Cost Variance Research Articles

Analisis varians biaya dalam mengukur efektivitas pengendalian biaya operasional pada Usaha Fellow Coffee Manado

Cost variance is the difference between budgeted costs and actual costs incurred. Operating costs are the expenses incurred by an organization to carry out its activities. When variances occur, controlling the costs associated with these variances is very important for the sustainability of business operations. Fellow Coffee Manado, as the object of research, is a cafe that sells coffee and non-coffee beverages as well as heavy meals. The purpose of this research is to measure the effectiveness of operational cost control at Fellow Coffee Manado using cost variance analysis. The research method used is qualitative descriptive, which aims to describe the effectiveness of operational cost control at Fellow Coffee Manado through cost variance analysis. The results of this study indicate the presence of cost variance in several components of operational costs, both favorable and unfavorable variances (unfavorable). The operational costs for the year 2023 that experienced unfavorable variances occurred in October, while favorable variances took place from January to September and from November to December. The causes of the variances in these costs should also be noted. For the control of the company's operating costs to be good and effective, it is due to the preparation of the budget and efforts to improve the budget and actual performance of Fellow Coffee Manado. The researcher hopes that in the future, the company will continue to prepare a better budget, along with monitoring and evaluation.

Optimizing Road Pavement Projects Through Earned Value Concepts

Every construction project faces constraints of cost, schedule, and quality that must be managed to achieve the desired objectives. This research aims to control the aspects of time and cost in construction projects by applying the Earned Value Concept and Crash Program methods. The subject of the study is the Preservation of Roads and Bridges project in Bireuen City - BTS, Lhokseumawe/Aceh Utara, Krueng Mane Buket Rata, SP. Krueng Geukeueh - PEL. Krueng Geukeueh (PEL. Lhokseumawe). The data analyzed includes the Budget Plan (RAB), project schedule, and reports on planned and actual work. This data is processed into three main indicators: BCWS, BCWP, and ACWP, which are then analyzed through Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index (CPI). The analysis results show that during weeks 22 to 23, the project had a positive Schedule Variance (SV) (0), which then turned negative during weeks 24 to 28, with an average Schedule Performance Index (SPI) of 1.0096, indicating that project execution was ahead of schedule. Meanwhile, the Cost Variance (CV) was positive throughout the project, and the average Cost Performance Index (CPI) was 1.2118, indicating that actual costs did not exceed the budget. The application of the Crash Program method resulted in changes in heavy equipment rental costs and worker wages, from IDR 1,440,469,946.99 over 50 days to IDR 1,853,072,988.06 over 25 days, with a cost increase of IDR 412,603,041.07 and an acceleration ratio of 1.29. This research demonstrates that the Earned Value Concept and Crash Program methods are effective in controlling time and cost in construction projects, thereby helping to achieve better efficiency in project management.

Sample Size Planning in the Design of Two-Level Randomized Cost-Effectiveness Trials

This study introduces recent advances in statistical power analysis methods and tools for designing and analyzing randomized cost-effectiveness trials (RCETs) to evaluate the causal effects and costs of social work interventions. The article focuses on two-level designs, where, for example, students are nested within schools, with interventions applied either at the school level (cluster design) or student level (multisite design). We explore three statistical modeling strategies—random-effects, constant-effects, and fixed-effects models—to assess the cost-effectiveness of interventions, and we develop corresponding power analysis methods and tools. Power is influenced by effect size, sample sizes, and design parameters. We developed a user-friendly tool, PowerUp!-CEA, to aid researchers in planning RCETs. When designing RCETs, it is crucial to consider cost variance, its nested effects, and the covariance between effectiveness and cost data, as neglecting these factors may lead to underestimated power.

