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Engineering Project Management Civil Engineering Department.

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1

2 Engineering Project Management Civil Engineering Department

3 2 An-Najah National University Civil Engineering Department Faculty of Engineering Construction Engineering and Management Nabil Dmaidi June 5, 2014

4 3 Your Expectations of Me Be prepared Be on time Teach for full 50 minute period Fair grading system Front load the class work Do not humiliate students Practice golden rule Provide real world examples Make you think June 5, 2014

5 4 Topics 1) Management Functions and introduction of construction project planning and scheduling 2)Construction scheduling techniques 3)Preparation and usage of bar charts 4)Preparation and usage of the Critical Path Method (CPM) 5)Preparation and usage of Precedence Diagramming Method (PDM) 6)Issues relating to determination of activity duration 7)Contractual provisions relating to project schedules 8)Resource leveling and constraining 9)Time cost tradeoff 10)Schedule monitoring and updating. 11)Communicating schedule 12) Project control and earned value Control 13) claims, Safety and Quality control June 5, 2014

6 5 Course Outline Introduction and definitions Float Analysis Importance of Scheduling The CPM Calculations Networks, Bar Charts, and Brief introduction on: Imposed Finish Date and Project Control and Earned Value Analysis Resource Allocation /Leveling other CPM Issues Time/Cost Trade-off Precedence Networks Updating Schedules Time-Scaled Logic Diagrams June 5, 2014

7 6 project In order to understand project management, one must begin with the definition of a project. A project can be considered to be any series of activities and tasks that :. Have a specific objective to be completed within certain specifications Have defined start and end dates Have funding limits (if applicable) Consume human and nonhuman resources (i.e., money, people, equipment) Are multifunctional (i.e., cut across several functional lines) What is the Project June 5, 2014

8 7 OR a temporary endeavor undertaken to create a unique product, service, or result June 5, 2014

9 8 Project Life Cycle June 5, 2014

10 9 Five Process group Project initiation Selection of the best project given resource limits Recognizing the benefits of the project Preparation of the documents to sanction the project Assigning of the project manager Project planning Definition of the work requirements Definition of the quality and quantity of work Definition of the resources needed Scheduling the activities Evaluation of the various risks Project execution Negotiating for the project team members Directing and managing the work Working with the team members to help them improve Project monitoring and control Tracking progress Comparing actual outcome to predicted outcome Analyzing variances and impacts Making adjustments Project closure Verifying that all of the work has been accomplished Contractual closure of the contract Financial closure of the charge numbers Administrative closure of the paper work June 5, 2014

11 10 June 5, 2014

12 11 project objectives Successful project management can then be defined as having achieved the project objectives: Within Time Within Cost At the desired performance/Technology level While utilizing the assigned resources effectively and efficiently Accepted by the customer June 5, 2014

13 12 What is Project Management Project management is the planning, organizing, directing, and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives. June 5, 2014

14 13 The potential benefits from project management are : Identification of functional responsibilities Minimizing the need for continuous reporting Identification of time limits for scheduling Identification of a methodology for trade-off analysis. Measurement of accomplishment against plans June 5, 2014

15 14 The above definition requires further comment. Classical management is usually considered to have five functions or principles: Planning Organizing Staffing Controlling Directing June 5, 2014

16 15 Planning – Where the organization wants to be in the future and how to get there. Organizing – Follows planning and reflects how the organization tries to accomplish the plan. – Involves the assignment of tasks, grouping of tasks into departments, and allocation of resources. June 5, 2014

17 16 Leading – The use of influence to motivate employees to achieve the organization's goals. – Creating a shared culture and values, communicating goals to employees throughout the organization, and infusing employees to perform at a high level. Controlling – Monitoring employees' activities, determining if the organization is on target toward its goals, and making corrections as necessary June 5, 2014

18 17 Conceptual Skillthe ability to see the organization as a whole and the relationship between its parts. Human SkillThe ability to work with and through people. Technical SkillMastery of specific functions and specialized knowledge Management Skills June 5, 2014

19 18 Project management is designed to manage or control company resources on a given activity, within time, within cost, and within performance. Time, cost, and performance are the constraints on the project. Constraints of the project June 5, 2014

20 19 Resources We have stated that the project manager must control company resources within time, cost, and performance. Most companies have six resources: Money Manpower Equipment Facilities Materials Information/technology June 5, 2014

21 20 Actually, the project manager does not control any of these resources directly, except perhaps money (i.e., the project budget). line managers Resources are controlled by the line managers. project manager The project manager is responsible for coordinating and integrating activities across multiple, functional lines. The integration activities performed by the project manager include: June 5, 2014

22 21 Integrating the activities necessary to develop a project plan Integrating the activities necessary to execute the plan Integrating the activities necessary to make changes to the plan June 5, 2014

23 22 Project Scheduling Planning, Scheduling, and Control June 5, 2014

24 23 Planning and Scheduling Planning and scheduling are two terms that are often thought of as synonymous They are not! Scheduling is just one part of the planning effort. June 5, 2014

25 24 Project planning serves as a foundation for several related functions such as cost estimating, scheduling, and project control. Project scheduling is the determination of the timing and sequence of operations in the project and their assembly to give the overall completion time June 5, 2014

26 25 Planning is the process of determining how a project will be undertaken. It answers the questions: 1. What is going to be done, 2. how, 3. where, 4. By whom, and 5. when (in general terms: start and finish). Scheduling deals with when on a detailed level… See Figure 1. June 5, 2014

27 26 The Plan What How much By whom where Why How when Figure 1. Planning and Scheduling June 5, 2014

28 27 The Plan PMI defines project management plan as a formal, approved document that defines how the project is executed, monitored and controlled. The plan can include elements that has to do with scope, design and alternate designs, cost, time, finance, land, procurement, operations, etc. June 5, 2014

29 28 WHY SCHEDUALE PROJECTS ? 1- To calculate the project completion. 2- To calculate the start or end of a specific activity. 3-To expose and adjust conflict between trades or subcontractor. 4- To predict and calculate the cash flow. 5-To evaluate the effect of changing orders CH. June 5, 2014

30 29 6- To improve work efficiency. 7- To resolve delay claims, this is important in critical path method CPM discussed later.. 8- To serve as an effective project control tool. June 5, 2014

31 30 The Tripod of Good Scheduling System 1.The Human Factor : A proficient scheduler or scheduling team. 2. The Technology : A good scheduling computer system (software and hardware) 3. The Management : A dynamic, responsive, and supportive management. If anyone of the above three legs is missing, the system will fail. June 5, 2014

32 31 Scheduling and project management Planning, scheduling, and project control are extremely important components of project management. project management includes other components : cost estimating and management, procurement, project/contract administration, quality management, and safety management. These components are all interrelated in different ways. June 5, 2014

33 32 Quiz 1 True or False: 1.There are no two projects that are identical 2.Every construction project needs a CPM schedule 3.Planning and scheduling are two names for the same function 4.The maintenance of a large office building is considered a project 5.The renovation of a large office building is considered a project 6.There is one standard way to break down the project into activities for the purpose of creating a schedule June 5, 2014

34 33 Bar (Gantt) Charts June 5, 2014

35 34 DEFINITION AND INTRODUCTION A bar chart is a graphic representation of project activities, shown in a time-scaled bar line with no links shown between activities The bar may not indicate continuous work from the start of the activity until its end. or Non continuous (dashed) bars are sometimes used to distinguish between real work (solid line) and inactive periods (gaps between solid lines) June 5, 2014

36 35 Before a bar chart can be constructed for a project, the project must be broken into smaller, usually homogeneous components, each of which is called an activity, or a task. Item Activity M 10 Mobilization Bars ( Month or Year ) June 5, 2014

37 36 ADVANTAGES OF BAR CHARTS 1- Time-scaled 2- Simple to prepare 3- Can be more effective and efficient if CPM based - Still the most popular method 4- Bars can be dashed to indicate work stoppage. 5- Can be loaded with other information (budget, man hours, resources, etc.) June 5, 2014

38 37 Bar Charts Loaded with More Info. Such as : budget, man hours and resources $ 220$ 400$ 850$ 140$ 500$ 900$ June 5, 2014

39 38 DISADVANTAGES OF BAR CHARTS 1- Does not show logic 2- Not practical for projects with too many activities -As a remedy, we can use bar charts to show: 1. A small group of the activities (subset) 2. Summary schedules June 5, 2014

40 39 Quiz 2 True or False: 1.The bar representing a 4-day activity is twice as long as a bar representing a 2-day activity in a bar chart 2.Bar chart method lost its applicability with the introduction of the Critical Path Method 3.Bars in a bar chart must be connected with relationship lines 4.A bar representing an activity in a bar chart may not be continuous 5.Bar charts and Gantt charts are two different methods. 6.Bar charts can be loaded with information other than the timeline of the project June 5, 2014

41 40 Basic Networks June 5, 2014

42 41 DEFINITION AND INTRODUCTION A network is a logical and chronological graphic representation of the activities (and events) composing a project. Network diagrams are the preferred technique for showing activity sequencing. Two main formats are the arrow and precedence diagramming methods. June 5, 2014

43 42 Two classic formats AOA: Activity on Arrow AON: Activity on Node Each task labeled with Identifier (usually a letter/code) Duration (in std. unit like days) There are other variations of labeling There is 1 start & 1 end event Time goes from left to right June 5, 2014

44 43 Arrow Diagramming Method (ADM) 1. Also called activity-on-arrow (AOA) network diagram or (I-J) method (because activities are defined by the form node, I, and the to node, J) 2. Activities are represented by arrows. 3. Nodes or circles are the starting and ending points of activities. 4. Can only show finish-to-start dependencies. June 5, 2014

45 44 i j (a) Basic Activity Activity Name Node (Event) i j > i Each activity should have a unique i – j value Node (Event) j Basic Logic Patterns for Arrow Diagrams June 5, 2014

46 45 2 A (b) Independent Activities 410 B 12 3 A 6 B 9 (c) Dependent Activities June 5, 2014

47 46 2 A (d) A Merge 4 6 B 8 (e) A Burst C Activity C depends upon the completion of both Activities A & B 8 A 6 2 B 4 C Activities B and C both depend upon the completion of Activity A June 5, 2014

48 47 (f) A Cross C 16 D 14 A 12 B Activities C and D both depend upon the completion of Activities A and B June 5, 2014

49 48 Example Draw the arrow network for the project given next. IPAActivity -A AB AC BD C,DE June 5, 2014

50 49 Solution : C D A B E June 5, 2014

51 50 Dummy activity (fictitious) * Used to maintain unique numbering of activities. * Used to complete logic, duration of 0 * The use of dummy to maintain unique numbering of activities. June 5, 2014

52 A B A B Divide node to correct Dummy (a) Incorrect Representation (b) Correct Representation June 5, 2014

53 52 Example Draw the arrow network for the project given next. IPAActivity -A AB AC B,CD June 5, 2014

54 C D A B Solution : C D A B Dummy Improper solution proper solution June 5, 2014

55 54 Example Draw the arrow network for the project given next. IPAActivity -A AB AC BD B,CE CF June 5, 2014

56 55 Solution : C E A B Dummy 1 50 Dummy 2 D F June 5, 2014

57 56 Removal of Redundant Dummies A A A A B B B B CC Original DiagramDiagram after removal of redundant dummies (a) (b) June 5, 2014

