A case study of overruns of coal power plant project and its cause analysis using earned value management

Mazhar Ali; Muhammad Ayat; Muhammad Shakir; Syed Shahid Raza Jaffary; Muhammad Irfan; Rano Khan Wassan

A case study of overruns of coal power plant project and its cause analysis using earned value management

Mazhar Ali^*, Muhammad Ayat^*, Muhammad Shakir, Syed Shahid Raza Jaffary, Muhammad Irfan, Rano Khan Wassan

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

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Abstract

The purpose of this study is to analyze the overruns in term of cost and schedule of coal power plant project carried out by Descon Engineering Ltd, Karachi. For the case study, we obtained data from the progress reports of contractor, through performed surveys and interviews of project team. Earned value management (EVM) tool is mainly used for the analysis of the project data. In addition, the critical factors of delays are identified in order to analyze the reasons to formulate the necessary recommendations to overcome it in future. The study shows that scheduled performance index (SPI) is 0.86 which means that 14% extra time wasted during the project. The CPI of the project was 0.67 which shows 33% of total budgeted amount has been wasted during the project execution. It was also found that the greatest reasons for the delay in the project was unavailability of materials, bottleneck in civil section, extensive revisions in design of substructures, and lack of skilled man power. At the end some recommendations for the contractor have been suggested to avoid overruns in future projects.

Original language	English
Title of host publication	First International Conference on Industrial Engineering and Management Applications
Subtitle of host publication	February 20-22, 2017, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan
Editors	Hussain Bux Marri, Sahar Noor, Shakeel Shaikh, Muhammad Saad Memon
Place of Publication	Jamshoro, Sindh, Pakistan
Publisher	Mehran University of Engineering and Technology
Pages	478-486
Number of pages	9
ISBN (Print)	9789697710010
Publication status	Published - 20 Feb 2017
Externally published	Yes
Event	First International Conference on Industrial Engineering & Management Applications - Mehran University of Engineering & Technology, Jamshoro, Pakistan Duration: 20 Feb 2017 → 22 Feb 2017 http://iema.muet.edu.pk/

Conference

Conference	First International Conference on Industrial Engineering & Management Applications
Abbreviated title	IEMA-2017
Country/Territory	Pakistan
City	Jamshoro
Period	20/02/17 → 22/02/17
Internet address	http://iema.muet.edu.pk/

Keywords

earned value management
delays
schedule oerformance index
cost performance index

Access to Document

2017 01 30 Ali et al Overruns acceptedAccepted author manuscript, 294 KB

Cite this

Ali, M., Ayat, M., Shakir, M., Jaffary, S. S. R., Irfan, M., & Wassan, R. K. (2017). A case study of overruns of coal power plant project and its cause analysis using earned value management. In H. B. Marri, S. Noor, S. Shaikh, & M. S. Memon (Eds.), First International Conference on Industrial Engineering and Management Applications: February 20-22, 2017, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan (pp. 478-486). Mehran University of Engineering and Technology.

Ali, Mazhar ; Ayat, Muhammad ; Shakir, Muhammad et al. / A case study of overruns of coal power plant project and its cause analysis using earned value management. First International Conference on Industrial Engineering and Management Applications: February 20-22, 2017, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan. editor / Hussain Bux Marri ; Sahar Noor ; Shakeel Shaikh ; Muhammad Saad Memon. Jamshoro, Sindh, Pakistan : Mehran University of Engineering and Technology, 2017. pp. 478-486

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abstract = "The purpose of this study is to analyze the overruns in term of cost and schedule of coal power plant project carried out by Descon Engineering Ltd, Karachi. For the case study, we obtained data from the progress reports of contractor, through performed surveys and interviews of project team. Earned value management (EVM) tool is mainly used for the analysis of the project data. In addition, the critical factors of delays are identified in order to analyze the reasons to formulate the necessary recommendations to overcome it in future. The study shows that scheduled performance index (SPI) is 0.86 which means that 14% extra time wasted during the project. The CPI of the project was 0.67 which shows 33% of total budgeted amount has been wasted during the project execution. It was also found that the greatest reasons for the delay in the project was unavailability of materials, bottleneck in civil section, extensive revisions in design of substructures, and lack of skilled man power. At the end some recommendations for the contractor have been suggested to avoid overruns in future projects.",

keywords = "earned value management, delays, schedule oerformance index, cost performance index",

author = "Mazhar Ali and Muhammad Ayat and Muhammad Shakir and Jaffary, {Syed Shahid Raza} and Muhammad Irfan and Wassan, {Rano Khan}",

year = "2017",

month = feb,

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booktitle = "First International Conference on Industrial Engineering and Management Applications",

publisher = "Mehran University of Engineering and Technology",

note = "First International Conference on Industrial Engineering & Management Applications, IEMA-2017 ; Conference date: 20-02-2017 Through 22-02-2017",

