an-najah national university civil engineering department
TRANSCRIPT
An-Najah National UniversityCivil Engineering Department
Faculty of EngineeringEngineering Project Management
Dr Nabil Dmaidi 1
Engineering Project ManagementCourse 465511
Nabil Al- Dmaidi
Your Expectations of MeYour Expectations of MeBe prepared
Be on time
Teach for full 3 hours period
Fair grading system
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Front load the class work
Do not humiliate students
Practice golden rule
Provide real world examples
Make you think
This Course
Focuses not only how project management process works
But more importantly why it works Not concentrate by project type Construction, product development, large,
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Construction, product development, large, small
Rather, for individual who will manage a variety of projects
Designed to be used in pure organizations Construction, research organizations,
manufacturing firms, and the consulting firms
Topics Following this introductory chapter Evaluating and selecting projects Organizational environment Defining the project Developing a work breakdown structure Estimating time and cost
Creating project network
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Creating project network Identifying & managing risks associated with project Determining resources and allocating them Scheduling and leveling resources Reducing project time Monitoring project progress Covering more topics
Leadership & ManagementLeadership & ManagementTwo Hour SessionTwo Hour Session
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Construction ModelConstruction ModelKeep it SimpleKeep it Simple
“Get Work”
“Do Work”
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“Do Work”
“Keep Score”
Owner DesiresOwner Desires
Better operational features
Lower costs
Quicker schedules
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Quicker schedules
Less risk
Less hassle
Contractor DesiresContractor Desires
More work
More profit
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More profit
Less hassle
Individual DesiresIndividual Desires
Job satisfaction
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Job stability
Less hassle
No HassleNo Hassle
No accidents
No changes
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No changes
No cost increases
No delays
My Less HassleMy Less Hassle
Sensitivity to people
Win-Win relationships
Trust
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Trust
Golden rule
Ethics
Partnering
TQM
TheTheChanging EnvironmentChanging Environment
You are hired for your technical skills
You are fired for your lack of people skills
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You are fired for your lack of people skills
You are promoted for yourleadership & management skills
Our Greatest NeedOur Greatest Need
Better Leadership
&
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&Management
Reason for SwitchingReason for SwitchingContractorsContractors
15 % Better Product
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15 % Better Product
15 % Better Cost
70 % People Nicer to Deal With
Knowledge WorkerKnowledge WorkerTheThe Changing ProfessionalChanging Professional
Society of white & blue collar worker– white collar workers plan & supervise
– Blue collar workers do the work
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That model may be dying
The new model
Knowledge worker
Knowledge WorkerKnowledge Worker
Current skills
Move job to job
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Required continuing education annually
Be competitive
Why ChangeWhy Change
In construction
40 Percent of the managers are working in a style they do not prefer
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in a style they do not prefer
My Leadership PhilosophyMy Leadership Philosophy
Establish an atmosphere of trust
Be personally involved
Be open
Plan ahead
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Plan ahead
Understand the mission
Learn the job
Know the boss
Always have someone in charge
Decentralize & delegate
Take care of your people
YOUR MOLECULEYOUR MOLECULE
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You
YOUR MOLECULEYOUR MOLECULE
Place yourself in the middle
Put the boss on top
Your employees on the bottom
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Your employees on the bottom
Other players around
Note
– The line represents your relationship
– Place time spent with each
YOUR MOLECULEYOUR MOLECULE
Boss
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You
YOUR MOLECULEYOUR MOLECULE
Boss
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You
Employees
YOUR MOLECULEYOUR MOLECULE
Boss
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You
Employees
City Inspectors
YOUR MOLECULEYOUR MOLECULE
Most organizations / companies have five to six layers of molecules
Do a molecule analysis for your boss
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Do a molecule analysis for your boss
Do a molecule analysis for your employees
Key to the moleculeKey to the molecule
Spend your time working your
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working your molecule
WHERE DO YOU LEARN YOURWHERE DO YOU LEARN YOURPEOPLE SKILLS?PEOPLE SKILLS?
Influences in developing people skills
31%
17%12% 5%
HomeK to 12
UniversityEducation
Books & Study & TV
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Mom Self ImprovementDad Teachers Professors Continuing EducationSiblings Peers Peers
7% 21%7%
Family Team MatesPeers Coaches PeersPastors Club Officer Bosses Employees
Peers BossesCustomers Good 50%
Bad 50%
ChurchClubs &Teams
Part TimeJobs
Growth
ProfessionalCareer
Dangerous to become aDangerous to become aFiremanFireman
Don’t let your in-box Drive you
Don’t let your phone Use you
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Don’t let your staff Abuse you
Don’t let your e-mail Mislead you
Don’t be a Fireman
ManagementManagement atat West PointWest Point
Goals & objectives are management tools
Demand information to manage by
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manage by
Use thinking time
Separate planning & operations
Train your people for success
Build the “corporate body”
Know who’s on your “molecule”
Manage agreement
Management Leadership
Management leadership balanceManagement leadership balance
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Doing things right Doing the right things
PowerPower
The ability of one person to influence the behavior of another.
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another.
Position powerPosition power
Reward Control over rewards
Coercive Control over
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punishments
Legitimate Position of formal authority
Personal powerPersonal power
Expert Has knowledge, useful information
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Reference Has appealing personal traits
Styles of leadershipStyles of leadership
Tells
Sells
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Sells
Consults
Shares
Delegates
Choice of leadership styleChoice of leadership style
Nature of the task
Power available to the leader
Experience of the subordinates
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Experience of the subordinates
Culture of the organization
Preferred Style of the leader
Style preferred by subordinates
Time available for task completion
Keys to leadershipKeys to leadership
Trust your subordinates
Develop a vision
Keep your cool
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Keep your cool
Encourage risk
Be an Expert
Invite dissent
Simplify
Opportunities inOpportunities inleadership rolesleadership roles 11
Look at every job as if it were an adventure
Treat each new assignment as if it were
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a turnaround
Ask other people to join in solving problems
Stop unproductive routines & try something new
Opportunities inOpportunities inleadership rolesleadership roles 22
Put idea gathering on your Master To-Do
list
Analyze failures and successes
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Analyze failures and successes
Foster collaboration by seeking inputs
Use Power to strengthen others
Enlarge people's sphere of influence
President Harry TrumanPresident Harry Truman
Leadership…..is the ability to get other people to do what the don’t want to do,
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people to do what the don’t want to do, and like it.
AnonymousAnonymous
Leadership is action, not position
It’s not what you know when you start, it’s what you learn and put to good use.
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what you learn and put to good use.
Real leaders are ordinary people with extraordinary determination.
The speed of the leader determines the rate of the pack.
Thank You for Listening
Know yourself
Use the Golden Rule
Keep updating your L & M Philosophy
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L & M Philosophy
Adopt Life Long Learning
Manage Your Own Career
Management Functions
Planning– Where the organization wants to be in the
future and how to get there.
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future and how to get there.
Management Functions
Organizing – Follows planning and reflects how the
organization tries to accomplish the plan.
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organization tries to accomplish the plan.
– Involves the assignment of tasks, grouping of tasks into departments, and allocation of resources.
Management Functions
Leading– The use of influence to motivate employees to
achieve the organization's goals.
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– Creating a shared culture and values, communicating goals to employees throughout the organization, and infusing employees to perform at a high level.
Management Functions
Controlling– Monitoring employees' activities, determining
if the organization is on target toward its goals,
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if the organization is on target toward its goals, and making corrections as necessary.
Management Skills
Conceptual Skill—the ability to see the organization as a whole and the relationship between its parts.
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between its parts.
Human Skill—The ability to work with and through people.
Technical Skill—Mastery of specific functions and specialized knowledge.
Decision Making
Decision: a choice made from two or more alternatives.
Part of all four managerial functions
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Part of all four managerial functions
Decisions are made on the basis of:– Rationality
– Bounded Rationality
– Intuition
Rationality
Problem is clear and unambiguous.
Single goal.
All alternatives are known.
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All alternatives are known.
Clear and constant preferences.
Maximum payoff.
The decision is in the best interest of the organization—not the manager.
MANAGEMENT HIERARCHY
Management Level Responsibility
TOP MANAGEMENT LONG RANGE PLANNING
MIDDLE MANAGEMENT SHORT TERM PLANNING
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MIDDLE MANAGEMENT SHORT TERM PLANNING
SUPERVISORS EXECUTION
What is a Project
A project is a complex, non routine, one-time effort limited by time, budget, resources, and performance specification designed to meet customer needs
CharacteristicsAn establish objective
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An establish objective A defined life span Involvement of several disciplines Unique (has never been done before) Within specific time, cost, performance
requirements
Project Life Cycle
Definition Planning Execution Delivery
Lev
el o
f ef
fort
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Lev
el o
f ef
fort
1. Goals2. Specifications3. Tasks4. Responsibilities5. Teams
1. Schedules2. Budgets3. Resources4. Risks5. Staffing
1. Status reports2. Changes3. Quality4. Forecasts
1. Train customer2. Transfer documents3. Release resources4. Reassign staff5. Lessons learned
Phase One
Definition Stage– Defining Specifications
– Establishing objectives
Determining tasks
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– Determining tasks
– Forming teams
– Assigning responsibilities
Low level of effort
Phase Two
Planning Stage– Estimating time and cost
– Scheduling activities and resources
Identifying and determining risks
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– Identifying and determining risks
– Assigning teams
Level of effort increases
Phase Three
Execution Stage– Producing physical product
– Collecting data
Monitoring project performance
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– Monitoring project performance
– Identifying the changes
– Forecasting new measures
Highest level of effort
Phase Four
Delivery Stage– Training customer
– Transferring documents
Releasing resources
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– Releasing resources
– Reassigning staff
– Documenting lessens learned
Low level of effort
The Importance of ProjectManagement
No longer a special-need for management Becomes a standard way of doing business Many reasons
Compression of the product life cycle
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Compression of the product life cycle Global competition Knowledge explosion Increased customer focus Small projects become a big problem Some other reasons
Compression of Product Life Cycle Important driving force behind the shortening
product life cycle
Compare 1.5-3 years now to 10-30 years in past (30 years ago)
Implies time to market a product
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Implies time to market a product
Rule of thumb– A 6-month project delay can result in a 33% loss in
product revenue share
Approach– Relay on cross-functional teams
PM provides an efficient way of doing this task
Global Competition In today’s open market, not only we see cheaper
product price, but also higher quality Achieved by ISO 9000 certification International standards covering from design
stage to delivery stage for everything from banking to manufacturing
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banking to manufacturing Not only has led the U.S. manufacturing
operations to far east, but also transformation is a critical issue
PM provides an important discipline for achieving this task
Knowledge Explosion
Increased the complexity of projects
Use the latest know-how technology in material, equipment, and even required specialists
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specialists
Used to get this task done
Increased Customer focus
Placed a premium on customer satisfaction
No longer want generic products
Want customized products and services
Also promoted the development of the
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Also promoted the development of the customized products and services
Used to provide an efficient way to get these tasks done
The Problem of Small Projects
To stay in the market, we should manage many projects concurrently
Share resources across a portfolio of projects
No idea of managing multiproject problem
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Sometimes, small projects carry the same risk as do large projects
Approach– Prioritize them
PM provides an important tool for achieving this task
Integrated Project ManagementSystems
Selection and management of projects fail to support the strategic plan
Written by one group Selected by another group
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Selected by another group And implemented by third group (project
managers) Results in wasting resources Approach
– Need a system in which all parts are integrated
Integrated Management of ProjectsCustomer
Environmental analysisExternal Internal
Firmmission,
goals, strategies
Political, social, economic, and technological
Signal Opportunities and Threats
Management, facilitiesFinancial conditions
Signal Weaknessesand strengths
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Priorities
ProjectsEnvironmentand Culture
System
Project Implementation
Scope
Work Breakdown
Networks
Resources
Cost
Organization
Leadership
Teams
Partners
and Threats and strengths
Definition of a Project From the Project Management Institute:
“A temporary endeavor
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“A temporary endeavorundertaken to create a unique
product or service”
Project Characteristics
Temporary Endeavor– Has a distinct starting point and due date
Create a unique product or service
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– Specific deliverable
– Unique
Examples of a Project
Installing a computer network in a building Opening a new store/factory Automating an assembly line Design a new car model
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Design a new car model Introducing a new car model Building a bridge
Other Project Characteristics
Multidisciplinary
Complex
Conflict
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Conflict
Can be part of a Program– Recurring series of projects
– New planed product each time
Project Resources
People– A team of people working together
Money
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Equipment
Time
Reasons for Using Project Mgmt.
Temporary Duration– Assigning responsibilities
– Provide resources
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Unique Features of a Project– Requires organized approach
For a Successful Project
Well-defined objectives
Good communication
Support of management/customer
Feasible plan
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Feasible plan
Reliable team
Maintain control of budget/schedule
Skills for Project Management
Good Planning Conflict Resolution Creativity
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Flexibility Negotiation Communication
– Client– Subcontractors– Team
Dimensions of Project Management
Performance
Money
Time
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Time
Plan should consider all of these before starting
Manager needs to track them during project
Stages of a Project
1) Conceptual Design2) Preliminary Design3) Detailed Design
Execution
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4) Execution5) Close
Project Selection Considerations
Effectiveness
Cost
Time Required
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Time Required
Resources Required
Chance of success
Homework –
Write 300-400 words describing a project that you have been involved in
In description, include the following– Objective of project
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– Objective of project
– Your role (client, manager, team member, …)
– Success of project with respect to each of the dimensions of project management
– Specific problem encountered during the implementation of the project and how you resolved it
Project Manager & Project Plan
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Project Management: A Profession
Project Management Institute– Over 100,000 members worldwide
As a profession
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As a profession– Developed body of knowledge– Guidelines and standards for members– Journals and trade publications
Organizations becoming more project oriented
Roles of a Project Manager
Communicator
Facilitator
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Facilitator
Decision maker
Motivator
Project Communication
Project Manager
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Project Manager
Project Manager
Project TeamClient
Project Manager’sResponsibilities Obtain Resources
Overcome Obstacles
Provide Leadership
Achieve these through
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Achieve these through– Negotiation
– Conflict Resolution
– Persuasion
Selecting a Project Manager
Credibility
Political and Interpersonal Skills
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Political and Interpersonal Skills
Motivation and Organization
Ethical
Project Master Plan: Introduction
Overview
Objectives
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Objectives
General Approach
Project Master Plan: Resources
Schedule
Personnel
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Personnel
Resource Requirements
Project Master Plan: Wrap-up
Evaluation Methods
Potential Problems
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Potential Problems
Contractual Details
Starting the Planning Process
First Step: Define Objectives
Other Preliminary Concerns
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Other Preliminary Concerns
Launch Meeting
Hierarchical Planning Process
Complete list of all required tasks
Steps:– List Main Objectives
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– List all tasks needed to achieve objectives –Level 1 Activities
– List all tasks needed to achieve Level 1 Activities – Level 2 Activities
– Continue breakdown to lowest level of detail
Project Action Plan
All project activities– Resources required
– Precedents
Duration
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– Duration
– Person (s) responsible
Milestones Identified
Work Breakdown Structure
Hierarchy to divide project into separate jobs– Top level – overall project
Multiple levels depending on complexity of
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– Multiple levels depending on complexity of project
– Bottom level – individual tasks
Work Breakdown
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Work BreakdownStructures
& Scheduling
Work Breakdown Structures
Bill of Materials (BOM) format
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Work Breakdown Structures
IndentedBOMformat
ProjectTask 1
Subtask 1.1
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Subtask 1.1Task 2
Subtask 2.1Subtask 2.2Subtask 2.3
Task N
WBS Level Names
1. Program2. Project
3. Task4. Sub Task
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4. Sub Task5. Work Package
6. Effort or Activity
WBS Level Names
Common names & terms facilitate:– Communication– Understanding
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All parties should use a common level naming convention
When Developing a WBS
Identify necessary tasks
Don’t worry about the particular order—yet
Don’t worry about particular details —yet
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Don’t worry about particular details —yet
WBS Development Process
First: Identify all work that needs to be done
Then: Identify who, how long, when, and how much
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how much($ and resources)
Estimating Work
Estimate WBS to level of required accuracy– Granularity
“Exact estimates” are oxymoronic(e.g., jumbo shrimp)
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(e.g., jumbo shrimp)
Scheduling
The goal of scheduling is to maximize parallel activities to minimize time
Minimal time yields– the most aggressive schedule
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– the most aggressive schedule– an ideal (unrealistic) target
Change Control
The world will not standstill while a plan is being
executed.