58 57 A A A A C C B C BB Original DiagramDiagram after removal of redundant dummies (c) (d) BE C E EE June 5, 2014

59 58 Immediately Preceding Activity (IPA) Depends UponActivity A B A A, B ABCABC B C A Redundant Relationship June 5, 2014

60 59 Activity List with Dependencies: Depends UponDescriptionActivity A A, B, C B, C, J, M B, C, D, E, K D, E, F, G, L Site Clearing Removal of Trees Excavation for Foundations Site Grading Excavation for Utility Trenches Placing formwork & Reinforcement Installing sewer lines Pouring concrete Obtain formwork & reinforcing steel Obtain sewer lines Obtain concrete Steelworker availability ABCDEFGHJKLMABCDEFGHJKLM June 5, 2014

61 60 Depends UponDescriptionActivity A A, B, C B, C, J, M B, C, D, E, K D, E, F, G, L Site Clearing Removal of Trees Excavation for Foundations Site Grading Excavation for Utility Trenches Placing formwork & Reinforcement Installing sewer lines Pouring concrete Obtain formwork & reinforcing steel Obtain sewer lines Obtain concrete Steelworker availability ABCDEFGHJKLMABCDEFGHJKLM Removing Redundant Relationships: June 5, 2014

62 61 AOA Representation H 40 G 45 C F D B A 20 M 25 J 30 E L K June 5, 2014

63 62 NODE NETWORKS MTHOD (AON) a) Independent Activities 10 A 10 A 20 B 20 B Activity number Activity name b) Dependent Activities 20 B 20 B 10 A 10 A Link B depends on A June 5, 2014

64 63 30 C 30 C 10 A 10 A 20 B 20 B 40 D 40 D c) A Merge Relationship C depends on A & B D depends on C d) A Burst Relationship 20 B 20 B 30 C 30 C 40 D 40 D 10 A 10 A B depends on A C depends on B D depends on B June 5, 2014

65 64 e) Start & Finish Dummy Activities A A C C B B E E D D A A Start Dummy Start Dummy Finish Dummy Finish Dummy C C B B E E D D June 5, 2014

66 65 Example Draw the arrow network for the project given next. IPAActivity -A AB AC BD C,DE June 5, 2014

67 66 Solution : AE C DB June 5, 2014

68 67 Example Draw the arrow network for the project given next. IPAActivity -A AB AC B,CD June 5, 2014

69 68 A C D B Solution : June 5, 2014

70 69 Example Draw the arrow network for the project given next. IPAActivity -A AB AC BD B,CE CF June 5, 2014

71 70 Solution : APF C DB E F June 5, 2014

72 71 Lags and Leads In some situations, an activity cannot start until a certain time after the end of its Predecessor. Lag Lag is defined as a minimum waiting period between the finish (or start) of an activity and the start (or finish) of its successor. Arrow networks cannot accommodate lags. The only solution in such networks is to treat it as a real activity with a real duration, no resources, and a $0 budget. June 5, 2014

73 72 Examples Place Concrete 3 Strips Forms 2 3 A lag in a node network Place ConcreteStrips FormsCure Concrete A lag in an arrow network June 5, 2014

74 73 lead The term lead simply means a negative lag. It is seldom used in construction. In simple language: A positive time gap (lag) means after and a negative time gap (lead) means before. June 5, 2014

75 74 Recommendations for Proper Node Diagram Drawing Incorrect Correct June 5, 2014

76 75 A B A B A B A B Improperproper June 5, 2014

77 76 ImproperProper June 5, 2014

78 77 ImproperProper June 5, 2014

79 78 A B C ImproperProper A B C PS start (a) Do not start a network with more than one node June 5, 2014

80 79 A B C ImproperProper A B C PF end (a) Do not end a network with more than one node June 5, 2014

81 80 The Critical Path Method (CPM) June 5, 2014

82 81 Suppose you decide with your friend to go in hunting trip. You must do specific activity such that the trip well be at the right way. The following activity must be done. Introduction June 5, 2014

83 82 critical activity From chart you can see that the 3 rd activity (preparing the jeep) have the longest period of time any delay with this activity leads to delay in the trip this activity is a critical activity Critical activity : An activity on the critical path any delay on the start or finish of a critical activity will result in a delay in the entire project Critical path : The longest path in a network from start to finish June 5, 2014

84 83 Steps Required To Schedule a Project The preparation of CPM includes the following four steps: 1- Determine the work activities: The project must be divided into smaller activities or tasks. The activity shouldnt be more than days (long durations should be avoided) Use WBS in scheduling by using an order of letters and numbers June 5, 2014

85 84 2- Determine activity duration: Duration = Total Quantity / Crew Productivity The productivity has many sources : 1. The company 2. The market 3. Special books Note: Note: The scheduler must be aware about the non-working days, such as holydays or rain days, etc…… June 5, 2014

86 85 Estimating Activity Duration Time Interval Time Interval is selected according to the nature of the activity (seconds - minutes…) It is common practice in construction industry to use calendar day. Use one and only one time unit for any schedule. 1.From companys record 2.From standard estimating guide 3.Interviewing field personnel. Sources June 5, 2014

87 86 Weather and Contingency Allowance Two approaches for assignment of weather allowance: 1.Add the Weather Allowance at the end of the project as a separate activity. 2. Add Weather Allowance to those affected by the weather. 3.Add weather allowance at the end of each construction segment (site preparation, foundation, … etc.) Contingency items Other activities can be added to allow for contingency such as strikes Time Zero The close of the work period immediately preceding the start of the project. June 5, 2014

88 87 3- Determine the logical relationships : This step is a technical matter and obtained from the project manager and technical team, and logical relationships shouldnt confused with constraints 4- Draw the logic network and perform the CPM calculations June 5, 2014

89 88 5-Reiew and analyze the schedule: 1. review the logic 2. Make sure the activity has the correct predecessor 3. make sure there is no redundant activity June 5, 2014

90 89 6- Implement the schedule: Definition: take the schedule from paper to the execution. 7-Monitor and control the schedule: Definition: comparing what we planed with what actually done. 8-Revise the database and record feedback. 9-Resource allocation and leveling. (will discuss in chapter 6) June 5, 2014

91 90 The WBS (Work Breakdown Structure) IT is used to break down the project from one main and relatively big entity into smaller, defined, manageable and controllable units, usually called work groups or tasks, or, at the finest level of detail (which is undesirable) activities June 5, 2014

92 91 Take care!!! The deeper you go into the lower levels of the WBS, the more detailed knowledge youll need to know. A good rule of thumb is the rule of , which entails that each level be broken down into a maximum of five lower levels. June 5, 2014

93 92 Who develops the WBS? A WBS is developed by the A/E at the end of the design phase. and/or by the bidders during the proposal (procurement phase). June 5, 2014

94 93 The CWBS (Contract Work breakdown Structure ) After contract award, the project manager expands the WBS into a contract work breakdown structure (CWBS). as the initial step in the PLANNING process. The extended CWBS must include the levels at which required reporting information is summarized for submittal to the Owner June 5, 2014

95 94 Uses of the WBS The WBS is used to report program status externally to the Owner. The CWBS is used internally to plan the program in detail and to collect status information on a periodic basis for the lowest level of the CWBS, namely the schedule activities. The basis for technical planning and project achievement. June 5, 2014

96 95 The CWBS it is a major task to undo. Why??? Because cost collections begins at a CWBS element, The individuals assigned the responsibility for WBS/CWBS development should never lose sight of the fact that the WBS is used for technical planning and status achievement. June 5, 2014

97 96 House 1.0 Structural Work 1.1 fine works 1.2 Sub- Structure Super- Structure Finishing 1.21 Doors & Windows frames Electrical Works 1.3 Earthwork Foundation Columns Roof slabs Conduiting Light Fittings Plaster Floor tile Excavation Backfilling Level 1 Level 2 Level 3 Level 4 Level 5 June 5, 2014

98 97 Conclusion The work breakdown structure defines the product elements (work packages). And their interrelations to each other and to the product. The WBS mostly ends with project tasks. Using the tasks you can extract projects activities. June 5, 2014

99 98 TYPES OF ACTIVITIES 1. Production Activities Those that can be taken directly from plans and specifications 2. Procurement Activities Procurement of material and equipment 3. Management Decision Activities Activities that can be created by management to avoid certain situations Delay Concrete Company Vacation Deer Hunting June 5, 2014

100 99 Events and Milestones An event: a point in time that is usually the start or finish of a certain activity(s) Duration = 0 Important events are called milestones milestones such as NTP and finish milestones such as Substantial Completion An activity has a start date and a finish date An event / milestone has a start date or a finish date June 5, 2014

101 100 Example Draw the logic network and perform the CPM calculations for the schedule shown next. DurationIPAActivity 5-A 8AB 6AC 9BD 6B,CE 3CF 1D,E,FG June 5, 2014

102 101 In mathematical terms, the ES for activity j is as follows : ES j =max( EF i ) where (EF i ) represents the EF for all preceding activities. Likewise, the EF time for activity j is as follows : EF j = ES j + Dur j where Dur j is the duration of activity j Forward pass : The process of navigating through a network from start to end and calculating the completion date for the project and the early dates for each activity Forward pass calculations June 5, 2014

103 102 A5A5 G1G1 C6C6 D9D9 B8B8 E6E6 F3F3 22,23 5,11 5,13 13,22 13,19 11,14 0,5 Solution : June 5, 2014

104 103 In mathematical terms, the late finish LF for activity j is as follows : ( LFj =min(LSk where (LSk) represents the late start date for all succeeding activities. Likewise, the LS time for activity j (LS j) is as follows : LS j= LFj - Dur j where Dur j is the duration of activity Backward pass: The process of navigating through a network from end to start and calculating the late dates for each activity. The late dates (along with the early dates) determine the critical activities, the critical path, and the amount of float each activity has. Backward pass calculations June 5, 2014

105 104 Solution : A5A5 G1G1 C6C6 D9D9 B8B8 E6E6 F3F3 22,23 5,11 5,13 13,22 13,19 11,14 0,5 22,23 13,22 19,22 16,22 5,13 10,16 0,5 CPM ( ES = LS, EF = LF, TF = FF = 0) June 5, 2014

106 105 Four Types Of Floats There are several types of float. The simplest and most important type of float is Total Float (TF) Total float (TF): The maximum amount of time an activity can be delayed from its early start without delaying the entire project. TF = LS – ES or TF = LF - EF or TF = LF - Dur - ES June 5, 2014

107 106 Free Float: may be defined as the maximum amount of time an activity can be delayed without delaying the early start of the succeeding activities FF i = min(ES i+1 ) - EF i where min (ESi+1) means the least (i.e., earliest) of the early start dates of succeeding activities June 5, 2014

108 107 In the previous example we can find the free float and total float for each activity as the following : Activity Cs free float, FF = = 0 days And Activity Cs total float, TF = = 5 days …… and so on. FFTFLFLSEFES DurationActivity A B C D E F G Critical activity Note : We must always realize that FF TF June 5, 2014

109 108 Interfering float: may be defined as the maximum amount of time an activity can be delayed without delaying the entire project but causing delay to the succeeding activities. TF = FF - Int. or Int. F = TF - FF Independent float (Ind. F): we may define it as the maximum amount of time an activity can be delayed without delaying the early start of the succeeding activities and without being affected by the allowable delay of the preceding activities. Ind. F i = min(ES i +1 ) – max(LF i-1 ) – Dur i Note: make sure that Ind. F FF June 5, 2014

