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Project Scheduling Presentation Association for the Advancement of Cost Engineering International (AACEi) North Florida Section North Florida Section March.

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Presentation on theme: "Project Scheduling Presentation Association for the Advancement of Cost Engineering International (AACEi) North Florida Section North Florida Section March."— Presentation transcript:

1 Project Scheduling Presentation Association for the Advancement of Cost Engineering International (AACEi) North Florida Section North Florida Section March 19th, 2009 Section Meeting By John P. Orr, PSP Scheduling and Cost Engineering on Overseas Projects: Earned Value and Performance Intensity Progress Measurement Earned Value and Performance Intensity Progress Measurement March 19, 2009

2 2 Scheduling & Cost Engineering on Overseas Projects I.Earned Value and Performance Intensity Progress Measurement II.Tools for Monitoring and Controlling Project Objectives: (Cost / Quality / Time) III.Claims Avoidance & Resolution Present / Refute Claims: Sword / Shield

3 3 Importance of Scheduling Convert the Work Plan into a Map –“The scheduling process forces people to quantify their effort in discrete terms and to place activities in proper relationship to each other.” Establish a Baseline Against Which Progress is Measured Monitor and Control Projects Goal: To Provide Accurate Information to Decision-Makers

4 4 Who Sets Scheduling Standards? PMBOK – Project Management Institute Body of Knowledge PMI – College of Scheduling –Scheduling Excellence Initiative (SEI) Best Practices and Guidelines (being developed) AACE International – Recommended Practices CMAA – Scheduling Committee Guidelines AGC – The Associated General Contractors US Army Corps of Engineers –Impact Evaluation Guide (Productivity)

5 5 Who Sets the Standards? No Single Body is Authoritative Training: –Collegiate –Corporate –Software Providers –Books No Consistency in the Universities as to how CPM Scheduling is Taught Schedulers Use a Variety of Techniques No Single Standard for Certification of Schedulers

6 6 US Dept of State – Overseas Building Operations Provide Facilities for Diplomatic and Consular missions overseas As of January 2009, OBO has opened 65 new facilities with an additional 31 under design or construction Point position overseas in the field: The OBO Project Director (PD)

7 7 OBO Project Director Responsibilities Project Controls –Project Objectives (Cost/Quality/Time) –Primary Contact with Contractor & Subs –Interface with Embassy (Post) stakeholders –Interface with Stateside stakeholders Project Status & Completion Projections

8 8 OBO Project Scheduling Requirements Project Execution Schedule (PES) Contractor-prepared & updated –Initial PES, Baseline PES & Updates –Cost-loaded –Tied to Monthly Payment Requisition

9 9 What does a PD Face? His Approval Binds the USG to the Schedule Implied Duties: –Cooperate –Coordinate –Not Delay, Hinder or Interfere Submittal Reviews (duration, stacking) Manpower – Post Access / Clearances Government-Furnished Material Deliveries

10 10 What Else Does a PD Face? Other Legal Issues –Ownership of Float –Right to Finish Early –Acceleration (Directed / Constructive) –Front-end Loading –Improper Use of Lag Factors –No Damage for Delay Clauses –Concurrent, Excusable, Compensable Delay –Schedule Pacing –Schedule Impossibility

11 11 What Else Does a PD Face? Loss of Productivity –Disruptions –Delays –Overtime –Change Orders –Acceleration Changed Working Conditions –Loss of Productivity & Increased Labor Costs

12 12 What does a PD Use? Primavera Project Planner (P3 ver 3.1) –Very Flexible Tool –Allows for Creative Scheduling –Allows Hidden Lag Factors and Multiple Logic Options ADM: You saw the logic PDM: Less Activities, More Options for Logic –Possibility of “Schedule Embezzlement” Remember: It Only Looks Like a Gantt Chart!

13 13 Overseas Construction Scaffolding: Rome-style

14 14 Scaffolding: Rome-style

15 15 Scaffolding: Tbilisi-style

16 16 Formwork – African-style

17 17 Unfamiliar Construction

18 18 Unfamiliar Food

19 19 Unfamiliar Altitude (for Floridians) 2,440M (9,700 feet above sea level)

20 20 Unfamiliar Level of Labor Intensity

21 21 Overseas Issue #1: Timeliness Project Execution Schedule (PES) turn-around: Field updating process Focus/Emphasis on Payment Requisition Data sent Stateside for Primavera (P3) updating Payment data does not include Actual Start/Finish dates Cycle return to field NOT timely Formal schedule submittal received back in field well past data date. Information no longer current Project Director without timely information cannot provide current, accurate projections with a high degree of confidence

22 22 Issue #2: “Schedule Embezzlement” Relationship logic changes, or changes to lag factors, constraints and other “unseen” items: Masks poor progress Can “stack” trades in concurrent work Constraints modify CPM calculations Date tables and bar charts do not indicate changes Comparison to Target (prior) schedule requires P3 schedule analysis or “Digger” software, not always available in the field.

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24 24 Slippage Masked by Logic Change(s)

25 25 Issue #3: Out-of-Sequence Work Schedule does not reflect actual sequence –Disruptions –Delivery Delays –Resource Limitations / Availability –Change Orders –Changed Working Conditions Inaccurate Schedule Projections –Immediate & Intermediate dates inaccurate –Limited credibility and usefulness

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27 27 Introduction to “Momentology” A measurable rate of Performance Intensity –The Elusive “Miles-per-Hour” –Maintaining the emphasis of the Project Schedule on the time-related aspects of project management –Schedule performance measurement must reconcile the rate of work placement with that rate’s relationship to time-based goals Earned Value does not accomplish this “The concept of the critical path was all-important to the Scheduler, while it was of dubious value or interest to the Project Manager.”

28 28 The “Duration-Day” The Duration-Day = is the amount of work performance required to reduce a schedule’s remaining duration by one day. Also known as a “Crew-Day” Project Performance = Aggregate Duration-Days

29 29 Performance Intensity Work Performance / Time Consumption Add all Original Duration-Days for all (typically construction) activities in the schedule Divide by the number of workdays required for their performance This is the basic formula for Performance Intensity (P.I.)

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32 32 P.I. equivalent to Miles per Hour Car trip: 2,000 miles in five days. I must drive at 50 MPH for 8 hrs/day (40 hours driving) in order to travel 2,000 miles in 5 days. Tools: Odometer & Speedometer If at the end of the first hour I see I have only covered 48 miles, I can re-set the cruise control to 52 MPH to recover

33 33 P.I. vs Total Float Analysis Total Float analysis is subject to the Timeliness Issue (after-the-fact evaluation) –Car trip illustration: wait until the end of the first day to learn that I have only travelled 384 miles Total Float is also subject to “Schedule Embezzlement” through logic changes or constraints that reserve or sequester float

34 34 P.I. vs Earned Value Earned Value is also subject to the Timeliness Issue A resource-interpolation method, Earned Value is also performed after-the-fact. –Car trip illustration: wait for a gas fill-up in order to check gallons of fuel consumed against miles-per-gallon estimates

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