PERCEPTION® WORK-PAC

Managing Labor Costs &

Schedules

WORK ORDER

TIME CHARGE

1211 1

10 29 3 8 4

7 5 6

MANPOWERFORECASTING

PERCEPTION WORK-PAC is

designed to plan and manage shipyard

labor costs and schedules.

The basis for this capability are

shipyard work orders that the system shipyard work orders that the system

generates and provides for inputs of

worker time charges.

The system produces reports at various

levels of details, from daily employee

time charges, work order performance

and summaries up through various work

breakdown structures. breakdown structures.

These reports provide management with

the cost and schedule performance

visibility necessary to maintain project

budgets and planned schedules.

System Benefits

1. Better labor planning cost/schedule control.

2. Improved management control of job progress and labor

expenditures.

3. Immediate job cost reporting and summarization.

4. Fast and accurate reporting of labor cost problems.

5. Labor costing by project (job) work breakdown structure and by

organization structure.

6. Automated final labor cost forecasting based upon actual

performance.

7. Automated job progressing - no manual assessments required.

8. Generous checks for erroneous data and bad timecard charges.

• By Systems Work Breakdown Structure (SWBS)

Costs and schedules can be summarized by

several different project work breakdown

structures (WBS) simultaneously:

• By Systems Work Breakdown Structure (SWBS)

• By Product Work Breakdown Structure (PWBS)

• By Shipyard Organization (COA)

• By Contract Line Item (CLIN)

Possible Contract

Work Breakdown

Structures

Multi-Ship Program Management

Cost & Schedule Consolidation

PERCEPTION WORK-PAC measures and

tracks the following:

� Labor Hours per 1% Progress

� Production Process Rates by Stage of Construction

� Weeks Ahead/Behind Planned Schedules� Weeks Ahead/Behind Planned Schedules

� Forecast & Trend Weeks Ahead/Behind for 100%

Progress

� Forecast & Trend Over-Run/Under-Run

� Original Estimated Costs & Schedules

� Baseline Costs & Schedules

� Current Budget Costs & Planned Schedules

PERCEPTION further tracks different

phases of costs and schedules:

� Current Budget Costs & Planned Schedules

� Management Reserves

� Actual Labor Costs & Schedules

� Rework

� Change Orders

Labor Performance Reporting

PERCEPTION produces many excellent high-

level status and tracking reports.

These reports provide the project manager with

the visibility and status of labor costs and the visibility and status of labor costs and

schedules. These reports quickly identify

problem areas of costs and schedules.

The quicker someone recognizes the problems,

the sooner they can be resolved and any damage

to costs and schedules minimized.

WBS Performance Reports

This function of tracking and managing requires

accurate and timely feedback of costs and schedules

which can be measured against a baseline of budgets which can be measured against a baseline of budgets

and planned schedules.

PERCEPTION can produce a wide variety of reports

that provide visibility of project performance at

different levels of detail.

WBS Summarizes Performance

Most modern shipyards manage their costs by way of

the project Work Breakdown Structure (WBS).

The WBS summarizes cost and schedule information in

various categories and provides a high level view of a various categories and provides a high level view of a

project’s performance.

The WBS is an ideal means for identifying areas of a

project that may require special management attention

to resolve problems that may be adversely impacting

budgets and planned schedules.

• BAC: Budget At Completion

• MR: Management Reserves

• BCWS: Budgeted Cost of Work

• EAC: Estimated Cost At

Completion

• EAC Trend for 100% Progress

For any level of the project’s WBS, PERCEPTION

summarizes cost and schedule performance:

• BCWS: Budgeted Cost of Work

Scheduled

• BCWP: Budgeted Cost of Work

Performed

• ACWP: Actual Cost of Work

Performed

• EAC Trend for 100% Progress

• Planned & Actual Progress

• Calendar Schedule Variance

• Calendar Variance Trend for

100% Progress

1. % progress (planned, actual, & current variance from planned)

2. Weeks ahead or behind schedule

3. Current budget hours earned from labor hours charged (BCWP)

4. Current budget hours scheduled as planned (BCWS)

5. Current actual hours charged (ACWP)

The Summary Progress reports provide the following status

information:

5. Current actual hours charged (ACWP)

6. Current budget hours ahead or behind planned schedule (BCWP-BCWS)

7. Total labor hours budget (BAC)

8. Estimated labor hours at completion (EAC)

9. Estimated labor hours to complete (ETC)

10. Estimated total labor hours savings (BAC – EAC)

SWBS Summary Progress Reports Available At Group and

Account Levels.

