Cost tracking

A quant is a meaningful logistic disposition unit, which can be cost tracked in the value chain. If, for example, a batch problem exists, a quant corresponds exactly to the batch size. If continuous production exists, a quant corresponds to a meaningful small rounding unit and in the case of a filling process to the respective bundling units. Quants can be individually defined. 

Sometimes it seems that accuracy has little to do with the effort and sophistication of the resources applied to the preparation of estimates. Occasionally a 15 minute, back-of-an-envelope estimate turns out to be more accurate than a detailed estimate prepared after weeks of engineering using complicated and expensive techniques. However, these are extreme cases, and a back-of-an-envelope estimate should not be relied upon for appropriation nor for cost tracking or control. 

They are prepared at various points during the detailed engineering mainly as a control and cost tracking tool. 

The ranges of the factors recommended for the various cost accounts are very wide and the accuracy of the estimate of each one will be much lower than the accuracy of the total cost. Additionally, the resulting estimate would not be suitable for cost tracking. 

Breaking down an estimate requires a certain degree of engineering and materials take-offs. In the case of definitive and engineering-type estimates, this will usually be done by an engineering contractor and the details will be more than adequate for cost tracking. 

The involvement must be far more extensive than the mere review of the final product. The Project Manager must also review the basis of the estimate and the estimating approach to insure that the estimating efforts are commensurate with the information available and that the product will include sufficient details to satisfy the project s further need for planning, cost tracking and progress monitoring. 

As mentioned in the previous section, the only requirements for effective in-house cost tracking are ... 

The cost tracking activity could become cumbersome and expensive when construction is executed using direct-hire rather than lump sum contracts. In that case, labor productivity becomes an important cost factor and must be monitored closely to determine trends, try to make corrections, and make accurate forecasts. 

It provides sufficient details to permit scope and cost tracking during the preliminary design stage. 

At the other extreme, electrical work could be estimated as a percent of the equipment costs. However, this method is not only very inaccurate (published information shows a range of 10% to 50% of equipment cost), but also does not provide a means of cost tracking or progress monitoring. 

This procedure presents a quick and reasonably accurate system to estimate the electrical account at different levels of engineering design in sufficient detail for subsequent cost tracking and progress monitoring. It can be used for grassroots plants/units as well as for retrofit work. 

The BSCC is the baseline for cost tracking and determination of the resolution allowance. It is the cost of the base scope plus any additional scope and/or new scope as applicable. It does not include changes. The BSCC could be ... 

Estimates that have caused a project to be redefined and reestimated tend to return to the original estimate unless the effort at cost tracking (Fig. 13) is intense and finger-pointing. 

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