Evaluation of Project Control Method of Variance Analysis and Concept Development in the Value of the Fish Auction

Reader Impact Factor Score
[Total: 1 Average: 5]

Published on International Journal of Engineering & Industry
Publication Date: June 5, 2019

Totok Komarudin, Nasrul Bahrowi, Yuni Mayangsari & Anita Setyowati
Widya Kartika University, Surabaya
Panca Marga University, Probolinggo
Technology University, Surabaya
Kanjuruhan University, Malang
Indonesia

Journal Full Text PDF: Evaluation of Project Control Method of Variance Analysis and Concept Development in the Value of the Fish Auction (Studied in Cianjur, West Java, Indonesia).

Abstract
Control project is afoot to organize and regulate corporate resources to achieve project goals, namely schedule, budget, and quality. There are two methods used, the method of Analysis of Variance and Methods Concepts Value Results. Results of the evaluation on the construction project is a fish auction place schedules and costs that are not in accordance with planning. Variance costs by Rp. 2,929,000, – caused by the accelerated activity giving rise to additional labor costs. Variance project time by 1 (one) day, which is caused by the delay in the project.

Keywords: Variance Analysis, Concept of Value Results, Schedule, Budget, Quality.

Projects are dynamic, which must respond to changing circumstances if it is to succeed and be successful. This is done in a continuous environmental conditions change, so always needs to establish a policy planning in anticipation of the above circumstances, so that the project can go ahead without delay, Lock [1].
In a planning project to prevent delays in implementation time and waste in the use of cost, the necessary improvement of the schedule of activities and budgeting to a minimum, so the turnaround time and costs used to provide the maximum benefit for the executor, Reksohadiprodjo [2]
In fact, often an organization faces difficulties in terms of resources, including materials and labor. Therefore, the planning of the resources should be conducted with respect to the lack of resources to obtain the optimum schedule. Delays in completion of the project will cause penalty fees that can reduce the benefits to be gained, Suharto [3].
In addition the project is composed of several activities undertaken one or not continuous, but the search time can be determined based on past experience. Completion of a project can also be used as the basis for other similar project in the future. Based on the experiences that have then found to frequent delays in the completion of a project, this is caused by many factors. It required a better planning system in the implementation of the project, Ali [4].
Cianjur district with the topography of different types, has marine, reservoirs, rivers, and ponds nature. In the ecosystem there fishing activities. In coastal areas overlooking the Indian Ocean, many fishermen who conduct fishing activities in the sea. Currently in District Cidaun already built Jayanti Fish Landing Base area of 2 ha, with the main facilities and facilities support activities, among others: the pier, where anchoring, navigation tools, office, mini ice plant capacity of 2.5 tonnes, packing sheds, shanties marketing fish, workshop machinery, means of communication, and others. In 2008, the Department of Animal Husbandry and Fisheries Cianjur, has completed building the fish auction place (TPI) Apra in District Sindangbarang. However, on the implementation of the project there is a delay of a predetermined schedule and cost overruns that occurred. Department of Animal Husbandry and Fisheries Cianjur requires an evaluation of the project in 2009 because of a similar project which will be built in the district Cikakap TPI Agrabinta, Department of Animal Husbandry and Fisheries Cianjur [5]
Based on the background mentioned above, the problem in this research is how to evaluate the implementation of development projects TPI. Apra using value analysis method results and methods of analysis of variance. While the purpose of this study is proposed in the form of project control project performance measures (cost and schedule) to approach the concept of the value of the results and the method of analysis of variance, so as to reduce the risk of deviation costs and schedule deviations for similar projects to be built.

2. METHODOLOGY
This study uses PDM (Precedence Diagram Method), with consideration: this method can describe the operational plan integrally, shows the interrelation of each activity and can show the critical path. Besides its network is relatively simple, because the activities are done over and over can be described as a job and are not required dummy.
Data collection was conducted as input for project control processes, such as: working calendar, list of activities, execution time of each activity, activity dependency logic, planning cost of each activity, and the actual cost of each activity.
While the Data Processing is done with the following steps:
a. Ordering Data Activity / Activities Project
Sorting kergiatan activities undertaken on the project to construct or create a Network Diagram.
b. Creating network diagrams (Network Diagram)
To create a network can be seen from the description of the activity of a project, ie which activities can be done simultaneously and which activities must wait previous activities to be completed first. In the preparation of this network, there are two things that made reference in its manufacture, which is a natural dependency factor and factor Bar Chart of the company. Natural factors derived from the logic of the connection an activity with other activities.
Methods of identifying a network of activities that are critical to the project, especially in the aspects of the schedule and planning. Generally, the critical activity of not more than 20% of the total project activities, and he knew this part then the manager can give attention.
c. Making the Bar Chart
Making the Bar Chart using data including the time / duration of each activity / activities, the cost for each activity per day required by each activity. The procedure of making Bar Chart:
1) Arrange the project activities mentioned initial activity and activity end.
2) Calculate the earliest start (ES) and earliest finish (EF) based on the duration and number of events similarity (activity)
d. Calculating variance and Productivity and Performance Index by the formula:
1) Variance Analysis Method:
Varian Cost (CV) = BCWS – ACWP
Schedule variant (SV) = BCWP – BCWS
2) The concept of value method Result:
3) Productivity and Performance Index
4) Performance Fees (CPI) = BCWP / ACWP
Schedule Performance (SPI) = BCWP / BCWS
ACWP (Actual Cost of Work Performed) = the amount of the actual cost of the work that has been carried out. These costs derived from accounting data or project finance at the reporting date (for example, the end of the month), which records all expenses actual cost of the work packages or accounting code including overhead calculation and others.
BCWP (Budgeted Cost of Work Performed) = the value of the work completed on the budget provided for the job.
BCWS (Budgeted Cost of Work Scheduled) = a budget for the work package, but compiled and linked with the implementation schedule.
Data processing steps is presented in Figure 1 below.