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Ali, M, Ayat, M, Shakir, M, Jaffary, SSR, Irfan, M & Wassan, RK 2017, A case study of overruns of coal power plant project and its cause analysis using earned value management. in HB Marri, S Noor, S Shaikh & MS Memon (eds), First International Conference on Industrial Engineering and Management Applications: February 20-22, 2017, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan. Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan, pp. 478-486, First International Conference on Industrial Engineering & Management Applications, Jamshoro, Pakistan, 20/02/17.

A case study of overruns of coal power plant project and its cause analysis using earned value management. / Ali, Mazhar; Ayat, Muhammad; Shakir, Muhammad et al.
First International Conference on Industrial Engineering and Management Applications: February 20-22, 2017, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan. ed. / Hussain Bux Marri; Sahar Noor; Shakeel Shaikh; Muhammad Saad Memon. Jamshoro, Sindh, Pakistan: Mehran University of Engineering and Technology, 2017. p. 478-486.

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

TY - GEN

T1 - A case study of overruns of coal power plant project and its cause analysis using earned value management

AU - Ali, Mazhar

AU - Ayat, Muhammad

AU - Shakir, Muhammad

AU - Jaffary, Syed Shahid Raza

AU - Irfan, Muhammad

AU - Wassan, Rano Khan

PY - 2017/2/20

Y1 - 2017/2/20

N2 - The purpose of this study is to analyze the overruns in term of cost and schedule of coal power plant project carried out by Descon Engineering Ltd, Karachi. For the case study, we obtained data from the progress reports of contractor, through performed surveys and interviews of project team. Earned value management (EVM) tool is mainly used for the analysis of the project data. In addition, the critical factors of delays are identified in order to analyze the reasons to formulate the necessary recommendations to overcome it in future. The study shows that scheduled performance index (SPI) is 0.86 which means that 14% extra time wasted during the project. The CPI of the project was 0.67 which shows 33% of total budgeted amount has been wasted during the project execution. It was also found that the greatest reasons for the delay in the project was unavailability of materials, bottleneck in civil section, extensive revisions in design of substructures, and lack of skilled man power. At the end some recommendations for the contractor have been suggested to avoid overruns in future projects.

AB - The purpose of this study is to analyze the overruns in term of cost and schedule of coal power plant project carried out by Descon Engineering Ltd, Karachi. For the case study, we obtained data from the progress reports of contractor, through performed surveys and interviews of project team. Earned value management (EVM) tool is mainly used for the analysis of the project data. In addition, the critical factors of delays are identified in order to analyze the reasons to formulate the necessary recommendations to overcome it in future. The study shows that scheduled performance index (SPI) is 0.86 which means that 14% extra time wasted during the project. The CPI of the project was 0.67 which shows 33% of total budgeted amount has been wasted during the project execution. It was also found that the greatest reasons for the delay in the project was unavailability of materials, bottleneck in civil section, extensive revisions in design of substructures, and lack of skilled man power. At the end some recommendations for the contractor have been suggested to avoid overruns in future projects.

KW - earned value management

KW - delays

KW - schedule oerformance index

KW - cost performance index

UR - http://iema.muet.edu.pk

M3 - Conference contribution

SN - 9789697710010

SP - 478

EP - 486

BT - First International Conference on Industrial Engineering and Management Applications

A2 - Marri, Hussain Bux

A2 - Noor, Sahar

A2 - Shaikh, Shakeel

A2 - Memon, Muhammad Saad

PB - Mehran University of Engineering and Technology

CY - Jamshoro, Sindh, Pakistan

T2 - First International Conference on Industrial Engineering & Management Applications

Y2 - 20 February 2017 through 22 February 2017

ER -

Ali M, Ayat M, Shakir M, Jaffary SSR, Irfan M, Wassan RK. A case study of overruns of coal power plant project and its cause analysis using earned value management. In Marri HB, Noor S, Shaikh S, Memon MS, editors, First International Conference on Industrial Engineering and Management Applications: February 20-22, 2017, Mehran University of Engineering and Technology, Jamshoro, Sindh, Pakistan. Jamshoro, Sindh, Pakistan: Mehran University of Engineering and Technology. 2017. p. 478-486

A case study of overruns of coal power plant project and its cause analysis using earned value management

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Keywords

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