Analysis of Construction Project Cost and Time Using the Earned Value Method

This study aims to analyze the cost and time performance of the renovation project of Arwana Restaurant The Laguna Resort and Spa Nusa Dua by applying the Earned Value method. The data used in this study include the Cost Budget Plan (RAB), project implementation schedule, weekly project progress reports, and project expenditure reports. The calculation is done by calculating the value of ACWP (Actual Cost of Work Performed), BCWS (Budgeted Cost of Work Schedule), BCWP ( Budgeted Cost of Work Performed ), CV ( Cost Variance ), SV ( Schedule Variance ), CPI (Cost Performance Index), SPI (Schedule Performance Index), ETC (Estimate to Complete), ETS (Estimate Time to Complete), EAC (Estimate at Completion), and EAS (Estimate at Schedule). The results of the analysis show that at the beginning of the project the performance was good, but other things began to decline from the 11th week to the 23rd week. At the end of the project, performance improved again as indicated by a CPI value of 1.07 and an SPI of 1 indicating lower costs and time according to plan. The estimated total final project cost (EAC) of Rp2,947,878,984.57 was lower than the Cost Budget Plan (RAB) of Rp3,143,852,000, resulting in a profit of Rp195,973,015.43. The estimated total final project time (EAS) was in accordance with the planned schedule, which was 27 weeks. In conclusion, overall the project performance was quite good even though it had declined in the middle of the project implementation.

Development and implementation of cost control strategies in oil and gas engineering projects

This review delves into the development and implementation of cost control strategies in oil and gas engineering projects, an area critical for maintaining project viability and profitability amidst fluctuating market conditions. Effective cost control is essential in the oil and gas sector, where projects are often capital-intensive and subject to economic and operational uncertainties. This review examines various cost control methodologies and their application throughout the project lifecycle, from initial planning and budgeting to execution and closure. The paper highlights key cost control strategies, including detailed project cost estimation, budget forecasting, and variance analysis. It discusses the use of advanced project management tools and technologies, such as software for real-time cost tracking and predictive analytics, which enhance decision-making and financial oversight. The review also covers the importance of risk management practices in identifying and mitigating potential cost overruns, emphasizing the role of contingency planning and risk assessment in maintaining financial control. Case studies demonstrate how successful implementation of these strategies can lead to significant cost savings, improved project efficiency, and enhanced financial performance. The challenges associated with cost control, including dealing with unexpected price fluctuations, scope changes, and regulatory compliance issues, are also addressed. Solutions to these challenges, such as adopting flexible budgeting techniques and leveraging data-driven insights, are discussed. The review concludes with recommendations for refining cost control practices in oil and gas engineering projects, including the need for continuous monitoring and adjustment of cost control measures, integrating cost management with overall project strategy, and fostering collaboration among project stakeholders to ensure alignment and accountability.

ANALISIS PENGENDALIAN FOOD COST PADA HOTEL THE ST. REGIS BALI RESORT

This research examines food cost control at The St. Regis Bali Resort uses the Committee of Sponsoring Organizations (COSO) framework which includes five main components of internal control. The study revealed that although the resort implemented a comprehensive control system, there were some gaps between implementation and ideal food cost control practices. The main findings show the existence of food cost variances caused by ineffective and inefficient controls. Several important factors that contribute to this problem include: delays in sending market lists and purchase requisitions from the kitchen to the purchasing department, receiving invoices that do not match the purchase order, and receiving scribbled notes from suppliers. This research also identified non-compliance with standard procedures in the process of purchasing and receiving food ingredients. For example, the purchasing department sometimes makes purchases outside the specified suppliers, while the goods receiving department faces price inconsistencies from suppliers. These gaps hinder the achievement of optimal food cost control targets and have the potential to affect the company's financial stability. This study emphasizes the importance of implementing a tighter and more consistent internal control system to increase the effectiveness and efficiency of food cost control at The St. Regis Bali Resort

Dynamic BIM Adoption Impact on Contract Cost Variance Factors Using PLS-SEM Techniques

This paper investigates the Building Information Modeling (BIM) adoption impact on the factors of Contract Cost Variance (CCV) over time. The study considers qualitative and quantitative data to identify the most common causes of CCV through pre-tendering. A partial least square-structure model (PLS-SEM) procedure was used to develop a causal model and rank CCV factors based on their effect, partially based on prior survey raw data conducted in 2022 and the data from 94 projects. Construction industry experts assessed the prior five-year rate of BIM adoption on construction projects to infer the expected trend in BIM adoption in the future (until 2037). Based on the causal model of CCV factors and the future rates of BIM adoption, the dynamic impact of BIM on CCV factors over time was modeled and analyzed. The analysis shows that BIM reduces CCV over time by improving Estimator Performance (EP), Information Quality (IQ), and contractual procedure (CP). The results showed that the CP, EP, and EF have directly impacted CCV, and the PC and IQ indirectly affect the CCV. This paper considers the temporal aspect, examining how the impact of BIM on CCV factors evolves. This dynamic analysis is crucial for long-term strategic planning in construction management.