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executed.
Multidisciplinary Teams
Concurrent Engineering– Working in parallel
– Useful structure for design projects
Team has representatives from different areas
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Team has representatives from different areas– Design
– Manufacturing
– Finance
– Marketing
– Sales
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MOST MANAGERS DO NOT LIKEPLANNING DUE TO THEFOLLOWING:* It takes time.
* You have to think.
* It involves paper work.* It involves paper work.
* You are bound to systematic procedures.
* You are committed to achieve a specific result within a specified time period.
Effective PlanningAn effective plan will be:-
* Explicit - stated in detail, leaving nothing merely implied.
Intelligible - it must be understood and be * Intelligible - it must be understood and be comprehensible.
* Flexible - capable of accepting change.
* Controllable - capable of being monitored for control purposes.
Planning Fundamentals If the task is not understood, then during
the actual task execution more knowledge is gained that, in turn, leads to changes in resource allocations, schedules, and priorities.
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priorities. If the task is well understood prior to
being performed, much of the work can be preplanned.
The more uncertain the task, the greater the amount of information that must be processed in order to ensure effective performance.
Reasons for Planning To eliminate or reduce uncertainty To improve efficiency of the
operation To obtain a better understanding of
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To obtain a better understanding of the objectives
To provide a basis for monitoring and controlling work
DEFINITION OF A PROJECT LIFECYCLE
CONCEPTUAL PHASE
DETAILEDPLANNING PHASE
FEASIBILITY ANDPRELIMINARY
PLANNING PHASE
IMPLEMENTATIONPHASE
CONVERSIONOR TERMINATION
PHASE
ResourcesUtilized
RE
SO
UR
CE
S
TIME
PM
O
PM
O
* Who plans the project?
* Who executes the project?
* Who is responsible for monitoring work and controlling work?
PLANNING QUESTIONS OFTEN ASKED
The Line Manager(s) ?The Project Manager ?
Both Parties ?
work and controlling work?
* Who is responsible for providing feedback regarding the planning and execution phases of a project?
Project Manager’sResponsibility Project Manager will define:
– Goals and objectives
– Major milestones
– Requirements
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– Requirements
– Ground rules and assumptions
– Time, cost, and performance constraints
– Operating procedures
– Administrative policy
– Reporting requirements
Line Manager’sResponsibility Line manager will define:
– Detailed task descriptions to implement objectives, requirements, and milestones
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milestones
– Detailed schedules and manpower allocations to support budget and schedule
– Identification of areas of risk, uncertainty, and conflict
Senior Management’sResponsibility Senior management (project
sponsor) will:– Act as the negotiator for disagreements
between project and line management
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between project and line management
– Provide clarification of critical issues
– Provide communication link with customer’s senior management
THE SEVEN PHASES OF APROJECT
1. Wild enthusiasm12. Disillusionment
3. Chaos
4. Search for the guilty
5. Punishment of the innocent
6. Promotion of the non-participants
7. Define the requirements
Planning/SchedulingTools Scheduling
MS Project
ABT Workbench
Timeline
Scheduling MS Project
ABT Workbench
Timeline
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Timeline
Others
Estimation Tools
Risk Analysis Tools
etc.
Timeline
Others
Estimation Tools
Risk Analysis Tools
etc.
Defining Requirements The statement of work (SOW)
The project specifications
The milestone schedule
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The milestone schedule
The work breakdown structure (WBS)
STATEMENT-OF-WORK (SOW)
COMPLEXITY IS DETERMINED BY TOP MANAGEMENT, CUSTOMER AND/OR MANAGEMENT, CUSTOMER AND/OR
USER GROUP(S)
FOR INTERNAL PROJECTS:SOW IS PREPARED BY THE PROJECT
OFFICE AND/OR USER GROUP(S)
POINTS TO ADDRESS WHENDEVELOPING A STATEMENT-OF-WORK
Purpose - objectives
Exclusions - what should not be done
Quantities - how many Quantities - how many
Schedule - when the work will be started/completed
Deliverables (i.e... work done)
Acceptance criteria - what method will be used to accept deliverables
Responsibility - department, office or
Preparation of internal SOWs– Project office and/or user groups
Preparation of external SOWs
WHO PREPARES THESTATEMENT-OF-WORK (SOW)
Preparation of external SOWs– Dependent on situation, & complexity
– Project manager/ line managers and project sponsor
– Client who may have the capabilities
– Client may decide to contract out to an independent body
– Client may contract your services
IF A STATEMENT OFWORK IS
MISINTERPRETED, IS IT
STATEMENT-OF-WORK RISKS
MISINTERPRETED, IS ITNORMALLY IN FAVOR OF
THE CLIENT ORCONTRACTOR ?
Statement of WorkElements General scope of the work Objectives and related background Contractor’s tasks
Contractor end-item performance
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Contractor end-item performance requirements
Reference to related studies, documentation, and specifications
Data items (documentation) Support equipment for contract end-
item
Statement of WorkElements
Customer-furnished property, facilities, equipment, and services
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Customer-furnished documentation
Schedule of performance
Exhibits, attachments, and appendices
Problem Areas Project objectives/goals are not agreeable
to all parties. Project objectives are too rigid to
accommodate changing priorities Insufficient time exists to define
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Insufficient time exists to define objectives well.
Objectives are not adequately quantified. Objectives are not documented well
enough. Efforts of client and project personnel are
not coordinated. Personnel turnover is high.
Misinterpretation Areas Mixing tasks, specifications, approvals,
and special instructions
Using imprecise language (“nearly,”“optimum,” “approximately,” etc.)
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“optimum,” “approximately,” etc.)
No pattern, structure, or chronological order
Wide variation in size of tasks
Wide variation in how to describe details of the work
Failing to get third-party review
IF A STATEMENT OFWORK IS
MISINTERPRETED, IS IT
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MISINTERPRETED, IS ITIN FAVOR OF THECONTRACTOR OR
CUSTOMER?
PURPOSE OF WBS
Detailed planning can be performed
Costs and budgets can be
IT IS TO STRUCTURE AN ASSIGNED PROJECT INTO VARIOUS ACTIVITIES IN ORDER THAT:
Costs and budgets can be established
Objectives can be linked to available resources in a logical manner
Specific authority and responsibility can be assigned
WORK BREAKDOWN STRUCTURE
Can be developed using a top-down or bottom-up approach
Can be hardware-related, function-related, or a combinationrelated, or a combination
Depth of WBS must balance out management effort against planning accuracy (influences technical and cost control)
For accuracy purposes the WBS should be taken down several levels
The WBS must be structured for
Work BreakdownStructure (WBS) The total program can be described as a
summation of subdivided elements.
Planning can be performed.
Costs and budgets can be established.
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Costs and budgets can be established.
Time, cost, and performance can be tracked.
Objectives can be linked to company resources in a logical manner.
Schedules and status-reporting procedures can be established.
Work BreakdownStructure (WBS) (Continued)
Network construction and control planning can be initiated.
The responsibility assignments for each element can be established.
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each element can be established.
Have clearly defined start dates
Have clearly defined end dates
Must be able to be used as a communicative tool in which you can
IN SETTING UP A WORK BREAKDOWN STRUCTURE THE ACTIVITIES MUST:
communicative tool in which you can communicate the expected results
Be estimated on a “total time duration”not when the individual activities start or end
Be structured so that a minimum of project office control and documentation (i.e. forms) are necessary
LEVEL DESCRIPTION1 Total Program2 Project(s)
WORK BREAKDOWNSTRUCTURE (WBS)
Most common type: Six-Level Indentured Structure
2 Project(s)3 Task(s)4 Subtask(s)5 Work Package(s)6 Level of Effort
THE WBS BREAKS WORK DOWN INTO SMALLER ACTIVITIES THUS REDUCING THE RISK THAT ANY MAJOR OR MINOR ITEM WILL BE OMITTED
WBS: SIX-LEVEL STRUCTURE
LEVELS RESPONSIBILITY
1Usually specified by the client and managed the project manager.
Generated by contractor for in-house control and managed by the functional manager(s).
Planning accuracy is dependent on the WBS level selected. The lower the level the greater is the planning accuracy but the higher the management cost.
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WBS Tasks
Have clearly defined start and end dates
Be usable as a communications tool in which results can be compared with expectations
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expectations
Be estimate on a “total” time duration, not when the task must start or end
Be structured so that a minimum of project office control and documentation (i.e., forms) is necessary
DEVELOPING A WORKBREAKDOWN STRUCTURE(WBS)
UTILITY CAR (1.00.00)
PROTOTYPE
DEVELOPMENT
(1.1.0)
ADVANCED
DEVELOPMENT
(1.2.0)
PRE-PRODUCTION
QUALIFICATION
(1.3.0)
FINAL PRODUCTION
(1.4.0)
1.00.00
1.1.0 1.2.0 1.3.0 1.4.0
WBS ExampleWBS LEVELS
2
1 PROGRAM
PROJECT
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1.2.1 1.2.31.2.2
1.2.2.1 1.2.2.2 1.2.2.3
1.2.2.1.1 1.2.2.1.2 1.2.2.1.3 1.2.2.1.45
4
3 TASK
SUBTASK
WORKPACKAGE
WBS Controls
DECISION
TREESSCHEDULES
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STRUCTURE
WORK
BREAKDOWN
STRUCTURE
MGT.
COORDIN.
ORGANIZ.
CHARTS
COSTSACCOUNT-
ABILITY
WBS InterfacingBenefits The responsibility assignment matrix
Network scheduling
Costing
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Costing
Risk analysis
Organizational structure
Coordination of objectives
Control (including contract administration)
Work Package ControlPoint
WBS
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WORK
PACKAGES
FUNCTIONAL
ORGANIZATION
WBS Work Packages Represents units of work at the level
where the work is performed
Clearly distinguishes one work package from all others assigned to a single functional group
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functional group
Contains clearly defined start and end dates that are representative of physical accomplishment
Target is 80 hours and about two weeks, but depends on size/nature of the project.
WBS Packages (Continued)
Specifies a budget in terms of dollars, man-hours, or other measurable units
Limits the work to be performed to
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Limits the work to be performed to relatively short periods of time to minimize the work-in-process effort
Knowing When To Pull The
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Knowing When To Pull ThePlug
REASONS WHY PLANS FAIL Corporate goals not understood lower
down in the organization/company
Plans encompass too much in too little timetime
Poor financial estimates
Plans based upon insufficient data
Poor staff requirements
Insufficient time allocated for project estimating
OTHER REASONS WHY PLANS FAIL
No attempt made to systemize the planning process Planning was performed by a planning group No one knows the ultimate objectives No one knows the major milestone dates
Project estimates are best guesses and are not based on Project estimates are best guesses and are not based on any standards, or history
No one bothered to see if there would be personnel available with the necessary skills
People not working towards the same specs Constant shuffle of personnel in and out of the project with
little regard for the schedule Change of management and their objectives. Change(s) in the macro environment
Stopping Projects Final achievement of the objectives Poor initial planning and market
prognosis A better alternative is found
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A change in the company interest and strategy
Allocated time is exceeded Key people leave the organization Personal whims of management Problem too complex for the resources
available
Behavioral Stoppages Poor morale
Poor human relations
Poor labor productivity
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Poor labor productivity
No commitment by those involved in the project
Ways to Terminate Orderly planned termination The “hatchet” (withdrawal of funds
and removal of personnel) Reassignment of people to higher
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Reassignment of people to higher priorityefforts
Redirection of efforts toward different objectives
Burying it or letting it die on the vine (i.e., not taking any official action)
Termination ProblemAreas Worker morale
Reassignment of personnel
Adequate documentation and wrap-
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Adequate documentation and wrap-up
Planning For Project Completion
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Planning For Project Completion
Planned Closure Transferring responsibility
Completion of project records– Historic reports
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– Post project analysis
Documenting results to reflect “as built” product or installation
Acceptance by sponsor/user
Satisfying contractual requirements
Planned Closure (Continued)
Releasing resources– Reassignment of project office team
members
– Disposition of functional personnel
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– Disposition of functional personnel
– Disposition of materials
Closing out work orders (financial closeout)
Preparing for financial payments
Updating The Project Diary
Every successful project maintains good records
Periodic and frequent updates
Every successful project maintains good records
Periodic and frequent updates
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Complete update on termination
Including “as built” documentation
Complete update on termination
Including “as built” documentation
Managing ScopeChanges Need a solid process here
Don’t lose ideas
Capture every idea, catalog it, save it,
Need a solid process here
Don’t lose ideas
Capture every idea, catalog it, save it,
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Capture every idea, catalog it, save it, along with evaluations
Evaluate every potential scope change
Desirability
Cost in time, money and quality
Feasibility
Capture every idea, catalog it, save it, along with evaluations
Evaluate every potential scope change
Desirability
Cost in time, money and quality
Feasibility
Change Management YOU CANNOT MANAGE YOUR
CUSTOMER WITHOUT MANAGEMENT OF YOUR PROJECT MANAGEMENT PROCESS.
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PROCESS.
WHEN YOUR CUSTOMER INITIATES A CHANGE REQUEST, YOU MUST BE ABLE TO PREDICT IMMEDIATELY THE IMPACT ON SCHEDULE , COST AND TECHNICALPERFORMANCE.
Unmanaged vs. ManagedChangesUnmanaged vs. ManagedChanges
UnmanagedChange UnmanagedChange
Where TIMEis invested
Where TIMEis invested
How ENERGYis invested
How ENERGYis invested
WhichRESOURCES
are used
WhichRESOURCES
are used
Back-end Back-end Rework Enforcement Rework Enforcement
SeniorManagement
SeniorManagement
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Change Change
ManagedChange ManagedChange
Front-end Front-end
Enforcement Compliance Supervision
Enforcement Compliance Supervision
Education Communication Planning Improvements Value-Added
Education Communication Planning Improvements Value-Added
Management and key players only
Management and key players only
Stakeholders(internal)
Suppliers Customers
Stakeholders(internal)
Suppliers Customers
Cost of CorrectionsCost of Corrections
PreliminaryPreliminary DetailedDetailed ImplementationImplementation
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DefinitionDefinition
$1$1
PreliminaryPlanning
PreliminaryPlanning
$5$5 $25$25 $100$100 $1000$1000
DetailedPlanningDetailedPlanning ExecutionExecution Implementation
/ConversionImplementation
/Conversion
Integrated Processes forThe 21st CenturyIntegrated Processes forThe 21st Century
Project ManagementProject Management
ConcurrentEngineeringConcurrentEngineering
Total QualityTotal Quality
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ConcurrentEngineeringConcurrentEngineering
Total QualityManagementTotal QualityManagement
RiskManagement
RiskManagement
ChangeManagement
ChangeManagement
Planning
The road to project failure is paved with poor plans
PLANNING: Influencing the future by
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PLANNING: Influencing the future by making decisions today based on
missions, needs and objectives.
