List
Relations
Duration
Activity ID Predece (SS, FS, FF,
(day)
ssors and SF)
1 Preparation PRP 2 - -
2 Mechanical maintenance # 01 MM1 7 PRP -
3 Electrical maintenance # 01 EM1 9 MM1 SS 3
4 Mechanical maintenance # 02 MM2 6 PRP -
5 Electrical maintenance # 02 EM2 8 MM2 SS 2
6 Mechanical maintenance # 03 MM3 5 PRP -
7 Electrical maintenance # 03 EM3 7 MM3 SS 2
8 Setup EM1
STP 1 EM2 -
EM3
2- Resource List
3- Resource Allocation
Resource
Activity ID SPS
L01/day L02/day
(Total)
1 Preparation PRP 2 1 1
2 Mechanical maintenance # 01 MM1 4 - 3
3 Electrical maintenance # 01 EM1 - 5 4
4 Mechanical maintenance # 02 MM2 3 - 2
5 Electrical maintenance # 02 EM2 - 4 3
6 Mechanical maintenance # 03 MM3 2 - 2
7 Electrical maintenance # 03 EM3 - 3 3
2
8 Setup STP 2 1
CASE 14-
The monthly production plan and the actual production in ABC Company
are as follows:
CASE 12-
The monthly production plan and the actual production in ABC Company
are as follows:
CASE 15-
The monthly production plan and the actual production in ABC Company
are as follows:
CASE 14-
The annual budget and the actual cost for a production department are as
follows:
Budget Actual
Cost item Current Year to Current Year to
month date month date
Direct labor 5000 70000 4000 60000
Indirect labor 4936 53834 3111 48834
Direct materials 1000 10000 400 5000
Indirect materials 808 8565 232 4711
Based on these data, determine the different cost indicators for this
department?
CASE 16-
The monthly production plan and the actual production are as follows:
CASE 17-
The three monthly production plan and the actual production for an
Egyptian foundry are as follows:
CASE 18-
The annual budget and the actual cost for a production department are as
follows:
Budget Actual
Item Current Year to Current Year to
month date month date
Production quantity 50 650 40 550
(ton)
Labor rate ($/ton) 100 105 102 105
Indirect labor 1000 11000 1500 13000
Material quantity (ton) 70 800 40 600
Material price ($/ton) 300 290 302 295
Indirect materials 1000 9000 600 6000
CASE 18-
The annual material requirements plan and the actual needed for a
production department are as follows:
Plan (Jan. 2001) Actual (Jan. 2001)
Material Planned Standard cost Actual Actual cost
Code quantity ($/unit) quantity ($/unit)
(unit) (unit)
1001 100 1000 120 1100
1002 500 1200 450 1300
1003 800 500 900 480
1004 100 250 - -
1005 - - 90 300
Based on these data, determine the different cost performance indicators
for this department?
CASE 19-
The annual spare parts plan and the actual needed for a maintenance
department are as follows:
CASE 20-
The annual overhaul plan and the actual overhauls for a maintenance
department are as follows:
CASE 21-
Basic data
Item Jan 04 Feb 04 Feb. / Jan.
Production rate (ton/hr) 8 8 100 %
Total time (hr/day) 24 24 100 %
Average down time (hr/day) 6 4 67 %
Average available time (hr) 18 20 111 %
Average standby (hr/day) 3 3 100 %
Average used time (hr/day) 15 17 113 %
Average target quantity 120 136 113 %
(ton/day)
Average actual quantity 80 105 125 %
(ton/day)
Average sound quantity 70 98 129 %
(ton/day)
Average defect quantity 10 7 64 %
(ton/day) (1 (7%)
4
%
)
Energy productivity (kwh/ton) 700 684 98 %
Material productivity (1000 1429 1326 92 %
L.E/ton)
Performance Evaluation
Indicator January February Feb. /
2004 2004 Jan.
