part 6- schedule basics for construction

8/4/2019 Part 6- Schedule Basics for Construction

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1.2 CONSTRUCTION CONTRACTS 27

OwnerThe Individual or TheDesign Corporate Person ConstructionContract or Government Contract

Designer ContractorArchitect/Engineer General Contractor

1 1 + + 1 1 1 t t t t 1Subcontractst t t tDesigner's Subcontractors (iJ::J0Consultants Siteworks . . . . . - - < D _ e_Engineering Formwork E::J

Planning an~ .D,esign Reinforcing -s- ~2 .~Landscaping Masonry ~()-+- a.Highways and Roads Metals ~ Q.. . . . . , ::JManagement Millwork -5- (f)0Etc. Moisture Protection - . 2 : > -1 1 + + 1 1 Finishes Q ;-Q.Services ::Ja:Etc.Consultants' 1 s J b - s ! b J n t r a l t s Ionsultants t t t tSoils Engineering Sub-SubcontractorsTraffic Engineering Thermal InsulatlonEtc. Sheetmetal Ducts

Etc.

,, . ,

Figure 1.2. 1 The traditional contractual arrangement. Notes: (1) Double-headed arrowsindicate con tr ac tu a l r e la t ion sh ip s diagrammatically, not always specifically. (2) Privity ofcontract exists only between those persons connected (in the figure) by double-headed arrows;other relationships (i.e., managerial) are not shown. (3) Consultant and trade classificationsare examples only; specific requirements vary according to construction work required by theowner. Consultants and subcontractors might be employees.

no workers at all. 1 Some owners object to this, particularly some government owners. Insome places there are statutory requirements that a contractor must do a certain minimumpart of a construction job with his own forces. This is to ensure that the contractor has a fi-nancial commitment, or equity, in the job and therefore, presumably, a greater responsibil-ity for and interest in its proper performance and successful outcome. Alternatively, anowner may employ a construction manager to manage a project, in which case there is nogeneral contractor, as described in Section 1.2.9.

The title general contractor has been in use for a century or more, but change is con-tinuous and today there are few general contractors in the original sense. Most now employonly a few trades, such as steelworkers, carpenters, and laborers, and some do only excava-tion and concrete work and have in effect become specialist contractors who also manage


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96 CONSTRUCTION CONTRACTING

CostAccountNumberWork"""ltem TotalQuantity Each Total Each Total

TotalCost

SU MM AR Y SH EE TP ro je ct M un ic ip al A ir po rt t er mi na l B ui ld in g Work Items C on cr et e a nd F or ms

Unit Ma te ri al C o st LaborCost

24 0 CONCRETE.0 1 Footings c.y. 1,040 ~39.50 ~ 41,080 ~4.50 ~ 4,680 $ 45,760.0 5 G ra de b ea ms c.y. 92 0 42.50 39,100 6.30 5,796 44,896.0 7 Slab c.y. 2,772 39.50 109,494 6.00 16,632 126,126.0 8 Beams c.y. 508 42.50 21,590 6.30 3.200 24,790.09 Bond beams o.y. 62 42.50 2,635 9.00 558 3,193.11 Columns a ~y ~ 10 2 42.50 4,335 8.70 887 5,222.1 2 Walls c.y. 466 42.50 19,805 6.75 3,146 22,951.1 6 StairS o.y. 31 7 42.50 13,473 7.8') 2,473 15,946.19 Sidewalks c,y. 320 39.50 12,640 6.00 1,920 14,560.20 Expansion joint 1.f. 41,060 0.25 10,265 0.15 6.159 16,424.40 Screeds S~f. 148,000 0.12 17,780 17,760.5 0 F lo at f in is h 5t. 22,000 0.15 3,300 3,300.5 1 Trowel finish s.f. 128,000 0.25 32,000 32,000.5 2 S ta t r f in is h 1.f. 2,060 1,05 2,163 2,163.6 0 Rubbing s.t. 2,530 0.06 152 0.55 1,392 1,544.9 1 Curing s.f. 180,000 0.04 7,200 0.03 5,400 12,60Q

T ot al C on cr et e

26 0 FORMS.01 Footings s ,t, 1,220 \10.70 $ 85 4 111.00 II I 1,220.05 Grade beams s,f. 4,840 '0.80 3,872 1.00 4,840.0 8 Beams s.f. l,S65 0.88 1,729 1.08 2,122.1 1 Columns s.f. 2,178 0.82 1,786 1.50 3,267.12 Walls s.t. 3,240 0.88 2,852 1.00 3,240.17 RiserS 1.f. 910 0.68 619 1.28 1,165.45 Chamfer 1.r, 510 0.08 41 0.08 41.6 0 Oil, ties, naa Ls s.f 13,443 Q.06 80 7'63 Anchor slot 1.t . 2,800 0.30 84 0 0.06

$13,400

tered, the summary sheet is then used for the pricing oflabor. Figure 5.3 does not contain an equipment cost column,could. It is common practice on projects that are bid lump-sum,buildings, to compute equipment costs for the entire project on asheet rather than on the individual summary sheets.Figure 5.4 shows a summary sheet for the unit-price projectin Appendix E. For this type of bidding, a summary sheet iseach bid item. As illustrated in Figure 5.4, all work types """"VV"~'" 'the accomplishment of that bid item are listed on the su~which often includes several different work categories. USlUg


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Sample Policy Statementfor Project Managers & SponsorsIt is the responsibility of the project manager to:1 . Understand the project requirements and ensure they are thoroughly and unambiguously

documented;2. Prepare a project plan with achievable cost, schedule, and performance goals;3. Identify and manage project risks;4. Ensure the project team is well-organized, adequately staffed, and working well together;5. Manage project cost, schedule, requirements, and design baselines so they are traceable;6. Report meaningful metrics for cost, schedule, quality, and risk;7. Conduct regular status and design reviel-vs;8. Ensure the adequacy of project documentation and testing;9. Maintain meaningful communica t ions among project stakeholders; and10. Manage the project to attain the project goals and achieve stakeholder satisfaction.The person inthe organization responsible for the project, above the project manager, is the projectsponsor. It is the responsibility of the project sponsor to:

1. Select, develop, and guide, or change, the project manager to achieve project goals;2. Hold the PM accountable for fulfilling th e responsibilities listed above;3. Support the PM in obtaining resources and tools needed to conduct the project;4. Require regular status briefings and design revieH's, and pass pertinent information up the line;5. Advise the PM on conditions likely to cause project risks; and6. Be an advocate for the PM and the project team.

Copyrigh: 1997, James R. Chapman, AU rlglr ts reserved.

Return to: Project Home

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Starting a Project: Step by Step

Here is what to do if you want to start a new project or if someonehas asked you to start a project.Step #1: "Focus on your business."

The old saying, "Mind your own business," really has two parts: (1) you need to avoid getting involvedin things that aren't on your path to success, and (2) you need to know what business you are in and thenmind that business with care. This saying may seem like a cliche', but it is the first rule of businesssuccess. If you get this one wrong, nothing else will really go right. Implementation of this principle,involves careful project selection and definition. You should define the scope of your project so itembraces the areas for which you will be responsible. If you try to do a project outside of your area ofinfluence, you will be likely to have problems. Understand the organizational boundaries between yourbusiness and others'. Look at risk areas in the potential project scope that you will not be able toinfluence, and try to contain these or define them out of your project area. If this is not a project youshould be doing, then don't do it. Effective project selection is the first step towards project success.

If you decide to proceed, here are the steps to get you going:Step #2: Obtain management sponsorship and a clear charter.

The main reason projects fail is lack of upper management support and commitment, so be sure yourbosses want you to proceed. Draft a charter of your responsibilities and scope as a project manager. Youshould write down what will be expected of you, the general project ground rules, and how you willobtain resources to do the job. You should also write in some of the items you will not be responsiblefor, just to keep things straight. Review the policies, procedures, and methods in your organization thatgovern the way projects are done. Edit the charter with your boss until you are both comfortable signingit. Understand your organization's project selection and approval process, and perform the next stepsiteratively through the early steps of that process.