It is an art not science.
Planning is NOT a one time activity
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Categories of planning:
Time
Cost
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Cost
Resources
Quality
Contingency
Time Planning
When to start
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when to finish
Time plans will be transformed to schedule (time scale)
Time planning steps
1) Divide project into component parts
2) Sequencing component parts in order of
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2) Sequencing component parts in order of
accomplishment
3) Assign durations to each component
part
Cost Planning
Allocating direct and indirect costs to the project components
Expenditure/revenue
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( cost / schedule integration)
Resources Planning
Construction Resources includes:
money Material Human resources
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Human resources Equipments and tools Check if the needed resources are available or NOT. Eliminate idle time. Resources should be planned considering the budget. Attention to critical resources for project success
Quality Planning
what is the minimum accepted quality?
Should I exceed the required quality?
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Should I exceed the required quality?
How can I achieve this quality?
Contingency (Risk) Planning
Planning for variability and uncertainty
“What if” planning to include items subject
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“What if” planning to include items subject to variability which are significantly impact project cost and time
Integrating Planning
Integration of time, cost and resource planning against the same basic structure (WBS)
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Resource budgeting against time
Cost budgets plotted against time
Thousands of tasks
The psychologists say our brains can normally comprehend around 7-9 items simultaneously.
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So, divide and subdivide the project.
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
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controllable units, usually called work groups (packages) or tasks, or, at the finest level of detail (which is undesirable) activities
Take care!!!
The deeper you go into the lower levels of the WBS, the more detailed knowledge you’ll need to know.
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House
Structure Mechanical Electrical
Sub – str. Super str. HVAC Plumbing
Level 2
Level 3
Level 1
1.0
1.1 1.2 1.3
1.1.1 1.1.2 1.2.1 1.2.2
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Earth work Foundation Str. elements Finishing
ExcavationBackfillingleveling
Blinding footingsTie beamsGround slab
columnsbeamsRoof slab
Level 4
Level 5
1.1.2.21.1.2.11.1.1.21.1.1.1
Plaster Tile paintingDoors &windows
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)
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(procurement phase)
The CWBS(Contract Work breakdown Structure ) After contract award, the project manager
expands the WBS into a contract work breakdown structure (CWBS).
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as the initial step in the PLANNING process.
House
Structure Mechanical Electrical
Sub – str. Super str. HVAC Piping
Level 2
Level 3
Level 1
1.0
1.1 1.2 1.3
1.1.1 1.1.2 1.2.1 1.2.2
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Earth work Foundation Str. elements Finishing
ExcavationBackfillingleveling
Blinding footingsTie beamsGround slab
columnsbeamsRoof slab
Level 4
Level 5
1.1.2.21.1.2.11.1.1.21.1.1.1
Plaster Tile paintingDoors &windows
CWBS prepared by the Contractor project manager
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
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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.
Assign responsibilities.
The CWBS
it is a major task to undo.
Why???
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Why???
Because cost collections begins at a CWBS element,
Conclusion
The work breakdown structure defines the product elements (work packages).
And their interrelations to each other and to the product.
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the product.
The WBS mostly ends with project tasks.
Using the tasks you can extract project’s activities.
Construction scheduling
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Construction scheduling
What is the difference between a schedule and a Plan?
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The schedule: putting the plan in time scale.
Schedule: what would be done in a certain time and who will be working.
Most Common Scheduling methods
common scheduling methodologies:
Bar Chart (Gantt Chart)
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Critical Path Method (CPM)
PERT (program Evaluation & Review Technique)
Linear Scheduling Method (LSM)
Bar Chart or Gantt chart
A
B
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Act
ivit
y
C
D
E
F
2 3 4 5 6 7 81
Advantages of Bar / Gantt Chart
1) Plan, schedule and progress are all depicted graphically on a single chart
2) Easily read3) Provides simple way to schedule small projects4) Provides summary display of more detailed plans
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4) Provides summary display of more detailed plans and schedules.
5) Best used for management briefings
Bar Chart or Gantt chart
A
B
Current time
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Act
ivit
y
C
D
E
F
2 3 4 5 6 7 81
Disadvantages of Bar / Gantt Chart
1) Activity dependencies cannot adequately be shown.
2) Difficult to determine how activity progress delays affect project completion.
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progress delays affect project completion.
3) Difficult to establish and maintain for large projects
Critical Path Method (CPM)
Two basic methods of analysis:
1) ADM -- Arrow Diagramming Method or
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1) ADM -- Arrow Diagramming Method or
Activity On Arrow (AOA) or I-J Method
2) PDM -- Precedence Diagramming Method Activity On Node (AON) Method
1) ADM -- Arrow Diagramming Method
Activity on Arrow (AoA) or noun as i – j method
In The ADM the activity represented by an arrow.
The arrow head represents the relation with other
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The arrow head represents the relation with other activities (interdependency).
it looks like the following figureActivity description
Duration
ADM -- Arrow DiagrammingMethod
Event i Event j
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excavationi j
7
The Excavation activity OR activity i - j with duration of 7 (time unit)
Event i Event j
ADM -- Arrow DiagrammingMethod Linear sequencing
Summation of all activities durations = total duration
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Form work10 11
Pour concrete12 13
Cure concrete14
Steel rebar
2 1 1 7
Total Duration = 2 + 1 + 1 +7 = 11 days
ADM -- Arrow DiagrammingMethod
11
10
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12
walls plaster14 15
13
ADM -- Arrow DiagrammingMethod
Sitting1
Order
Formwork
Excavate erect
out
make
Formworktimberfoundation2 3 4 5 6
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Sitting1
erectExcavate
out Formworkfoundation2 4 5
3
Dummy activities
Build wall Wall Plaster13
plumbing
electricalconduit
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Build wall1 2
Wall Plaster3 13
plumbing4
Joinery 1stfixings
Dummy activities
3
Dummy activity has ZERO duration and Does NOT consume resources.
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Build wall1 2
Plaster wall5 13
plumbing6
4
1) Dummies help in activities identification
Dummy activities
If activity R follows P and activity S follows T
RP
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does the above figure depict the statement.???
11
ST
What about this
P12 R
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T11
S
Dummy activities
If the method statement changed that activity S is dependent on both activities P & T. and activity R dependent on P only.
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P12 R
T11
S
2) Dummy activities help to maintain the logic of the network2) Dummy activities help to maintain the logic of the network
Exercise: draw arrow diagram for the following
project.
Activity Duration Predecessor
A 2 --
B 2 A
C 4 A
D 1 C
E 4 B & C
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E 4 B & C
F 2 B
G 1 D
H 4 F & E
I 2 F
J 4 G & H
K 4 I & H
L 1 K & J
A
2
C 4
B
2
F
2
I
2
K4
10 15 25 40 55
The Arrow Network will be:
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C
D1
G
1
H
4J
4
L
1
4
20
30
35
50
45 60 65E
427
Network calculations
Forward Pass: deals with the early start and early finish
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Backward Pass: deals with the late start and late finish
Example
A1 E
2C41
2 4 5
1 2 6 8
Beginning of the day convention
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241
3
3
Forward Pass calculations to determine the early start and early finish dates
EF = ES + Duration
Example
1 2 4 5
1 2 6 8
1 2 6 8
A E2
C41
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3
3
Backward pass calculations to determine the late start and late finish dates
4LS = LF – Duration
241
Tabular Schedule
Activity Duration
ES EF LS LF
A 1 1 2 1 2
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A 1 1 2 1 2B 2 1 3 2 4C 4 2 6 2 6D 2 3 5 4 6E 2 6 8 6 8
ES – EF ScheduleA
ctiv
ity
A
B
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day
Act
ivit
y
C
D
E
2 3 4 5 6 7 81
Early Times Schedule (ES – EF)
LS – LF ScheduleA
ctiv
ity
A
B
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day
Act
ivit
y
C
D
E
2 3 4 5 6 7 81
Late Times Schedule (LS – LF)
Early / Late times scheduleA
ctiv
ity
A
B
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day
Act
ivit
y
C
D
E
2 3 4 5 6 7 81
Both Early / Late Times Schedule
Total Float (TF)TF = LS – ES OR LF - EF
Activity Duration
ES EF LS LF TF
A 1 1 2 1 2 0
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A 1 1 2 1 2 0B 2 1 3 2 4 1C 4 2 6 2 6 0D 2 3 5 4 6 1E 2 6 8 6 8 0
TF: the amount of time that an activity can be delayed before it impacts the project completion.
Critical Path
1 2 4 5
1 2 6 8
1 2 6 8
A E2
C41
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3
3
The critical path: is the longest path in the network and the shortest possible duration.
4LS = LF – Duration
241
A
2
C 4
B
2
F
2
I
2
K4
1 2 3 9 10
1 3 5 7 15
7 7 11 15 19 20
1 3 7 11 15
7 7 11 15 19 20
Determining the Critical Path
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C
D1
E
4
G
1
H
4J
4
L
1
4
4
5
6 7
8
11 12 13
7 7 11 15 19 20
1581514
A
2
C 4
B
2
F
2
I
2
K4
1 2 3 9 10
1 3 5 7 15
7 7 11 15 19 20
1 3 7 11 15
7 7 11 15 19 20
Determining the Critical Path
Dr Nabil Dmaidi 202
C
D1
E
4
G
1
H
4J
4
L
1
4
4
5
6 7
8
11 12 13
7 7 11 15 19 20
1581514
The Critical path passes through activities where TF = 0
Early ScheduleActivity Duration ES EF
A 2 1 3
B 2 3 5
C 4 3 7
D 1 7 8
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E 4 7 11
F 2 5 7
G 1 8 9
H 4 11 15
I 2 7 9
J 4 15 19
K 4 15 19
L 1 19 20
A
B
C
D
E
F
G
Bar / Gantt chart Early Start / FinishEF = ES + D
Activity
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G
H
I
J
K
L
2 4 6 8 10 12 14 16 18 20Day
Early / Late ScheduleActivity Duration ES EF LS LF
A 2 1 3 1 3
B 2 3 5 5 7
C 4 3 7 3 7
D 1 7 8 13 14
E 4 7 11 7 11
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E 4 7 11 7 11
F 2 5 7 9 11
G 1 8 9 14 15
H 4 11 15 11 15
I 2 7 9 13 15
J 4 15 19 15 19
K 4 15 19 15 19
L 1 19 20 19 20
A
B
C
D
E
F
G
Bar / Gantt Chart Late Start / FinishLS = LF - D
Activity
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G
H
I
J
K
L
2 4 6 8 10 12 14 16 18 20Day
Activity Duration ES EF LS LF TF
A 2 1 3 1 3 0
B 2 3 5 5 7 2
C 4 3 7 3 7 0
D 1 7 8 13 14 6
Total Float (TF): The amount of time an activity can be delayed without delaying the overall project completion.TF = LF LF –– EFEF
= LS = LS -- ESES
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D 1 7 8 13 14 6
E 4 7 11 7 11 0
F 2 5 7 9 11 4
G 1 8 9 14 15 6
H 4 11 15 11 15 0
I 2 7 9 13 15 6
J 4 15 19 15 19 0
K 4 15 19 15 19 0
L 1 19 20 19 20 0
2) PDM Precedence Diagramming MethodActivity On Node (AON) Method
PDM is the primary method in use today.
Used by most of the computer software.
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MS Project
Primavera
PDM Precedence Diagramming Method
The PDM depicts activities as NODES in the network linked with logic lines.
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The node representing the activity.
Arrow representing relationship / dependency
PDM should be red left to right
PDM Precedence Diagramming Method
PDM looks like the following:
Activity A Activity B
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Activity A Activity B
• The shape of the node could be any shape
PDM vs. ADM
A CA C
1 2 3
ADM PDM
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B DB D
4 65
=
PDM vs. ADM
B3
ADM PDM
B
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A C
D
A1
5
4 =2
B
C
D
Exercise
Draw a PDM for the following activities.
Activity Activity Label Description predecessor
A Lay out --
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A Lay out --B Excavation AC place formwork BE purchase steel --F bend steel EG place steel C,FH order concrete --D place concrete G,H
The PDM will be:
H
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A B C
E F
D
G
Exercise
Activity Predecessor
A --
B A
• Draw a PDM for the following activities.
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C A
D B,C
E C
F D,E
G E
H F,G
Solution
A B D F H
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C E G
Activities Relationships
Types of relations between activities:
1) Finish to start – FS
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1) Finish to start – FS
2) Start to Finish – SF
3) Finish to Finish – FF
4) Start to Start - SS
1) Finish to start – FS Relationship
The traditional relationship between activities.
Implies that the preceding activity must finish before the succeeding activities can
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finish before the succeeding activities can start.
Example: the plaster must be finished before the tile can start.
Finish to start with delay relationship
Pour concrete1 day
Deshuttering2 days
Concrete curing28 days
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Concrete curing an activity which consumes no resources other than time
Pour concrete1 day
Deshuttering2 days
FS/28
28 days is delay time or LAG means that: deshuttering can start 28 days afterConcrete has been poured
3) Star to Finish – SF relationship
Appear illogical or irrational.
Typically used with delay time OR LAG.
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Typically used with delay time OR LAG.
The following examples proofs that it is logical.
2) Star to Finish – SF relationship
steelreinforcementErect formwork Pour concrete
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Order concrete
SF/5
The concrete supplier stipulates 5 days order before delivery.
3) Finish to Finish – FF relationship
Both activities must finish at thesame time.
Can be used where activities can
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Can be used where activities canoverlap to a certain limit.
Finish to Finish – FF relationship
Position flagpoleIn the hole
Set flagpole In the hole
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Backfillhole
FF
Finish to Finish with delay relationship
Erect scaffolding
Remove Old paint
FF/1
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sanding
painting inspectDismantle scaffolding
FF/2
4) Start to Start – SS relationship
Spread groutClean surface
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Set tile
SS
Clean floor area
Precedence Network Calculations
the basic information that should be calculated in the precedence network are:
1) Early activity start (ES)
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1) Early activity start (ES)2) Early activity finish (EF)3) Late activity start (LS)4) Late activity finish (LF)5) Free Float (FF)6) Total Float (TF)
Precedence Network Calculations
ES: the earliest time that an activity can start as determined by the latest of the early finish times of all immediately preceding activities.
EF: the earliest time that an activity can finish, determined by EF = ES + D
Dr Nabil Dmaidi 227
by EF = ES + D LS : the latest time that an activity can start without
delaying the project completion. LS = LF – D.
LF : the latest time that an activity can be finished without delaying the project completion, as determined by the earliest of the late starts of the immediately succeeding activities.