Critical Information: Weeks Ahead (or behind), Scheduled Hours Ahead

(or behind) & Labor Hours EAC

The details of labor cost and schedule information at

any level of the project WBS can be viewed on-line by

drilling down from the WBS level’s worksheet.

PERCEPTION determines WBS level performance

from work order performance.

Measuring Progress

PERCEPTION allows manual progress

assessments to be entered against work orders.

PERCEPTION also measure progress

automatically. Its method is very accurate, and

is uniquely objective.

PERCEPTION applies the progress factor for EAC.

As work orders are completed, the system better

learns the extent of cost variance for these work

orders.

Measuring Estimate At

Completion (EAC)

orders.

EAC = BAC +

Factor x [Variance completed w/os

+ Adjustments in-progress w/os]

Work OrdersWork orders for the basis for planning shipyard labor and for

collecting time charges.

“The work order is a distinct and definable unit of work that

can be started and completed without significant interruption can be started and completed without significant interruption

under the direction of a single work center.”

For new construction, work orders should average 250-500

hours and have a schedule of 2-4 weeks in duration. Smaller

work orders will make time charging more difficult and

therefore less accurate. Larger work orders will lose visibility

of progress and cost/schedule performance.

The system allows the user to develop four

different types of work orders:

1. Discrete work order (default) that can clearly be assigned to

any single element or level of the project WBS.

2. Distributed work order that cannot be assigned to any

single project WBS element, but rather includes work that

involves multiple elements.involves multiple elements.

3. Time-phased level of effort work order that has no clear-cut

end product, but rather is a service to be provided over time

within a fixed budget.

4. Incremental process work order that measures progress and

performance on the basis of physical production

throughput.

Discrete

Work

Order

Time Phased

Level-of-Effort

Work Order

Product-Oriented

Distributed

Work Order

Process-Oriented

Incremental

Work Order

Four Types of Work Orders Provide

Extra Flexibility

WBSShip

Systems

ProductZones & Unit

Modules

Product Stage ofConstruction (Work

Centers)

Work Order Listings

PERCEPTION generates a variety of work

order listings.

With the exception of time charge transactions With the exception of time charge transactions

that the system also tracks, work orders

represent the lowest level of detail for managing

labor hours, costs and schedules.

Sample Bar Coded Work Order List

(Optional)

Work Order Reports

Special features of work order reports include:

• Actual hours charged versus budget hours

• Actual start & finish dates versus planned schedules

• Whether authorized for charging or not• Whether authorized for charging or not

• Hours worked after work order has been closed

• Premium hours charged

• Rework hours charged

Cataloging of Work Orders

Each work order must be properly cataloged so that its cost and

schedule performance information can be summarized to the

project:

• Contract number (20 characters maximum)• Contract number (20 characters maximum)

• Project number (8 characters maximum)

• Work center assigned (8 characters maximum)

• Work order number (8 characters maximum)

• SWBS account assigned (8 characters maximum)

• PWBS assigned (optional) (8 characters maximum)

Time Charging to Work

Orders

The time charge transactions only requires the following

information:

• Project number

• Work center• Work center

• Work order number.

• Date

• Hours charged

• Employee number

If bar codes are used for collecting time charge transactions, the bar code uses an internal

work order sequence number in lieu of the project, work center and work order numbers.

Comparing Production

Performance With Estimate

The performance of production costs should be

monitored and compared against the original estimate.

PERCEPTION generates summary reports at any level PERCEPTION generates summary reports at any level

of the project WBS comparing the estimate against the

current budgets, actual costs charged to date, and the

estimated costs at completion.