Step #3: Understand and document your requirements.This step is the most important step towards lllitiect success. Itwill serve as the basis for your plan, foryour cost and schedule estimates, and it will enable you to manage changes as your project progresses. Ifthe requirements are unclear, make some assumptions and document them. Put your requirementsdocument under some sort of version control, and then manage the changes deliberately. If there aresignificant changes, you may need to revisit your cost and schedule estimates. Without a writtenrequirements statement, you will have no way of accounting for changes and managing your customerand sponsor expectations.

Step #4: Document a realistic plan.You need to document the linkage between your project scope description, the staffing and procurementestimates, and the schedule and then iterate these until they fit the organizational goals and constraints.

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Project Baseline ManagementWhen project requirements have been analyzed and documented and the project planning baseline hasbeen established for scope, cost, and schedule, project execution and control activities can begin. Thisinvolves application of conventional system control techniques to the project effort.Considering the project effort to be a process, the plans, specifications, resources, and methods are theinputs. The process outputs should be continually monitored and compared to the plan. Adjustments inthe process should be made to conform the project output to that desired. Variance between projectresults and the plan should be assessed and reported periodically.For a project to be under control, it needs to be organized as a closed system. This is done byestablishing baselines for scope, cost and schedule and then putting them under some form of versioncontrol. Once the project has been contained in these three dimensions, it can be measured, monitoredand controlled. If a project does not have such baseline management, it cannot be managed andmeasured as a closed system, and must be therefore considered to be out of control. No meaningfulperformance measurements can be made where the scope, cost, and schedule are not bounded and undersome form of change control disciplines.If it becomes apparent that the project cannot be managed to its baseline, radical changes may berequired. Changes to project scope or the realization that the project plan is seriously flawed can makethe baseline of questionable value for project control. In such a case, the project may have to bereplanned and re-baselined. When a new baseline is established, the same process of monitoring outputand controlling the process must be continued.Establishing the baseline is the formal end of the planning phase and the beginning of project executionand control. Controlling the project baseline is absolutely essential to project success. Other thanmisunderstood requirements, bad cost and schedule estimates, and technical difficulties, the things thatwill most likely imperil a project are the~.It is hard to evaluate what has changed ifyou don 'tknow where you were to start with. Knowing whereyou started, and documenting it, establishes your baseline. This baseline is your budget, schedule, andproject scope. After the initial iterative planning process, the planning baselines must be frozen and putunder configuration control.The importance of putting the scope and plan under version control cannot be overstated. When youhave version control, you can measure progress an d status. Without version control, status an d progress.measurements become meaningless. A project without a stable planning baseline is flying blind.Requirements creep can drive costs and schedules beyond their thresholds, and changes implemented ina haphazard fashion, or even many changes implemented in a disciplined fashion, can create confusionthroughout a project organization. It is therefore important to manage the pace of change as well as thechange process itself.On-going requests for changes to the project requirements may be symptomatic of an incomplete initialrequirements analysis or the failure of the project team to adequately involve and communicate withusers and customers early in the project effort.

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Project PhasesOver the years, those involved in managing projects have observed that projects have specialcharacteristics that can be exploited to manage them more effectively.

Projects go through definite and describable phases; Each phase can be brought to closure in some discrete way before thenext phase begins; Phases can be made to result in discrete products to provide the startingpoint for the next phase; The cost for each phase is usually much greater than what went before;and Phase transitions are ideal times to update baselines, to conduct highlevel management reviews, and to evaluate project costs and prospects.

Projects should be structured to take advantage of the natural phases that occur as work progresses. Thephases should be defined in terms of schedule and also in terms of specific accomplishments. Youshould define how you will know when you are finished each phase and what you wil l have to show forit.Cost and schedule estimates, plans, requirements, specifications, and so forth, should be updated andevaluated at the end of each phase, sometimes before deciding whether to continue with the project.Large projects are usually structured to have major program reviews at the conclusion of significantproject phases. These decision-points in the life of a project are called Major Milestones.The following illustrates how the concept of project phases is incorporated into a new productdevelopment methodology.

EndofLife

Milestone Reviews

This illustrates the linking of major milestone review meetings with the completion of each phase.Milestone decisions are made after conducting a major program review where the project managerpresents the approved statement of requirements, acquisition strategy, design progress, test results,updated cost and schedule estimates, and risk assessments, together with a request for authorization toproceed to the next phase.The early phases will shape the direction for all further efforts on the project. They provide requirementsdefinitions, evaluation of alternative approaches, assessment of maturity of technologies, review of cost,schedule and staffing estimates, and development of specifications.Milestone completions can be defined in terms of "exit criteria" as well as by calendar dates. Using

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r!VJCvl r uases Page 20f2

"event based" schedules rather than date-based schedules ties project phase completions to thesuccessful achievement of predetermined criteria such as completion of testing, demonstration ofprototypes, adequacy ofteclmical documentation, or approval of conceptual designs and specifications.A relatively short-term or teclmically straight-forward project may have only one approval event,following a proposal or feasibility study. Nevertheless, the project manager should report to customersand interested senior managers at intervals to keep them up to date on project progress and to ensure thecontinuing soundness of the project direction and requirements.On small projects, if no formal agreements are written, the project manager should deal with customersand sponsors in an infonnaI yet somewhat contractual way. This means managing expectations andmaking clear agreements about what will be produced and when.If project phases take place over many months or even years, it is vital to provide interim deliverables togive the customers and sponsors a sense that work is being accomplished, to provide an opportunity forfeedback, and to capture project successes in documented form,The project planning process should be built around the project life cycle. Particular care should begiven to defining the work to be accomplished in each phase. This should include definition of thede1iverables to be produced, identifying testing and demonstrations to be completed, preparing updatesof cost and schedule estimates, re-assessing risks, and conducting formal technical and managementreviews.If your project runs into an immovable obstacle and progress comes to a complete halt, you may want todeclare victory and bring that phase to a close. This can be done by documenting the work alreadycompleted, and then writing a report describing the work successfully completed and defining the stepsrequired should project sponsors decide to proceed.

Copyright 1997, James R. Chapman, All rights reserved.


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Figure 5..3. WBS to do yard project.YardProject

Pickuptrash-15

Hedgeclippings-15Haul todump-45

. Cut Grass

Mow front-45

Mow back-30

Trimwork

Weeds @trees-30Edgesidewalk-15

PrepareEquipment

Put gas inequipment-5Get outhedqeclipper-5

Trim"e~'g~.

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Accounting Economics Finance ManagementMarketing Operations Statistics StrategyOperations> Work Breakdown Structure

Work Breakdown StructureA complex project is made managable by first breaking it down into individualcomponents in a hierarchical structure, known as the work breakdown structure, orthe WBS. Such a structure defines tasks that can be completed independently of othertasks, facilitating resource allocation, assignment of responsibilities, and measurementand control of the project.The work breakdown structure can be illustrated in a block diagram:

Work Breakdown Structure Diagram

Because the WBS is a hierarchical structure, it may be conveyed in outline form:Work Breakdown Structure Outline

I L e v e l l l 1 L e v e l 2 I I L e v e l 3 II Task 1 I I I I II IIsubtask 1 . 1 1 1 I II I I IIWork Package 1 . 1 . 1 1I I I Ilwork Package 1 . 1 . 2 1I . . I I I I W O r k Package 1 . 1 . 3 1I I Isubtask 1 . 2 1 1 II II Ilwork Package 1 . 2 . 1 1I I I Ilwork Package 1 . 2 . 2 1:I . . . - -

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I II IIWork Package 1 . 2 . 3 1I Task 2 1 1 " II Iisubtask 2 . 1 1 1 II I I Ilwork Package 2 . 1 . 1 1I I I IIWork Package 2.1.21I I I Ilwork Package 2.1.31Terminology for Different LevelsEach organization uses itsown terminology for classifying WBS components accordingto their level in the hierarchy. For example, some organizations refer to different levelsas tasks, sub-tasks, and work packages, as shown in the above outline. Others use theterms phases, entries, and activities.Organization by Deliverables or PhasesThe WBS may be organized around deliverables or phases of the project life cycle.Higher levels in the structure generally are performed by groups. The lowest level inthe hierarchy often comprises activities performed by Individuals, though a WBS thatemphasizes deliverables does not necessarily specify activities. .Level of DetailThe breaking down of a project into its component parts facllitates resource allocationand the assignment of individual responsibilities. Care should be taken to use a properlevel of detail when creating the WBS. On the one extreme, a very high level of detailis likely to result in micro-management. On the other extreme, the tasks may becometoo large to manage effectively. Defining tasks so that their duration is between .several days and a few months works well for most projects.