Precedence Network Calculations
FF: the amount of time that an activity can be delayed before it impacts the start of anysucceeding activities.
TF: the amount of time that an activity can be delayed before it impacts the project completion.
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delayed before it impacts the project completion. Lag: the amount of time that exists between the
EF of an activity and the ES of a specified succeeding activity.
LAGAB = ESB - EFA
Precedence Network Calculations
A1 11
B
9 22
D
5 1111 4 1616 1 2020
F H
1) Forward pass calculations 4) Backward pass calculations
0 0 0 0
5) Calculate total Float (TF = LS – ES OR LF – EF)
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Dur.ES
EF FF TF LF
LS
2002 110011 160016 200020 210021
C
5 5
10307
2
E
4 10
143011
7 6 14
203317
11
G
54 3
2) Calculate the Lag ( LAGAB = ESB - EFA
0
0 0
3) Calculate the Free Float (FF) FF = min. LAG
Precedence Network Calculations
A
1 11
B
9 22
D
5 1111 4 1616 1 2020
F H
6) Determine the Critical Path
0 0 0 0
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Dur.ES
EF FF TF LF
LS
2002 110011 160016 200020 210021
C
5 5
10307
2
E
4 10
143011
7 6 14
203317
11
G
54 30
0 0
The critical path passes through the critical activities where TF = 0
A
B
C
D
Bar / Gantt chart Early Start / FinishEF = ES + D
Activity
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D
E
F
G
H
2 4 6 8 10 12 14 16 18 20Time
A
B
C
D
Bar / Gantt chart Late Start / FinishLS = LF - D
Activity
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D
E
F
G
H
2 4 6 8 10 12 14 16 18 20Time
Bar / Gantt chart
A
B
C
D
Activity
Dr Nabil Dmaidi 233Time
D
E
F
G
H
2 4 6 8 10 12 14 16 18 20
Block work plumbing plaster Floor tile
electrical conduit
2 15
1789
7
Inspection
Water proofing
3 25
28028
25
1) Forward pass calculations 4) Backward pass calculations
0
8
0
00
Exercise
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Dur.ES
EF FF TF LF
LS
Block work
6 1
707
1
plumbing
4 7
11011
7
plaster
8 17
25025
17 1 28
29029
28
Floor tile
sub-frames
1 16
1798
7
6 11
17017
11
Inspection
2) Calculate the Lag ( LAGAB = ESB - EFA
3) Calculate the Free Float (FF) FF = min. LAG
0
0 0 0
9
Block work plumbing plaster Floor tile
electrical conduit
2 15
17889
7
Inspection
Water proofing
3 25
280028
250
8
0
00
5) Calculate total Float (TF = LS – ES OR LF – EF)
6) Determine the Critical Path
Dr Nabil Dmaidi 235
Dur.ES
EF FF TF LF
LS
Block work
6 1
7007
1
plumbing
4 7
110011
7
plaster
8 17
250025
17 1 28
290029
28
Floor tile
sub-frames
1 16
17998
7
6 11
170017
11
Inspection
0
0 0 0
9
Activities Duration
Activity duration: is the estimated time required to complete an activity.
Dr Nabil Dmaidi 236
Activity duration mainly calculated based on:
1) the quantities take off.
2) labor or machines productivity rates.
Activities Duration
Durations could be estimated by experience. ( previous similar jobs)
If experience not available, others
Dr Nabil Dmaidi 237
If experience not available, others experience could be utilized.
If not, handbooks of productivity rates are available provide the required information.
Activities Duration
Activity duration can be calculated as follows:
quantity of the work= crew hours
Dr Nabil Dmaidi 238
= crew hours qty / crew hours
qty / crew hour is the productivity rate. Time unit is hours could be changed to working days.
Activities Duration
Example: assume that you have a floor tile area of 600 M2 , and the productivity rate of a tile mason and one helper is 1.5 M2 / hour.
By applying the previous equation:
600 M2
Dr Nabil Dmaidi 239
600 M= 400 hours
1.5 M2 / h
If the time unit is working day ( 8 hours) :
400 hours= 50 days
8 hours
Activities Duration
By using tow tile masons and tow helpers:
600 M2
= 200 hours
Dr Nabil Dmaidi 240
= 200 hours 2 x 1.5 M2 / h
If the time unit is working day ( 8 hours) :
200 hours= 25 days
8 hours
Activities Duration
By using 3 tile masons and 3 helpers:
600 M2
= 133.3 hours = 134 hours
Dr Nabil Dmaidi 241
= 133.3 hours = 134 hours 3 x 1.5 M2 / h
If the time unit is working day ( 8 hours) :
134 hours= 16.75 days = 17 days
8 hours Time preferably should be rounded up :
Activities Duration
By using 4 tile masons and 4 helpers:
600 M2
= 100 hours
Dr Nabil Dmaidi 242
= 100 hours 4 x 1.5 M2 / h
If the time unit is working day ( 8 hours) :
100 hours= 12.5 days = 13 days
8 hours
Activities Duration
Assume in the previous example that this activity is critical and should befinished within 5 days:
If the working day is 8 hours :
5 days X 8 hours = 40 hours
Dr Nabil Dmaidi 243
Apply the equation :
600 M2
= 40 hours X
X = 15 M2 / h is the productivity rate The crew size should be 15 / 1.5 = 10 gangs
Activities Duration Vs. DirectCost Having defined an activity duration, it
means that the planner have already defined the number of resources that will be employed in a particular activity.
Dr Nabil Dmaidi 244
employed in a particular activity.
Knowing activity duration and resources employed, it is simple to estimate the activity direct cost.
example
If the daily production rate for a crew that works in an activity is 175 units/day and the total crew cost per day is 100 $. The material unit cost is 1 $.
Dr Nabil Dmaidi 245
material unit cost is 1 $.
a. Calculate the time and cost it takes the
crew to finish 1400 units
b. Calculate the total unit cost.
Solution
Activity duration = Qty / crew output=1400 / 175 = 8 days
Crew cost = 8 days * 100 $/day = 800 $
Dr Nabil Dmaidi 246
Material cost = 1400 unit * 1 $ = 1400 $
Total direct cost = Labor cost + Material Cost= 800 $ + 1400 $ = 2200 $
Total Unit cost = total cost / quantity= 2200 $ / 1400 $ = 1.57 $/unit
Some Factors that affectsDuration1) Weather.2) Availability, quality and training of operatives.3) Familiarity with the work.4) Quality of workmanship specified.
Dr Nabil Dmaidi 247
5) Quality of management/supervision.6) Size and completion date of project.7) Length and incidence of holidays.8) Repetitiveness of the work.9) Physical constraints of the site. Such as access,
size, storage space and etc.
1) Weather
Allowance for weather is important for activities duration.
Dr Nabil Dmaidi 248
Its particularly critical for excavation and earth moving activities.
Tow approaches to tackle delay due to weather conditions:
1) Weather Cont.
1) First approach: each activity has an added allowance of possible delays due to weather. Fixed percentage is added to each activity for this purpose. (e.g. 10 % delay, one day added to a 10 days duration).
Dr Nabil Dmaidi 249
a 10 days duration).
But, it produces difficulties for activities with long duration, if these activities are not sensitive to weather.
1) Weather Cont.
2) Second approach: adding a single allowance at the end of the project.
Dr Nabil Dmaidi 250
This method works best if the work activities have more or less the same sensitivity to weather. And the weather does not vary significantly from period to period.
1) Weather Cont.
A delay activity could be added separately
Dr Nabil Dmaidi 251
A delay activity could be added separately to the network represents the weather delay.
2) Availability, Quality and training ofoperatives
The more available workmanship, the more flexible is the resources allocation.
If the quality should conform to high
Dr Nabil Dmaidi 252
If the quality should conform to high standards, the required time to do the work will increase.
The more trained workmanship, the more is the productivity rate.
3) Familiarity with the work.
If the workmanship is familiar with the work, the production rate is higher.
Dr Nabil Dmaidi 253
The higher production rate, the less is the duration. ( recall duration formula)
4) Quality of workmanshipspecified.
Not all workmanship have the same production rates.
Dr Nabil Dmaidi 254
It varies from nation to another.
Consider the nationality of the workers.
5) Quality ofmanagement/supervision
The heart of the project management system is CONTROLLING.
Dr Nabil Dmaidi 255
The workmanship should feel that there is someone who is controlling them, otherwise, their production may fall.
6) Size and completion date ofproject.
Big size sites needs longer time to shift material, manpower and equipments.
Dr Nabil Dmaidi 256
more care for critical activities to complete the project on time.
7) Length and incidence of holidays.
For actual schedules calendar days are used. Which normally have holydays, anniversaries, etc.
Dr Nabil Dmaidi 257
This time will increase the activities durations which coincide with holydays.
8) Repetitiveness of the work.
Repetitiveness of the work should increase production rate.
Dr Nabil Dmaidi 258
The more production rate, the less is the duration.
9) Physical constraints of the site.
These constraints normally increases activities durations. Such as access to the site,
Conditions of the work site. Congested site
Dr Nabil Dmaidi 259
Conditions of the work site. Congested site hinders performing the work as expected.
Small Storage spaces leads to material shortage.
Construction activities
Anything that must be accomplished in
Dr Nabil Dmaidi 260
Anything that must be accomplished in order to complete the project may be considered as activity.
Types of Construction activities
1) production/construction activity.
2) Procurement activity.
Dr Nabil Dmaidi 261
2) Procurement activity.
3) Management activity.
production/construction.
production/construction activities:activities that relate directly to the physical efforts of creating the project.
Dr Nabil Dmaidi 262
E.g. Concrete work, plaster, tile and etc. Usually use traditional resources, labor,
material and equipments.
Procurement.
Procurement activities: These activities include arranging for the acquisition of materials, money, equipment and manpower.
Dr Nabil Dmaidi 263
manpower.
Influence the start of production activities.
Should be incorporated in the network if they are long or special orders.
Management.
Management activities: support and administrative tasks.
Dr Nabil Dmaidi 264
Such as, preparing inspection reports, obtain shop drawing approvals. Tracking submittal approval and tests.
inspectionsteel
reinforcement Pour concrete
Management Activity
Dr Nabil Dmaidi 265
Order concreteProduction
Activity
procurementActivity
Constraints
The reason why tow activities must be done in particular order can be termed as constraint.
Dr Nabil Dmaidi 266
Without constraints on a project, all activities theoretically can begin on the first day of construction.
Types of construction Constraints
1) Physical constraints.2) Resource constraints.3) Safety constraints.
Financial constraints.
Dr Nabil Dmaidi 267
4) Financial constraints.5) Environmental constraints.6) Management constraints.7) Contractual constraints.8) Regulatory constraints.
Physical constraints.
Physical constraints exist due to physical process of construction.
Physical constraints defined by “HOW” the
Dr Nabil Dmaidi 268
Physical constraints defined by “HOW” the project is to be carried out. ( Method of construction).
You need to erect formwork before you can cast concrete.
Resource constraints
These constraints imposed wherever tow activities cannot be carried out simultaneously because insufficient resources are available.
Dr Nabil Dmaidi 269
E.g. Tow activities require a crane to be performed and you have just one crane. So, they should not be performed at the same time.
E.g. The amount of required concrete per day exceeds the production capacity of a batch plant.
Safety constraints.
Safety constraints imposed by safety requirements through performing the work.
Sometime imposes that tow activities could not be performed at the same time due to non-safe work conditions. ( E.g. overhead and ground level work
Dr Nabil Dmaidi 270
conditions. ( E.g. overhead and ground level work at the same area.)
Imposes specific sequence of the work. (e.g. erecting of scaffolding before external paints can start)
Imposes non-working days due to extremely hot or cold days.
Financial constraints
Financial constraints: high cost activities could be delayed due to non-availability of cash requirements during construction.
Dr Nabil Dmaidi 271
The amount of cost a company can pay within a specific period of time usually limited. So, try to avoid overlap between high cost activities.
Environmental constraints.
Environmental constraints include restrictions to the work to avoid environmental violations.
Dr Nabil Dmaidi 272
E.g. not working in certain area during specific times to avoid affecting proliferation of eagles, fish run.
Management constraints.
Management constraints reflect decisions of management that result in a reasonable benefit of the company.
Dr Nabil Dmaidi 273
E.g. the management decided to borrow from your project resources to be utilized in another project.
E.g. the management decided to extend the new year holiday another 2 days.
Contractual constraints
The owner may impose constraints on the construction process.
E.g. the owner may require a particular phase of
Dr Nabil Dmaidi 274
E.g. the owner may require a particular phase of the project to be fully completed and occupied before start construction of next phase.
And he may require to minimize the noise and dust because that portion is occupied and in operation.
Regulatory constraints.
These type of constraints related to the regulations of the area of construction. Imposed by municipality, government, etc.
Dr Nabil Dmaidi 275
E.g. if the construction site in the downtown, heavy vehicles like concrete mixers prohibited to access the site in a specific times of the day. So, you can just cast concrete at night.
Impacts of constraints on thenetwork
In the initial definition of the network, it is desirable to minimize the number of constraints, because excessive constraints have the following impact of the project.
Dr Nabil Dmaidi 276
have the following impact of the project.
1) Reduce scheduling flexibility.2) Lengthen project duration.3) Generally increase project costs.4) Confuse basic scheduling logic.
Impacts of constraints on thenetwork
The imposition of constraints in the network results in linear ordering of activities. Which is not desired. (recall: the linear order of activities prolong the project
Dr Nabil Dmaidi 277
order of activities prolong the project duration and set most of the activities as critical).
Impacts of constraints on thenetwork
Only physical constraints should be considered in the early preparation of the network.
Other constraints can be deferred until
Dr Nabil Dmaidi 278
Other constraints can be deferred until actual schedule of activities. Where it can be determined that :
1) the constraints are not met by the schedule.
2) It can be addressed by shifting of activities within their available float time.
Resources Allocation & Leveling
Dr Nabil Dmaidi 279
Resources Allocation & Leveling
So far, the network analysis has been considered using one resource only which is time.
Construction activities in practice use other
Dr Nabil Dmaidi 280
Construction activities in practice use other resources like labor, material, equipment and money.
Moreover, the network analysis considered no limitations of the traditional resources (labor, material, equipment and money) which is not the case in practice.
Resources Allocation&Resources Leveling
A time only network assumes that any other needed resources are available at any time.
Dr Nabil Dmaidi 281
needed resources are available at any time.
E.g. if the excavation activity requires three large mechanical excavators, A time only network assumes that these excavators are available on site at the required time. This seems to be uneconomic situation.
When project duration is fixed(Resources Leveling)
Dr Nabil Dmaidi 282
resources aggregation diagram(Histogram)
It is a graphical representation of the resources aggregation vs. project’s duration. And it shows the project resources demand along its duration for different time units, daily, weekly or monthly.
Dr Nabil Dmaidi 283
And its important to the contractor to know the amount of needed resources to carry out the job and to check their availability, in addition, the resources histogram shows the fluctuation in the resources demand and enables the scheduler to obtain even resources demand.
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.
Dr Nabil Dmaidi 284
example, day to day , or week to week.
resources aggregation
A
1 11
B
9 22
D
5 1111 4 1616 1 2020
F H
Dr Nabil Dmaidi 285
2002 110011 160016 200020 210021
C
5 5
10307
2
E
4 10
143011
7 6 14
203317
11
G
Dur.ES
EF FF TF LF
LS
Labors
Activity
desc.
