T.L. Martin & Associates Copyright © 2008 Chapter 1 Fundamentals of Scheduling T.L. Martin & Associates, Inc Office Park Drive Gaithersburg, Maryland Phone (240) & FAX (240)

T.L. Martin & Associates Copyright © 2008 The Fundamentals The primary goal of a schedule is to manage time. A plan is an order of work. When time frames are applied to a plan, a schedule is created. Critical Path Method is used to forecast when work activities are to take place.

T.L. Martin & Associates Copyright © 2008 When to Use a CPM A CPM is used when the scope of work of a project becomes complex. A bar chart can not capture the many relationships between activities in a complex project. Rule of thumb - any project with over forty (40) definable tasks.

T.L. Martin & Associates Copyright © 2008 Why Use a CPM Schedule Contractor is responsible for planning, scheduling and progressing the work. An Owner and its representatives must assure that the contractor meets its obligations.

T.L. Martin & Associates Copyright © 2008 Why Use a CPM Schedule If a contractor fails: –Then an Owner may withhold progress payments –or default terminate the contractor. The schedule is vital.

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedules The bar chart is an excellent tool. Work tasks or activities are shown as bars across a horizontal calendar. If a bar chart is prepared carefully, the planner logically times the work based on: – physical restraints –contractual restraints –realistic use of men and equipment.

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedule Bars Indicate When in Time a Work Task is Planned to be Performed.

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedule A bar chart can include budgets versus actual. Tasks or activities are resource loaded across the horizontal calendar. This allows a real-time view of budget versus actual highlighting any problems of selected important project components such as: – manpower- costs –equipment- revenue –cash flow- material –activity timing (ahead or behind plan)

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedule Add Planned Resources, Spread to Time Periods of Performance, Sum Total of All Tasks for Each Period.

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedule Planned versus Actual Can be Compared.

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedule Planned versus Actual Costs Can be Compared.

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedule

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedule A bar chart can include important budgets versus actual recorded for each Task. The Bar Chart May become Crowded. It is important to Select the Most Meaningful project components to Monitor. The following Bar Chart is an Example which Monitors: –Man-Hours - Costs- Revenue

T.L. Martin & Associates Copyright © 2008 Budget Revenue is Close to Actual Revenue, Thus Project is on Time Both Man-Hours and Costs are Less than Budgeted, Thus Project so Far is a Winner. Note Actual Timing, Man-Hours, Cost and Earned Revenue are Recorded and Compared with Budgets.

T.L. Martin & Associates Copyright © 2008 Bar Chart Schedules Bar chart does not include logic lines. More complex Projects require interrelated activities. A simple bar chart cannot capture the many relationships and interdependencies between activities on complex projects.

T.L. Martin & Associates Copyright © 2008 The CPM Schedule CPM requires the detailed planning and scheduling of all elements of a project, from start to completion. CPM results in a network of tasks of: –Defined duration, –Tied together by physical, contractual and selected optional relationships.

T.L. Martin & Associates Copyright © 2008 Critical Path Method Schedule The standard Finish-Start relationship. An Activity Finishes so Following Activity can Start.

T.L. Martin & Associates Copyright © 2008 The CPM Schedule Once a network of activities has been created, task start and finish dates can be computed. The longest activity chain, from the start of the project to its completion, is termed the projects Critical Path.

T.L. Martin & Associates Copyright © 2008 The CPM Schedule An activity or task is: –definable –must be accomplished The activity includes: –duration –linked to other activities

T.L. Martin & Associates Copyright © 2008 The CPM Schedule Budget Resources, Costs and Revenue may be assigned to each Network activity. After the CPM is created it can be updated with current project information. –Actual Timing: Start, % Complete, Finish –Resources Used Man-Hours ● Equipment-Hours Material Quantities ● Costs Other Components Monitor Budgets versus Actual Timely.

T.L. Martin & Associates Copyright © 2008 The CPM Schedule - Relationships Physical dependence and requirements between activities generally can not be changed. –One work element builds on a previous one. –Site constraints –Special weather considerations

T.L. Martin & Associates Copyright © 2008 Contractual requirements: –Owner imposed phasing of the work. –Permitting issues, –Owner furnished equipment, –Land procurement, –Early turnover of certain areas of the project. The CPM Schedule - Relationships

T.L. Martin & Associates Copyright © 2008 The CPM Schedule - Relationships Physical and contractual requirements are rigid. Activity relationships based on contractor options are far more flexible. –Manpower –Equipment –Contractor’s approach to the project, the contractor’s “means and methods.”

T.L. Martin & Associates Copyright © 2008 Please Proceed to Chapter 2 Key CPM Scheduling Terms