Risk-averse coordinated operation of hydrogen-integrated energy hubs with seasonal energy storage

Addressing seasonal fluctuations and supply–demand mismatches in renewable energy is vital for sustainable multi-energy hubs. Moreover, current research has limitations in achieving economic efficiency, flexibility, security, and sustainability simultaneously. Therefore, this study leverages hydrogen storage’s long-term flexibility, proposing an integrated operational strategy to manage these fluctuations and optimize green energy utilization. This novel tertiary hub hydrogen-based integrated energy system integrates producers, prosumers, and consumers, optimizing ecological and economic sustainability via demand response programs and carbon capture, utilization, and storage systems. Utilizing risk-averse stochastic optimization for day-ahead and real-time operations, it evaluates dispatch decisions’ impact on risk costs and coupling efficiency. This study’s mixed-integer linear programming model, solved using CPLEX in GAMS, ensures a globally optimal solution. Key findings include an 86.15% cost-saving return through multi-energy storage and hub coordination, along with a 5.27% decrease in operating expenses and an 8.13% drop in emissions. In addition, adjusting the risk level parameter by 10% leads to a 14.76% variance in risk cost, bolstering client confidence in the model’s efficacy and sustainability.

Implementation of Site Quality Management System for a Building Construction Project

Construction industry plays an important role in the development of any country. The development of construction industry depends on the quality of construction projects. Quality is one of the critical factors in the success of construction projects. Improvement in the quality of construction projects is linked with quality management in the project life cycle. Although quality management at every stage of project life cycle is important but the quality management at the execution (construction) stage contributes significantly on final quality outcome of construction projects. This project mainly focuses the importance and factors that affects the quality management in the execution (construction) phase. The project also includes visiting of some construction companies and conducts the questionnaire survey, then analyse the difficulties (major factors) and the cost variance due to quality defect in quality management and suggests some proactive measures for the improvement of quality in the execution phase of construction projects.

Tri-Phase Implementation of an Innovative Fuzzy Logic Approach for Decision-Making

This paper proposes a novel approach to decision-making based on a three-phase application of a new fuzzy logic model that embraces the principles of symmetry by balancing competing objectives in data collection and analysis. Our study, which employs a three-stage stratified random sample strategy with a randomized response technique, addresses the critical challenges of cost management and volatility reduction. Using the alpha-cut method, our model creates an effective allocation strategy that finds a balance between cost constraints and variance reduction objectives. We use numerical examples from real-world scenarios to demonstrate our approach’s durability and practicality. Our revolutionary technique maintains data quality and cost-effectiveness while offering a game-changing answer to sensitive information acquisition concerns. By combining randomized response techniques and fuzzy logic, this study establishes a new standard for decision-making models that prioritizes both data-gathering precision and privacy preservation, encapsulating the essential principle of symmetry in balancing competing aims.

Physical vs Virtual corporate power purchase agreements: Meeting renewable targets amid demand and price uncertainty

Power purchase agreements (PPAs) have become an important corporate procurement vehicle for renewable power, especially among companies that have committed to targets requiring a certain fraction of their power demand be met by renewables. PPAs are long-term contracts that provide renewable energy certificates (RECs) to the corporate buyer and take two main forms: Physical vs Virtual. Physical PPAs deliver power in addition to RECs, while virtual PPAs are financial contracts that hedge (at least partially) power price uncertainty. We compare procurement portfolios that sign physical PPAs with ones that sign virtual PPAs, focusing on fixed-volume contracts and emphasizing uncertainties in power demand and the prices of power and RECs. In particular, we first analyze a two-stage stochastic model to understand the behavior of procurement quantities and costs when using physical and virtual PPAs as well as variants that limit risk. We subsequently formulate a Markov decision process (MDP) that optimizes the multi-stage procurement of power to reach and sustain a renewable procurement target. By leveraging state-of-the-art reoptimization techniques, we solve this MDP on realistic instances to near optimality, and highlight the relative benefits of using PPA types to meet a renewable target. We underscore a trade-off between expected cost and cash flow variance that buyers should consider when choosing between physical and virtual PPAs. Moreover, advanced reoptimization techniques significantly impact the ability to manage this trade-off.