8H 9H 5H 8H 4H
2H4H7H
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
Dr Nabil Dmaidi 286
The network shows the logical sequence of activities. (predecessor and successor).
The listing of activities must therefore reflects the dependency of some activities .
Activities Sort
Activity Duration ES TF Resource unit
A 1 1 0 8 H
B 9 2 0 9 H
Dr Nabil Dmaidi 287
B 9 2 0 9 HC 5 2 3 7 HD 5 11 0 5 HE 4 7 3 4 HF 4 16 0 8 H G 6 11 3 2 HH 1 20 0 4 H
Activity sort reflects the logic sequence of the network.
Major Sort
Activity Duration ES TF Resource unit
A 1 1 0 8 H
B 9 2 0 9 H
Dr Nabil Dmaidi 288
B 9 2 0 9 HC 5 2 3 7 HE 4 7 3 4 HG 6 11 3 2 HD 5 11 0 5 H F 4 16 0 8 H H 1 20 0 4 H
Activity sort with ES time as Major sort
Major & Minor Sorts
Activity Duration ES TF Resource unit
A 1 1 0 8 H
B 9 2 0 9 H
Dr Nabil Dmaidi 289
B 9 2 0 9 HC 5 2 3 7 HE 4 7 3 4 HD 5 11 0 5 H G 6 11 3 2 HF 4 16 0 8 H H 1 20 0 4 H
Activity sort with ES time as Major sort & TF as Minor Sort
A
B
C
E
Allocated resources
8H
9H 9H 9H 9H 9H 9H 9H 9H 9H
7H 7H 7H 7H 7H
4H 4H 4H 4H
Act
ivit
y
Dr Nabil Dmaidi 290
D
E
F
G
H
2 4 6 8 10 12 14 16 18 20Time
5H 5H 5H 5H 5H
8H 8H 8H 8H
2H 2H 2H 2H 2H 2H
4H
2 4 6 8 10 12 14 16 18 20
Act
ivit
yTime
A
B
C
D
E
8H
9H 9H 9H 9H 9H 9H 9H 9H 9H
7H 7H 7H 7H 7H
5H 5H 5H 5H 5H
4H 4H 4H 4H
Dr Nabil Dmaidi 291
Total Labor 8 16 16 16 16 16 1313 13 13 7 7 7 7 7 10 8 8 8 4
Early start resources aggregation
D
F
G
H
8H 8H 8H 8H
2H 2H 2H 2H 2H 2H
4H
Total Labor 8 16 16 16 16 16 1313 13 13 7 7 7 7 7 10 8 8 8
Lab
or
12
14
16
4
Dr Nabil Dmaidi 292Time
Lab
or
2
4
6
8
10
12
Early start resources aggregation diagram (Histogram)
2 4 6 8 10 12 14 16 18 20
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.
Dr Nabil Dmaidi 293
considering a different time in the network.
Each histogram shows different resources demand.
Late start Sort
Activity Duration LS TF Resource unit
A 1 1 0 8 H
B 9 2 0 9 H
Dr Nabil Dmaidi 294
B 9 2 0 9 HC 5 5 3 7 HE 4 10 3 4 HD 5 11 0 5 H G 6 14 3 2 HF 4 16 0 8 H H 1 20 0 4 H
Activity sort with LS time as Major sort & TF as Minor Sort
A
B
C
D
E
2 4 6 8 10 12 14 16 18 20
Act
ivit
yTime
8H
9H 9H 9H 9H 9H 9H 9H 9H 9H
7H 7H 7H 7H 7H
5H 5H 5H 5H 5H
4H 4H 4H 4H
Dr Nabil Dmaidi 295
D
F
G
H
8H 8H 8H 8H
2H 2H 2H 2H 2H 2H
4H
Total Labor 8 9 9 9 16 16 1616 16 13 9 9 9 7 7 10 10 10 10 4
Late start resources aggregation
Total Labor
Lab
or
12
14
16
8 9 9 9 16 16 1616 16 13 9 9 9 7 7 10 10 10 10 4
Dr Nabil Dmaidi 296Time
Lab
or
2
4
6
8
10
12
Late start resources aggregation diagram (Histogram)
2 4 6 8 10 12 14 16 18 20
4
6
32
A/8H
B/9H
C/2H G/2H
F/8H
E/5H
I/5H
K/6H
11
13 0 6 19
17
10
16 6 6 22
16
6
10 0 6 16
12 13
16 6 6 22
19
Dr Nabil Dmaidi 297
Dur.ES
EF FF TF LF
LS
5 5
8
2
2
3
6
D/4H
H/5H
J/2H
1
6 0 0 6
1 6
11 0 0 11
6
6
8 0 6 14
12
8
14 8 8 22
16
11
14 0 0 14
11
14
22 0 0 22
14
22
24 0 0 24
22
Activity/unit/day
Activities Sort
Activity Duration ES TF Resource unit
A 5 1 0 8 H
C 5 6 0 2 HD 3 6 6 4 H
Dr Nabil Dmaidi 298
D 3 6 6 4 HB 4 6 6 9 HH 6 8 8 5 HE 6 10 6 5 HG 3 11 0 2 HF 2 11 6 8 H I 3 13 6 5 HJ 8 14 0 2 HK 2 22 0 6 H
Activity sort with ES time as Major sort & TF and duration as Minor Sorts
2 4 6 8 10 12 14 16 18 20Time
A
C
H
D
E
8H
2H 2H 2H 2H
4H 4H
5H 5H 5H
22 24
8H 8H 8H 8H
2H
5H 5H 5H
B 9H 9H 9H 9H9H 9H 9H 9H
Dr Nabil Dmaidi 299
Total Labor
8 8 8 8 8 15 1516 16 12 20 20 17 12 12 2 2 2 2 2
Early start resources aggregation
F
E 5H 5H 5H
8H
I
J
K
5H
2H
5H 5H 5H
8H
5H 5H
2H 2H 2H 2H 2H 2H 2H
6H 6H
2 6 6
G 2H 2H 2H
Total Labor
8 8 8 8 8 15 1516 16 12 20 20 17 12 12 2 2 2 2 2 2 6 6L
abo
r
12
14
16
18
20
Dr Nabil Dmaidi 300
Lab
or
2
4
6
8
10
12
Time
2 4 6 8 10 12 14 16 18 20 22 24
Early start resources aggregation diagram
Activities Sort
Activity Duration LS TF Resource unit
A 5 1 0 8 H
C 5 6 0 2 HG 3 11 0 2 H
Dr Nabil Dmaidi 301
G 3 11 0 2 HD 2 12 6 4 HB 4 12 6 9 HJ 8 14 0 2 HE 6 16 6 5 HH 6 16 8 5 HF 2 17 6 8 H I 3 19 6 5 HK 2 22 0 6 H
Activity sortActivity sort with LS time as Major sort & TF and duration as Minor Sorts
2 4 6 8 10 12 14 16 18 20Time
A
C
D
8H
2H 2H 2H 2H
22 24
8H 8H 8H 8H
2H
B 9H 9H 9H 9H
4H 4H
G 2H 2H 2H
Dr Nabil Dmaidi 302
Total Labor
8 8 8 8 8 2 2 2 2 2 2 15 15 11 11 12 20 2017 17
Late start resources aggregation
F
E 5H 5H
8H
I
K
5H
5H 5H 5H
8H
5H 5H
6H 6H
17 6 6
5H
H 5H 5H 5H 5H 5H 5H
J 2H 2H 2H 2H 2H 2H 2H 2H
2 4 6 8 10 12 14 16 18 20Time
A
C
22 24
8H 8H 8H 8H 8H
2H 2H 2H 2H 2H
Dr Nabil Dmaidi 303
Total Labor
8 8 8 8 8 2 2 2 2 2 2 15 15 11 11 12 20 2017 17
Late start resources aggregation
K 6H 6H
17 6 6
2 4 6 8 10 12 14 16 18 20Time
A
C
22 24
8H 8H 8H 8H 8H
2H 2H 2H 2H 2H
B 9H 9H 9H 9H
D 4H 4H
G 2H 2H 2H
E 5H 5H 5H 5H 5H5H
Dr Nabil Dmaidi 304
Total Labor
8 8 8 8 8 11 11 11 11 11 11 12 12 12 12 7 7 1010 7
Late start resources aggregation
K 6H 6H
7 5 6
E 5H 5H 5H 5H 5H5H
H 5H 5H 5H 5H 5H 5H
J 2H 2H 2H 2H 2H 2H 2H 2H
F 8H 8H
I 5H 5H 5H
6
Total Labor
Lab
or
12
14
16
18
20
8 8 8 8 8 11 11 11 11 11 11 12 12 12 12 7 7 1010 7 7 5 6 6
Dr Nabil Dmaidi 305
Lab
or
2
4
6
8
10
12
Time
2 4 6 8 10 12 14 16 18 20 22 24
Late start resources aggregation diagram
Total Labor
Lab
or
12
14
16
18
20
8 8 8 8 8 2 2 2 2 2 2 15 15 11 11 12 20 20 17 17 17 6 6
Dr Nabil Dmaidi 306
Lab
or
2
4
6
8
10
12
Time
2 4 6 8 10 12 14 16 18 20 22 24
Late start resources aggregation diagram
Lab
or
2468
101214161820
Time 2 4 6 8 10 12 14 16 18 20 22 24
Early start
Dr Nabil Dmaidi 307
Time 2 4 6 8 10 12 14 16 18 20 22 24
Lab
or
2468
101214161820
Time 2 4 6 8 10 12 14 16 18 20 22 24
Late start
Total Labor
8 8 8 8 8 15 1516 16 12 20 20 17 12 12 2 2 2 2 2 2 6 6L
abo
r
12
14
16
18
20
Dr Nabil Dmaidi 308
Lab
or
2
4
6
8
10
12
Time
2 4 6 8 10 12 14 16 18 20 22
Early/Late start resources aggregation diagram
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.
Dr Nabil Dmaidi 309
The resulting resources aggregation histogram will be as follows:
2 4 6 8 10 12 14 16 18 20Time
A
C
H
D
E
8H
2H 2H 2H 2H
4H 4H
5H 5H 5H
22 24
8H 8H 8H 8H
2H
5H 5H 5H
B 9H 9H 9H 9H9H 9H 9H 9H
Dr Nabil Dmaidi 310
Total Labor
8 8 8 8 8 15 1516 16 12 12 12 12 12 12 7 10 10 2 2
Early start resources aggregation
F
E 5H 5H 5H
8H
I
J
K
5H
2H
5H 5H 5H
8H
5H 5H
2H 2H 2H 2H 2H 2H 2H
6H 6H
2 6 6
G 2H 2H 2H
Total Labor
Lab
or
12
14
16
18
20
8 8 8 8 8 15 15 16 16 12 12 12 12 12 12 7 10 10 2 2 2 6 6
Dr Nabil Dmaidi 311
Lab
or
2
4
6
8
10
12
Time
2 4 6 8 10 12 14 16 18 20 22 24
Smoothing/Leveling
Let us program activity H to start by its late start time.
Dr Nabil Dmaidi 312
So its resources demand starts with its Late start date.
The resulting resource aggregation and histogram will be as follows:
2 4 6 8 10 12 14 16 18 20Time
A
C
H
D
E
8H
2H 2H 2H 2H
4H 4H
5H 5H 5H
22 24
8H 8H 8H 8H
2H
5H 5H 5H
B 9H 9H 9H 9H9H 9H 9H 9H
Dr Nabil Dmaidi 313
Total Labor
8 8 8 8 8 15 1511 11 7 15 15 12 10 12 7 7 7 7 7
resources aggregation
F
E 5H 5H 5H
8H
I
J
K
5H
2H
5H 5H 5H
8H
5H 5H
2H 2H 2H 2H 2H 2H 2H
6H 6H
7 6 6
G 2H 2H 2H
Total Labor
8 8 8 8 15 15 11 11 7 15 15 12 10 12 7 7 7 7 7 7 6 6L
abo
r
12
14
16
18
20
Dr Nabil Dmaidi 314
Lab
or
2
4
6
8
10
12
Time
2 4 6 8 10 12 14 16 18 20 22
Smoothing/Leveling
Let us program
1) activity D to start on 10th day.2) activity B to start by its early start time 6th day. 3) activity H to start on 12th day.
Dr Nabil Dmaidi 315
3) activity H to start on 12th day.4) activity E to start 11th day.5) activity F to start by late start 17th day.6) activity I to start by late start 19th day
The resulting resource aggregation and histogram will be as follows:
2 4 6 8 10 12 14 16 18 20Time
A
C
H
D
E
8H
2H 2H 2H 2H
4H 4H
22 24
8H 8H 8H 8H
2H
5H 5H 5H 5H 5H 5H
B 9H 9H 9H 9H9H 9H 9H 9H
Dr Nabil Dmaidi 316
Total Labor
resources aggregation
F
E
I
J
K
5H
2H
5H 5H 5H 5H 5H 5H
8H 8H
5H 5H
2H 2H 2H 2H 2H 2H 2H
6H 6H
8 8 8 8 8 11 1111 11 6 11 12 12 12 12 12 15 10 7 7 7 6 6
G 2H 2H 2H
Total Labor
Lab
or
12
14
16
18
20
8 8 8 8 8 11 11 11 11 6 11 12 12 12 12 12 15 10 7 7 7 6 6
Dr Nabil Dmaidi 317
Lab
or
2
4
6
8
10
12
Time
2 4 6 8 10 12 14 16 18 20 22 24
Smoothing/Leveling
In case activity D is splitable activity. It could be interrupted to be carried out in tow parts.
Let us program activity B to start on the 7th day .
Dr Nabil Dmaidi 318
And activity H to starts by its Late start day.
And activity E to start on the 14th day.
The resulting resource aggregation and histogram will be as follows:
2 4 6 8 10 12 14 16 18 20Time
A
C
H
D
E
8H
2H 2H 2H 2H
4H
5H 5H 5H
22 24
8H 8H 8H 8H
2H
5H 5H 5H
B 9H 9H 9H 9H
4H
Dr Nabil Dmaidi 319
Total Labor
8 8 8 8 8 6 11 11 11 11 10 10 11 12 12 12 12 12 12 7
Early start resources aggregation
F
E 5H 5H5H
8H
I
J
K
5H
2H
5H 5H 5H
8H
5H 5H
2H 2H 2H 2H 2H 2H 2H
6H 6H
7 6 6
G 2H 2H 2H
Total Labor
Lab
or
12
14
16
18
20
8 8 8 8 8 6 11 11 11 11 10 10 11 12 12 12 12 12 12 7 7 6
Dr Nabil Dmaidi 320
Lab
or
2
4
6
8
10
12
Time
2 4 6 8 10 12 14 16 18 20 22 24
Early Start or Early Finish
There are many solutions between the limits of Early Start and Late start.
The optimal solution is zero fluctuation histogram.
Dr Nabil Dmaidi 321
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 ?!
Early Start or Early Finish
Because if there are labor availability problems to be overcome, they will occur in the early beginning of the project.
Dr Nabil Dmaidi 322
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.
When Resources are Limited
Dr Nabil Dmaidi 323
Resources Allocation
When Resources are LimitedResources Allocation
The previous method of resources aggregation has been carried out within a fixed project duration.
