Data analytics is transforming project controls, enabling more precise decisions and better forecasting.
1. Real-Time Data and Dashboards
Project control professionals now have access to real-time data through dashboards, which makes it easier to track performance. Tools like Power BI can be used to display key metrics such as:
- Planned Value (PV)
- Earned Value (EV)
- Actual Cost (AC)
Example: For a project with the following data:
- Planned Value (PV) = $100,000
- Earned Value (EV) = $90,000
- Actual Cost (AC) = $95,000
Using formulas:
- Cost Performance Index (CPI) = EV / AC = 90,000 / 95,000 = 0.947
- Schedule Performance Index (SPI) = EV / PV = 90,000 / 100,000 = 0.9
These indicators show that the project is behind schedule and over budget, providing insight for corrective actions.
2. Predictive Analytics for Proactive Management
Predictive analytics uses historical data to forecast potential risks. For example, if similar projects experienced delays during procurement, predictive models can signal a similar risk for future projects.
3. Resource Optimization
By analyzing resource data, you can optimize utilization. For example, if a project uses 3 cranes, but data shows that only 2 are needed during certain months, this insight can reduce costs and free up resources for other tasks.
4. Performance Measurement and KPIs
Key Performance Indicators (KPIs) like CPI and SPI can be monitored through dashboards. Let’s say the CPI is consistently below 1, meaning the project is over budget, and the project manager can investigate further into cost overruns.
5. Risk Management
Risk models help identify potential delays and cost overruns. For example, if a specific task on a construction project is flagged as high-risk, the data might indicate that it has a 30% probability of delay. This allows the team to take mitigating actions before delays occur.
6. Data-Driven Decision Making
Decisions driven by data are more accurate and less prone to human error. For example, if cost data shows that a specific subcontractor is consistently overcharging, management can take action by renegotiating contracts or sourcing alternative vendors.