Research on Cost Control of Railway Engineering Based on Grounded Theory

An analysis of cost management within railway construction projects has been conducted using the Analytic Hierarchy Process (AHP) and a regression analysis to evaluate and rank key financial and operational factors affecting project costs. This research assesses the impact of various metrics, such as Safety Inspections, Emergency Preparedness, and Equipment Maintenance, along with financial indicators such as Actual Cost and Variance, on cost control strategies by building a hierarchical model and implementing AHP. The results indicate a clear preference for Financial Metrics, with a priority vector of 0.667, over Operational Metrics, which have a priority vector of 0.334. Among the Financial Metrics, Actual Cost, with a priority vector of 0.565, is identified as the most influential, underscoring the importance of direct cost management. Among the Operational Metrics, Emergency Preparedness is the most important, with a priority vector of 0.540, emphasizing the importance of effective risk management. A regression analysis confirms these priorities, with significant correlations presented between these metrics and variances in costs. According to this study, changes in Emergency Preparedness and Equipment Maintenance can predict cost fluctuations, aligning with the findings of the AHP study. The AHP evaluations are demonstrated to be reliable, with consistency ratios significantly below the 0.1 benchmark (0.043 for Financial Metrics and 0.008 for Operational Metrics), indicating a high degree of consistency in judgment. The statistical validation enhances the framework’s effectiveness in steering strategic decisions regarding cost management. This paper discusses the implications of these results to reduce financial risks and improve project outcomes.

Associations of strength indices and cycling economy in young adults

Abstract Objectives Cycling economy is associated with muscle strength in athletes. However, the relationship between strength capacity (i.e. maximal and explosive strength) and cycling economy in previously untrained but healthy individuals remains unclear. Therefore, this study aimed to assess the associations between cycling economy and strength performance in a population of recreationally active but untrained healthy individuals. Methods A total of 155 recreationally active individuals (95 males and 60 females) were included. Strength capacity was assessed through an incremental one-repetition maximum test, from which the one-repetition maximum, mean propulsive velocity, and mean propulsive power were derived as strength indices. Cycling economy was assessed using a step protocol on a cycle ergometer and gross oxygen cost and caloric unit cost were determined at submaximal intensities. Results Marginal R2 ranged between 0.013 and 0.062 for the gross oxygen cost and between 0.022 and 0.103 for the gross caloric unit cost, respectively. Greater cycling economy is related to higher strength levels. However, the relationship is relatively weak, explaining only 1.3–6.2 % of the variance in gross oxygen cost and 2.2–10.3 % of the variance in gross caloric unit cost. Conclusions Greater cycling economy in recreationally active males and females is related to higher strength levels (i.e. one-repetition maximum, mean propulsive velocity, mean propulsive power).

Static Task Allocation Method for Multi-Machines in Cooperative Operations Combining OGFR-GA and MLW-Prim

Aiming at the operational efficiency of small farm machinery groups in cooperative operations in hilly areas, this study proposes a static task allocation model. This method combines the optimal gene fragment retention method based on a genetic algorithm (OGFR-GA) and the method for generating multi-loop weighted connected graphs based on Prim’s algorithm (MLW-Prim). The collaborative objective function for the harvester group was established by considering factors such as operation time, fuel consumption, and distance. The OGFR-GA was designed and applied multiple times to obtain several optimal gene fragments corresponding to the number of farm machines. These fragments were used as critical paths in the weighted connected graph generated based on farm machinery performance parameters and task parameters. The MLW-Prim method was proposed to construct this weighted connected graph and realize the static task allocation model for multi-machine cooperative operations. Simulation experiments showed that the model combining OGFR-GA and MLW-Prim achieved optimal values with fewer iterations, and reduced both group cost and cost variance compared to traditional algorithms. This method meets the static task allocation needs for multi-machine cooperative operations in agricultural production and can be integrated with intelligent operations in mountainous and hilly regions, laying a theoretical foundation for improving efficiency.