110 109 Node Format Activity Name Activity ID Duration ESEF LS LF TFFF June 5, 2014

111 110 Example ActivityDurationIPA A5- B8A C6A D9B E6B,C F3C G1D,E,F June 5, 2014

112 111 Tabular Solution ActivityDurationESEFLSLFTF A B C D E F G June 5, 2014

113 112 A5A5 F3F3 D9D9 E6E6 C6C6 B8B8 G1G1 5, 13 0, 5 13, 19 5, 11 13, 22 11, 14 22, 23 5, 13 0, 5 16, 22 10, 16 13, 22 19, 22 22, 23 A5A5 D9D9 B8B8 G1G All dates above represent the end of the day Graphic Solution June 5, 2014

114 113 Example ActivityDurationIPA A5- B6A C5A D3A E3B F4B, C G4D H7B,C,G I8E, F J2F K3H, J L2I, J June 5, 2014

115 114 A5A5 D3D3 B6B6 C5C5 G4G4 E3E3 F4F4 H7H7 I8I8 J2J2 K3K3 L2L2 PF June 5, 2014

116 115 A5A5 D3D3 B6B6 C5C5 G4G4 E3E3 F4F4 H7H7 I8I8 J2J2 K3K3 L2L2 PF 0, 5 5, 11 5, 10 5, 8 11, 15 11, 14 8, 12 15, 17 15, 23 12, 19 23, 25 19, , 25 22, 25 15, 23 20, 22 15, 22 12, 15 11, 15 5, 11 6, 11 8, Graphic Solution June 5, 2014

117 116 Tabular Solution June 5, 2014

118 117 End-of-Day Convention The dates on the activities represent the end of day. Thats why we always start with day 0: end of day 0 = start of day 1 This concept is not applied in computer programs. In computer programs start dates (ES, LS) represent the beginning of the day while finish dates (EF, LF) represent the end of the day June 5, 2014

119 118 Exercise Solution Using The Computer A5A5 D3D3 B6B6 C5C5 G4G4 E3E3 F4F4 H7H7 I8I8 J2J2 K3K3 L2L2 PF 1, 5 6, 11 6, 10 6, 8 12, 15 12, 14 9, 12 16, 17 15, 23 13, 19 24, 25 20, , 25 23, 25 16, 23 21, 22 16, 22 13, 15 12, 15 6, 11 7, 11 9, June 5, 2014

120 119 Comments on the Solution Near-critical activities may be as important as critical activities It is a good practice for the project manager not to give subordinates two sets of dates PM has to choose one set of dates within the range of Early – Late Management may reserve a number of days as management float or time contingency June 5, 2014

121 120 Float Discussion Total float –in general- belongs to a path rather than the activity itself If an activity uses its float, successors may lose some or all of their float Total float versus free float Total float is broken down into free float, independent float, and interfering float. Researchers have come up with even more types June 5, 2014

122 121 The question is: who owns the float? Float distribution attempts Review the contract – what if it is not mentioned? Float with resource leveling Shifting activities within their float may affect: Start / finish dates of succeeding activities Resource usage: Labor and equipment (crews) Materials: delivery, storage Cash flow June 5, 2014

123 122 Lags in Node Networks A lag is a minimum compulsory waiting period between the start/finish of an activity and the start/finish of the successor Actual waiting period may be greater, but never less than the lag Lags are very common with SS and FF relationships A lead is a negative lag The lag is added in the CPMs forward pass calculations and subtracted in the backward pass June 5, 2014

124 123 Examples: Concrete curing (before formwork stripping or reshoring) Asphalt curing (before striping) Waiting for a permit to be issued Waiting for the delivery of a custom material or equipment June 5, 2014

125 124 Example ActivityDurationIPALag A5- B3- C6- D7A E7A B4 F4A,B,C G5E F3 H6D G2 I3D,G June 5, 2014

126 125 C6C6 B3B3 A5A5 G5G5 F4F4 E7E7 D7D7 H6H6 I3I PS PF , 5 5, 12 0, 3 0, 6 7, 14 6, 10 14, 19 21, 27 19, 22 21, 27 24, 2714, 19 14, 21 7, 14 7, 11 2, 7 0, 3 1, 7 Graphic Solution June 5, 2014

127 126 Tabular Solution June 5, 2014

128 127 Constraints and the CPM A Constraint is an externally imposed restriction affecting when an activity can start and/or finished Constraints may conflict with logical relationships Constraints are not alternatives for logic June 5, 2014

129 128 On a continuous path: Activities A, B, and C are critical; but D, E, and F not Why? A6A6 B5B5 C3C3 D9D9 E5E5 F2F2 Software Quiz June 5, 2014

130 129 Effect of Imposed Finish Date Imposed Finish Date is the projects completion date, as specified in the contract or stipulated by the owner When compared to the calculated finish date: Calculated finish date < imposed finish date You are in good shape What happens if you enter the imposed date? Calculated finish date > imposed finish date Negative float appears when you enter the imposed date You need to accelerate / crash the schedule June 5, 2014

131 130 Examples with Imposed Finish Dates Repeat Example 3 with imposed finish date of 28 days Repeat Example 3 with imposed finish date of 22 days June 5, 2014

132 131 Imposed Finish Date > Calculated Finish Date A5A5 D3D3 B6B6 C5C5 G4G4 E3E3 F4F4 H7H7 I8I8 J2J2 K3K3 L2L2 PF 0, 5 3, 8 5, 11 5, 10 5, 8 11, 15 11, 14 8, 12 15, 17 15, 23 12, 19 23, 25 19, , 28 25, 28 18, 26 23, 25 18, 25 15, 18 14, 18 8, 14 9, 14 11, June 5, 2014

133 132 A5A5 D3D3 B6B6 C5C5 G4G4 E3E3 F4F4 H7H7 I8I8 J2J2 K3K3 L2L2 PF 0, 5 -3, 2 5, 11 5, 10 5, 8 11, 15 11, 14 8, 12 15, 17 15, 23 12, 19 23, 25 19, , 22 19, 22 12, 20 17, 19 12, 19 9, 12 8, 12 2, 8 3, 8 5, Imposed Finish Date < Calculated Finish Date June 5, 2014

134 133 Negative float is a situation that occurs when performing an activity even on its early dates, fails to meet the projects imposed finish date or other constraint It may occur in one of two cases: Before construction starts During construction (after normal start) Negative Float June 5, 2014

135 134 Calendars Each activity has to be assigned a calendar Different crews working for different activities work on different calendars. The crew working for the same activity may work 5 days/week at normal times then switch to 6 or 7 days/week User has to be aware of the impact of such matter on the duration of activities and consequently the project June 5, 2014

136 135 Computer scheduling programs can handle calendars: Global, default, and other calendars Recurring holidays Work hours per day Resource calendars Scheduling in other countries June 5, 2014

137 136 Schedulers must take in account non-work days. This includes: Scheduled non-work days such as:. Holidays, Shut-downs. Unscheduled non-work days such as: Rain days (or severe weather), Other unforeseen interruptions Distribution of unscheduled non-work days Non-Work Days June 5, 2014

138 137 Event Times in Arrow Networks The early event time, T E, is the largest (latest) date obtained to reach an event (going from start to finish). The late event time, T L, is the smallest (earliest) date obtained to reach an event (going from finish to start). Example Perform the CPM calculations, including the event times, for the arrow network shown below. June 5, 2014

139 C E B 50 D F 70 A G H d1 d2 Arrow network for example June 5, 2014

140 139 The preceding logic is similar to that of the forward and backward passes: When you are going forward, pick the largest number. When you are going backward, pick the smallest number. ij Act. Name Dur. T Ei T Li T Ej T Lj CPM June 5, 2014

141 C E B 50 D F 70 A G H d1 d (0,10) (5,10) (0,5) (0,7) (8,15) (10,18) (11,19) (10,19) (7,11) (15,19) (19,24) (22,27) (19,27) June 5, 2014

142 141 Float Calculations From Event Times Total Float TF ij = TL j - TE i - T ij Example ( In the previous network ) TF = TL 50 – TE 40 – T = 19 – 7 – 4 = 8 June 5, 2014

143 142 Free Float FF ij = TE j - TE i – T ij Example FF = TE 50 – TE 40 – T = 19 – 7 – 4 = 8 June 5, 2014

144 143 Interfering Float INTF ij = TL j – TE j Example INTF = TL 50 – TE 50 = 19 – 19 = 0 Independent Float INDF ij = TE j – TL i - T ij Example INDF = TE 50 – TL 40 – T = 19 – 15 – 4 = 0 June 5, 2014

145 144 Example IPAsDurationActivity --2A A2B A4C C1D B,C4E B2F D1G F,E4H F2I G,H4J I,H4K K,J1L Draw a network for the following activities June 5, 2014

146 145 A 2 C 4 D 1 E 4 B 2 F 2 G 1 H 4 I 2 J 4 L 1 K The Arrow Network will be: June 5, 2014

147 146 A 2 C 4 D 1 E 4 B 2 F 2 G 1 H 4 I 2 J 4 L 1 K Forward Pass calculations (ES, EF) June 5, 2014

148 147 A 2 C 4 D 1 E 4 B 2 F 2 G 1 H 4 I 2 J 4 L 1 K backward Pass calculations (LS, LF) June 5, 2014

149 148 A 2 C 4 D 1 E 4 B 2 F 2 G 1 H 4 I 2 J 4 L 1 K Specify the Critical Path June 5, 2014

150 149 A 2 C 4 D 1 E 4 B 2 F 2 G 1 H 4 I 2 J 4 L 1 K June 5, 2014

151 150 TFLFLSEFESIPAs Duration Activity A 26442A2B 06262A4C C1D B,C4E B2F D1G F,E4H F2I G,H4J I,H4K K,J1L Table of activities June 5, 2014

152 151 A B C D E F G H I J K L Bar / Gantt chart Early Start / Finish EF = ES + D Activity Time June 5, 2014

153 152 A B C D E F G H I J K L Bar / Gantt Chart Late Start / Finish LS = LF - D Activity Time June 5, 2014

154 153 A B C D E F G H I J K L Bar / Gantt of the previous network June 5, 2014

155 154 Summary ij T T Ei T Li T Ej T Lj FloatDirection TF FF Int. F Ind. F June 5, 2014

156 155 True or False: Determining activities durations is primarily the schedulers job You can find out the projects estimated completion date after performing the forward pass only You can find out the projects critical path after performing the forward pass only Event is another name for an activity Task is another name for an activity There could be more than one critical path in a CPM network Total float must be equal to or greater than free float Quiz 4 June 5, 2014

157 156 Definitions Activity, or task Activity, or task: A basic unit of work as part of the total project that is easily measured and controlled. It is time- and resource consuming. Backward pass Backward pass: The process of navigating through a network from end to start and calculating the late dates for each activity. The late dates (along with the early dates) determine the critical activities, the critical path, and the amount of float each activity has. Critical activity Critical activity: An activity on the critical path. Any delay in the start or finish of a critical activity will result in a delay in the entire project. Critical path Critical path: The longest path in a network, from start to finish, including lags and constraints.. June 5, 2014