WBSs Role in Project PlanningThe work breakdown structure is the foundation of project planning. It is developedbefore dependencies are identified and activity durations are estimated. The WBS canbe used to identify the tasks in the CPMand PERTproject planning models.Operations> Work Breakdown Structure

Home I About I Contact I Privacy ! Reprints I Terms of UseCopyright 2002-2004 Net1'vfBAcom. All rights reserved.This web site is operated by theInternet Center for Management and Business Administration, Inc.

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W o rk B reakdow n Stru cture (W B S)Introduction to the WBS:Projects are organized and comprehended by breaking them into progressively smaller pieces until theyare a collection of tasks or work packages.A $1,000,000,000 project is simply a lot of $10,000 projects joined together. The Work BreakdownStructure (WBS) is used to provide a framework for this process.If you start to get into the details of your project's scope and you are not overwhelmed by the extent ofthe effort required, then you probably don't understand the reality of the project work. The only way outof this is to break the project into pieces and then organize the pieces ina logical way. Clustering projecttasks or end-products helps form the overall project work into manageable pieces. The resultingstructure should serve as the basis for estimating resource requirements, costs, and schedules.Some project management environments have definite conventions for grouping items in a WBS. Thebest method is to have a WBS that works for your particular project environment. The WBS should bedesigned with consideration for its eventual uses. Your WBS design should try to achieve certain goals:

Be compatible with how the work will be done and how costs andschedules will be managed, Give visibility to important or risky work efforts, Allow mapping of requirements, plans, testing, and deliverables, Foster clear ownership by managers and task leaders,

Provide data for performance measurement and historical databases, and Make sense to the workers and accountants.

There are usually many ways to design a WBS for a particular project, and there are sometimes as manyviews as people in the process. Simple practicality usually provides the best approach.History of the WBS:The WBS was initially developed by the U.S. defense establishment, and it is described in MilitaryStandard (MIL-STD) 881B (25 Mar 93) as follows: "A work breakdown structure is a product-orientedfamily tree composed of hardware, software, services, data and facilities .... [it) displays and defines theproduct(s) to be developed and/or produced and relates the elements of work to be accomplished to eachother and to the end product/e)."It requires some mental discipline to develop a product-oriented or deliverable-oriented grouping ofproject elements adding up to comprise the entire project scope. Intuitively, we tend to start out with atask-oriented approach. This is OK for very small projects where extensive project management controlswill not be used. The task-oriented approach is easy to understand; because we can easily think ofprojects as collection of tasks. A task-oriented WBS can be developed by beginning with a simple "to-

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do" list and then clustering the items in a logical way. The logical theme could be project phases,functional areas, or major end-products.If your organization will be collecting historical data to form a cost database, you should try to select astandard approach consistent with the organization's long term data collection needs.A sample of a standard WBS is shown in the figure below:

Standard WBS FormatW 88 Level

Level 2

Level 3

LEvel 4

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A WBS for a large project will have multiple levels of detail, and the lowest WES element will belinked to functional area cost accounts that are made up of individual work packages. Whether you needthree levels or seven, work packages should add up through each WES level to form the project total.WBS numbering:WBS elements are usually numbered, and the numbering system may be arranged any way you choose.The conventional numbering system is shown in the figure. The shaded box shown in the above slidecould be numbered 1.2.2.3, which would tell you it was in the second box in level 2, the second box inlevel 3, and the third box in level 4.WBS dictionary:Ifa WBS is extensive and if the category content is not obvious to the project team members, it may beuseful to write a WES dictionary. The WBS dictionary describes what is in each WBS element, and itmay also say what is not in an element, if that is unclear. Here is a sample of a WBS dictionarydescription:WBS Element 1.5.4.5. - Systems Integration Test Equipment Planning - This element includes the effort to identifyrequirements and specify types and quantities of test equipment needed to support the System Integration and Test process. Itdoes not include the design or procurement of such equipment, which is covered in Element 1.5.4.6.

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Mapping WBS for cost management:In a product-oriented WBS) functional categories of work may form "cost accounts" within a WBSelement. Cost account managers are responsible for a functional area's contribution to a WBS element.Cost accounts from several departments or functions may combine into one WBS element.Internal department planning for a cost account will be made up of individual work packages. A workpackage will typically have its own budget and schedule. Work packages should be small enough to beexecuted by individuals or small groups in a single department, and they should be of relatively shortschedule duration. A small project might define a maximum work package size as two weeks of effort.Larger projects will assemble larger work packages that can be appropriately managed and controlled.The project manager will have to decide to what degree employment of various details of WBSimplementation wiII benefit the efficient management of the project. On a very small project, a formalWBS may serve no useful purpose, but it can become valuable ifproject size or complexity start toincrease.As an organization's project management environment matures, or as larger size and complexity areencountered, application of the WBS concept can evolve from an ad hoc list of tasks, to time-phasedactivity lists, task lists clustered by project deliverables and services, or an end-product focused WBSfed by cost accounts and work packages.

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If you are using MS-Project or a similar project management software application, you may encounterthe WBS as a vertical list with indents to show structure. This will be compatible with the Gantt Viewdata entry screens. While some software packages provide a separate VVBSview) you could prepareyour WBS in the vertical format using a word processor, and then cut and paste your WBS into yourproject management software package.Program and Contract WBSs:A top-level WBS is called a Program WBS (PWBS). If a project involves several organizationalparticipants or contractors, guidance for one contractor can be provided in a Contract WBS (CWBS).The project manager may provide a high-level eWBS for each developer. The developer will fill in thedetails of lower WBS levels to reflect the work to be accomplished and the data flows in that

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organization.Organizational Standards:Your organization may want to decide on a standard WBS format or group of formats, use these acrossall projects, and communicate definitions widely so everyone wil l be speaking the same language, Thiscan save re-learning project lessons and can lay the groundwork for successful data gathering to aidfuture cost estimates.WBS Implementation:When you set up a project WBS, think about how you wil l be using it later in the project. Design theWBS, schedule format, manager assignments, and charge numbers at the same time. The schedule willlikely be formatted along the structure of th e WBS, so this will be the structure for estimating costs andtracking earned-value performance, It will be helpful if you can map the charge numbers, managers, andtask groups to each other. This will help you track costs and progress for each manager. If your projectschedule will on MS-Project, you may want to insert "text" columns into your schedule (Gantt View) forproject charge numbers and manager names.If your project charge numbers cannot be linked to groups of tasks assigned to specific managers, youwill have no way to provide performance measurement feedback to managers.Generating WBS for Microsoft Project:There is a software application called WBS Chart for Project that you can purchase ($199) that wil lconvert a Microsoft Project file into a standard WBS format, You can also use the application to create aWBS and then transfer it into MSP. I have found this software very valuable in reviewing project scopeand in helping managers visualize the WBS implicit in their MS-Project schedules.

Copyrigtu 1997, James R. Chapman, All rights reserved.


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1 . 3 : Interpret requirements1.4: Benchmark products.. - .-.-.~.- ...... ~- .--~-- ..~--.--"_-~-.-.--.-- ...-.----111.5 Define target PDS. .. ... .1.6 i T PDS Released- - . - - - - . - - ~ - - - = - - - - - - - - - - - - - - - - - - - - I I

1;8Define ecificationsI-"--~'_.'--- ----1.1 i Identify customers1.2: Interview 10 customers

2!B Generate concepts2.1. Review camp productsI_-_,,--2.2 Search patents

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P r o je c t M a n a g e m e n t 239

V.Build (at last)!