EVALUATION OF TIME AND COST PERFORMANCE ON THE GX OFFICE & CO WORKING BALI PROJECT USING THE EARNED VALUE METHOD

In rapid construction developments, delays still occur frequently and have not been resolved, as experienced by the GX Office & Co Working Bali project. The project will be completed in 42 weeks, but in the 27th week, there is an indication of a delay of -4.31% from the initial plan. Earned Value Method (EVM) is a time and cost performance assessment method that can be used to develop strategies to minimize delays. This research aims to evaluate the time and cost performance of the GX Office & Co Working Bali project using the EVM method. A quantitative approach is used to collect and analyze project schedules, actual costs, and progress reports. EVM key indicators such as Planned Value (PV), Earned Value (EV), and Actual Cost (AC) are analyzed to determine Schedule Variance (SV), Cost Variance (CV), Schedule Performance Index (SPI), and Cost Performance Index (CPI). The results showed that the project experienced delays, especially from week 1 to week 14 and week 19 to week 27, with SPI values mostly below 1. However, the project showed increased efficiency in cost management with values CPI above one after week 14 to week 27, indicating that the actual costs incurred are lower than the value of the work completed. These findings highlight the need for corrective actions and more effective management strategies to address delays efficiently in terms of costs.

Dual-task costs in speed tasks: a comparison between elite ice hockey, open-skill and closed-skill sports athletes.

Ice hockey is a high pace sports game that requires players to integrate multiple skills. Players face perceptive, cognitive, and motor tasks concurrently; hence, players are regularly exposed to dual- or multi-task demands. Dual-tasking has been shown to lead to decreased performance in one or both performed tasks. The degree of performance reductions might be modulated by the exhaustion of cognitive resources. Literature on dual-task paradigms that combine sport-relevant elements is scarce. Therefore, a novel paradigm combining cyclical speed of the lower extremities and concurrent visuo-verbal speed reading was tested and validated. Additionally, to understand the nature of dual-task costs, the relationship between these costs and cognitive performance was assessed. We hypothesized occurrence of dual-task costs in all athletes without relationship to single task performance. Differences in dual-task cost were expected between open-skill and closed-skill sports, as well as differing expertise levels. Level of cognitive function was expected to explain some variance in dual-task cost. A total of 322 elite athletes (120 ice hockey, 165 other team sports, 37 closed-skill sports) participated in this study. Each athlete performed a tapping task, a visuo-verbal speed-reading task, and both tasks simultaneously. All ice hockey athletes performed additional cognitive tests assessing processing speed, spatial working memory, sustained attention, two choice reaction time, and motor inhibition. The results of paired-sample t-tests confirmed significant dual-task costs for all sport groups (p < 0.001). Single-task performance and dual-task costs correlated weakly in a positive direction. A one-way ANOVA revealed significantly greater costs in closed-skill sports athletes than in ice hockey and other sports athletes. No significant differences in dual-task costs were found between teams of differing expertise levels. Lastly, no significant regression model was found to predict dual-task costs from cognitive test performance. Our study suggests that this novel dual-task paradigm was successful in inducing dual-task costs for all elite athletes. Since it distinguishes between closed-skill and open-skill sports athletes, it might be a valuable diagnostic tool for performance and for talent development of open-skill athletes. Dual-task costs could not be relevantly predicted via cognitive performance measures, questioning cognitive resource theories as an explanation for dual-task costs.

Earned Value Analysis Terhadap Waktu dan Biaya Pada Proyek Pembangunan Gedung Pasar Padang Panjang