The basic objective was to optimize the use of the
Dr Nabil Dmaidi 324
The basic objective was to optimize the use of the resources and to know the mount of resources needed to carry out the job on time period basis.
And to maintain the network based duration.
Allocation within resourcesrestraints
Another situation which you may face in practice is the restricted resources availability.
Where you have to carry out the job with the
Dr Nabil Dmaidi 325
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.
Resources Allocation
A
1 11
B
9 22
D
5 1111 4 1616 1 2020
F H
Dr Nabil Dmaidi 326
2002 110011 160016 200020 210021
C
5 5
10307
2
E
4 10
143011
7 6 14
203317
11
G
Dur.ES
EF FF TF LF
LS
Resources
Activity
desc.
8H 9H 5H 8H 4H
2H4H7H
2 4 6 8 10 12 14 16 18 20
Act
ivit
yTime
A
B
C
D
E
8H
9H 9H 9H 9H 9H 9H 9H 9H 9H
7H 7H 7H 7H 7H
5H 5H 5H 5H 5H
4H 4H 4H 4H
Dr Nabil Dmaidi 327
Total Labor 8 16 16 16 16 16 1313 13 13 7 7 7 7 7 10 8 8 8 4
Early start resources aggregation
D
F
G
H
8H 8H 8H 8H
2H 2H 2H 2H 2H 2H
4H
Total Labor 8 16 16 16 16 16 1313 13 13 7 7 7 7 7 10 8 8 8
Lab
or
12
14
16
4
Dr Nabil Dmaidi 328Time
Lab
or
2
4
6
8
10
12
Early start resources aggregation diagram (Histogram)
2 4 6 8 10 12 14 16 18 20
Solve the schedule
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.
Dr Nabil Dmaidi 329
without resorting to hire more labor.
The resulting program will exceed the Early finish date based on the network.
2 4 6 8 10 12 14 16 18 20
Act
ivit
yTime
A
B
C
D
E
8H
9H 9H 9H 9H 9H 9H 9H 9H 9H
7H 7H 7H 7H 7H
5H 5H 5H 5H 5H
4H 4H 4H 4H
Dr Nabil Dmaidi 330
Total Labor 8 9 9 9 16 16 16 16 16 13 11 11 11 7 7 10 8 8 8 4
Early start resources aggregation
D
F
G
H
8H 8H 8H 8H
2H 2H 2H 2H 2H 2H
4H
Total Labor 8 9 9 9 16 16 1616 16 13 11 11 11 7 7 10 8 8 8
Lab
or
12
14
16
4
Dr Nabil Dmaidi 331Time
Lab
or
2
4
6
8
10
12
resources profile (Histogram)
2 4 6 8 10 12 14 16 18 20
Resources based schedulingScheduling limited resources
Tow methods of examination:
Dr Nabil Dmaidi 332
1) Series method
2) Parallel method
Rules for scheduling activities withlimited resources1) 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)
Dr Nabil Dmaidi 333
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.
Resources Allocation
A
1 11
B
9 22
D
5 1111 4 1616 1 2020
F H
Dr Nabil Dmaidi 334
2002 110011 160016 200020 210021
C
5 5
10307
2
E
4 10
143011
7 6 14
203317
11
G
Dur.ES
EF FF TF LF
LS
Resources
Activity
desc.
8H 9H 5H 8H 4H
2H4H7H
Activity list
Activity Duration LS TF Resource unit
A 1 1 0 8 H
B 9 2 0 9 H
Dr Nabil Dmaidi 335
B 9 2 0 9 HC 5 5 3 7 HE 4 10 3 4 HD 5 11 0 5 H G 6 14 3 2 HF 4 16 0 8 H H 1 20 0 4 H
Activity sort with LS time as Major sort & TF as Minor Sort
4 8 12 16 20 24
Act
ivit
y
8 9
ABC
DE
FG
8H
9H
7H
5H
4H
8H
2H
4H
2 6 10 14 22 26Time
18
9 9 9 9 9 9 9 9 7 7 7 7 7 9 9 9 9 7 10 10 2
9H 9H 9H 9H 9H 9H 9H 9H
7H 7H 7H
4H 4H 4H
5H
2H
5H
2H
5H
2H
5H
2H 2H
8H 8H
10 10Total Labor
H
7H
4
8H
Dr Nabil Dmaidi 336Resources aggregation diagram
Time
8 9 9 9 9 9 9 9 9 9 7 7 7 7 7 9 9 9 9 7 10 10 2
2
4
6
8
10
Lab
or
12LaborLimit
10 10Total Labor 4
Dr Nabil Dmaidi 337
Money and Network Schedules
Money and network schedules
Reminder, cost was one of the elements of project constraints triangle ( COST, TIME & QUALITY)
Dr Nabil Dmaidi 338
An effective management tries to minimize and integrate the above mentioned elements.
Money and network schedules
CPM provides a mean for relating time and money.
The application of resources to a project
Dr Nabil Dmaidi 339
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.
Hint
Construction costs includes:
1) Materials costs.2) labor costs.
a) direct cost
Dr Nabil Dmaidi 340
a) direct costb) indirect cost
3) plant and equipment costs4) overhead costs
a) job overhead costs (site)b) operating overhead costs (head office)
5) profit.
Project 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) CASH OUT
Dr Nabil Dmaidi 341
And compare it to the amount of money that would be received. (income) CASH IN
When studying cash flow, it is very important to determine the actual dates when the expenditures (cost) will take place.
Typical S-Curve
Dr Nabil Dmaidi 342
The curve represents the cumulative expenditures of a project direct and indirectCosts over time is called the S-curve
Project Income (Cash In)
The flow of money from the owner to the contractor is in the form of progress payments.
Estimates of work completed are made by
Dr Nabil Dmaidi 343
Estimates of work completed are made by the contractors periodically (usually monthly)
these estimates are based on evaluations of the percentage of total project completion or actual field measurements of quantities placed
Retention
Retention is the amount of money retained by the owner from every invoice, before apayment is made to the contractor.
Dr Nabil Dmaidi 344
This is to ensure that the contractor will continue the work and that no problems will arise after completion.
This retainage amount ranges from 5% to 10%
Cumulativeincome
$
Dr Nabil Dmaidi 345
Time
Project income Curve
1 2 3 4 5 6 7 8
$
CumulativeExpenditure
s
income
ExpendituresRetention Release
Amount of Negative
Dr Nabil Dmaidi 346
Time
Project cash Flow
1 2 3 4 5 6 7 8
s & income Negative
Cash Flow
Project cash flow
a project’s cash flow is the difference between the project’s Expenditures and income
Dr Nabil Dmaidi 347
Cash flow = Cash in – Cash out
= Income - Expenditures
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
Dr Nabil Dmaidi 348
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.
Negative cash position
Negative cash position means that the revenues obtained from a project insufficient to meet the financial obligations (expenditures) of the project.
Dr Nabil Dmaidi 349
(expenditures) of the project.
In this case other fund from the company or from outside sources must be used.
Positive cash position
Positive cash position means that the revenues obtained from a project exceed the financial obligations (expenditures) of the project.
Dr Nabil Dmaidi 350
In this case surplus (extra) fund available with the contractor.
And the contractor may invest this surplus funds for short duration.
Overtrading
Overtrading: arises when the current liabilities of a company exceed the current assets, even though the business is solvent.
Dr Nabil Dmaidi 351
Minimizing Contractor NegativeCash Flow
It is very essential to the contractor to minimize his negative cash flow because this may hinder him during performing the contract due to lack of financial resources
Dr Nabil Dmaidi 352
contract due to lack of financial resources
the procedures the contractor may follow to minimize negative cash flow are:
Minimizing Contractor Negative Cash Flow
1) Asking for advanced or mobilization payment
2) Loading of rates, in which the contractor increases the prices of the earlier items inthe bill of quantities. This ensures more income at the early stages of the project.
3) Adjustment of work schedule to late start timing in order to delay payments. In this case, the contractor should be aware that delay might happen will affect the project completion time and may subject him to liquidated damages.
Dr Nabil Dmaidi 353
4) Reduction of delays in receiving revenues.
5) Achievement of maximum production in the field to increase the monthly payments.
6) Reducing the retention.
7) Adjust the timing of delivery of large material orders to be with the submittal of the monthly invoice.
8) Delay in paying labor wages, equipment rentals, material suppliers andsubcontractors.
Advanced Payments
This is amount of money paid to the contractor for mobilization purposes. Then, it is deducted from contract progress payment.
Dr Nabil Dmaidi 354
payment.
The contractor may request an advanced or mobilization payment from the owner. This shifts the position of the income profile so that no negative cash position will occur.
CumulativeExpenditure
s
income
Expenditures
Advancedpayment
Dr Nabil Dmaidi 355
Time
Effect of advanced payment on improving cash flow
1 2 3 4 5 6 7 8
s & income payment
Time-Cost Trade-Off
Dr Nabil Dmaidi 356
Some amount of knowledge brings more……
Time-Cost Trade-Off
Projects managers seek the work to be carried out at minimum cost.
Dr Nabil Dmaidi 357
Therefore, they are prone to minimum cost duration (Normal Duration).
Unfortunately, minimum cost & minimum duration rarely coincide.
Time-Cost Trade-Off
The cost of an activity depends mainly on the amount of used resources.
Dr Nabil Dmaidi 358
Adding more resources to an activity increases the cost, but not necessarily result in proportionate decrease in the duration.
Time & Cost TheoreticalRelationship
Dir
ect
Co
st
Minimum Duration
Dr Nabil Dmaidi 359
Dir
ect
Co
st
Duration
A B
Time-Cost Trade-Off
For the following discussions it is important to remember:
Dr Nabil Dmaidi 360
Direct costs: Related to putting the facility components in place. They represent the resources used by an activity. (material, labor and equipment).
Time-Cost Trade-Off
Indirect job costs (job overhead): costs that could not be attributed to a specific work item. (such as, site offices, superintendents, security fence & etc)
Dr Nabil Dmaidi 361
These costs are generally incurred whether or not productive work achieved.
Longer project duration will result in higher indirect costs.
Time-Cost Trade-Off
Operating Overhead costs (company overhead): If the cost cannot be attributed to any specific job, they are operating overhead costs, costs of running business.
Dr Nabil Dmaidi 362
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.
Logic of Time-Cost Trade-Off
Assumption: increasing or decreasing project’s duration will lead to increased direct costs for the project.
Dr Nabil Dmaidi 363
Direct Costs
Dr Nabil Dmaidi 364
Project duration
General relation of direct costs to project duration
Direct costs
Logic of Time-Cost Trade-Off
Assumption: decreasing a project’s duration will lead to lower indirect costs.
Dr Nabil Dmaidi 365
Indirect Costs
Dr Nabil Dmaidi 366
Project duration
General relation of indirect costs to project duration
indirect costs
Logic of Time-Cost Trade-Off
Assumption: A project’s duration can be decreased by decreasing the duration of one or more critical activities on the critical path.
Dr Nabil Dmaidi 367
critical path.
Logic of Time-Cost Trade-Off
Assumption: Decreasing a project’s 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
Dr Nabil Dmaidi 368
are greater or less than indirect costs savings of decreasing the project’s duration.
Project Costs
Total project costs
Dr Nabil Dmaidi 369Project duration
General relation of project costs to project duration
Direct costs
indirect costs
Time-Cost Trade-off
The previous analysis suggests that in performing Time-Cost Trade-off analysis, it is necessary to determine the cost of decreasing the critical path by one time unit (day, month & etc). The cost will vary depending upon which activity
Dr Nabil Dmaidi 370
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.
Reducing Project Duration
As the critical path of the network decreased, some non-critical activities lose some amount of their total float.
Dr Nabil Dmaidi 371
A
B
C
D
F
Reducing Project Duration
As the projects duration decreases, the number of critical paths through the network increases.
Dr Nabil Dmaidi 372
A
B
C
D
F
Reducing Project Duration
If more than one critical path exist, it is necessary to reduce all critical paths in the network simultaneously, which becomes expensive.
Dr Nabil Dmaidi 373
A
B
C
D
F
Four Different Solutions for EachNetwork The schedule can be viewed in several different ways in
order to satisfy the client. A client may wish to perform the project in the least cost, or in the least time. Or in any manner satisfies him.
Dr Nabil Dmaidi 374
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.
Four Different Solutions for EachNetwork
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
Dr Nabil Dmaidi 375
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.)
Project Costs
Total project costs
Dr Nabil Dmaidi 376Project duration
General relation of project costs to project duration
Direct costs
indirect costs
Four Different Solutions for EachNetwork
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
Dr Nabil Dmaidi 377
critical path can be physically shortened regardless of how many resources are applied. (results in higher costs)
Four Different Solutions for EachNetwork
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
Dr Nabil Dmaidi 378
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.
Four Different Solutions for EachNetwork
All crash
It is not an efficient approach since some
Dr Nabil Dmaidi 379
It is not an efficient approach since some non-critical activities will be shortened without having any shortening influence on the project duration.
Logically reducing Project Duration
The logical approach is to shorten those activities that contribute to reduce the project duration.
Dr Nabil Dmaidi 380
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.
7 73
A
B
C F
E H
LJ
Reducing Project Duration to shortest possible duration
Dr Nabil Dmaidi 381
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
7
8
D G K
1 5
7 73
A
B
C F
E H
L
9
12
2
9
16
23
J
0
0 0
00
0 4
0
2
9
2
00 16
13
44 23
16
00
Reducing Project Duration to shortest possible duration
Dr Nabil Dmaidi 382
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
7
8
D G K
1
2
2
8
2
5
5
13
9
16
16
19
23
28
516
21
0
0
0
3
0
0
1
2
4
2
1
00 9
3
11
12
9
70
16
9
00
20
12
73
23
18
22
23
20
44
28
23
00
Duration-Cost Data ActivityNormal Crash Normal Crash days to cost per
Duration Duration Cost Cost Shorten day
A 1 1 800 800 0 --B 7 4 1000 1600 3 200C 6 4 300 500 2 100D 3 2 400 800 1 400E 3 1 100 200 2 50F 7 5 500 800 2 150
Dr Nabil Dmaidi 383
G 8 4 200 1400 4 300H 7 6 350 600 1 250J 5 3 700 850 2 75K 3 2 500 1000 1 500L 5 4 450 800 1 350
Logically reducing ProjectDuration 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.
Dr Nabil Dmaidi 384
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.
Logically reducing ProjectDuration To shorten the project’s duration it is essential to shorten
one 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 $.
Dr Nabil Dmaidi 385
a cost of 5300 $.
This is the normal duration cost. And any decrease in duration will increase the direct cost.
The following table shows information about activities.