IV. Ready the siteInstall exterior protection.Install Interior protection.Set up hardware storage.

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III. Prepare clientsGive binder.Go over to-do list.Review schedule.Prepare for 90% blues.Describe initial work.Introduce subcontractors to clients.

II. Orient leadGive binder with plans and specs.Walk through job site.Discuss plans and specifications.Review flow chart and notificationscalendar.Introduce lead to owner.

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Copyright N etIvmA .com.All rights reserved. Accounting Economics Finance ManagementMarketing Operations Statistics StrategyOperations> Gantt Chart

Gantt ChartDuring the era of scientific management, Henry Gantt developed a tool for displayingthe progression of a project in the form Ofa specialized chart. An early application wasthe tracking of the progress of ship building projects. Today, Gantt's scheduling tooltakes the form of a horizontal bar graph and is known as aGantt chart, a basicsample of which is shown below:

Gantt Chart Format

The horizontal axis of the Gantt chart isa time scale, expressed either in absolute timeor in relative time referenced to the beginning of the project. The time resolutiondepends on the project - the time unit typically is in weeks or months. Rows of bars inthe chart show the beginning and ending dates of the individual tasks in the project.In the above example, each task isshown to begin when the task above it completes.However, the bars may overlap in cases where a task can begin before the completionof another, and there may be several tasks performed in parallel. For such cases, theGantt chart is quite useful for communicating the timing of the various tasks.For larger projects, the tasks can be broken into subtasks having their own Ganttcharts to maintain readability.Gantt Chart EnhancementsThis baste version of the Gantt chart often isenhanced to communicate moreinformation.

A vertical marker can used to mark the present paint in time . The progression of each activity may be shown by shading the bar as progress is

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mane, allowing tne status at each activity to be known with just a glance. Dependencies can be depicted using link lines or color codes. Resource allocation can bespecified for each task. Milestones can be shown.

Gantt Chart Role in Project PlanningFor larger projects, a _workbreakdown structure would be developed to identify thetasks before constructing a Gantt chart. For smaller projects, the Gantt chart itselfmay used to identify the tasks.The strength of the Gantt chart is its ability to display the status of each activity at aglance. While often generated using project management software, it iseasy toconstruct USinga spreadsheet, and often appears in simple ascii formatting in e-mallsamong managers.Forsequencing and critical path analysts, network models such asCPMor PERTaremore powerful for dealing with dependencies and project completion time. Even whennetwork models are used, the Gantt chart often is used as a reporting tool.Editorial note: The name of this tool frequently is misspelled as "Gannt".The correct spelling is "Gantt."Operations> Gantt Chart

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Brief tutorial on Gantt chartsW. Durfee and T. Chase, 2003

The assignmentYour team is expected to produce a Gantt chart and to keep it up to date for use in planning your project.Use MS Project (available in IT Labs) to produce your chart. (Why MS Project? Because it's the mostwidely used project planning package in industry and you should be learning how to use Urealworld"tools.),Follow these guidelines in creating your chart:

Use weeks as the time unit Include the Mid-project review, Design Show, and Final report due as milestones. Have up to fouradditional milestones, no more. Show more detail on design tasks, less detail on reports/documentation/presentation tasks. Shouldhave about 3/4 design tasks, 114 documentation/presentation related tasks. Getting parts can take 2 weeks or more, depending on the part. If your company is building partsfor your prototype, getting your part scheduled can take a long time. Build these delays into yourplanning chart. Review and update Gantt chart every 14 days, more often ifneeded.

Project Planning BasicsA "Project" is a set of activities which ends with specific accomplishment and which has (1) Non-routine tasks, (2) Distinct start/finish dates, and (3)Resource constraints(time/money/peoplelequipment)."Tasks" are activities which must be completed to acheive project goal. Break the project into tasks andsubtasks. Tasks have start and end points, are short relative to the project and are significant (not "goingto library", but rather, "search literature"). Use verb-noun form for naming tasks, e.g, "create drawings"or "build prototype". Use action verbs such as "create". "define" and "gather" rather than "wi l l be made".Each task has a duration, Very difficult to estimate durations accurately. Doubling your best guessusually works well."Milestones" are important checkpoints or interim goals for a project. Can be used to catch schedulingproblems early. Name by noun-verb form, e.g. "report due", "parts ordered", "prototype complete".Your plan will evolve so be flexible and update on a regular basis. It also helps to identify risk areas forproject, for example, things you don't know how to do but will have to learn. These are risky becauseyou may not have a good sense for how long the task will take. Or, you may not know how long it willtake to receive components you purchased for a project.Work Breakdown StatementA work breakdown statement (WBS) is a categorized list of tasks with an estimate of resources requiredto complete the task. An example WBS appears below.http://www.me.umn.edulcoufses/me4054/assignments/gantt.html 7/26/2004
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I w : s l Task Est 81 IBerson ResourcesDescription -HrsDIProfile motor power I I I I I I 10mlDesign test stand II 20 l isE , JMI IProiE 10mlBuild test stand I I 15 l isE, JMI IF r ame & brake part sl l il l J01Test 3 motors I I 3 l isE , JMl lS troboscope JIE[]mlplot torque vs. s_ eeedil 2 I I J M IIExcel ]0(M&S = = Materials & Supplies)

Gantt Chart BasicsGantt ch arts are a project planning tool th at can be used to represent the tim ing of tasks re qu ire d tocom plete a project. B ecause G antt charts are sim ple to understand and easy to construct, they are usedby m ost project m anagers for al l but the m ost com plex projects.In a G antt chart, each task takes up one row. D ates run along the top in increm ents of days, w eeks orm onths, depending on the total length of the project The expected tim e for each task is represented by ahorizontal bar w hose left end m arks the expected beginning of the task and w hose right end m arks theex pected com pl etion date. T asks m ay run s eq u en tia ll y, in p ara ll el o r o ve rl ap pin g.As th e project p ro gre sse s, th e c ha rt is updated by fil l ing in the bars to a length proportional to thefraction of w ork that has been accom plished on the task. This way, one can get a quick reading ofproject progress by draw ing a v ertical l ine through the chart at the current date. C om pleted tasks lie tothe left of the line and are com pletely filled in. C urrent tasks cross th e line and are beh ind sch edule iftheir fil led- in section is to the left of the line and ahead of schedule if the fil led- in section stops to th eright of the line. F uture tasks lie com pletely to the right of the line.In c on stru ctin g a G an tt chart, keep the tasks to a m anageable num ber (no m ore than 15 or 20) so that thechart fits on a single page. M ore com plex projects m ay req uire subordinate ch arts w hich detail thetim ing of all the subtasks which make up one of the main tasks. F o r team p ro jec ts, it often helps to havean additional colum n containing num bers or initials w hich identify w ho on the team is responsible forth e ta sk .

O ften the project has im portant events w hich you w ould l ike to appear on the project tim el ine, but w hichare not tasks. F or exam ple, you may wish to h ighlight when a prototype is com plete or the date of adesign review . Y ou enter these on a G antt chart as " m ilesto ne" ev ents and m ark th em with a s pecia lsymb ol , o ften a n u psid e- down tria ng le .Using Excel toMake Gantt ChartsA sam ple G antt chart (.pdffonnat) m ade using M icrosoft Excel appears in the figure w hichac comp an ies th is d ocumen t. Iftoday's date were M ay 13, Task A would be behind schedule, Task Bahead and Task C righ t on schedule. The events m arked by fat dots are m ilestones.http:/ /WWW.me.umn.edulcourses/me4054/assignmentsigantt .html 7/26/2004
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--0- - -- .