Comparing Production Costs with Estimate

Management Report Graphics

Other high-level reports track a project’s

performance throughout the course of its

execution. execution.

These can best be reviewed in graphical

form.

Work Order Detail Analyses

Overall Work Order Performance Status

253

151

100

150

200

250

300

Nu

mb

er

of

Wo

rk O

rde

rs

Completed Work Order Performance Status

151

49

98

129

87

40

60

80

100

120

140

160

Nu

mb

er

of

Wo

rk O

rde

rs

51 51

0

50

Total Number of Work Orders Number of Completed Work

Orders

Number of In-Process Work

Orders

Number of Un-Started Work

Orders

Nu

mb

er

of

Wo

rk O

rde

rs

3-

-

20

Number of

Completed Work

Orders

Completed No

Budget

Completed No

Schedule

Number

Completed &

Underrun

Number

Completed &

Overrun

Number

Completed & Late

To Start

Number

Completed & Late

To Finish

Nu

mb

er

of

Wo

rk O

rde

rs

In-Process Work Order Performance Status

51

16 16

2

-

10

20

30

40

50

60

Number of In-Process Work

Orders

Number In-Process & Overrun Number In-Process & Late To

Start

Number In-Process & Late To

Finish

Nu

mb

er

of

Wo

rk O

rde

rs

In-Process Work Order Performance Status

18,828

16,262

141

17,180

33,441

5,769

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

In-Process Budget

Hours

In-Process Actual

Hours

In-Process Rework

Hours

In-Process ETC

Hours

In-Process Actual +

ETC hours

In-Process Hours

Overrun

Rework Included in Actual Hours

ETC based on Manual Assessed Progress

La

bo

r H

ou

rs

Work Center Performance

AnalysesWork Center Progress

10

0

90

.54

95

.56

96

.43

52

.49

10

0

30

.39

62

.19

10

0

99

.98

69.5

3

32.2

0

48.8

5

21.0

0 28.5

0

52.3

7

97.2

9

23.2

820

40

60

80

100

120

Perc

en

t P

rog

ress

Planned Progress

Actual Progress

Work Center Current Cost & Schedule Variance

6%

3%

-26%

0%

0%

0%

67%

-27%

-10%

0%

-30%

-49%

0%

0%

-6%

-16%

-3%

-40%

-20%

0%

20%

40%

60%

80%

Fab

ricati

on

Assem

bly

Fit

Assem

bly

Weld

Ere

cti

on

Fit

Ere

cti

on

Weld

Ou

tfit

tin

g

Rig

gin

g

Pip

ing

Ere

cti

on

Jig

s

& F

ixtu

res

En

gin

eeri

ng

&

Man

ag

em

en

t

001 002 003 004 005 006 012 015 153 800

Perc

en

t V

ari

an

ce

0.0

0

0.0

0

0

Fabricatio

n

Assem

bly

Fit

Assem

bly

Weld

Ere

ctio

n F

it

Ere

ctio

n W

eld

Outfitt

ing

Rig

gin

g

Pip

ing

Ere

ctio

n J

igs &

Fix

ture

s

Engin

eering &

Managem

ent

001 002 003 004 005 006 012 015 153 800

-64%

-49%

-79%

-77%

-100%

-80%

-60%

001 002 003 004 005 006 012 015 153 800

Cost Variance Schedule Variance

Work Center Current Labor Hour Efficiency

10

5.9

2%

10

2.9

5%

74

.23

%

10

0.0

0%

10

0.0

0%

10

0.0

0%

16

7.4

3%

72

.53

%

89

.91

%

10

0.0

0%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

Fabrication Assembly Fit Assembly

Weld

Erection Fit Erection Weld Outf itting Rigging Piping Erection Jigs

& Fixtures