158 157 Early dates Early dates: The early start date and early finish date of an activity. Early finish (EF): Early finish (EF): The earliest date on which an activity can finish within project constraints. Early start (ES): Early start (ES): The earliest date on which an activity can start within project constraints. Event: Event: A point in time marking a start or an end of an activity. In contrast to an activity, an event does not consume time or resources. Forward pass Forward pass: The process of navigating through a network from start to end and calculating the completion date for the project and the early dates for each activity. Late dates: Late dates: The late start date and late finish date of an activity. Late finish (LF): Late finish (LF): The latest date on which an activity can finish without extending the project duration. Late start (LS): Late start (LS): The latest date on which an activity can start without extending the project duration. June 5, 2014

159 158 Precedence Diagram June 5, 2014

160 159 The Four Types Relationships Activities represented by nodes and links that allow the use of four relationships: 1) Finish to Start – FS 2) Start to Finish – SF 3) Finish to Finish – FF 4) Start to Start – SS June 5, 2014

161 160 Finish to Start (FS) Relationship. The traditional relationship between activities.. Implies that the preceding activity must finish before the succeeding activities can start... Example: the plaster must be finished before the tile can start. PlasterTile June 5, 2014

162 161 Star to Finish (SF) Relationship. Appear illogical or irrational.. Typically used with delay time OR LAG.. The following examples proofs that its logical. steel reinforcement Erect formwork Order concrete SF Pour concrete 5 June 5, 2014

163 162 Finish to Finish (FF) Relationship Both activities must finish at the same time. Can be used where activities can overlap to a certain limit. Erect scaffolding Remove Old paint sanding paintinginspect Dismantle scaffolding FF/1 FF/2 June 5, 2014

164 163 Start to Start (SS) Relationship This method is uncommon and non exists in project construction. Spread grout Clean surface Set tile SS Clean floor area June 5, 2014

165 164 Advantages of using Precedence Diagram 1.No dummy activities are required. 2.A single number can be assigned to identify each activity. 3. Analytical solution is simpler. June 5, 2014

166 165 Calculation 1)forward calculations EF = ES + D Calculate the Lag LAG AB = ES B – EF A Calculate the Free Float FF = Min. (LAG) June 5, 2014

167 166 2) Backward calculations For the last task LF=EF,if no information deny that. LS=LF-D Calculate Total Float TF = LS – ES OR LF – EF TF i = Min (lag ij + TF j ) Determine the Critical Path June 5, 2014

168 167 Example 167 Dur. ES EFFFTFLF LS A B D FH C E G ) Forward pass calculations 4) Backward pass calculations 2) Calculate the Lag ( LAG AB = ES B – EF A ) ) Calculate the Free Float (FF) FF = min.( LAG) 5) Calculate total Float (TF = LS – ES OR LF – EF) June 5, 2014

169 168 Dur. ES EFFFTFLF LS A B D FH C E G ) Determine the Critical Path The critical path passes through the critical activities where TF = 0 June 5, 2014

170 169 Resource Allocation and Resource Leveling June 5, 2014

171 170 CATEGORIES OF RESOURCES Labor Materials Equipments. June 5, 2014

172 171 Labor 1. Salaried staff: like-project engineer, secretary. 2. Hourly workers: like-carpenters. Equipment and Materials 1. Construction equipment and materials 2. Installed equipment and materials June 5, 2014

173 172 What is resource allocation? Resource allocation(resource loading) : Is the assignment of the required resources to each activity, in the required amount and timing. What Is Resource Leveling? Is minimizing the fluctuations in day-to-day resource use throughout the project. It is usually done by shifting noncritical activities within their available float. It attempts to make the daily use of a certain resource as uniform as possible. June 5, 2014

174 173 Why level Resources? 1. When the contractor adds the daily total demand for a specific resource for all activities he must provide the required amount, or work will be delayed. 2. Leveling may also be necessary for an expensive piece of equipment. 3. The main idea of resource leveling is to improve work efficiency and minimize cost during the life of the project. Note: In general, materials do not need to be leveled June 5, 2014

175 174 Leveling Resources in a Project o Resource leveling is a mathematically complex process. o The resource-leveling method is called the minimum moment algorithm. o discussed by Robert B. Harris (1978) in his classic textbook, Precedence and Arrow Networking Techniques for Construction June 5, 2014

176 175 Resource Profiles Time Resource need Actual, not leveled Ideal Leveled, realistic June 5, 2014

177 176 Sort Sort : the process of arranging activities in a list to certain specific order. June 5, 2014

178 177 Priorities & Sorts The activities making up the network must be listed in order of their priority of resources allocation. The network shows the logical sequence of activities. (predecessor and successor). The listing of activities must therefore reflects the dependency of some activities. June 5, 2014

179 178 Activities Sort Resource unit TFESDurationActivity 8H011A 9H029B 7H325C 5H0115D 4H374E 8H0164F 2H3116G 4H0201H Activity sort reflects the logic sequence of the network. June 5, 2014

180 179 Major Sort Resource unit TFESDurationActivity 8H011A 9H029B 7H325C 4H374E 2H3116G 5H0115D 8H0164F 4H0201H Activity sort with ES time as Major sort June 5, 2014

181 180 Major & Minor Sorts Resource unit TFESDurationActivity 8H011A 9H029B 7H325C 4H374E 5H0115D 2H3116G 8H0164F 4H0201H Activity sort with ES time as Major sort & TF as Minor Sort June 5, 2014

182 181 A B C D E F G H Time 8H 9H 7H 5H 4H 8H 2H 4H Activity Allocated resources June 5, 2014

183 Activity Time Total Labor Early start resources aggregation A B C D E F G H 8H 9H 7H 5H 4H 8H 2H 4H June 5, 2014

184 183 Resource Aggregation Resources aggregation : is a summation of the resources that are used to carry out the program on a time period basis. For example, day to day, or week to week. June 5, 2014

185 184 Time Total Labor Labor Early start resources aggregation diagram (Histogram) June 5, 2014

186 185 Late start Another histogram can be obtained if Late start considered. Shows different resources demand. And many histograms can be obtained considering a different time in the network. Each histogram shows different resources demand. June 5, 2014

187 186 late Start Sorts Resource unit TFLSDurationActivity 8H011A 9H029B 7H355C 4H3104E 5H0115D 2H3146G 8H0164F 4H0201H Activity sort with LS time as Major sort & TF as Minor Sort June 5, 2014

188 187 A B C D E F G H Activity Time 8H 9H 7H 5H 4H 8H 2H 4H Total Labor Late start resources aggregation June 5, 2014

189 188 Time Total Labor Labor Late start resources aggregation diagram (Histogram) June 5, 2014

190 189 Time Total Labor Labor Early start vs Late start resources aggregation diagram (Histogram) June 5, 2014

191 190 Time Total Labor Labor Early start vs Late start resources aggregation diagram (Histogram) June 5, 2014

192 191 Example Dur. ES EFFFTFLF LS A B C D H G F E I J K June 5, 2014

193 192 Resource unit TFESDurationActivity 8H015A 2H065C 4H662D 9H664B 5H886H 6106E 2H0113G 8H6112F 5H6133I 2H0148J 6H0222K Activity sort with ES time as Major sort & TF and duration as Minor Sorts Activities Sort June 5, 2014

194 Time Total Labor Early start resources aggregation A C H D F E 8H 2H 5H 4H 8H I J K 5H 2H H 2H 5H 8H 5H 2H 6H B 9H G 2H June 5, 2014

195 194 Total Labor Labor Time Early start resources aggregation diagram June 5, 2014

196 195 Resource unit TFLSDurationActivity 8H015A 2H065C 4H6122D 9H6124B 5H6166E 5H8166H 2H0113G 8H6172F 5H6193I 2H0148J 6H0222K Activity sort with LS time as Major sort & TF and duration as Minor Sorts Activities Sort June 5, 2014

197 Time Total Labor Late start resources aggregation A C D F E 8H 2H 5H 4H 8H I J K 5H 2H H 2H 5H 8H 5H 2H 6H H B 9H G 2H H 5H June 5, 2014

198 197 Total Labor Time Late start resources aggregation diagram June 5, 2014

199 198 Labor Labor Late start Early start June 5, 2014

200 199 Smoothing/Leveling Let us program activity F to start by its late start day which is day 17. And activity I to start by day 14. The resulting resources aggregation histogram will be as follows: June 5, 2014

201 Time Total Labor Early start resources aggregation A C H D F E 8H 2H 5H 4H 8H I J K 5H 2H H 2H 5H 8H 5H 2H 6H B 9H G 2H June 5, 2014

202 201 Total Labor Time June 5, 2014

203 202 Smoothing/Leveling Let us program activity H to start by its late start time. So its resources demand starts with its Late start date. The resulting resource aggregation and histogram will be as follows: June 5, 2014

204 Time Total Labor A C H D F E 8H 2H 5H 4H 8H I J K 5H 2H H 2H 5H 8H 5H 2H 6H B 9H G 2H June 5, 2014

205 204 Total Labor Labor Time June 5, 2014

206 205 Smoothing/Leveling In case activity D is split able activity. It could be interrupted to be carried out in tow parts. Let us program activity B to start by 7 th day. And activity H to starts by its Late start date. And activity E to start by day 14. The resulting resource aggregation and histogram will be as follows: June 5, 2014

207 Time Total Labor Early start resources aggregation A C H D F E 8H 2H 5H 4H 8H I J K 5H 2H H 2H 5H 8H 5H 2H 6H B 9H G 2H 4H June 5, 2014

208 207 Total Labor Time June 5, 2014

209 208 Early Start OR Early Finish There are many solutions between the limits of Early Start and Early Finish. The optimal solution is zero fluctuation histogram. Which is hard to be achieved. It is preferred to solve the problem toward the Early start resources aggregation diagram. WHY ?! June 5, 2014

210 209 Because if there are labor availability problems to be overcome, they will occur in the early beginning of the project. By other words, if the program based on the Late Start date, it means that all the activities are Critical, and any labor problem will affect the project completion. June 5, 2014

211 210 Allocation within resources restraints Another situation which you may face in practice is the restricted resources availability. Where you have to carry out the job with the available resources only. In this case the project duration may be prolonged to suit the availability of the restricted resources. June 5, 2014

212 211 Rules for scheduling activities with limited resources 1)schedule activities to start as soon as their predecessors have been completed. 2) if more than one activity using a specific limited resources can be scheduled, priority is given to the activity with early Late Start. ( LS as Major Sort) 3) if tow or more activities have the same Late start, give priority to the activity with least Total Float. (TF as Minor Sort) 4) if the activities have the same Total Float in the minor sort, give the priority to the activity with the Largest Number of Resources. 5) If the activities are tied in the number of resources, give priority to the activity that has already started. June 5, 2014

213 212 A B D FH C E G Dur. ES EF FFTF LF LS Resources Activity desc. 8H9H5H8H4H 2H 4H7H Example June 5, 2014

214 213 Resource unit TFESDurationActivity 8H011A 9H029B 7H325C 4H374E 5H0115D 2H3116G 8H0164F 4H0201H Activity sort with ES time as Major sort & TF as Minor Sort June 5, 2014

215 214 Assume that the available labors in the company restricted to 10 helpers, and the company decided to carry out the job without resorting to hire more labor. The resulting program will exceed the Early finish date based on the network. June 5, 2014