Gantt charts made with Excel are easy to update and maintain. Here's how to do it.On a piece of scrap paper, make a list of tasks and assign each task tentative start and stop dates (ordurations) and the people responsible for the task Also list important milestones and their dates. Ifyouhave more than 15 or 20 tasks, split your project into main tasks and sub tasks, then make an overallGantt chart for the main tasks and separate Gantt charts for the subtasks which make up each main task.Decide what resolution to use in the timeline, For projects of three months or less, use days, for longerprojects use weeks or months, and for very short project use hours. For these instructions, we willassume you have chosen a resolution of days.Fire up Excel. Under Page Setup, select landscape orientation, and then select the options to center thechart horizontally and vertically on the page. Also under Page Setup. activate the "fit to one page"button. (Note that if the text comes out too small, you may have to print your chart on two pages andpaste together. Even better, adjust the resolution of your date scale or drop less important tasks to makeyour chart fit comfortably on one page.) Still under Page Setup, set header and footer to be blank. (It'sbetter to write the title right on the spreadsheet rather than use the header for the title. Finally, underPage Setup. tum off the option to print gridlines.Set up the cells. You can use the sample (found elsewhere on this web page) as a guide. Use the bordercommand to draw boxes around the appropriate cells. Enter your scheduling data. To make the gray barswhich indicate length of task, select the appropriate cells, then the fin command (one of the buttons nearthe top).As the project progresses, fill in the gray bars with black to denote the fraction of a task that is complete.Project Management PackagesYou can also create Gantt charts using a project managment computer package. A sample chart madeusing Microsoft Project appears below. Project is the most widely used scheduling tool for smallprojects. It is available on the PCs inMechE 308 for use by IT students.

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~'-J - - - ~ ..._..._- ....................0

Project Schedule Estimatingpage lot J

Scheduling is an inexact process in that it tries to predict the future. While it is not possible to know withcertainty how long a project will take, there are techniques that can increase your likelihood of beingclose. If you are close in your planning and estimating, you can manage the project to achieve theschedule by accelerating some efforts or modifying approaches to meet required deadlines.One key ingredient in the scheduling process is experience in the project area; another is experience withscheduling in general. In every industry area there will be a body of knowledge that associates theaccomplishment of known work efforts with a time duration. In some industries, there are booksrecording industry standards for use by cost and schedule estimators. Interviewing those who have hadexperience with similar projects is the best way to determine how long things will really take.When preparing a schedule estimate, consider that transition between activities often takes time.Organizations or resources outside your direct control may not share your sense of schedule urgency,and their work may take longer to complete. Beware of all external dependency relationships. Uncertainresources of talent, equipment, or data will likely result in extending the project schedule.Experience teaches that things usually take longer than we think they will, and that giving awayschedule margin in the planning phase is a sure way to ensure a highly stressed project effort. Peopletend to be optimistic in estimating schedules and, on average, estimate only 80% of the time actuallyrequired.Failure to meet schedule goals is most often due to unrealistic deadlines, passive project execution,unforeseen problems, or things overlooked in the plan.

The Gantt Chart

Task 1 6~Task 2 ITask 3

-- ITask 4 __ J

Task 5Task 6 ,Project 0+omplete

Taking its name from early project management innovator Henry L.Gantt, the basic Gantt chart is aneasy way to document schedules. It is a horizontal-bar schedule showing activity start, duration, andcompletion. It shows the connection between events and the calendar, and provides a graphical analog ofthe activity duration.

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-~ --J - - _ . . _ . . _ . . . _ b rage 1. or j

The Gantt schedule can illustrate the relationship between work activities having duration, eventswithout duration that indicate a significant completion, and milestones that represent majorachievements or decision points. Various annotations can be used to communicate the progress of theproject effort compared to the baseline plan, as well to depict in a graphical way areas where there aremodified expectations from the baseline plan.Once a Gantt schedule has been established for a project, progress should be periodically plotted againstthe baseline schedule. If different functional areas are involved in a project, each area may need its owndetailed schedules to support the project master schedule. In such cases it is important that workingschedules be linked to a common master schedule ina way that they can be easily updated. Each activityor event on the schedule should have a responsible individual assigned, so there is clear ownership andso schedule status can be updated without a lot of fuss.Resource Leveling:Projects will often be confronted by time and organizational constraints that limit their ability to obtainhuman resources. Sometimes staff can be supplemented through temporary help from technical serviceagencies. When staffing requirements are identified and constraints are understood, work plans cansometimes be adjusted to fit requirements to available resources.Resource scheduling is one of the greatest challenges for projects without access to large organizationalor job-market resource pools. Project pIarming should address such issues as redundancy of criticalresources, resource capacity, bench strength in vital areas, and contingency plans to handle departures ofkey personnel.Most of the popular project management software packages enable the project resource planner to assignstaff to project tasks, display resource requirements profiles, and adjust the schedule of slack tasks soresource requirements more closely fit those available in the organization. Some packages can displaymultiple project resource requirements to facilitate organization-wide resource management,optimization, and leveling. Individual project requirements may be adjusted by manipulating scheduleslack in tasks not on the critical path. This can facilitate allocation and leveling of staff throughout theorganization.Unless one person is working on each task full time, the schedule duration on the Gantt chart will not bethe same as the effort required. Effort requirements will drive project cost, but durations will drive theschedule. These distinctions are helpful when reconciling project and resource schedules .."Crashing" the Schedule:Efforts to accelerate a project schedule are commonly grouped under the term "crashing" the schedule.Maybe this term was coined to suggest that there is always some price for driving a project tocompletion sooner than normal. There are a number of ways to improve the schedule when your bosssays, I need it sooner!1. Add people to the schedule. Additional staff must be added early in a project or they will slow itdown while learning the ropes. If you add people, you may also need to add staff for supervision andcoordination, so staff are fully applied.2. Improve productivity and work longer hours. A good team atmosphere with management support canhelp make this happen. Without positive nourishment of this process, you could lose your team to

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rage j or . s

attrition.3. Review schedule dependencies and look for opportunities to overlap tasks or make serial tasksconcurrent or parallel activities. This requires greater coordination and sometimes involves increasedrisks which need to be managed carefully.4. Review the project scope and remove or delay features or functionality from the project critical path.5. Consider innovative approaches such as a different development methodology, alternativetechnologies, or out-sourcing options.

Tasks Scheduled in SeriesA . . . A .8 " A

cA A0 A

Methods of "Crashing" the ScheduleAi A

B "A ."""'-- 4 Insert overlap in dependency_ _ _ _ _ _ A _ Change from series to parallelAccelerate task by adding people

Copyrigh: 1997, James R. Chapman, All rigJtts reserved.


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Cop yr ig ht@ NetMBA .com.All rights reserved. Accounting Economics Finance ManagementMarketing Operations Statistics StrategyOperations> CPM

CPM - Critical Path MethodIn 1957, DuPontdeveloped a project management method designed to address thechallenge of shutting down chemical plants for maintenance and then restarting theplants once the maintenance had been completed. Given the complexity of theprocess, they developed the Critical Path Method (CPM)for managing such projects.CPMprovides the following benefits:

Provides a graphical view of the project. Predicts the time required to complete the project. Shows which activities are critical to maintaining the schedule and which arenot.

CPMmodels the activities and events of a project as a network. Activities are depictedas nodes on the network and events that signify the beginning or ending of activitiesare depicted as arcs or lines between the nodes. The following isan example of a CPMnetwork diagram:

CPM Diagram

Steps in CPM Project Planning1. Specify the individual activities.2. Determine the sequence of those activities.3. Draw a network diagram .4. Estimate the completion time for each activity.5. Identify the critical path (longest path through the network)6. Update the CPMdiagram as the project progresses.