3.3. Calculation Schedule Performance Index
The schedule performance index calculation also menggunakanMetode concept of value results, which sought here is the same, namely ACWP ((Actual Cost of Work Performed) and BCWS (Budgeted Cost of Work Scheduled).
To see more clearly the deviations that occurred between the time of planning the execution time (actual time) are shown in graphical form as follows:

3.4. Project Performance Analysis per Sunday
Performance analysis of the project include cost and schedule performance. Because the unit of time used in the Schedule Variance Variance Analysis Method is a day, whereas in this analysis units used are the week, the schedule variance analysis will be done separately. On the Method of Analysis of Variance, Cost Variance value obtained from a direct comparison between the costs used in the implementation of the project with the budgeted costs. For example, Project Performance analysis presented Sunday All 3 are presented in Table 7.
Information :
a. Methods of Analysis of Variance.
For Cost Variance Value = Rp. 286,865.62, this means that the costs incurred in the third week is less than the planned costs. in the third week it costs Rp. 23,773,817.71, while the cost is budgeted at Rp. 23,780,683.33.
b. The concept of value method Result.
For Integrated Cost Variance = Rp. (22,566,507.72) or-Rp. 22,566,507.72, and Cost Performance Index = 0.0508 this means that the actual cost of the expenditure is greater than the budget. For Integrated Schedule Variance = Rp. (22,573,373.34) or-Rp. 22,573,373.34, and the Schedule Performance Index = 0:05 this means that the implementation schedule behind schedule planning. In the third week of this, the cost is less than the budget, this was due to the advance workmanship excavation activities. This is due to the workload of the second week has accelerated during the day.
The big difference in the value of the varaians for Variant Analysis Method with Method Concept of Value Analysis Method Results Varaians due to the variance obtained from the direct comparison between the cost of implementation (actual cost) to the planned cost (budget). While the concept of Value Method Results, integrated cost variance value obtained from the comparison between the results of the completed work against budgeted costs (BCWP) and the actual cost of the work completed (ACWP). For example, in the third week Methods of Analysis of Variance, Cost Variance value obtained is positive (Rp. 286,865.62) is different when compared to the value of Integrated Cost Variance on Concept of Value method results were negative Rp. (22,566,507.72) or-Rp. 22,566,507.72.

3.5. Performance Trend Analysis Project
To see the trend of the performance of the overall project, the illustrated chart that reflects the trend of the performance of the project during the period of analysis, in this case the unit of time used is the week, so the trend images directly presented in units of weeks. Project performance trend analysis, both costs and project schedule will be served directly by using two methods simultaneously, namely Method of Analysis of Variance (Cost Variance value) and the Method Concept of Value Results (Variance Value of Integrated Cost and Cost Performance Index) for more details can be seen on the own image the following picture:

3.5.1. Performance Trend Project Cost
Performance Index shows expenses incurred costs based on a comparison between the costs incurred by the percentage of work performed by the actual costs incurred. At this cost performance index if the performance index number is less than one, meaning larger than the budget expenditure. While anglka zero indicates that the cost is equal to the budgeted costs. And if the performance index indicates the number is greater than one, then this means that the cost is less than the budget.
From Figure 3 The performance index cost (CPI) can be seen that the performance index indicates the number is less than one, it indicates the cost is greater than the budget, while at week 21, the performance index indicates the number the same as the one that means the cost was the same as budget.

3.5.2. Performance Trend Project Schedule
In the integrated schedule variance negative number indicates a late work completed, the zero indicates the work carried out in accordance with the planning schedule. While a positive number indicates the job done more quickly resolved than with planning.
From Figure 4 Value unified schedule variance (SV) shows that the work being done from the beginning (first week) to week 21 showed negative figures, as has been described above that a negative number indicates delays in the project when compared to the plans made. While at week 22 showed zero which means work performed in accordance with the planned schedule. Schedule Performance Index (SPI) shows the work schedule that is based on a comparison between a schedule that is based on the percentage of the work carried out with the planned schedule. On this schedule performance index if the performance index number is less than one, meaning larger than the budget expenditure. While anglka zero indicates that the cost is equal to the budgeted costs. And if the performance index indicates the number is greater than one, then this means that the cost is less than the budget.
From Figure 5 the performance index of the schedule (SPI) can be seen that the performance index indicates the number is less than one, it indicates the cost is greater than the budget, while at week 21, the performance index indicates the number the same as the one that means the project implementation schedule is equal to the planned schedule. Judging from the results that have been achieved, both the cost and schedule of the project shows a tendency of irregularities in the use of cost and schedule for implementation of development projects fish auction place (TPI). This is due to the acceleration of progress as the activity occurs, such as in work measurement and bouwplank thus experiencing cost overruns due to additional labor.
In addition to accelerating construction activity, variances occur also due to a delay in construction activities such as the construction work of the cast sloop concrete, cast concrete columns, concrete filler steel columns without reinforcement, horses IWF, electrical installations, work sewage, drainage work has been delayed execution so causing additional labor costs due to a workforce unemployed.
Broadly speaking, the things that cause such deviations include:
a. The acceleration of workmanship which require additional labor will also add to the cost of the project.
b. Delays in the delivery of raw materials or the materials needed by suppliers thus causing delays in the project.
c. Greater expenses incurred because of their unemployed labor force caused by late delivery of raw materials or material.
The cause of the deviation between the implementation of the planning project mentioned above can be reduced by providing additional working hours (overtime).