216 215 Time Total Labor Labor Early start resources aggregation diagram (Histogram) June 5, 2014

217 216 Resources aggregation diagram Activity Time 8 9 A B C D E F G 8H 9H 7H 5H 4H 8H 2H 4H Time Labor 12 Labor Limit 9H 7H 4H 5H 2H 5H 2H 5H 2H 5H 2H 8H 10 Total Labor H June 5, 2014

218 217 Money and network schedules Reminder, cost was one of the elements of project constraints triangle ( COST, TIME & QUALITY). An effective management tries to minimize and integrate the above mentioned elements. CPM provides a mean for relating time and money. The application of resources to a project (materials, manpower and machinery) related to another resource which is MONEY. The value of the resources for each activity represents a component of project cost. June 5, 2014

219 218 Hint Construction costs includes: 1) Materials costs. 2) labor costs. 3) plant and equipment costs 4) overhead costs and profit. June 5, 2014

220 219 Example Dur. ES EFFFTFLF LS A B C D H G F E I J K June 5, 2014

221 220 (Cost ($TFESDurationActivity A C D B H E G F I J K June 5, 2014

222 Time Total cost A C H D F E I J K B 9H G June 5, 2014

223 Time Total cost June 5, 2014

224 223 Cash Flow It is quite significant to the contractor to know the amount of money that would be spent in each stage of the project.( Expenditures) And compare it to the amount of money that would be received. (income) Overtrading Overtrading: arises when the current liabilities of a company exceed the current assets, even though the business is solvent. June 5, 2014

225 Time Cash Flow Diagram Total cost Com. cost Com. cost = Cumulative Cost $ June 5, 2014

226 225 Time (Months) Cash Flow Curve for revenue and expenditures Cumulative Expenditure s & Revenues Revenues Expenditures Retainage Release Amount of Negative Cash Flow June 5, 2014

227 226 Cash Flow Example $ Time early planned late $ $$$ $$ June 5, 2014

228 227 Spending Cash Flow: In and Out Time $ Reimbursement Profit June 5, 2014

229 228 Cash Flow Analysis Cash flow analysis consists of a detailed examination of funds disbursement (expenditures) and the receipt of revenue. Cash flow shows if surplus fund available during project, or if negative cash position will occur during construction. The cash position of contractor during project whether positive or negative is important. June 5, 2014

230 229 Negative cash position Negative cash position means that the revenues obtained from a project insufficient to meet the financial obligations (expenditures) of the project. In this case other fund from the company or from outside sources must be used. June 5, 2014

231 230 Positive cash position Positive cash position means that the revenues obtained from a project exceed the financial obligations (expenditures) of the project. In this case surplus (extra) fund available with the contractor. And the contractor may invest this surplus funds for short duration. June 5, 2014

232 231 Materials Management Is defined as the planning and controlling of all necessary efforts to ensure that the correct quality and quantity of materials and equipment are appropriately specified in a timely manner, are obtained at a reasonable cost, and are available when needed. June 5, 2014

233 232 Materials management functions Identifying. Acquiring. Distributing. Disposing. June 5, 2014

234 233 Objectives of materials management Ensure that materials meet the specifications and are on hand when and where required. Obtain the best value for purchased materials. Provide efficient, low-cost transport, security, and storage of materials at construction sites. Reduce any surplus to the lowest level possible. June 5, 2014

235 Schedule Updating and Project Control 234 June 5, 2014

236 235 Schedule updating Schedule updating is just one part of the project control process. Schedule updating must reflect Actual work, and involves change orders (CO). June 5, 2014

237 236 What is an updated schedule? A revised schedule reflecting project information at a given data date regarding completed activities, in progress activities, and change in the logic, cost, and resources and allocated at any level. What is data date? The data date is the date as of which all progress on a project is reported. as- of datstatus date It is also called as- of date and status date. June 5, 2014

238 237 Why Update Schedules? Schedules (like cost estimates) are always prepared before the project begins. However, updates must take place routinely for the following two reasons: a. Unintentional events b. Intentional changes Schedules without updating, monitoring, controlling, and corrective action are useless June 5, 2014

239 238 What kind of information is needed for updating schedules ? 1. Past information : what has happened since the last update ?. 2. Future information : the future category comprises any changes to schedule or schedule items. Future changes are two types : A. logic – driven changes B. users changes June 5, 2014

240 239 Frequency of updating Construction schedules may be updated monthly, biweekly, weekly, or according to another time interval. Project managers must achieve a delicate balance between updates is too long and one is too short June 5, 2014

241 240 Updating schedules and pay requests In many cases, project updating is tied to payment requests. In general, a pay requests is a document submitted by the contractor to the owner, asking for payment for work actually performed (whether.finished or not)during the period since the last pay request. June 5, 2014

242 241 Effect of adding or deleting activities on logic An activity in a schedule is usually like a link in a chain ; removing a link may disturb the whole chain if it is not done properly. For example : Deleting activity AS520 in the partial network shown in figure will remove any link between activities in each side. AS210 AS250 AS260 TL160 AS245 June 5, 2014

243 242 It is strongly recommended that the scheduler review the logic before making any change by first printing a logic report showing all predecessors.and successors for the activity be deleted. June 5, 2014

244 243 Steps for Updating a Schedule 1.The Schedule activity list Filter out completed activities Eliminating activities in the far future? Scheduler sends it to the project PM / superintendent Possibility that PM/superintendent wants to change past events June 5, 2014

245 244 Example 1: No Cost June 5, 2014

246 245 Example 2: With Cost June 5, 2014

247 246 2.The PM (or superintendent) fills up the form, signs and dates it; and submits it back to the scheduler It is a good idea for the PM to keep a copy for his/her records It is a good idea to assign ink colors to different parties 3. The scheduler enters the info in the computer and updates the project, signs and dates the forms June 5, 2014

248 247 4.The scheduler prints a preliminary report and discusses it with the PM It is a good idea to produce a summary report (what happened between last update and this update) Based on this discussion, the scheduler makes any necessary adjustments to the schedule or reports Any changes to the schedule requested by the PM have to be documented by the scheduler June 5, 2014

249 248 Myths/Misconceptions About Schedule Updating We always produce a complete schedule before the commencement of construction. We just dont update it, We trust our field staff and subcontractors to follow it. We update projects only when there is a need for the update Everything is going well. There is no need for an update June 5, 2014

250 249 Quiz 6 True or False: 1.Updating is needed for projects that have duration of at least one year or a minimum budget of QAR 10 million 2.Data date is the date all information was entered in the computer 3.In updating schedules, we must enter not only actual work progress but also any future changes 4.Negative float is an indication that the schedule is not meeting its expected completion date or an interim imposed date June 5, 2014

251 250 Project Control June 5, 2014

252 251 Project control is the continuous practice of 1.monitoring work progress, 2.comparing it to baseline budget and schedule, 3.detecting any deviations and their causes, and 4.taking a corrective action wherever and whenever necessary The ability to determine a project status as it relates to the time and schedule selected Also called project tracking Project monitoring? Project Control June 5, 2014

253 252 Project control is needed because projects never run exactly as planned. Project control is a cyclical iterative task: do small part of the work and compare to baseline, do corrective measure, adjust plan (if needed), do another part of the work, and so on.. Project control requires measuring work progress and calculating activities percent complete Why Project Control? June 5, 2014

254 253 What is a baseline schedule? A baseline schedule is a schedule prepared by the contractor,usually before the start of the project,and used for performance comparison. Baseline Budget: The projects original approved budget including any approved changes June 5, 2014

255 254 Percent Complete Percent Complete (PC or PCT): is an estimate, expressed as a percent, of the amount of work that has been completed on an activity or a work breakdown structure component. (PMBOK 2008) Percent complete may be used to estimate: Activity Groups of activities / assembly / work package Project June 5, 2014

256 255 Types of Percent Complete Depending on the type and nature of the activity, percent complete may be calculated using one of several methods that may yield different results Some methods are more subjective than others None of these methods is wrong. None of them is uniquely considered the right method. Most importantly: Know exactly what each percent complete means Pick one or two parameters to use and then be consistent June 5, 2014

257 256 Major objectives for a good control plan: 1.Should accurately represent the work. 2.Permit deviations to be detected, evaluated and forecasted. 3.Should make provision for periodic corrective actions. June 5, 2014

258 257 Level of Control Small projects - low cost - short duration Detailed network Reporting mechanism Middle-sized projects (300 activities) Detailed network Summary network Area and craft network June 5, 2014

259 258 Monitoring the Project 1.Feedback from direct contact Efficient but requires close cooperation between the manager and field personnel. 2. Feedback from photography Record progress and provide permanent documentation of the work. Tell nothing about the time taken to perform the work. 3. Feedback from check-off list Planner prepares a check-off list that is started, to be continued, or to be finished in the next time interval. Effective if the reporting periods are short Daily, Weekly and small number of activities involved. Disadvantage: false reporting June 5, 2014

260 259 4.Feedback from bar chart. 5.Feedback from networks Advantage: Superintendent has complete information about the status of the project. Disadvantage: Diagram may appear confusing to field personnel. June 5, 2014

261 260 Setting the Target Schedule Early Start Schedule: As Target for Control Problem: Required high effort to keep the plan working. Late Start Schedule As Target for Control Problem: Because every activity is timed to start as its latest, project overruns are sure to follow. Activities may be positioned early or late start or somewhat in between. Non-critical activities allow intermediate start. June 5, 2014

262 261 Anticipated target S-Curve June 5, 2014

263 262 The S-Curve field June 5, 2014

264 263 Sample Project Cost Data June 5, 2014

265 264 Early Start Tree June 5, 2014

266 265 Late Start Tree June 5, 2014

267 266 Target Network June 5, 2014

268 267 Project S-Curve June 5, 2014

269 268 Actual Versus Target S-Curves June 5, 2014

270 269 Earned Value Analysis June 5, 2014

271 270 Earned Value (EV) Analysis: Earned Value analysis is an integrated cost-schedule approach to monitor and analyze the progress in a project. Earned Value Management (EVM), started in the 1960s as a method for integrated project cost and schedule control, was designed by the U.S. Air Force and named the Cost/Schedule Planning and Control System. In 1967, it became U.S. DOD policy and was renamed Cost/ Schedule Control Systems Criteria, or C/SCSC Earned Value Analysis June 5, 2014

272 271 The Concept of EVM The concept of Earned Value is simple; at any given point find out: 1.The cost of work you have actually done (ACWP), 2.The cost of work you planned to do by this date (BCWS), 3.The amount earned for work performed (BCWP), 4.Calculate schedule and budget variances (SV, CV) 5.Analyze causes for major variances and suggest remedies, 6.Extrapolate these variances to the end of the project (FSV, FCV). June 5, 2014

273 272 Foundations of modern cost control Whats more important? Knowing where you are on schedule? Knowing where you are on budget? Knowing where you are on work accomplished? Earned Value Analysis (EVA) addresses all three: It compares the PLANNED amount of work with what has actually been COMPLETED to determine if COST, SCHEDULE, and WORK ACCOMPLISHED are progressing as planned. June 5, 2014

274 273 EVA Terminology BCWS – Budgeted Cost of Work Scheduled Planned cost of the total amount of work scheduled to be performed by the milestone date. (a.k.a. your original plan) BCWP – Budgeted Cost of Work Performed The planned (not actual) cost to complete the work that has been done. Also known as Earned Value ACWP – Actual Cost of Work Performed Cost incurred to accomplish the work that has been done to date. June 5, 2014