1. Specify the Individual Activitieshttp://www.netmba.com/operationsiproject/cpmi

ragt:: 101,,)

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From the work breakdown structure, a listing can be made of all the activities in theproject. This listing can be used as the basis for adding sequence and durationinformation in later steps.2. Determine the Sequence of the ActivitiesSome activities aredependent on the completion of others. A listing of the immediatepredecessors of each activity is useful for constructing the CPM network diagram.3. Draw the Network DiagramOnce the activities and their sequencing have been defined, the CPM diagram can bedrawn. CPM originally was developed as an activity on node (AON) network, but someproject planners prefer to specify the activities on the arcs.4. Estimate Activity Completion TimeThe time required to complete each activity can beestimated using past experience orthe estimates of knowledgeable persons. CPM is a deterministic model that does nottake into account variation in the completion time, so only one number isused for anactivity's time estimate.s. Identify the Critical PathThe critical path is the longest-duration path through the network. The significance ofthe critical path is that the activities that lie on it cannot be delayed without delayingthe project. Becauseof its impact on the entire project, critical path analysis isanimportant aspect of project planning.The critical path can be identified by determining the following four parameters foreach activity:

ES - earliest start time: the earliest time at which the activity can start giventhat its precedent activities must be completed first.

EF - earliest finish time, equal to the earliest start time for the activity plus thetime required to complete the activity. IF - latest finish time: the latest time at which the activity can be completedwithout delaying the project. lS - latest start time, equal to the latest finish time minus the time required tocomplete the activity.

The slack time for an activity is the time between its earliest and latest start time, orbetween its earliest and latest finish time. Slack is the amount of time that an activitycan be delayed past its earliest start or earliest finish without delaying the project.The critical path is the path through the project network in which none of the activitieshave slack, that is, the path for which ES""lS and EF;lF for all activities in the path. Adelay in the critical path delays the project. Similarly, to accelerate the project it isnecessary to reduce the total time required for the activities in the critical path.

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6. Update CPM DiagramAs the project progresses, the actual task completion times will be known and thenetwork diagram can be updated to include this information. A new critical path mayemerge, and structural changes may be made in the network if project requirementschange.

CPM LimitationsCPMwas developed for complex but fairly routine projects with minimal uncertainty inthe project completion times. For less routine projects there is more uncertainty in thecompletion times/ and this uncertainty limits the usefulness of the deterministic CPMmodel. An alternative to CPM is the PERTproject planning model, which allows a rangeof durations to be specified for each activity.Operations> CPM

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CPM SchedulingCritical Path Method Scheduling (CPM)techniques were developed as a man-agement tool over 30 years ago andhave been used in the constructionindustry for the last 25 years. However,there still exists considerable misunder-standing in the industry about just howcost effective this technique can be, andon the tremendous input it provides forformulating sound construction manage-ment decisions.The purpose of this flyer is not only toexplain how CPM works, but also todetail specifically the full range ofWagner Hohns Inglis Inc.'s (WHI)services in this area.

WHYCPM?Sooner 0r later ... every ConstructionContractor or Owner becomes involvedin a project that challenges its manage-ment abilities. An Owner or Contractor isoften at a loss to keep pace and main-tain direction due to project size or com-plexity; infinite varieties of materials tobe ordered; hundreds of shop drawingsto be coordinated; work of dozens of subcontractors and specialties to be inte-grated; arrival of equipment and man-power sequenced to minimize cost andmaximize productivity; and a cash flow tobe realized.Usually the responsibility for making themanagement decisions rests on severalkey persons. But how do they make thedecisions? How can these few peoplekeep track of the myriad details attend-ing any construction project? An over-sight or miscalculation can cost manydollars and delay the whole project withresultant financial disaster.

W H IW A G N E R H o H N S IN G L IS IN C .Construction Consultants

HOW DOES IT WORK?A good CPM schedule offers a solutionto such problems. It graphically repre-sents the whole project, using the circlesand arrows of an Arrow Diagram. Eacharrow represents an activity or unit ofwork; each circle, or node, an event orcompletion for an activity. Unlike a barchart, a proper CPM schedule shows theinterrelationship of all activities, howeach affects or impacts other activities,the sequence of construction or flow ofwork, and the relationship of each activ-ity to overall project completion.A computerized listing of activitiesin the CPM Diagram provides a tabulardescription of the project; it describeseach activity, its duration, early start dateand early finish date; late start and latefinish date, and float, if any. A projectmanager can use this document todetermine the relative importance ofdelay to any activity, and the impact thisdelay will have on the overall project.CPM scheduling is a proven way toorganize the many details to be consid-ered in the construction process; it pro-vides a flexible tool to evaluate progressand to analyze the effect on-going deci-sions will have on the overall project. Inaddition, a dollar value with a proratedamount of overhead can be assigned toeach activity so that the schedulebecomes a tool for cash flow projections

Services Flyer No.

by an Owner or income potentia! forContractor. This helps take guesswoout of the monthly payment requisit ioand enables a Contractor to better baance its cash requirements.Anyone who has used CPM knows tha CPM schedule - as a managementool - is only as good as the originainput and logic. Those who have sufered the agonies of running a projewith an unrealistic or incomprehensibCPM schedule know the value of a gooschedule. They realize the importancetaking the time to develop a good sche,~Ie at the outset and hiring an experenced consultant to assist in idevelopment.

BUILDING TYPESWHI has developed schedules on morthan $50 billion worth of constructionover the past 25 years. Its experiencincludes wastewater treatment plants, hspeed rail systems, electric generatinplants, sports arenas, office buildingsairport terminals, pump stations, procesplants, building renovations, hospitalshotels, military complexes and dams.WHI has provided CPM services fobuilding projects throughout the UniteStates and the world. Its staff consists oprofessionals with field construction ancontract administration experience i

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plumbing, electrical, HVAC andgeneral contracting work. These peoplehave been responsible as field man-agers for completion of major projects;they know the problems and bottleneckscommon to construction projects.

THE FIRST STEPIn translating a client's work plan into aCPM schedule, WHI's first task is tomeet with the client to review the job andunderstand the contractor's detai ledapproach for constructing the project.WHI will also meet with a client's fieldpersonnel and major subcontractors aswell. A consultant's experience is crucialat this point. A good consultant will beable to visualize the job, ask the rightquestions, locate problem areas, antici-pate scheduling bottlenecks and be con-versant with the client's field personnel.The scheduler may also suggest alter-nate approaches to save the client timeand money. It is imperative that al[ par-ties mutually understand all parties com-mitments to the project. WHI takes thetime to work with the project team anddevelop a practical plan based on aclient's input, site access considerations,and the limitations of specifications. Tosimplify the CPM scheduling process,WHI provides the client with custom for-matted detailed and summary computerbar charts to describe the overall con-struction concept. Based on our experi-ence, we can often advise our clients onaccurately estimating durations so thatthe schedule reflects good planning, withrealistic estimates and flexibility. We pro-vide practical advice for those Con-tractors who have limited experience inusing CPM, and we provide that experi-enced user a proven format that will opti-mize its in-house capabilities. The resultis a schedule which accurately reflectsthe client's building plan.KEEPING CURRENTOnce a CPM schedule has been imple-mented it's important to keep it currentby updating once a month or in somecases bi-weekly. Past performance, pre-sent status and anticipated progress canthen be ascertained. Our consultants areavailable to attend monthly on-site

progress meetings to provide the bestpossible input into the schedule and toevaluate the results. Clients may also"phone in" or "mail in" updates to WHIconsultants.Any delaying factors along critical ornear critical paths can be identified sothat plans can be formulated and evalu-ated to eliminate potential problems orminimize their impact. Our consultantscan suggest alternate plans in the formof "Recovery Schedules" to overcomeproblem areas and recover lost time.The updated CPM schedule provides notonly a vehicle to evaluate correctiveaction, but is also a historical documentinvaluable in evaluating a Contractor's orOwner's position in event of a construc-tion claim situation.

WHOUSESIDEMANDSCPMSCHEDULING?Anyone providing construction servicesfor the Federal Government will findCPM is required by most contractingagencies. The General ServicesAdministration, NASA, the Department ofTransportation, the U.S. Army Corps ofEngineers, the Department of the Navy,Veterans Administration, the Architect ofthe Capitol, and the U.S. Postal Serviceare only some of the aqencies whichhave CPM requirements written into theirspecifications.Many in the private sector also requireCPM scheduling on their projects. They,too, have recognized the value of CPM.Many major Owners as well as compa-nies like IBM, Mobil Oil, AT&T, WesternElectric, General Motors, the NY/NJ PortAuthority and Caterpillar Corporation areconvinced of the benefits of CPM.In addition, many city and state agenciesthroughout the country require CPMscheduling. WHI CPM methods and pro-grams are designed to meet thesespecs.