Engineering &

Management

001 002 003 004 005 006 012 015 153 800

Rati

o E

arn

ed

Valu

e/A

ctu

al C

ost

Current Work Center Schedule Efficiency

66

.71

%

10

0.0

0%

23

.38

%

67

.42

%

84

.56

%

0.0

0%

10

0.0

0%

96

.42

%

70

.00

%

67

.02

%

59

.29

%

27

.01

%

0%

20%

40%

60%

80%

100%

120%

Outfit

Fabricatio

n

Outfit

Insta

llatio

n

Hull

Testin

g

Outfit

Testin

g

Pro

du

ctio

n C

ontr

ol

Rig

gin

g &

Mate

rial

Contr

ol

Pro

ductio

n

Serv

ices

Fabricatio

n

Assem

bly

Fit

Assem

bly

Weld

Ere

ctio

n F

it

Ere

ctio

n W

eld

21 22 800 850 901 925 950 S01 S02 S03 S04 S05

Perc

en

t H

ou

rs O

n S

ch

ed

ule

EAC Tracking Analyses

Tracking Labor Hour Costs

40,000

60,000

80,000

100,000

120,000

140,000

Lab

or

Ho

urs

ACWP (Incl Rework)

Projected ACWP

BAC

EAC (Incl. Rework)

EAC Extended

BAC Extended

BCWS

BCWP

EAC Trend

Tracking Various Labor Hour EACs

40,000

60,000

80,000

100,000

120,000

140,000

160,000

Lab

or

Ho

urs

B A C

SPA R EA C

C PI EA C

SPI EA C

SC I EA C

SPA R Trend EA C

M anual Progress EA C

Trend @ 10 0 %

SPA R EA C t o T rend @ 10 0 %

B A C @ 10 0 %

-

20,000

05/09/03 06/28/03 08/17/03 10/06/03 11/25/03 01/14/04 03/04/04 04/23/04 06/12/04 08/01/04 09/20/04 11/09/04

EAC Trend

EAC Trend Extended

Current EAC to Trend @100%

Rework

-

20,000

- 10 20 30 40 50 60 70 80 90 100

% Real Progress (ACWP/Current EAC)

Tracking Performance Indexes(By Percent Progress)

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

- 10 20 30 40 50 60 70 80 90

Percent "Real" Progress

(ACWP/Current EAC)

Perf

orm

an

ce I

nd

ex

CPI = BCWP/ACWP

SPI = BCWP/BCWS

SCI = SPI x CPI

TCPI = (BAC - BCWP)/(EAC - ACWP)

Labor Hours Per 1% Progress

(1,000)

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

- 10 20 30 40 50 60 70 80 90 100

Percent "Real" Progress

Lab

or

Ho

urs

per

1%

Pro

gre

ss

Hours per 1% SPAR Progress

Hours per 1% Manual Progress

Budget Hours per 1% Progress

Schedule & Progress Tracking

Projected Days

Ahead (Behind) Planned Finish Schedule

(19.25)(20.00)

(15.00)

(10.00)

(5.00)

-

Current Estimated Days Trend Days

Days A

head

/(B

eh

ind

) P

lan

ned

Fin

ish

Date

Estimated Finish Dates

9/1/2004

9/30/2004

9/21/2004

1

Trend Finish

Current Estimated Finish

(28.42)

(19.25)

(30.00)

(25.00)

Days A

head

/(B

eh

ind

) P

lan

ned

Fin

ish

Date

16-Aug-04 21-Aug-04 26-Aug-04 31-Aug-04 05-Sep-04 10-Sep-04 15-Sep-04 20-Sep-04 25-Sep-04 30-Sep-04 05-Oct-04

Planned Finish

Tracking Schedule Variance In Weeks

-20.0

-15.0

-10.0

-5.0

0.0

5.0

- 10 20 30 40 50 60 70 80 90 100

Percent "Real" Progress

(ACWP/Current EAC)

We

eks

Ah

ead

/(B

eh

ind

) S

ch

ed

ule

Current Est. Weeks

Trend Weeks

Trend Weeks @ 100%

Current Weeks Extended To Trend

@100%

Tracking & Comparing Progress

-

20

40

60

80

100

120

05/09/03 06/28/03 08/17/03 10/06/03 11/25/03 01/14/04 03/04/04 04/23/04 06/12/04 08/01/04 09/20/04