275 274 Input data for EVA Activity schedule, usually in the form of a bar chart. Budgeted cost for each activity. Percent complete for each activity. Cost to date for each activity. June 5, 2014

276 275 Information Needed to Compute Budgeted Cost of Work Scheduled (BCWS) Activity budget at completion (BAC) Activity schedule Data date Budgeted Cost of Work Performed (BCWP) Activity budget at completion (BAC) Physical activity progress as a percentage of its total work Actual Cost of Work Performed (ACWP) Each activitys cost to date from the job costing system June 5, 2014

277 276 Earned Value Reporting - Costs CPI = 1, on budget CPI < 1, over budget CPI > 1, under budget Budgeted Cost of Work Performed (BCWP) = earned value of project Actual Cost of Work Performed (ACWP) Cost Variance (CV) Difference between earned and actual costs for the completed work Cost Performance Index (CPI or CI) June 5, 2014

278 277 Earned Value Reporting - Schedule Budgeted Cost of Work Performed (BCWP) Budgeted Cost of Work Scheduled (BCWS) Schedule Variance (SV) Difference between the value of work that was planned for completion and the value of the work that was actually completed Schedule Performance Index (SPI or SI) SPI = 1, on schedule SPI < 1, behind schedule SPI > 1, ahead of schedule June 5, 2014

279 278 Earned Value Reporting Nabil Dmaidi 278 (earned) (actual) (budgeted) June 5, 2014

280 279 Example A simple problem will help to illustrate the application of the principles of earned value. A project has been defined that consist of 12 activities for which the estimated cost and duration have been defined see figure. After three and a half month, the activates 1,2,4,5,7 are completed and (6) is one half complete and(8) is three –fourth complete and (3) is half complete. The incurred cost to date are $. What is the status of this project in terms of the schedule and the budget? Solution June 5, 2014

281 280 Activitycostm1m2m3m4m5m6 1$ $ $ $ $ $ $6000 8$ $ $ $ $14000 June 5, 2014

282 281 Solution ACWP =152000$ BCWS= ( )=161000$ BCWP= ,5(40000) +0.75(16000)+0.5(18000)= $ SV= BCWP-BCWS= -2000$ its behind schedule CV=BCWP-ACWP= 7000$ below the budget EAC=ACWP+(BAC-BCWP)= ( ) = $ June 5, 2014

283 282 Earned Value: Cost and Time Status $ + Time III IIIIV - -+ June 5, 2014

284 283 EVA: The Curve June 5, 2014

285 284 Quiz 7 True or false: 1.Project control is to be practiced by both contractor and owner 2.Project monitoring is part of project control 3.For assistance in calculating progress payments, percent 4. complete for the project is more important than percent complete of individual activities 5.It is possible that different parties compute the project percent complete and come up with different estimates, yet none of them is wrong! 6.It is possible to have the scheduler report saying the project is behind schedule while the earned value analysis is showing a positive schedule variance. June 5, 2014

286 285 Time-Cost Trade-Off Some amount of knowledge brings more…… June 5, 2014

287 286 Time /cost trade –off analysis Time /cost trade –off analysis is the compression of the project schedule to achieve a more favorable outcome in term of project duration, cost, and projected revenues Objective of time /cost trade-off -compress project to an acceptable duration -minimize total project costs Done by selectively crashing specific activities to shorten project duration June 5, 2014

288 287 Time /cost trade –off analysis You might think that total project costs will increase when we begin to crash activities But,total project cost consist of both indirect (project –based ) costs (PBC) and activity – based cost (ABC ) -ABC goes up when we crash activities in an effort to finish the project early -but,PBC (the indirect cost ) goes down if we finish the project early June 5, 2014

289 288 What Is Accelerating a Project? Accelerating a project means shortening the normal duration of the project schedule. (also called schedule compression). schedule crashing Schedule acceleration June 5, 2014

290 289 Why Accelerate a Project? 1.The contractor s normal finish date in the planned schedule does not meet the imposed finish date of the contract. 2.After starting construction and completing a certain percentage of the project, the contractor realizes that the project is behind schedule. 3 -when the contractor may have a contractual monetary incentive to finish ahead of schedule. 4- Sometimes, especially when the economy is doing well, finishing early means to the contractor starting another job earlier and, thus, making more profit. June 5, 2014

291 290 Schedule Compression: Multiple Paths June 5, 2014

292 291 Cost Changing with Schedule Acceleration Direct CostIndirect Cost Total Cost Cost $ June 5, 2014

293 292 Cost For the following discussions it is important to remember: Direct costs: Related to putting the facility components in place. They represent the resources used by an activity. (material, labor and equipment). June 5, 2014

294 293 Indirect job costs (job overhead): costs that could not be attributed to a specific work item. (such as, site offices, superintendents, security fence & etc.) These costs are generally incurred whether or not productive work achieved. Longer project duration will result in higher indirect costs. June 5, 2014

295 294 Operating Overhead costs (company overhead): If the cost cannot be attributed to any specific job, they are operating overhead costs, costs of running business. (head office costs, communications & etc). These costs continue as long as the company exists even one project is running. June 5, 2014

296 295 Logic of Time-Cost Trade-Off Assumption: increasing or decreasing an activitys duration will lead to increased direct costs for that activity. June 5, 2014

297 296 Project duration General relation of direct costs to project duration Direct Costs Direct costs June 5, 2014

298 297 Assumption: decreasing a projects duration will lead to lower indirect costs. Project duration General relation of indirect costs to project duration Indirect Costs indirect costs June 5, 2014

299 298 Assumption: A projects duration can be decreased by decreasing the duration of one or more critical activities on the critical path. Assumption: Decreasing a projects duration may increase or decrease the total cost of a project depending upon whether the additional direct costs required to decrease the activity duration are greater or less than indirect costs savings of decreasing the projects duration. June 5, 2014

300 299 Project duration General relation of project costs to project duration Project Costs Direct costs indirect costs Total project costs June 5, 2014

301 300 Graph analysis A projects total costs combines direct costs and indirect costs. Therefore, the curve of total costs versus duration involves adding the cost amounts of direct and indirect costs curves. Remember, the direct costs curve has a negative slope (direct costs increase as duration decrease) and indirect costs curve has a positive slope (indirect costs decrease as duration decreases). So, the slope of the total costs curves at any point depends whether the slope of direct costs curve less than that of indirect cost curve. June 5, 2014

302 301 How does accelerating a project work The duration of the project is equal to the duration of the critical path.Thus to shorten the duration of the entire project,shorten the duration of the critical path. The cost will vary depending upon which activity duration decreased. Usually, select the activity with least shortening costs. (lowest additional cost per day of shortening) to minimize the additional costs of shortening June 5, 2014

303 302 Reducing Project Duration - As the critical path of the network decreased, some non-critical activities lose some amount of their total float. A B C D F June 5, 2014

304 303 -Thus, the extent to which an activity can be shortened and still has the effect of shortening the project is limited by the amount of total float exists in the parallel activities. A B C D F June 5, 2014

305 304 -As the projects duration decreases, the number of critical paths through the network increases. A B C D F June 5, 2014

306 305 -If more than one critical path exist, it is necessary to reduce all critical paths in the network simultaneously, which becomes expensive. A B C D F June 5, 2014

307 306 Four Different Solutions for Each Network The schedule can be viewed in several different ways in order to satisfy the client. A client may with to perform the project in the lease cost, or in the least time. Or in any manner satisfies him. 1)All Normal: the original network and activity duration result in all normal solution, based on each activity being performed in its NORMAL least cost manner. Remember, it is not necessarily the least cost or least time solution to schedule a project. June 5, 2014

308 307 2) Least Cost: considering both direct and indirect costs, it may be possible to find a project duration that minimizes these total costs. By paying more to decrease one or more critical activity (direct cost) and save greater indirect costs. (Means that the result will be total cost saving.) June 5, 2014

309 308 Project duration General relation of project costs to project duration Project Costs Direct costs indirect costs Total project costs June 5, 2014

310 309 3) Least Time: A project can be shortened beyond its least cost duration. Until a point reached where no activities in the critical path can be physically shortened regardless of how many resources are applied. (results in higher costs) 4) All crash: in this solution, every activity has been shortened as much as physically possible. Its duration the same as the least time solution, but its costs greater. Because the direct cost increases without further reductions in the indirect costs. A fully crashed schedule occurs when all activities shortened to their shortest possible duration June 5, 2014

311 310 All crash It is not an efficient approach since some non-critical activities will be shortened without having any shortening influence on the project duration. June 5, 2014

312 311 Logically reducing Project Duration The logical approach is to shorten those activities that contribute to reduce the project duration. To begin the time-cost trade-off in a rational manner, basic calculations needed. First compute the early start and early finish times for each activity June 5, 2014

313 312 Example Reducing Project Duration to shortest possible duration Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

314 313 By computing the link lag values between activities. (Lag = ESB – EFA). It is logical that there is at least one path between the first activity and last activity where lag values are 0. These activities forming the critical path. (other solution can be derived by computing TF). In the previous network. Activity A,B,F,H and L forming the critical path. June 5, 2014

315 314 To shorten the projects duration it is essential to shorten on of the critical activities. A or B or F or H or L. Without shortening the project will end after 28 days with a cost of 5300 $. This is the normal duration cost. And any decrease in duration will increase the direct cost. The following table shows information about activities. June 5, 2014

316 315 Days to shorten Crash Cost Normal Cost Crash Duration Normal Duration Cost / dayActivity A B C D E F G H J K L June 5, 2014

317 316 Identifying activities for 1 st compression cycle LHFBAActivity 350$250$150$200$-Cost/day F : Least cost activity to shorten June 5, 2014

318 317 From the previous table, it can be noticed that activity F has the least incremental shortening cost. ( 150 $ per day). E.g. Shortening F for 2 days costs 150 x 2 = 300 $. Bear in mind, activities for shortening selected based on cost per day. Not on cycle cost basis. June 5, 2014

319 318 How many days activity F could be shortened? The answer in computing the Network Interaction Limit (NIL). So, reducing activity F by 2 days will affect the link lag values of the succeeding activities and TF of parallel activities June 5, 2014

320 319 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

321 320 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

322 321 Summary of the first compression cycle Cycle # Activity to shorten Can be shortened NIL Days shortened Cost per day Cost per cycle Total cost Project duration F $300 $ June 5, 2014

323 322 Identifying activities for 2 nd compression cycle LHFBAActivity 350$250$-200$-Cost/day B : Least cost activity to shorten June 5, 2014

324 323 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

325 324 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

326 325 Summary of the 2 nd compression cycle Cycle # Activity to shorten Can be shortene d NIL Days shortene d Cost per day Cost per cycle Total cost Project duratio n F $300 $ B June 5, 2014

327 326 Identifying activities for 3 rd compression cycle LHFB,CAActivity 350$250$-300$-Cost/day H : Least cost activity to shorten June 5, 2014

328 327 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

329 328 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

330 329 Summary of the 3 rd compression cycle Cycle # Activity to shorten Can be shortene d NIL Days shortene d Cost per day Cost per cycle Total cost Project duratio n F $300 $ B H June 5, 2014

