Project Management Course Code: 0670571 Monday, Wednesday 09:45-11:15 Dr. Ala’a Alshdiefat

1. Project Management Course Code: 0670571 Monday, Wednesday 09:45-11:15 Dr. Ala’a Alshdiefat

2. Project Planning and Scheduling • Project planning is the process of identifying all the activities necessary to successfully complete the project. • There are two main level of planning in construction projects; • Strategic Planning: deals with the high level selection of overall project objectives including scope, procurement routes, timescale, and financial options. The strategic planning for a project results in broad outlines of what the project has to achieve, and how it is to be undertaken • Operational Planning: Involves establishing a method statement for each activity. Examples of operational planning include a Tender plan, Feasibility plan, and Construction plan. A method of statement is a description of how the work will be executed. • Project scheduling is the process of determining the sequential order of the planned activities, assigning realistic durations to each activity, and determining the start and finish dates for each activity. • Thus, project planning is a prerequisite to project scheduling because there is no way to determine the sequence or start and finish dates of activities until they are identified. Dr. Ala'a Alshdiefat

3. Project Planning and Scheduling Desired Results of Planning Planning establishes the benchmark for the project control system to track the quantity, cost, and timing of work required to successfully complete the project. The most common desired result of planning is to finish the project on time, there are other benefits that can be derived from good project planning (see following Table). Dr. Ala'a Alshdiefat

4. Project Planning and Scheduling Principles of Planning and Scheduling The plan must include and link the three components of the project: scope, budget, and schedule. Too often, planning is focused only on schedule without regard to the important components of scope and budget. To develop an integrated total project plan, the project must be broken down into well-defined units of work that can be measured and managed. This process starts with the WBS. Team members have the ability to clearly define the magnitude of detail work that is required. They also have the ability to define the time and cost that will be required to produce the work. With this information a complete project plan can be developed. The project plan and schedule must clearly define individual responsibilities, schedules, budgets, and anticipated problems. Dr. Ala'a Alshdiefat

5. Project Planning and Scheduling Principles of Planning and Scheduling Dr. Ala'a Alshdiefat

6. Project Planning and Scheduling Responsibilities of Parties The principal parties of Owner, the Engineer, and Contractor all have a responsible role in project planning and scheduling. Each must develop a schedule for his or her required work and that schedule must be communicated and coordinated with the other two parties, because the work of each affects the work of the others. The owner establishes the project completion date, which governs the scheduling of work for both the designer and contractor. The owner should also set priorities for the components that make up the project. For example, if the project consists of three buildings, the relative importance of the buildings should be identified. This assists the designer in the process of organizing his or her work and developing the design schedule to produce drawings that are most important to the owner. It also assists in the development of the specifications and contract documents that communicate priorities to the construction contractor. Dr. Ala'a Alshdiefat

7. Project Planning and Scheduling Responsibilities of Parties The principal parties of Owner, the Engineer, and Contractor all have a responsible role in project planning and scheduling. Each must develop a schedule for his or her required work and that schedule must be communicated and coordinated with the other two parties, because the work of each affects the work of the others. For some projects, it may be desirable for one party to maintain the schedule and the other parties to participate in monitoring it. Ultimately each one of the parties will be responsible for his or her portion of the schedule. Maintaining one common schedule as a cooperative effort between parties can reduce problems associated with maintaining three separate schedules. Dr. Ala'a Alshdiefat

8. Project Planning and Scheduling Owner Responsibilities The owner establishes the project completion date, which governs the scheduling of work for both the designer and contractor. The owner should also set priorities for the components that make up the project. For example, if the project consists of three buildings, the relative importance of the buildings should be identified. This assists the designer in the process of organizing his or her work and developing the design schedule to produce drawings that are most important to the owner. It also assists in the development of the specifications and contract documents that communicate priorities to the construction contractor. Dr. Ala'a Alshdiefat

9. Project Planning and Scheduling The Engineer Responsibilities The design organization must develop a design schedule that meets the owner's schedule. This schedule should include a prioritization of work in accordance with the owner's needs and should be developed with extensive input from all designers who will have principal roles in the design process. Too often, a design schedule is produced by the principal designer, or the project manager of the design organization, without the involvement of those who will actually do the work. Dr. Ala'a Alshdiefat

10. Project Planning and Scheduling The Contractor Responsibilities The construction contractor must develop a schedule for all construction activities in accordance with the contract documents. It should include procurement and delivery of materials to the job, coordination of labor and equipment on the job, and interface the work of all subcontractors. The objective of the construction schedule should be to effectively manage the work to produce the best-quality project for the owner. The purpose of construction scheduling should not be to settle disputes related to project work, but to manage the project in the most efficient manner. Dr. Ala'a Alshdiefat

11. Project Planning and Scheduling Techniques for Planning And Scheduling The technique used for project scheduling will vary depending upon the project's size, complexity, duration, personnel, and owner requirements. There are two general methods that are commonly used; The Bar Chart (sometimes called the Cuntt chart) The Critical Path Method (sometimes called CPM or network analysis system). Dr. Ala'a Alshdiefat

12. Project Planning and Scheduling The Bar Chart (Cunttchart) The bar chart, developed by Henry L. Gantt during World War I, is a graphical time-scale of the schedule. It is easy to interpret; but it is difficult to update, does not show interdependences of activities, and does not integrate costs or resources with the schedule. It is an effective technique for overall project scheduling, but has limited application for detailed construction work because the many interrelationships of activities, which are required for construction work, are not defined. Many project managers prefer the bar chart for scheduling engineering design work because of its simplicity, ease of use, and because it does not require extensive interrelationships of activities. Dr. Ala'a Alshdiefat