IN-HOUSE ASSISTANCEAs CPM has evolved over the past 30years, many larger contracting organiza-tions and Owners with in-house con-struction and engineering departments,

have elected to do their own CPscheduling. Even if you have this ihouse capability, chances are you peodically encounter a work overloadsituation or a unique project requirinspecial skills beyond the immediatecapabilities of your staff.WHI will provide the staffing and expetise you may need in these situationstailoring the specific range of servicesyour individual, in-house needs: froassuming total development of individuCPM assignments to resolving speciproblems.The ultimate goals of WHI on anassignment are to assist the OwnerContractor in staying on top of the job,give an accurate picture of progres(with special attention to problem areasand to help complete the job on time anwithin budget.For more information, please call anythe offices listed on this page.

W H IW A G N E R H o H N S I N G L l S I N C .

Construction ConsultantsNEW JERSEY100 High Street, P.O. Box 460Mount Holly, NJ 08060-1494609-261-0100

FLORIDA3820 Northdale Boulevard, Suite 309ATampa, FL 33624-1841813-962-1618ILLINOIS600 West Jackson Boulevard, Suite 70

Chicago, IL 60661-5612312-627-9500CALIFORNIA600 South LakeAvenue, Suite 500Pasadena, CA 91106-6245818-578-0817

1800 Sutter Street, Suite 260Concord, CA 945202500510-609-1570

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. : , .Chapter 1:General Scheduling 1

A project has adefinite life spandescribed by thecontract. Manydifferent temporaryactivities go onduring this lifespan.

Chapter 1General SchedulingProject scheduling enables you tomanage the time and the flowofproduction.Withawellorganizedproject schedule youcanmanagethe internal activities ofaconstruction project aswell as transitionperiods between projects.Proper scheduling keeps life sane for the general contractor andthe specialty contractor. Itisthe best way tokeep both personal lifeand business activities manageable. A chaotic business lifenegatively affects your personal life.Scheduling is a balancing act that allows you to attain enoughcontracts to ensure year round work and still avoid having toomuch todo.

Over..commitmentOver-commitment can be more damaging toyour business's well-being than not having enough work. During slow times, bothincomeand expenses godown.Whenprojects pile up, youmayhaveto break commitments because of scheduling conflicts. That iswhen your business loses money,just as expenses are peaking.The danger of a cash shortage is greatest during times ofoverextension and maximum expense. A cash shortage occurswhen the business fails tohave the necessary finances topay bills.

Business ImageThequality ofyour scheduling affectseveryaspect ofyour business'simage. Customers, suppliers, and subcontractors can tell howyourun your business by the manner in which you maintain the flowofwork. Each onewants tomow that youcan and will dowhat yousay youwill do. There is nothing better than a good reputation.

Customer's PerspectiveA contractor who has poor scheduling habits rarely has satisfiedcustomers.

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A contractor who cannot begin a project on time creates a badimpression that can taint the entire project. Not finishing'a projecton time because of poor scheduling, which caused delays, is evenworse.Mostcontractors depend onword-of-mouth advertising alongwithreferences fromsatisfied customers. Badscheduling isaneasywayto destroy a goodreputation.

Supplier's PerspectiveSuppliers want todeliver their materials when youoriginally callfor them. Suppliers often cannot keep items because of lack ofstorage; they also expect payment on time. If the job has sloweddown and payments under the contract terms are delayed toyou,the suppliers will still want their money.

Subcontractor's PerspectiveSubcontractors will not remain loyal to a general contractor whocannot properly coordinate aproject. The general contractor needsto ensure that the project is at the right stage for each of thesubcontractors tobegin work on time.It is also the general contractor's responsibility to ensure thatsubcontractors donot interfere with each other, or interfere witheach other's work, while finishing their own part of the project.

Master CoordinatorScheduling is a coordinating process. The general contractor has tolearn tobeamaster coordinator whoeffectivelyblendstheschedulesof owners, subcontractors, architects, suppliers, bankers, andbuilding inspectors.Whileoneeyeisonthe peopleinvolvedin the contractor's business,the other eye has to focus on the materials needed to finish theproject. Special orders have tobearranged well inadvance. Timelydelivery ofmaterials often dictates the progress of a project.

Coordination Through OrganizationScheduling is a process oforganizing production and developing asystem for measuring the success of the production process.A good coordinator is a contractor with an organized scheduling

T he jou rn ey of tenthousand milesbegins with onephone call.

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Chapter f:General Scheduling 3system. An organized scheduling system evolves from anorganizedbusiness. If your business is constantly run by the "seat of yourpants," it is only a matter of time before chaos (bad scheduling)catches up with you.

.; ..., An organized contractor develops the framework to produce andmaintain an efficient scheduling system for every project.Beginning with the original estimate and continuing through anorganized recordkeeping system, acontractor has tohave the basicmeans necessary to schedule a construction project.

Most trades people do a good job of managing their time while working. However, managing your time andgetting others to follow a schedule is a very different situation, As a contractor, you have to look much furtherahead and take many more factors into account.

A good projectplan wilf includealternativestrategies forparts that aredifficult or "timecriticaL"

Project SchedulingProject scheduling includes more than just having the necessarylabor, materials, and subcontractors lined up and on the correctproject at the right time,The construction project schedule involves:

Prompt project completion Quality control Budget control

Prompt CompletionGoodscheduling makes prompt completionmore likely and reducesidle or wasted time. The benefits to the general contractor are:

Keeping your scheduled projects on time Keeping your customer happy (the customer couldbetheowner, the lender or a prospective owner) Getting the most out of a building season in terms ofvolume and profit

Quality ControlGood scheduling can improve project quality by keeping workflowing. When poor scheduling causes abrupt stops and starts for

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4 Volume 3:Project Scheduling for Construction Contractorsemployeesand subcontractors; project quality suffers. This means:

Less time for workers to pay attention to detail More emphasis on speed Greater possibilities for mistakes

Budget ControlTimeequals money. This is a fundamental rule in the constructionbusiness. Ifthe project is delayed due toinferior scheduling, it costsyou more money tobring the project back on track.Besides paying overtime to employees and subcontractors, manyother factors can increase costs when a project is delayed:

The cost of supplies and materials can rise. lfyou have ordered the materials but have not completedthe project, bills formaterials canbecomedue beforeyoucan justify billing the owner. Suppliers charge intereston overdue payments.

Subcontractors cannot wait for you. They may be forcedto move on to other projects. The cost of the projectincreases ifyou have touse ahigher priced subcontractorto replace the one who has moved on.

Setting a Realistic ScheduleThe first step indeveloping aproject schedule is realism. Arealisticschedule is one that is workable and sequential.Aworkable schedule is based onarealistic workday, and the actualnumber ofworkers involved with the project. Scheduled operationscannot exceed the ability ofyour workers to accomplish the work.A sequential schedule is based on the logical order of building orinstallation work that a particular construction project shouldfollow.

NoteFor your convenience, wehave inserted at the end of thischapter) a "Residential Construction Outline" of thesequence of events for a typical residential constructionproject.

You don't want$2.00 partsstopping a$70,000 project.

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Chapter 1: General Scheduling 5These concepts are basic to any scheduling system. Although theserules may seem obvious) many schedules collapse because ofunrealistic wor k schedules that cause some activity to be scheduledout of sequence.A schedule made within basic parameters will be more functional.This is a good workable starting point. for your own scheduling .

. N o t m atte r w ha t your tra d e o r how m any tra d es yo u know , you r w ork sp eed a nd q ua lity level of performanceis n ot th e sa me a s a tra d es p erson yo u m ay h ire. In a ll c ases yo u h ave to pre dict howthey will p erfo rm . Y ou h aveto use th eir perform an ce le vels in yo ur sche du le.