331 330 Identifying activities for 4 th compression cycle LHFB,CAActivity 350$--300$-Cost/day B,C : Least cost activities to shorten June 5, 2014

332 331 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

333 332 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

334 333 Summary of the 4 th compression cycle Cycle # Activity to shorten Can be shortene d NIL Days shortene d Cost per day Cost per cycle Total cost Project duratio n F $300 $ B H B,C June 5, 2014

335 334 Identifying activities for 5 th compression cycle LHFB,CAActivity 350$----Cost/day L : Least cost activity to shorten June 5, 2014

336 335 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

337 336 Dur. ES EFFFTFLF LS A B C D G F EH K L J June 5, 2014

338 337 Summary of the 5 th compression cycle Cycle # Activity to shorten Can be shortene d NIL Days shortene d Cost per day Cost per cycle Total cost Project duratio n F $300 $ B H B,C L June 5, 2014

339 338 Identifying activities for 6 th compression cycle LHFB,CAActivity -----Cost/day NO Crashing June 5, 2014

340 339 Reports and presentations June 5, 2014

341 340 INTRODUCTION Without a doubt, good communication is an essential component of the successful management effort. This means conveying the right information to the right party at the right time and in the right form. June 5, 2014

342 341 Characteristics of good communication 1- clarity The information must be clear to the receiving party. 2- simplicity Helps improve understanding. Butting information in briefed sentence/s using a simple language. June 5, 2014

343 Accuracy Professional communications must be accurate, objective, and up to date. 4- preciseness and relevance to the subject Providing too much or irrelevant information May be confusing and counterproductive. (example: LDS) 5- legibility People whose handwriting illegible or difficult to read, should type their communications using the computer. June 5, 2014

344 proper support tools Pictures, tables, charts, statistics, etc. They are more helpful and unilingual. 7- proper level of detail The communicator must balance the amount of information in an intelligent way. 8- good organization and formality sorting and organizing the info. to make it easy for the viewer to read, follow and retrieve. Formality Formality means following the companys procedures, including the use of standard forms. June 5, 2014

345 Retrievable and transformable Retrieving info. for live (current) projects may be performed easily by Using the computer commands. The ability to convert and open electronic files and to read the info is extremely important,so using unknown software should be prohibited. 10- Conformance to industry standards Using common language when determining specifications and standards such as ISO,IAI. June 5, 2014

346 345 Reports and Presentations -Both are types of communications that aim at conveying information -Report should be clear and complete because its printed materials are the only vehicle for conveying information between the person preparing the report and the person receiving it. - Presentations focus on speakers persuasive skills, And the speaker focuses on certain points using oral, visual and written (or printed) tools. Audiences have the opportunity to ask for explanation any point unclear to them. June 5, 2014

347 346 Types of presentations 1- contract candidate presentations The main focus of this presentation is to convince the owner (or the decision maker) that the presenter not only can do the job but also can do it better than other candidates, Answering the owners question why should I hire you? 2- sales and demonstration presentations a presentation to demonstrate a product given by a representative of a manufacturing or vendor. June 5, 2014

348 project status presentations a presentation to upper management about a particular project and its status given by the PM or a team member. 4- management presentations a presentation conducted by the management of a company to its staff to inform them about a new work plan, a new system, a new organization, or something else. June 5, 2014

349 348 Presenters skills for good presentation 1- Focus on the clients needs Presenting the product or service in the best way that serves the client /audience. 2- honesty the presenter should be honest and objective at all times, especially with regard to facts and numbers. June 5, 2014

350 eye contact The presenter should speak to the audience not to himself or to his notes. 6- body language Body language and hand and arm gestures are important. 8- Manage time wisely Presentations almost always have time limits. Besides, human beings have limited attention span. 9- have a backup plan June 5, 2014

351 350 The power of presentation To create a good report we should ask ourselves the following questions: 1- does the report include all the information the report user needs? 2- does the report include any un needed information ? 3- is the information clear and well organized? June 5, 2014

352 is the information presented in the required format? 5- can the look of the report be enhanced ? Remember: 1)Computer is still a tool. 2)There is no one size fits all. June 5, 2014

353 352 Any report (text or graphic) should contain the following information: 1- the name, the address and the logo of the company and department or division. 2- the name of the person preparing the report and supervisors approval (if needed). 3- the name and the location of the project. The power of presentation June 5, 2014

354 date 5- title of the report 6- attachments if any. 7- page numbering. 8- legends. 9- definitions of terms, acronyms and abbreviations that may not be known. June 5, 2014

355 354 printing reports After reviewing the final form of the report and before printing it consider the following : make sure that only the needed activities and information are included. margins may be slightly reduced to allow more information per page. June 5, 2014

356 355 use the fit to one page function in the Print menu. in limited cases you may print o both sides of the paper. using a smaller or a different (narrower) font may help. many reports may remain in electronic form and need not be printed. The scheduler must relate the schedule information to the project manager not only as computer-generated colorful charts,but in clear language as well. June 5, 2014

357 356 SUMMARY REPORTS Summary report should contain : The overall situation of the project. The preceding information as compared with that in the last update. The new critical path, if it changed. Cost information (if applicable). June 5, 2014

358 357 Any other information that may help the project manager identify trouble spots or makeup for any lost time. No unnecessary details. The summary report should not exceed one page. It should be written in the form of a memorandum. June 5, 2014

359 358 Scheduling as Part of the Project Management Effort June 5, 2014

360 359 Project manager team The project manager team consist of: (for large project) assistant PM project superintendent project engineer scheduler estimator safety manager procurement manager accountant June 5, 2014

361 360 Management team field personal office personal it may include teams member who are dedicated exclusively to particular project and others who are assigned to project part time or serve on the project for only temporary period. managing project requires several skills as: technical skills managerial skills June 5, 2014

362 361 Scheduling and Estimating Scheduling and estimating are related and their relationships is probably one of the most important relationships in project management These two areas intersected in many ways such as the following eight: 1)the estimator need to know how long the project will last in order to estimate certain cost, particularly overhead 2) Scheduling and Estimating department collaborate to provide information to the procurement department 3) The scheduler estimate the duration of activities with help from the estimating department 4)Many schedules are cost loaded. The cost must be imported from the cost estimate June 5, 2014

363 362 5) Earned value management 6) progress payment depend on the schedule of value and the percent complete 7) resource allocation and resource leveling may be cost related,although they are scheduling issues 8)schedule compression always involves a balance between cost and time June 5, 2014

364 363 Construction project involved from many parties 1- General contractor. 2- owner. 3- architect (engineer). 4- subcontractors. 5- government. 6- vendors. June 5, 2014

365 364 In order to schedule a project there are two approaches 1- build a master schedule that includes several sub schedule. 2- include all activities in one schedule and assign a responsibility code for each contracting party. June 5, 2014

366 365 Time contingency and management options The scheduler or project manager must include a time contingency representing the non work days. This time contingency includes two types of non work days. 1- known dates such as a holidays and planned shut down days. 2-Unknown dates. June 5, 2014

367 366 Scheduling and change orders The contractor must then implement the CO in the estimating, scheduling, accounting, and other tracking systems. June 5, 2014

368 367 Procurement Management Procurement is the process of acquiring materials, equipment, and services from external sources for use in a project. Procurement is a process that usually starts long before the start of the construction process and ends with project completion or project closeout. June 5, 2014

369 368 The two objectives of procurement, from the general contractors viewpoint, are as follow: 1- To hire the subcontractor who will actually erect and assemble the project. 2-To purchase the materials called for in the contract. June 5, 2014

370 369 Linear Scheduling Method June 5, 2014

371 370 Definition A simple diagram to show location and time at which a certain crew will be working on a given operation. June 5, 2014

372 371 Characteristics Shows repetitive nature of the construction. Progression of work can be seen easily. Sequence of different work activities can be easily understood. Have fairly high level of detail. Can be developed and prepared in a shorter time period than other formats. June 5, 2014

373 372 Advantages of LSM Provides more information concerning the planned method of const. than a bar chart. In certain types of projects, LSM offers some advantages over the network approach. June 5, 2014

374 373 Line of Balance Technique LSM has relationships to the line of balance (LOB) technique, developed by US. Navy in the early 1950s. First applied to industrial manufacturing and production control. June 5, 2014

375 374 Three diagrams are used in LOB 1. Production Diagram Shows the relationships of the assembly operations for a single unit. Similar to AOA, except that it shows only one unit of production. 2. Objective Diagram Used to plot the planned or actual number of units produced vs. time. LSM diagram resembles this diagram. 3. Progress Diagram Shows the number of units for which each of the subassembly operations has been completed. June 5, 2014

376 375 Difference between Objective Diagram and LSM O.D. is used to schedule or record the cumulative events of unit completion. LSM is used to plan or record progress on multiple activities that are moving continuously in sequence along the length of a single project. June 5, 2014

377 376 Implementation of LSM Can be used for continuous activities rather than discrete activities. Transportation projects; highway const., highway resurfacing and maintenance, airport runway const. and resurfacing, tunnels, mass transit systems, pipelines, railroads. High-rise building construction. Repetitive building units. June 5, 2014

378 377 Elements of the LSM Axis Parameters Location Measure of progress. In high-rises and housing const., measures may be stories, floors, subdivisions, apartments, housing units. In Transportation projects, distance (ft. or mile can be used, but division by stations (100ft.) is common) is general. June 5, 2014

379 378 Time Hours, days, week, or month - depends on the total project time and level of detail desired in the schedule. Preferable to prepare the schedule based on working days and convert to calendar days only at the end. June 5, 2014

380 379 Activity Production Rates Obtained by the usual estimating methods as a function of the activity, equip. characteristics, labor, and job conditions. The initial rate should be associated with the min. direct cost of accomplishing the single activity. June 5, 2014

381 380 Activity Interruption and Restraint Prod. rate may vary with locations or time periods. Progress may be interrupted intentionally and restraints may occur between activities due to limited equip. or crews. June 5, 2014

382 381 Buffers When const. activities progress continuously in a chain, some spacing between activities is required. This spacing serves as a buffer and may require distance or time interval between activities. June 5, 2014

383 382 Activity Intervals Used to describe the period of time between the start and finish of an activity at a particular location. Intervals can be indicated by a broad line, two narrow lines, etc. Monitoring Progress. Working calendar can be marked with a moving symbol or a line, tape, etc. vertically across the diagram. Progress on individual activities would be marked by location rather than time. June 5, 2014

384 383 Project Time Optimization The total project time may be such that indirect costs and liquidated damages assessed are more costly than the expense of accelerating certain activities. Cost-duration analysis can be used to minimize the total cost, as follows : Identify all activities that can be accelerated or decelerated. Among the above, consider only those that are at a buffer limitation at both the start and the finish of the activity. June 5, 2014

385 384 Of these, select the one activity with the lowest cost slope associated with acceleration (or deceleration). Accelerate (or deceleration) the activity rate of production the maximum feasible amount. Repeat the above steps successively until the optimum project cost and associated duration are obtained. June 5, 2014

386 385 Discrete Activities Discrete are best scheduled by other methods. Once the duration is determined by network analysis, it can be scheduled on the LSM diagram and coordinated with the linear activities. Seasonal Adjustments When developing LSM, appropriate adjustments can be made for seasonal effect on construction June 5, 2014