Along with the population and economic growth of West Sumatra, especially in Padang Panjang City, West Padang Panjang District, the need for public facilities is urgently needed, one of which is the Padang Panjang market. In a project, planning and controlling costs and time is part of overall project management, especially at the implementation stage of the case study reviewed by researchers, namely the Padang Panjang market building construction project. In this research regarding time and cost control, the earned value method is one method that can monitor project performance in terms of time and cost. Which aims to determine project performance in terms of time and costs each week and predict the time and costs to complete the remaining work. So that we can get corrective actions to be taken next to progress the project. In this research, to obtain a basic basis for writing, secondary data collection is used as supporting data for the analysis of the results themselves. The analysis and discussion carried out were calculating the BCWS value, BCWP value and ACWP value in order to obtain the time variance value (SV), cost variance value (CV), calculating the productivity index, calculating project performance and calculating the estimated analysis of total project costs and completion time. The results of the research carried out are, the overall BCWS value of the Padang Panjang market project is IDR 96,213,315,046.3, for the BCWP value at the end of the 22nd week of review IDR 12,688,575,967, the ACWP value at the end of the 22nd week of review is IDR. 12,389,476,444.2 . As for the analysis results obtained from several existing indicators, the SPI value was 1.384 &gt; 1, while the CPI was 1.003 &gt; 1, which means that the project was accelerated in terms of schedule but incurred actual costs that were smaller than the work that had been carried out. The ETC value is IDR 84,134,151,328.9 and the EAC value is IDR 96,523,627,773.1, while the ECD value is 373 days for the project completion time.

Earned Value Analysis Terhadap Biaya dan Waktu pada Proyek Pembangunan Gudang Produksi PP. Indopack Printing Nganjuk

Earned Value Analysis is a technique of analyzing cost and time to obtain the performance achieved per time on a project, so that users are able to predict the cost and time required to complete the remaining project work. The prediction is calculated with the assumption that the performance of completing the rest of the project will be the same and constant as the performance obtained when the review was conducted. Thus, a system is needed to integrate cost and time information. The Earned Value concept is an analysis used in project management by integrating cost and time. The results show the value of Cost Variance (CV) week 16 during the review of Rp.1,995,516,896, Schedule Variance (SV) of Rp.-162,490,873 which shows there is no cost overrun in implementation but the schedule is not according to plan. While the Schedule Performance Index (SPI) value of 0.994 &lt; 1 and Cost Performance Index (CPI) of 1.070 means that the project is delayed but still profitable. The results of the analysis of the costs required to complete the remaining project Estimate To Complate (ETC) at week 16 review with a value of Rp. 19,270,138,044. While the results of the analysis of the amount of time required to complete the Estimate To Schedule (ETS) project amounted to 126.76 with a rounding of 127 days.

ANALYSIS OF COST AND TIME PERFORMANCE ON THE EAST SURABAYA HOSPITAL CONSTRUCTION PROJECT USING THE EARNED VALUE METHOD

The construction of the East Surabaya Hospital is a multiyear project, starting from 2023 to 2024. The project has a contract value of Rp. This 494,603,098,000 is funded by the Regional Revenue and Expenditure Budget (APBD) of the Surabaya City Government. This research aims to analyze the cost and time performance of the project. The method used is the earned value method. The results of the cost and time performance analysis using the Earning Value method show that the cost performance and time performance of the East Surabaya Hospital Construction in the 22nd (twenty-second) week is considered not good. This result is shown by the Cost Variance value of Rp. - 608,118,565 and Schedule Variance value Rp. - 44,410,784,255. The Cost Performance Index value of 0.996 and the Schedule Performance Index value of 0.76 also shows that the cost and time performance of this project in the 22nd (twenty-second) week is not in good condition.

APPLICATION OF THE ARIMA METHOD IN FORECASTING THE PRICE RED CAYENNE PEPPER IN MAKASSAR CITY

Red chili is one of the commodities with very tall cost changes. The cost variance of red chili can be caused by a huge amount of supply and request. The higher the amount of supply, the lower the cost, and the lower the amount of supply, the higher the cost. This study aims to implement the ARIMA method in forecasting red cayenne pepper prices in Makassar City. Data analysis to forecast red cayenne pepper prices used the ARIMA method with the results show that the price range of chili is from IDR 13,000 to IDR 80,000, with a mean value of IDR 38,218. The model with the minimum SSE and MSE value is ARIMA(1,1,1), so this model be used in time series data modeling for forecasting. The results of forecasting using the best model obtained a MAPE value of 15.90%, which is in the range of 10-20%, so it can be concluded that the ability of the ARIMA(1,1,1) model in forecasting the price of red cayenne pepper includes the good category.