Availability 18/24= 75 % 20/24= 83 % 111 %
OEE 44 % 60 % 136 %
TEEP 37 % 51 % 138 %
NEE 29 % 52 % 179 %
CASE 22-
Target Costs:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly
PM Cost:
Spar parts 100 100 100 100 100 100 100
Labor 50 50 50 50 50 50 50
CM Cost:
Spar parts 200 200 200 200 200 200 200
Labor 150 150 150 150 150 150 150
DT Cost 300 300 300 300 300 300 300
Actual Costs:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly
PM Cost:
Spar parts 23 38 49 56 68 65 54
Labor 32 65 96 94 94 90 72
CM Cost:
Spar parts 231 213 181 185 199 196 157
Labor 503 370 293 164 201 193 142
DT Cost 407 397 320 290 330 320 362
Target:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly Total
PM Cost 150 150 150 150 150 150 150 1050
CM Cost 350 350 350 350 350 350 350 2450
TM Cost 800 800 800 800 800 800 800 5600
DT Cost 300 300 300 300 300 300 300 2100
TM+DT 1100 1100 1100 1100 1100 1100 1100 7700
PM/TM 0.14 0.14 0.14 0.14 0.14 0.14 0.14 0.955
CM/PM 2.33 2.33 2.33 2.33 2.33 2.33 2.33 16.33
Actual:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly Total
PM Cost 55 103 145 150 162 155 126 896
CM Cost 734 583 474 349 400 369 299 3208
TM Cost 1196 1083 939 789 892 864 787 6550
DT Cost 407 397 320 290 330 320 362 2426
TM+DT 1603 1480 1259 1079 1222 1184 1149 8976
PM/TM 0.05 0.10 0.15 0.19 0.18 0.18 0.16 1.007
CM/PM 13.35 5.66 3.27 2.33 2.47 2.38 2.37 31.82
Change %:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly Total
PM Cost
CM Cost
TM Cost
DT Cost
TM+DT
PM/TM
CM/PM
CASE 23-
Change
Item Target Actual
%
Total labor force (worker) 25 30 + 20
Annual s. parts cost ($1000) 336 400 + 19
Annual labor cost ($1000) 75 80 + 6.6
Overhead cost ($1000) 514 520 + 1.2
Total m. cost ($1000) 925 1000 + 8.1
Average down time 66 50 - 24.3
Down time cost ($1000) 66 50 - 24.3
CASE 24-
Target Costs:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly
PM Cost:
Spar parts 100 100 100 100 100 100 100
Labor 50 50 50 50 50 50 50
CM Cost:
Spar parts 200 200 200 200 200 200 200
Labor 150 150 150 150 150 150 150
DT Cost 300 300 300 300 300 300 300
Actual Costs:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly
PM Cost:
Spar parts 23 38 49 56 68 65 54
Labor 32 65 96 94 94 90 72
CM Cost:
Spar parts 231 213 181 185 199 196 157
Labor 503 370 293 164 201 193 142
DT Cost 407 397 320 290 330 320 362
Target:
Actual:
Month #
Cost item
Jan Feb Mar Apr May Jun Jly
PM Cost 55 103 145 150 162 155 126
CM Cost 734 583 474 349 400 369 299
DT Cost 407 397 320 290 330 320 362
TM Cost 1196 1083 939 789 892 864 787
Main Indicators:
P.E. Report (Middle management level)
KPIs report:
Specific:
- Material productivity %
- Labor productivity %
- Machine productivity %
- Energy productivity %
-
Recommendation:
Bill of Quantities:
Productivity:
Total Productivity %
Equipment Productivity %
Material Utilization %
Material Productivity %
Labor Productivity %
Year Year
No. Description Type
2004 2005
Maintenance Engineers 16000 15000
1 manpower Tech. 18000 19000
(Man-hours) Helpers 13000 12000
No. of W/O 4000 6000
Man Hours 12000 14000
2 Actual PM
Duration (Hrs) 4000 5000
Back Log 650 600
No. of W/O 500 700
Man Hours 5000 6000
3 Actual CM
Duration (Hrs) 500 3000
Back Log 50 70
Planned 3500 3500
4 Total cost (1000 LE)
Actual 4200 4500
Planned 5000 5000
5 Revenue (1000 LE)
Actual 6000 7000
CM/PM Overall =
10 X No of WO X man-hours X Durations
Utilization =
Total Work orders man-hours / Total Available man-hours
Quality Rate =
(No of PM) / (No of PM + No of CM)
Reliability =
(PM man-hours) / (PM man-hours + CM man-hours)
Performance rate =
Revenue / total man-hours
Exam
Please attempts all questions - No. of questions 4 No. of Pages 3
Q1:
The monthly civil works report for a civil project in ABC Company is as
follows:
Target Performance:
Item unit Value
Work Schedule:
Excavation m3 3000
Concrete m3 1500
F-Concrete m3 1000
Budget Cost:
Excavation LE/m3 5
Concrete LE/m3 100
F-Concrete LE/m3 800
Critical equipment:
Excavator m3/day 200
Concrete pump m3/day 100
Critical materials:
Cement for concrete kg/m3 250
kg/m3 350
Cement for F-concrete
Actual Performance:
Item unit Value
Work Performed:
Excavation m3 4000
Concrete m3 2000
F-Concrete m3 800
Actual Cost:
Excavation LE 16,000
Concrete LE 180,000
F-Concrete LE 600,000
Critical materials:
Available Cement ton 800
ton 800
Used Cement
Q2:
Q3:
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