Scheduling BasicsThere are many formal scheduling systems. An overview of thesemethods is in Chapter 2: "Dealing with Others on the Project, ItRegardless ofwhat system or method you use, the initial steps arealways the same: Break the project. down into phasesl 1 l i Determine how long each phase will takeII Determine the proper construction sequence of thesephases

This is the foundation from which even the most elaborate systemsare developed, The process becomes more elaborate as the size andcomplexity of the project increases.

You ( .: .smt ,keeptrouble fromcoming, but, youneedn't give it achair to sit. in.

Basic ToolsYou already have various tools available for building a schedule.Many projects already have the following:

III Estimating sheet (see Exhibit 1, p. 19)II Project specifications document (Exhibit 2, p. 20)II Proposal and agreement (see Exhibit 3r pp. 21- 23)

These are good indicators for what many of the tasks on yourproject will involve.

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Volume 3: Project Scheduling for Construction ContractorsWith the Estimating Sheet

, 'estimating sheet is where the initial task breakdown occurs. Itthe project into specific phases and items for estimating thecosts of a project.

""........u", ...t costs are related to those materials, labor and subcontractused on a construction project. Indirect costs include overhead.'e~penses,business profit) and the time a contractor spends coordi-.,ilating work activities.

A , pmject can moveo~uiGkiy,sometil11esvery quickly. This Isnot the (;&16e for ailprojects. however.Your scheduling process for a particular project begins with the ~"&.'W&.'%'s..m.l.~mm.~categories already identified on the estimating sheet.

NoteTheAdvantage Contractor Business Success Seriescourse,Cash and Finance in Construction Contracting, focuseson pricing systems that separate "direct costa'' from"indirect costs."

Your estimate sheet is especially useful if you have designed it . sothat the cost categories are listed in the logical constructionsequence. For example:II Permi t processII Site survey.. Excavation FoundationII Framing; etc.

Cost vs. TimeYour estimating sheet may not contain enough detail to scheduleeverything, Some parts may involve certain processes or detailsthat are not listed on a cost estimate.An example of this is the curing time needed for a concretefoundation before forms can be removed. These activities are easyto overlook when developing a schedule because they are not in thecost estimate.Scheduling involves a different focus than east estimating. Whenfiguring the cost of a project, waiting periods are not as crucial asthey are with the scheduling process. A prime example ofthis iswaiting for permits. The waiting period for a permit can be from

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Chapter. 1: General Scheduling 7A . schedule doneon lime w i ll ueua lly

\be on budget. Youget the tmnefit ofb oth w hen theproject rt;ays onschedule.

three weeks to three months or longer. However, the monetary costmay be nothing.

The Construction ContractInclude your construetion contract as one of your resources fordeveloping a projeet schedule. The construction eontract. will outlineimportant criteria that your project schedule has to meet, Some ofthese criteria are:

Start and completion dates for each major project taskII Clauses requiring' special protection of the owners'property Conditions governing debris removal Clauses that will spell out any liquidated damagesassessed if the project is not completed on timeNote"Liquidated damage" is money that the owner may beentitled to if a project. takes longer than promised in thecontract,

Plans and SpecsCombine the initial project. breakdown list from your estimatingsheet and any special criteria from your construction contract withthe information available from any plans and specifications of theproject.With these resources, continue dividing the project into its orderedparts to determine:

II How much work is requiredII How big the crew will beII How many worker-hours arc needed for each taskII How many subcontractors are involvedII How you will schedule the work to best use your crew,equipment, and subcontractors.

Critical Scheduling Items in the ScheduleCritical items are those materials, supplies, and/or services thathave to be orderedor plannedwellin advance of actual construction

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Volume 3: Project Scheduling for Construction Contractorsinstallation. Critical items include: "Have no fea r " of

perfection - you'llnever reach It."Salvadore f)aii

Specialty products with long order periods such as:.. Appliances Cabinets+ Doors.. Windows.. Special moldings.. Carpet.. Fixtures; etc.

.. Subcontractors that require more lead time for a project Weather sensitive installations and closures such as:.. Roofing applications.. Exterior painting procedures.. Landscaping

Mo st c ha n ge s to y ou r s ch ed u le w ill in vo lve s ub co ntr ac to rs a n d su pp lie rs . I f a su bc on tr ac to r's s ch ed u le is a lte re dby a n oth er p ro je ct, o r if a s up plie r g ets 8ba ck -ord er on som e item , ch anges ha ve to b e m ad e. Y our job is to lea rnof c ha ng es a s so on a s p ossib le ..

crystal BallSometimes knowing when to order and arrange for delivery ofcritical items is a "tricky" part of scheduling. Contractors oftenrequire the equivalent of a crystal ball to pinpoint the exact date a.critical item may be needed.By acknowledging that these items exist and will have to be dealtwith in advance, you have already correctly read into the future.

A s ch e dule lists e ve nts in a tim e ly o rd e r. o r c h ro n olo gic a lly . Man y t imes an item ha s to be dea l t with l ong be fo reit ;s need ed to go into pla ce. Your sched ule ha s to list the d ate for ord ering so the item is rea dy for insta lla tiono n tim e.

Controlling The Process. A . . .s a general contractor, you are responsible for the success of aproject. You are the captain ofthe team and often the only one whoknows the entire game plan for the project.

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Chapter 1: General Scheduling 9

!f you wait untilyou are sure yourproject wil l comeout perfect~ly, youare iikeiy to wait; avery long time.

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While keeping the scope ofthe project in mind, you also have to payclose attention to all the small details.Small Details

Ignoring any ofthe many small details ofa project can be a primarycause for delay. The small details that you should pay attention toinclude:.. The color and style of the roofing materialII The exact. manner in which the corners will be trimmedon the sidingIII The finish texture on the drywall.. The style and color of doorknobsIII The placement and type of'electrical switches and outletsthroughout the project

Decisions, Deciaions, DecisionsThese aesthetic details are important to the scheduling processbecause each choice of color, texture or style represents a decisionthe owner and designer both have to make.The act ofordering certain materials and supplies depends on thesecosmetic decisions. As the person with the entire project inmind,it is up to you to anticipate the decision making process and keepthe project moving.

Details, Details, Details"Whenyou think of it, a construction project is built on details. Notonly are there numerous cosmetic decisions, hut each personconnected with the project requires unique preparations anddecisions to finish their part of the project.As a general contractor, yon need specific details particular to theproject from the following parties:

The architect or designerII The ownerII Your work crewII Subcon tractorsII Suppliers

This includes, but.is notlimited to:II Work item numbers.. Item descriptions

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Volume 3: Project Scheduling for Construction Contractors Units of measurement (cubic yard, square foot, pound,ton, each, etc.) Quality of work to he performed (specification standard).. Relation of each item to the whole in terms ofwork to beperformed (such as percen tage ofthe total work required

for each item) Units of time used in the schedule (days, hours) Starting date Time required for each item Completion date

';{"Staying Organized. Staying organized means that you are keeping track of all thesedetails and taking the extra time to write down the decisions for allthe details. Keeping the details of a project tightly organized is theonly way to guarantee a smooth flowing project. This means you'llhave a project that is:

More efficientII Likely to be completed on time.. Able to be completed within the budgetNote

You can never be too organized. Organization takes extratime. However, the time you spend organizing is morethan repaid the first. time you have to track down a detailthat you "know you have somewhere. II Organizationreflects your professionalism.

Progress ReportsProgress reports are a special ingredient in the formula for asuccessful scheduling system. They are the best way to monitor theprogress ofthe project. A progress report helps a general contractorperform three basic steps in monitoring a project:

II Comparing actualprogress against the planned scheduleII Finding the cause of any difference between actual andscheduled progressI[ Taking immediate action to either correct, balance, orreschedule activities to stay on, or close to, the originalschedule

Schedulll1g shou

part 6- schedule basics for construction

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