Identifying activities for 1st
compression cycle
Activity A B F H L
∞
Dr Nabil Dmaidi 386
Cost/day ∞ 200$ 150$ 250$ 350$
Cannot be shortened At any cost
Least cost activity to shorten
7 73
A
B
C F
E H
L
9
12
2
9
16
23
J
0
0 0
00
0 4
0
2
9
2
00 16
13
44 23
16
00
Dr Nabil Dmaidi 387
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
7
8
D G K
1
2
2
8
2
5
5
13
9
16
16
19
23
28
516
21
0
0
0
3
0
0
1
2
4
2
1
00 9
3
11
12
9
70
16
9
00
20
12
73
23
18
22
23
20
44
28
23
00
7 73
A
B
C F
E H
L
9
12
2
9
14
21
J
0
0 0
00
0 2
0
2
9
2
00 14
11
22 21
14
00
Dr Nabil Dmaidi 388
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
5
8
D G K
1
2
2
8
2
5
5
13
9
14
14
17
21
26
514
19
0
0
0
1
0
0
1
2
4
2
1
00 9
3
11
10
7
50
16
9
00
18
10
51
21
16
22
21
18
44
26
21
00
Summary of the first compressioncycle
Cycle
#
Activity to
shorten
Can be shortene
d
NIL Days shortene
d
Cost per day
Cost per
cycle
Total cost
Project duration
0 -- -- -- -- -- -- 5300 28
Dr Nabil Dmaidi 389
0 -- -- -- -- -- -- 5300 28
1 F 2 3 2 150 $ 300 $ 5600 26
Identifying activities for 2nd
compression cycle
Activity A B F H L
∞ ∞
Dr Nabil Dmaidi 390
Cost/day ∞ 200$ ∞ 250$350$
7 73
A
B
C F
E H
L
9
12
2
9
14
21
J
0
0 0
00
0 2
0
2
9
2
00 14
11
42 21
14
00
Dr Nabil Dmaidi 391
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
5
8
D G K
1
2
2
8
2
5
5
13
9
14
14
17
21
26
514
19
0
0
0
1
0
0
1
2
4
2
1
00 9
3
11
10
7
50
16
9
00
18
10
51
21
16
22
21
18
44
26
21
00
6 73
A
B
C F
E H
L
8
11
2
8
13
20
J
0
0 0
00
0 2
0
2
9
2
00 13
10
22 20
13
00
Dr Nabil Dmaidi 392
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
5
8
D G K
1
2
2
8
2
5
5
13
8
13
13
16
20
25
513
18
0
0
0
0
0
0
0
2
4
2
1
00 8
2
00
9
6
40
13
8
00
17
9
40
20
15
22
20
17
44
25
20
00
Summary of the 2nd compressioncycle
Cycle
#
Activity to
shorten
Can be shortene
d
NIL Days shortene
d
Cost per day
Cost per
cycle
Total cost
Project duration
0 -- -- -- -- -- -- 5300 28
Dr Nabil Dmaidi 393
0 -- -- -- -- -- -- 5300 28
1 F 2 3 2 150 $ 300 $ 5600 26
2 B 3 1 1 200 200 5800 25
Identifying activities for 3rd
compression cycle
Activity A B,C F H L
∞ ∞
Dr Nabil Dmaidi 394
Cost/day ∞ 300 ∞ 250$ 350$
6 73
A
B
C F
E H
L
8
11
2
8
13
20
J
0
0 0
00
0 2
0
2
9
2
00 16
13
42 20
13
00
Dr Nabil Dmaidi 395
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
5
8
D G K
1
2
2
8
2
5
5
13
8
13
13
16
20
25
513
18
0
0
0
0
0
0
0
2
4
2
1
00 8
2
00
9
6
40
13
8
00
17
9
40
20
15
22
20
17
44
25
20
00
6 63
A
B
C F
E H
L
8
11
2
8
13
19
J
0
0 0
00
0 2
0
1
8
2
00 13
10
22 19
13
00
Dr Nabil Dmaidi 396
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
5
8
D G K
1
2
2
8
2
5
5
13
8
13
13
16
19
24
513
18
0
0
0
0
0
0
0
1
3
2
1
00 8
2
00
8
5
30
13
8
00
16
8
30
19
14
11
19
16
33
24
19
00
Summary of the 3rd compressioncycle
Cycle
#
Activity to
shorten
Can be shortene
d
NIL Days shortene
d
Cost per day
Cost per
cycle
Total cost
Project duration
0 -- -- -- -- -- -- 5300 28
Dr Nabil Dmaidi 397
0 -- -- -- -- -- -- 5300 28
1 F 2 3 2 150 $ 300 $ 5600 26
2 B 3 1 1 200 200 5800 25
3 H 1 2 1 250 250 6050 24
Identifying activities for 4th
compression cycle
Activity A B,C F H L
∞ ∞ ∞
Dr Nabil Dmaidi 398
Cost/day ∞ 300 ∞ ∞ 350$
6 63
A
B
C F
E H
L
8
11
2
8
13
19
J
0
0 0
00
0 2
0
1
8
2
00 13
10
22 19
13
00
Dr Nabil Dmaidi 399
Dur.ES
EF FF TF LF
LS
1 6
3
5
3
5
8
D G K
1
2
2
8
2
5
5
13
8
13
13
16
19
24
513
18
0
0
0
0
0
0
0
1
3
2
1
00 8
2
00
8
5
30
13
8
00
16
8
30
19
14
11
19
16
33
24
19
00
4 63
A
B
C F
E H
L
6
9
2
6
11
17
J
0
0 0
00
0 2
0
1
6
2
00 11
8
22 17
11
00
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Dur.ES
EF FF TF LF
LS
1 4
3
5
3
5
8
D G K
1
2
2
6
2
5
5
13
6
11
13
16
17
22
511
16
0
0
0
0
2
0
0
1
1
2
1
00 6
2
00
6
3
10
11
6
00
14
6
10
17
12
11
17
14
11
22
17
00
Summary of the 4th compressioncycle
Cycle
#
Activity to shorten
Can be shortened
NIL Days shortened
Cost per day
Cost per cycle
Total cost
Project duration
0 -- -- -- -- -- -- 5300 28
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1 F 2 3 2 150 $ 300 $ 5600 26
2 B 3 1 1 200 200 5800 25
3 H 1 2 1 250 250 6050 24
4 B,C 2 3 2 300 600 6650 22
Identifying activities for 5th
compression cycle
Activity A B,C F H L
∞ ∞ ∞ ∞
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Cost/day ∞ ∞ ∞ ∞ 350$
4 63
A
B
C F
E H
L
6
9
2
6
11
17
J
0
0 0
00
0 2
0
1
6
2
00 11
8
22 17
11
00
Dr Nabil Dmaidi 403
Dur.ES
EF FF TF LF
LS
1 4
3
5
3
5
8
D G K
1
2
2
6
2
5
5
13
6
11
13
16
17
22
511
16
0
0
0
0
2
0
0
1
1
2
1
00 6
2
00
6
3
10
11
6
00
14
6
10
17
12
11
17
14
11
22
17
00
4 63
B
C F
E H
L
6
9
2
6
11
17
J
0
0 0
00
0 2
0
1A
6
2
00 11
8
22 17
11
00
Dr Nabil Dmaidi 404
Dur.ES
EF FF TF LF
LS
4
3
4
3
5
8
D G K
2
6
2
5
5
13
6
11
13
16
17
21
511
16
0
0
0
0
2
0
0
1
1
11
2 2
1
00 6
2
00
6
3
10
11
6
00
14
6
10
17
12
11
17
14
11
21
17
00
Summary of the 5th compressioncycle
Cycle
#
Activity to shorten
Can be shortened
NIL Days shortened
Cost per day
Cost per cycle
Total cost
Project duration
0 -- -- -- -- -- -- 5300 28
1 F 2 3 2 150 $ 300 $ 5600 26
Dr Nabil Dmaidi 405
2 B 3 1 1 200 200 5800 25
3 H 1 2 1 250 250 6050 24
4 B,C 2 3 2 300 600 6650 22
5 L 1 ∞ 1 350 350 7000 21
Identifying activities for 6th
compression cycle
Activity A B,C F H L
∞ ∞ ∞ ∞ ∞
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Cost/day ∞ ∞ ∞ ∞ ∞
Project Monitoring and Control
Project control can be divided as follows:
First: monitoring, understanding what is
Dr Nabil Dmaidi 407
First: monitoring, understanding what is happening on a project. Obtaining information about project by some means.
Second: Control, is the action taken in response to the information obtained.
Construction time
Construction progress generally measured in DAYS.
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Tow general uses of the term day:
Calendar day: Any day of the year.
Working day: consist of weekdays excluding holydays.
Monitoring Project status
Some means of Information retrieval:
Photography
Dr Nabil Dmaidi 409
Photography
Check-off lists
Bar chart.
Check-off list
Activity Scheduled Actual status
Notes
ID Description Start finish start finish %
14.01 5th floor columns 24 28 26 30 50 Weather delay
Dr Nabil Dmaidi 410
Communicatingthe Schedule
Dr Nabil Dmaidi 411
the Schedule
Communicating the Schedule Anticipated User
– Top management - No need for great details
– Middle Management - looking for detailed breakdown covering
long time span.
– Low-level Management - Superintendents, foreman - detail
information, cover short period of time.
Dr Nabil Dmaidi 412
information, cover short period of time.
Communicating Devices
– Verbal and written instructions and reports
– Tabular format
– Graphical representation
bar chart
time scaled
Time-Scaled Arrow DiagramRemodeling Chemical Laboratory
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Project Control
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Project Control
Major objectives for a good control plan:1.Should accurately represent the work.
2.Permit deviations to be detected, evaluated and forecasted.
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forecasted.
3.Should make provision for periodic corrective actions.
Level of Control
Small projects - low cost - short duration– Detailed network
– Reporting mechanism
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Middle-sized projects (300 activities)– Detailed network
– Summary network
– Area and craft network
Target Activities Properties The scheduler has to choose between early start
schedule or target schedule.
Two Major Considerations:
1. The way in which the resources are applied to the activity.
DR. Nabil Dmaidi
to the activity.
2. The manner in which the activity is to bemeasured.
In all the previous work we assumed that each activity has a constant rate of utilization.
We will keep this assumption knowing that the most probable one is
If an activity has expended a third of its cost, the activity is said to be one-third finished.
The most important consideration in measuring
DR. Nabil Dmaidi
The most important consideration in measuring the completion of activities is that the measure should be consistent throughout the project.
Target Activity Durations
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Monitoring the Project
1.Feedback from direct contact– Efficient but requires close cooperation
between the manager and field personnel.
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Monitoring the Project (cont.)
2.Feedback from photography– Record progress and provide permanent
documentation of the work.
– Tell nothing about the time taken to perform the
DR. Nabil Dmaidi
– Tell nothing about the time taken to perform the work.
Monitoring the Project (cont.)
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.
DR. Nabil Dmaidi
time interval.
– Effective if the reporting periods are short “Daily, Weekly” and small number of activities involved.
– Disadvantage: false reporting
Monitoring the Project (cont.)
4.Feedback from bar chart
5.Feedback from networksAdvantage:
DR. Nabil Dmaidi
Superintendent has complete information about the status of the project.
Disadvantage:
Diagram may appear confusing to field personnel.
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
DR. Nabil Dmaidi
Late Start Schedule As Target for Control– Problem:
Because every activity is timed to start as its latest, project overruns are sure to follow.
Target Schedule
Activities may be positioned early or late start or somewhat in between.
Non-critical activities allow intermediate start.
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start.
Anticipated target S-Curve
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The S-Curve field
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Sample Project Cost Data
ctivityA
uratioD
n ( ays)D
ostC
ateR
($ / ay)D
ota lT
ostC
($)
A 2 5 0 0 ,1 0 0 0
DR. Nabil Dmaidi
,
B 1 7 2 0 0 ,3 4 0 0
C 3 3 0 0 9 0 0
D 5 1 0 0 5 0 0
E 6 ,2 0 0 0 ,1 2 0 0 0
F 2 5 0 0 ,1 0 0 0
G 1 ,1 0 0 0 ,1 0 0 0
Early Start Tree
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Late Start Tree
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Target Network
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Project S-Curve
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Actual Versus Target S-Curves
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Dr Nabil Dmaidi 434
“Earned Value” – Official View
The budgeted cost of the work to be performed– Also known as BCWP
Each task in the WBS is assigned a BCWP
Dr Nabil Dmaidi 435
– Each task in the WBS is assigned a BCWP based on its individual cost.
– Project BCWP is total of all task BCWP
“Earned Value” – Other View
Use of EV when contracting for an external customer is different
EV of a task is always $0 unless a payment is made on completion of the task. – Usually happens at major milestones only
Dr Nabil Dmaidi 436
– Usually happens at major milestones only EV of the project is how much the customer will
have paid by final delivery. This usage does not work for classic variance
analysis, so tuck it away in the back of your mind.
Variance
Any schedule, technical performance or cost deviation from a specific plan.
Used by all levels of management to verify budgeting and scheduling
Dr Nabil Dmaidi 437
budgeting and scheduling
Variance (con’t)
Must compare scheduling and budget variance at the same time– Cost variance: deviations from the
budget – not a measure of work scheduled vs
Dr Nabil Dmaidi 438
budget – not a measure of work scheduled vs work completed
– Schedule variance: deviations from work planned – not a measure of changes in cost
Primary Measurement Methods
Measurable efforts– Discrete increments of work with definable
schedule and tangible results (ie, real tasks with a deliverable)
Dr Nabil Dmaidi 439
a deliverable)
Level of effort– Work that is not in discrete, measurable tasks
(eg, project management)
Basic Cost Measurements
BCWS: Budgeted Cost of Work Scheduled– How much you plan to pay
BCWP: Budgeted Cost of Work Performed– How much you intended to pay for what’s been done so
Dr Nabil Dmaidi 440
– How much you intended to pay for what’s been done so far
ACWP: Actual Cost of Work Performed– What it’s really cost you to do the work completed so
far.
Determining Cost Variance
Cost Variance is easy:
CV = BCWP – ACWP
Dr Nabil Dmaidi 441
CV = BCWP – ACWP
If CV < 0, then you’ve got a cost overrun
Schedule Variance
Also quite simple:
SV = BCWP – BCWS
Dr Nabil Dmaidi 442
SV = BCWP – BCWS
In this case, if SV < 0, then you’re behind schedule
Normalization
Both CV and SV are usually expressed as percentages to allow simple comparison:
Dr Nabil Dmaidi 443
CVP = (BCWP – ACWP)/BCWP = CV/BCWP
SVP = (BCWP – BCWS)/BCWS = SV/BCWS
Example Project
Schedules to spend $100K in each of first 4 weeks Actuals at end of week 4: $325K
– BCWS = $400K– ACWP = $325K
What conclusions can you draw?
Dr Nabil Dmaidi 444
What conclusions can you draw?– CV = BCWS – ACWP – CV = $400K - $325K = $75K– Under budget
Is project on schedule?
Example Project (con’t)
Suppose BCWP is $300K
What conclusions now?– SV = BCWP – BCWS
Dr Nabil Dmaidi 445
– SV = $300k - $400K = -$100K
– Behind schedule
Where to Draw the Line
How much variance to allow depends on a number of factors:– Life-cycle phase
Length of life-cycle phase
Dr Nabil Dmaidi 446
– Length of life-cycle phase
– Length of project
– Type of estimate
– Accuracy of estimate
Sample Variance Thresholds
Section– > $7500 and > 25% of costs– > $25K and > 10%– > $200K
Department
Dr Nabil Dmaidi 447
Department– > $20K and > 25%– > $75K and > 10%– > $400K
Division– > $100K and > 10%
Performance Indices (con’t)
Cost Performance Index– CPI = BCWP/ACWP
Schedule Performance Index– SPI = BCWP/BCWS
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– SPI = BCWP/BCWS
Analysis– CPI > 1.0 exceptional performance– CPI < 1.0 poor performance– Similar for SPI
Integrated Analysis
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Management Reserve
The padding always added to a project for unexpected costs that are within project scope
Not an allowance for changes to scope
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– Not an allowance for changes to scope
– Not part of the cost estimate
Added by upper management, not the project manager.