Perc

en

tag

e P

rog

ress C

om

ple

te

PERCEPTION Progress

Manual Progress

Real Progress (ACWP/Cur.EAC)

Percent Hrs Spent

Cash Flow Analyses

Tracking Actual Costs

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

Actual Labor Cost

Actual Labor + Overhead

Actual Overhead Cost

Material Cost Received

Material Cost Used

Total ACWP(Labor+Material+Overhead)

Total Cash Budget Versus EAC

(Labor, Material & Overhead)

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

$7,000,000

$8,000,000

$9,000,000

Do

llars

Total BAC + Reserves

Total EAC

Total Budget

Total ACWP

Total BCWP

Extended Total BAC

$-

$500,000

$1,000,000

12/10/02 01/29/03 03/20/03 05/09/03 06/28/03 08/17/03 10/06/03

$-

$1,000,000

$2,000,000

09/01/02 12/10/02 03/20/03 06/28/03 10/06/03 01/14/04 04/23/04 08/01/04 11/09/04

Extended Total BAC

Extended EAC

Extended Total ACWP-Cubic

Total BCWS

Material Cost Status

-$500,000

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

0 5 10 15 20 25 30 35 40 45 50

Percent Real Progress

Ma

teri

al D

ollars

Material Budget (BAC)

Material BCWS

Invoiced By Vendors

Total Commitment(Purchases + Stock)Direct Purchases

Material Received

Material Issued to Production

Material Budget +Management ReserveMaterial EAC

Material Earned Value(BCWP)

Tracking Cash Flow Schedules

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

$5,000,000

12/10/02 01/29/03 03/20/03 05/09/03 06/28/03 08/17/03 10/06/03

Labor BCWS

Material BCWS

Overhead BCWS

Total BCWS

•As Planned in Baseline

•As Currently Planned

•As Actually Expended To Date

Tracking Manpower Requirements

•As Forecast to Complete

Manpower can be evaluated by WBS, by shipyard work

center, for one project or across multiple projects.

The analysis can combine current back-log with proposed

new work.

Tracking

Project Manpower Requirements

Total Shipyard Manpower Modeling

(New Work Modeled On Top Of Active Work)

Training Tutorials

PERCEPTION system includes a wide range of

training tutorials depending upon the user’s specific

needs and scope of system functions authorized to use.

Getting Started – General System Features

Starting A New Project

ESTI-MATE Cost Estimating Libraries

ESTI-MATE Estimating New Construction

ESTI-MATE Estimating Ship Repair

MAT-PAC Starting From Scratch for Material Planning,

Purchasing & Inventory Control.

MAT-PAC Managing Drawings

MAT-PAC Managing Stock Inventories

MAT-PAC Material Requisition

MAT-PAC Purchase Orders

MAT-PAC Receiving & Warehousing

MAT-PAC The Parts Catalog

MAT-PAC Tool Room Management Control

MAT-PAC Withdrawing Material

MAT-PAC Work Order Pallets

Training Tutorials:

PERT-PAC Integrated Scheduling

PERT-PAC Scheduling Hull Block Construction

WORK-PAC Starting From Scratch for Work Order

Planning & Management

WORK-PAC Generating Work Orders

WORK-PAC Project Manpower Planning & Forecasting

WORK-PAC Shipyard Total Manpower Modeling

Project Manager Activities

Reports - Labor Cost & Work Progress

Reports - Material Cost &Schedule Status

Accounting New Project Setup

Accounting Customer Billings

Accounting Interface Setup

Accounting Time Charges

Accounting Vendor Invoices

System Security

All users are required to log into the system with their name

and password.

Each user also is formally assigned authorized areas of the

software to access and restricted from all others.software to access and restricted from all others.

SPAR Associates, Inc.

Over 30 Years Providing

•Shipyard management software

•Software development services

•Training & maintenance support•Training & maintenance support

•Planning & scheduling services

•Cost estimating services

•Management consulting

Over 35 Years Serving the Shipbuilding &

Repair Industry