387 386 Project Progress and Resource Management Project progress is often estimated by the S-curve with bar chart development. In LSM, the determination of activity progress is facilitated and made more rigorous. June 5, 2014

388 387 LSM Schedule Excavate Fnds F & P Fnds & Slab Frame June 5, 2014

389 388 LSM Schedule with Brickwork Excavate Fnds F & P Fnds & Slab Frame Brickwork Buffer June 5, 2014

390 389 Four-unit Duplex I-J Fragnet 2 EXC FNDS BLDG 1 7 F&P FNDS & SLAB BLDG 1 8 FRAME BLDG 1 2 EXC FNDS BLDG 2 7 F&P FNDS & SLAB BLDG 2 8 FRAME BLDG 2 2 EXC FNDS BLDG 3 7 F&P FNDS & SLAB BLDG 3 8 FRAME BLDG 3 2 EXC FNDS BLDG 4 7 F&P FNDS & SLAB BLDG 4 June 5, 2014

391 Excavate Foundations Days Duplex Number LSM Schedule June 5, 2014

392 391 Construction Delay Claims June 5, 2014

393 392 DEFINITIONS Delay: An event or a condition that results in finishing the project later than stipulated in the contract. Claim: a request from one contracting party to another party for additional compensation,a time extension, or both. Note: a claim is not always a negative action,nor does it automatically indicate a confrontation. June 5, 2014

394 393 Delay claims and change order A CO may be initiated at the request of the Owner,Contractor, Sub-Contractor. They must submit a request for quotation (RFQ) to initiate their CO, And this request could be an owner decision or a what if inquiry, the quotation may includes a cost estimate and the impact on the schedule. June 5, 2014

395 394 To minimize the number of COs Owners should define the scope of the project and select a competent designer. Many projects suffer from scope-creep syndrome, in which COs keep adding to the project budget and put it at levels far beyond what the owner originally planned. June 5, 2014

396 395 Reasons for delay claims 1- Differing site conditions 2- design errors or omissions 3- changes in Owners Requirements 4- Unusually adverse weather 5- Miscellaneous factors 6- Force Majeure June 5, 2014

397 396 Changes in owners requirements May constitute a change in the contract and provide a foundation for Cos. Owners are always encouraged to know exactly what the want within their budgetary limits. June 5, 2014

398 397 Force Majeure (superior force) In the context of construction projects, this term usually involves three important elements : 1- Something that is superior, overwhelming, or overpowering (i.e, can not be prevented) 2- Something that is unexpected or cannot be reasonably anticipated or controlled. 3- Something that has a destructive or disruptive effect on the construction process. June 5, 2014

399 398 Types of delays resulting in claims 1- Excusable delay. 2- Non excusable delay. 3- Concurrent delays. June 5, 2014

400 399 Delay claims prevention 1- Baseline schedules that dont show logic. 2- baseline schedule with dates rather than logic. 3- Overuse of constrains. 4- Erasing footprints. 5- unrealistic baseline schedule. 6- schedule with logic errors. 7- skipping periodic updates. 8- lack of proper documentation. 9- lack of a reasonable time contingency. June 5, 2014

401 400 Communication means conveying information from one party to other parties across the organization Documentation means saving the information in an organized manner for possible future retrieval. Communication and documentation June 5, 2014

402 401 Communications and documentation must both contain: Clear information. Provide the proper a mount oh details. Be stored efficiently, so that the information can be retrieved easily. June 5, 2014

403 The project baseline schedule that the owner accepted 2- Periodic schedule updates 3- Change orders 4- Job diary 5- Correspondence with the home office 6- Submittal records, such as shop drawings and material samples. We must document these information June 5, 2014

404 Records of any transmittals 8- Meeting minutes 9- Procurement records 10- Government records 11- Records of payment 12- Project managers daily log June 5, 2014

405 404 Logbook should include daily information such as the following : Weather condition: temperature, wind. Work performance during that day. The number of workers on-site. Equipment on-site and its condition. Any accidents that occurred on-site June 5, 2014

406 405 Methods of resolving claims Negotiation The most direct method for resolving any type of construction claim. Requires certain skills that reduce the gap between the negotiation parties. The objective: is to reach a solution that might be acceptable to both parties. June 5, 2014

407 406 Mediation When negotiation does not work, either because of lack of trust or a lack of skills, mediation may be an option. The mediator may be an individual or a team. Dispute review boards The owner and the contractor select an independent neutral panel with construction experience when the contract is signed. Rather than waiting until the end of project to settle claims, (DRBs) resolve disputes as they arise. June 5, 2014

408 407 Arbitration It is usually a formal process performed by an independent professional arbitrator. Arbitration is voluntary. Arbitration does not require the use of lawyers Litigation When none of the previous work and parties can not reach a settlement, the complaining party uses the other party in a court of law. Construction litigation is usually complicated lengthy, and expensive. June 5, 2014

409 408 Method of Schedule Analysis As- build schedule As – planned schedule Comparison schedule Accelerated schedule Recovery schedule June 5, 2014

410 409 As-Built Schedule The as-built schedule should reflect what actually happened in the filed. Activities are plotted by their real start and real finish, disregarding any logic Contain real budget and real resources June 5, 2014

411 410 As – planned schedule The as-planned schedule describes the manners in which the contractor in tended to built the project. June 5, 2014

412 411 Comparison schedule revised to incorporate any claimed delays. for delay claim the contractor submits two schedules. without the causative factors with the causative factors June 5, 2014

413 412 Accelerated schedule Submitted by the contractor. The project can finish by the contractor finish date. June 5, 2014

414 Safety & Health Management 413 June 5, 2014

415 Introduction One of the most important factors that should be taken in consideration in the site, (from engineering point view), is the safety and health management. Safety and health management; is considered as a progress measure of the engineering and construction companies. 414 June 5, 2014

416 Safety: The condition or state of being safe; freedom from danger or hazard; exemption from hurt, injury, or loss. 415 June 5, 2014

417 Hazard: A condition with the potential of causing or contributing to an accident or illness. 416 June 5, 2014

418 417 June 5, 2014

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423 422 June 5, 2014

424 Rules in construction area under safety outline: 1) knowing hazards and how to avoid them. this mean know Construction Activity / Corresponding Hazard Identification and activity classification with respect to hazard as shown in the following table. 423 June 5, 2014

425 424 Heavy Equipment Operation-Class II Material Handling-Class II Temporary & Permanent Electricity-Class III Cranes & Critical Lifts-Class III Slings & Lifting Gear-Class III Welding, Cutting & Brazing-Class III Hand/Power Tools-Class II Sanitation & Housekeeping-Class I Scaffolding/Ladders -Class III Manholes Excavations, Pits, Trenching & Shoring -Class III Camp, Site Office & Lay down Yard -Class II Over head Obstruction-Class III Road Construction & Re-routing of Existing Roads-Class I Concrete, Concrete Forms & Shoring-Class I Sandblasting-Class II Thrust Boring-Class I Hot Taps -Class I Personal Safety-Class I Paints & Coatings-Class I Piling Operations-Class II Demolition-Class III Mechanical Equipment -Class II Chemical -Class III Liquefied Petroleum Gas (LPG)-Class III Fuel-Class III Site Operations & Hydrocarbon-Class III Heavy Equipment Operation-Class II Material Handling-Class II Temporary & Permanent Electricity-Class III Cranes & Critical Lifts-Class III Slings & Lifting Gear-Class III Welding, Cutting & Brazing-Class III Hand/Power Tools-Class II Sanitation & Housekeeping-Class I Scaffolding/Ladders -Class III Manholes Excavations, Pits, Trenching & Shoring -Class III Camp, Site Office & Lay down Yard -Class II Over head Obstruction-Class III Road Construction & Re-routing of Existing Roads-Class I Concrete, Concrete Forms & Shoring-Class I Sandblasting-Class II Thrust Boring-Class I Hot Taps -Class I Personal Safety-Class I Paints & Coatings-Class I Piling Operations-Class II Demolition-Class III Mechanical Equipment -Class II Chemical -Class III Liquefied Petroleum Gas (LPG)-Class III Fuel-Class III Site Operations & Hydrocarbon-Class III June 5, 2014

426 Rules in construction area under safety outline: (cont.) 2) use Personal Protective Equipments (PPE). 425 June 5, 2014

427 Rules in construction area under safety outline: (cont.) 3) how to deal with emergency situations and what are the proper steps. 426 June 5, 2014

428 Rules in construction area under safety outline: (cont.) 4) follow the instructions carefully. 427 June 5, 2014

429 Occupational Safety & Health Administration An organization that interests in achieving and applying safety factors in the construction field. It deals with the identification and control of environmental and personal hazards in the work place. 428 June 5, 2014

430 OBJECTIVE OF S&H MANAGEMENT Minimize losses – Avoid injuries – Avoid OSHA fines – Avoid litigation Development and implementation of S&H program is key to good management 429 June 5, 2014

431 ELEMENTS OF S&H PROGRAMS 430 Top management commitment Goal setting and planning Organization & administration Project safety rules Substance abuse program Emergency management Safety orientation & training Accident investigation & recordkeeping Safety budget Safety in contracts Safety program evaluation TQM integration. June 5, 2014

432 UNIQUE FACTORS IN CONSTRUCTION AFFECTING S&H 431 Large but diverse and fragmented industry every job is unique with numerous complex tasks Labour intensive work involving large forces Transient workforce which is difficult to train. Complex contractual arrangements leading to multi- employer projects June 5, 2014

433 HOW SAFETY SAVES MONEY 432 Economic impacts Direct and indirect accident costs Workers compensation and EMR Accident cost accounting June 5, 2014

434 ECONOMIC IMPACTS OF S&H 433 Myth: There is a trade-off between safety and cost and productivity Truth: Safety saves money June 5, 2014

435 COSTS ASSOCIATED WITH S&H 434 A.Direct (insured) costs of accidents, injuries and illnesses B. Indirect (hidden) costs – uninsured C. Costs associated with company s&h programs -Resource allocations for: Safety director/coordinator Equipment and supplies Time (meetings, inspections, etc.) June 5, 2014

436 DIRECT COSTS 435 Workers compensation insurance premiums paid by contractor (mainly for medical bills) Liability insurance costs Property related insurance costs. June 5, 2014

437 INDIRECT (HIDDEN) COSTS 436 Transportation for first aid/medical treatment Delays resulting from accident Wages paid to injured worker for time not worked Loss of crew efficiency Training new/substitute worker. Clean-up, equip. repair, stand-by Rescheduling work Post accident extra safety supervision OSHA and civil fines Legal fees Cost of administrative time for investigations and reports. June 5, 2014

438 BASIC AIM OF THE OSHA 437 To ensure, so far as possible, every working person safe and healthful conditions in the workplace, which must be free from recognized hazards likely to cause death or serious physical harm. Applicable to all employers – Records of illness/injury must be kept by employers with more than ten employees. – Not applicable to self-employed and work places covered by other federal agencies June 5, 2014

439 SUMMARY 438 Accidents can be tragic and costly. Safety and health programs prevent injuries and fatalities, and save money Effective program organization and implementation will help achieve OSHA compliance and lead to success at corporate and project levels. June 5, 2014

440 remember If it is unsafe, just dont do it... If it is dangerous, always avoid it for all we know Safety is everyones responsibility 439 June 5, 2014

441 Good Luck THE END


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