Management Reserve
CONTRACTED COST
ACTUAL COSTMANAGEMENT
RESERVE
Dr Nabil Dmaidi 451
RELEASED BUDGET
TIME
$
Government Requirements
Cost reporting must include– BCWS
– BCWP
– ACWP
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– ACWP
– Estimated cost at completion
– Budgeted cost at completion
– Cost and schedule variances with explanations
– Traceability
Variance Analysis Questions
What is the problem causing the variance?
What is the impact on time, cost and performance
What is the impact on other efforts, if any?
What corrective action is planned or under way?
Dr Nabil Dmaidi 453
What corrective action is planned or under way?
What are the expected results of the corrective action?
Performance Problems
BCWP calculations rely on “percent complete” for the “most accurate calculation.
How do you know how much cost/time has
Dr Nabil Dmaidi 454
How do you know how much cost/time has really been planned for tasks that are in progress?
Determining % Complete
Allocate by percent time spent – but what if you spend more time than allocated?
Allocate 50% at start of task, 50% at end of task Allocate 100% at start of task
Allocate 100% at end of task
Dr Nabil Dmaidi 455
Allocate 100% at end of task– Best solution if you keep tasks small
Allocate value at Milestones (as mentioned earlier when contracting)
others
Budget at Completion
BAC– The sum of all BCWS
– What the project should cost
Contains all direct and indirect costs
Dr Nabil Dmaidi 456
– Contains all direct and indirect costs
Estimate at Completion
EAC– Cumulative actuals + estimate to complete
– Best guess at final cost
Produced periodically
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– Produced periodically
Variance at Completion
VAC– VAC = BAC – EAC
Dr Nabil Dmaidi 458
Summary
Cost, in the form of Earned Value or BCWS, can be used to analyze progress of a project
Both cost and schedule variance must be
Dr Nabil Dmaidi 459
Both cost and schedule variance must be analyzed to make sense of what’s happening.
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Earned Value Analysis
Dr Nabil Dmaidi 461
Earned Value Analysis (EVA)Foundations of modern cost control What’s 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:
Dr Nabil Dmaidi 462
– 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.
462
Input data for EVA
Activity schedule, usually in the form of a bar chart.
Budgeted cost for each activity.
Percent complete for each activity.
Dr Nabil Dmaidi 463463
Percent complete for each activity.
Cost to date for each activity.
Earned Value Reporting - Costs Budgeted Cost of Work
Performed (BCWP) = earned value of project
Actual Cost of Work Performed (ACWP)
Cost Variance (CV)ACWP
BCWPCPI
ACWPBCWPCV
Dr Nabil Dmaidi 464
Cost Variance (CV)– Difference between
earned and actual costs for the completed work
Cost Performance Index (CPI or CI)
ACWP
CPI = 1, on budgetCPI < 1, over budgetCPI > 1, under budget
464
Earned Value Reporting - Schedule Budgeted Cost of Work
Performed (BCWP)
Budgeted Cost of Work Scheduled (BCWS)
Schedule Variance (SV)
– Difference between the BCWS
BCWPSPI
BCWSBCWPSV
BCWP
BCWSBCWPSV
Dr Nabil Dmaidi 465
– 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 scheduleSPI < 1, behind scheduleSPI > 1, ahead of schedule
465
BCWSBCWS
BCWPSPI
Earned Value Reporting
(budgeted)
Dr Nabil Dmaidi 466From: Verzuh (modified)
(earned)
(actual)
Earned Value Reporting –Activity A Example
Week BCWS BCWP ACWP
1 300 500 500
Dr Nabil Dmaidi 467
2 300 500 500
3 300 300 300
4 300 200 200
From: SBG
467
Earned Value Reporting –Activity B Example
Week BCWS BCWP ACWP
1 1000 1000 1000
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2 1000 1000 1000
3 1000 500 500
4 0 500 500
From: SBG468
Earned Value Reporting –Activity C Example
Week BCWS BCWP ACWP
1 814 300 814
Dr Nabil Dmaidi 469
2 814 400 686
3 814 500 1000
4 814 428 400
From: SBG469
Earned Value Reporting – Project(Activities A, B, C) Example
Week BCWS BCWP ACWP
1 2114 1800 2314
Dr Nabil Dmaidi 470
2 2114 1900 2186
3 2114 1300 1800
4 1114 1128 1100
From: SBG470
Earned Value Reporting – Project(Activities A, B, C) Example
Dr Nabil Dmaidi 471From: SBG
SI CI
471
Earned Value Reporting – Project(Activities A, B, C) Example
Graph shows trend of cost
(CI)
Dr Nabil Dmaidi 472
trend of cost and schedule
indices
(SI)
(CI)
From: SBG
Class Exercise: BCWSSchedule and Estimated Costs
Task Est. CostWeek
1Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9
Week 10
Mobilization2,000
100%
Grubbing5,000
100%
Bridge Excavation2,000
100%
Install Prefabricated Bridge 47,000
100%
Back Fill Bridge2,000
100%
Install Culverts10,000
100%
Rough Excavate Roadway112,000
25% 25% 25% 25%
Data Date
Dr Nabil Dmaidi 473
Install Sanitary Sewer57,000
50% 50%
Install Water Lines69,000
50% 50%
Install Storm Drains15,000
100%
Grade and Roll Sub Grade12,000
50% 50%
Place and Compact Road Base 42,000
100%
Place and Compact Asphalt48,000
100%
Grade Shoulders3,000
100%
Cleanup1,000
100%
Demobilize2,000
100%
Cost/wk using estimate & schedule 429,000 7,000 51,000 38,000 55,500 96,000 6,000
Budgeted Cost of Work
473
Example: 10,000 x 100%+ 112,000 x 25%= 38,000
Class Exercise: BCWPActual Percent Performed per
Week
Task Est. Cost Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9Week
10Mobilization 2,000 90% 10%
Grubbing 5,000 100%Bridge Excavation 2,000 100%
Install Prefabricated Bridge 47,000 90% 10%Back Fill Bridge 2,000 90% 5% 5%Install Culverts 10,000 80% 20%
Rough Excavate Roadway 112,000 10% 25% 30% 5% 30%Install Sanitary Sewer 57,000 20% 50%
Install Water Lines 69,000 50%
Install Storm Drains 15,000
Grade and Roll Sub Grade 12,000 Place and Compact Road Base 42,000
Place and Compact Asphalt 48,000 Grade Shoulders 3,000
Dr Nabil Dmaidi 474
Grade Shoulders 3,000
Cleanup 1,000
Demobilize 2,000
Cost at Estimated values 429,000 6,800 46,300 24,000
Budgeted Cost of Work Performed
(BCWP) 6,800 53,100 77,100
474
Data Date
Class Exercise: ACWPActual Costs
Task Actual Cost
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9Week
10Mobilization 2,119 1,907 212
Grubbing 5,386 5,386 Bridge Excavation 2,265 2,265
Install Prefabricated Bridge 40,537 36,483 4,054 Back Fill Bridge 2,035 1,832 102 102 Install Culverts 9,828 7,862 1,966
Rough Excavate Roadway 108,857 10,886 27,214 32,657 5,443 32,657 Install Sanitary Sewer 60,482 12,096 30,241
Install Water Lines 64,066 32,033 Install Storm Drains 14,473
Grade and Roll Sub Grade 12,439 Place and Compact Road Base 40,298
Place and Compact Asphalt 48,835
Dr Nabil Dmaidi 475
Grade Shoulders 2,835 Cleanup 863
Demobilize 1,961
Actual Totals 417,280 7,293 40,792 22,903
Actual Cost of Work Performed
(ACWP) 7,293 48,085 70,989
475
Data Date
Class Exercise: SPI and CPI
Performance Indexes
Task Actual Cost
Week 1
Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10
Schedule Performance Index
(SPI) 97.14% 91.55% 80.31%
Cost Performance Index (CPI) 93.24% 110.43% 108.61%
Dr Nabil Dmaidi 476476
Rolling Up EVA Measures
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Risk Management
Dr Nabil Dmaidi 478
Risk managementfocuses on:
Known unknowns
Dr Nabil Dmaidi 479
– Known unknowns
– Proactive management
The alternative to proactivemanagement is reactivemanagement, also called crisismanagement. This requires
Dr Nabil Dmaidi 480
management. This requiressignificantly more resourcesand takes longer for problemsto surface.
RISK MANAGEMENT
RISK MANAGEMENT FOCUSES ON THE FUTURE
Dr Nabil Dmaidi 481
RISK AND INFORMATION ARE INVERSELY RELATED
RISK MANAGEMENT(CONT.) HISTORICALLY, WE FOCUSED OUR
ATTENTIONS ON SCHEDULE AND COST RISK MANAGEMENT.
TODAY, OUR PRIMARY EMPHASIS
Dr Nabil Dmaidi 482
TODAY, OUR PRIMARY EMPHASIS IS ON TECHNOLOGICAL RISK MANAGEMENT:– CAN WE DESIGN IT AND BUILD IT?
– WHAT IS THE RISK OF OBSOLESCENCE?
Definition Of Risk
Risk = f(Likelihood, Impact)event
Dr Nabil Dmaidi 483
Risk = f(Likelihood, Impact)
•Likelihood is the probability of occurrence
•Impact is the amount at stake
event
Tolerance For Risk
Risk avoider
Risk neutral
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Risk lover
Decision-MakingCategories Complete uncertainty
Relative uncertainty (partial information)
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Complete certainty
Developing and Using Payoff Tables
Establishing the procedure to follow
Construct thePayoff table
Decision-making Decision-making
Dr Nabil Dmaidi 486
Maximin ApproachMaximax ApproachMinimax regret ApproachInsufficient Reason Approach
Decision-makingunder certainty
Decision-making under completeuncertainty
Decision-makingunder risk
Expected Monetary Value (EMV) ApproachExpected Opportunity Loss (EOL) ApproachExpected Value of Perfect Information (EVPI) Approach
FIVE STEPS TO DEVELOP PAYOFF TABLE
List all the alternatives.
List the future consequences of each alternative.
Assess the degree of certainty that
Dr Nabil Dmaidi 487
Assess the degree of certainty that these combinations will materialize
Decide on a decision criterion.
Risk ManagementProcesses Risk planning
Risk assessment– Risk identification
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– Risk analysis/quantification
Risk handling
Risk monitoring
Developing ContingencyPlans
Dr Nabil Dmaidi 489
Types Of Risks(General) Business risks
Insurable (pure) risk– Direct property damage
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– Indirect consequential loss
– Legal liability
– Personnel
Types Of Risk (PMIMethod) External – unpredictable
External – predictable
Internal – non-technical
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Internal – non-technical
Internal – technical
Legal
Risk Types at Boeing Financial risks
Market risks
Dr Nabil Dmaidi 492
Market risks
Technical risks
Production risks
Risk Handling
Assumption (retention)
Avoidance
Control (mitigation)
Dr Nabil Dmaidi 493
Control (mitigation)
Transfer
Risk Quantification
STAGE I STAGE II GUID-ANCE
WARHEAD
PROGRAMSUMMARY
Dr Nabil Dmaidi 494COST
MANU.
TEST
DESIGN
HIGH
MEDIUM
LOW
LEGEND
PROGRAMSUMMARY
Dr Nabil Dmaidi 495
Future RisksFuture Risks
Customer’sCustomer’s
InexperiencedInexperienced
Dr Nabil Dmaidi 496
Customer’sKnowledgeCustomer’sKnowledge
ExperiencedExperienced
SimpleSimple ComplexComplex
Contract TypeContract Type
Future RisksFuture Risks
Customer’sCustomer’s
InexperiencedInexperienced
Dr Nabil Dmaidi 497
Customer’sKnowledgeCustomer’sKnowledge
ExperiencedExperienced
SimpleSimple ComplexComplex
Contract TypeContract Type
How Much Risk IsAcceptable?High tolerance for risk
Medium tolerance for risk
Dr Nabil Dmaidi 498
Medium tolerance for risk
Low tolerance for risk
Degrees of DownstreamRiskDegrees of DownstreamRisk
R&DR&D
Low Risk
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ManufacturingManufacturing
MarketingMarketing
TimeTime
Degrees of DownstreamRiskDegrees of DownstreamRisk
R&DR&D Information Exchange
Information Exchange
Moderate Risk
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ManufacturingManufacturing
MarketingMarketing
TimeTime
Degrees of DownstreamRiskDegrees of DownstreamRisk
R&DR&D
High Risk
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ManufacturingManufacturing
MarketingMarketing
TimeTime
Prioritization of RisksPrioritization of Risks
ScheduleSchedule CostCostTechnical
Performanceor Quality
TechnicalPerformance
or Quality
First (Highest)Priority
First (Highest)Priority
Dr Nabil Dmaidi 502
PriorityPriority
Second PrioritySecond Priority
ThirdPriorityThirdPriority
Risk ControlsRisk ControlsS
ched
ule
Len
gth
Sch
edu
le L
engt
h
TooLongTooLong
Dr Nabil Dmaidi 503
Sch
edu
le L
engt
hS
ched
ule
Len
gth
Risk ControlsRisk Controls
AppropriateAppropriate
LowLow HighHigh
Too ManyRisk Management
Filters andGates
Too ManyRisk Management
Filters andGates
NoRisk Plan
NoRisk Plan
Risk Control MeasuresRisk Control MeasuresIn
ten
sity
of
Con
trol
sIn
ten
sity
of
Con
trol
s
StandardControlsStandardControls
Range of ControlsRange of ControlsExtremeExtreme
Dr Nabil Dmaidi 504
Inte
nsi
ty o
f C
ontr
ols
Inte
nsi
ty o
f C
ontr
ols
Risk IntensityRisk Intensity
ControlsControls
HighHighLowLowLowLow
Pro
ject
Pro
cedu
ral
Doc
um
enta
tion
Pro
ject
Pro
cedu
ral
Doc
um
enta
tion
RigidPolicies/
RigidPolicies/
ProceduresProcedures
TransferTransfer
AvoidanceAvoidance
Which Method to Use?
Dr Nabil Dmaidi 505
Pro
ject
Pro
cedu
ral
Doc
um
enta
tion
Pro
ject
Pro
cedu
ral
Doc
um
enta
tion
GuidelinesGuidelinesHighHigh LowLow
Tolerance for RiskTolerance for Risk
AssumptionAssumption
ReductionReduction
The Risk-Reward MatrixThe Risk-Reward Matrix
HighHigh
Dr Nabil Dmaidi 506
LowLow HighHigh
RewardRewardMediumMedium
RiskRisk
LowLow
MediumMedium
Specification LimitOn Characteristic BSpecification LimitOn Characteristic B
Interacting RisksP
rodu
ct F
eatu
re A
Pro
duct
Fea
ture
A
DesirableDesirable
Dr Nabil Dmaidi 507
Pro
duct
Fea
ture
AP
rodu
ct F
eatu
re A
Product Feature BProduct Feature B
UndesirableUndesirable
UndesirableUndesirable DesirableDesirable
Poor Risk ManagementPoor Risk Management
Risk Planning
Dr Nabil Dmaidi 508
TechnicalInabilityTechnicalInability
Per
form
ance
Per
form
ance
TimeTime