13. Project Planning and Scheduling The Critical Path Method (CPM) The Critical Path Method (CPM) was developed in 1956 by the DuPont Company, with Remington Rand as consultants, as a deterministic approach to scheduling. The CPM method is commonly used in the engineering and construction industry. A similar method, Program Evaluation and Review Technique (PERT), was developed in 1957 by the U.S. Navy, with Booz, Allen, & Hamilton Management consultants, as a probabilistic approach to scheduling. Both methods are often referred to as a network analysis system. The CPM provides interrelationships of activities and scheduling of costs and resources. It also is an effective technique for overall project scheduling and detailed scheduling of construction. However, it does have some limitations when applied to detailed engineering design work during the early stages of a project because it requires an extensive description of the interrelationships of activities. Dr. Ala'a Alshdiefat

14. Project Planning and Scheduling The Critical Path Method (CPM) The CPM technique requires more effort than a bar chart, it provides more detailed information that is required for effective project management. Using a network schedule to plan a project forces the project team to break a project down into identifiable tasks and to relate the tasks to each other in a logical sequence in much greater detail than a bar chart. Dr. Ala'a Alshdiefat

15. Project Planning and Scheduling Network Analysis Systems A network analysis system (NAS) provides a comprehensive method for project planning, scheduling, and controlling. NAS is a general title for the technique of defining and coordinating work by a graphical diagram that shows work activities and the interdependences of activities. The Basic Definitions are; Activity -The performance of a task required to complete the project, such as, design of foundations, review of design, procure steel contracts, or form concrete columns. An activity requires time, cost, or both time and cost. Dr. Ala'a Alshdiefat

16. Project Planning and Scheduling The Basic Definitions Network -A diagram to represent the relationship of activities to complete the project. The network may be drawn as either an "arrow diagram" or a "precedence diagram." Duration (D) -The estimated time required to perform an activity. The time should include all resources that are assigned to the activity. Early Start (ES) -The earliest time an activity can be started. Early Finish (EF) -The earliest time an activity can be finished and is equal to the early start plus the duration. EF= ES+D Late Finish (LF) -The latest time an activity can be finished. Dr. Ala'a Alshdiefat

17. Project Planning and Scheduling The Basic Definitions Late Start( (LS) -The latest time an activity can be started without delaying the completion date of the project. LS=LF-D Total Float (TF), in some books it called (Slack) -The amount of time an activity may be delayed without delaying the completion date of the project. TF=LF-EF=LS-ES Free Float (FF) -The amount of time an activity may be delayed without delaying the early start time of the immediately following activity. FF= ES j - EFi Where the subscript irepresents the preceding activity and the subscript j represents the following activity. Dr. Ala'a Alshdiefat

18. Project Planning and Scheduling The Basic Definitions Critical Path -A series of interconnected activities through the network diagram, with each activity having zero, free and total float time. The critical path determines the minimum time to complete the project. Dummy Activity -An activity (represented by a dotted line on the arrow network diagram) that indicates that any activity following the dummy cannot be started until the activity or activities preceding the dummy are completed. The dummy does not require any time. Dr. Ala'a Alshdiefat

19. Project Planning and Scheduling Successor / Predecessor Relationships The CPM diagram is a graphical representation that shows the sequencing of activities in the project. In the activity relationships, the preceding activity is called the predecessor activity andthe following activity is called the successor activity. Dr. Ala'a Alshdiefat

20. Project Planning and Scheduling Successor / Predecessor Relationships Finish-to-Start (F-S) relationship means the preceding activity must be completed before starting the following activity. Start to- Start (S-S) relationship means the successor activity can start at the same time or later than the predecessor activity. Start-to-Finish (S-F)relationship means the predecessor activity must start before the successor activity can finish. Finish-to-Finish (F-F) relationship means the successor activity can finish at the same time as or later than the predecessor activity. Dr. Ala'a Alshdiefat

21. Project Planning and Scheduling Successor / Predecessor Relationships Lag is the amount of time that an activity follows or is delayed from the start or finish of its predecessor. Dr. Ala'a Alshdiefat

22. Project Planning and Scheduling Example (1); Gantt Chart The following table shows the tasks, dependencies, and estimated times a project manager might input to a basic Gantt chart Dr. Ala'a Alshdiefat

23. Project Planning and Scheduling Example (1); Gantt Chart ( Solution) Dr. Ala'a Alshdiefat

24. Project Planning and Scheduling Example (2); Gantt Chart Construct a Gantt chart for the software development project. Assume that the first task starts on 17th October. Dr. Ala'a Alshdiefat

25. Project Planning and Scheduling Example (2); Gantt Chart (Solution) Dr. Ala'a Alshdiefat

26. Project Planning and Scheduling Example (3); CPM 1. Construct a precedence diagram. 2. On the diagram, compute the four schedule dates (ES, EF, LS, LF) and the four floats (TF and FF) for each activity, and the lag for each link. 3. Identify the critical path Dr. Ala'a Alshdiefat

27. Project Planning and Scheduling Example (3); CPM (Solution) Dr. Ala'a Alshdiefat

28. Project Planning and Scheduling Development of CPM Diagram from The WBS The development of the WBS is an important first step that is often neglected. Attempting to draw the CPM diagram without a WBS usually leads to numerous revisions to the diagram. The WBS identifies the tasks and activities that must be performed, but does not provide the order in which they must occur. The CPM network diagram is prepared to show the sequencing and interdependences of the activities in the WBS. Figure 8-4 is a CPM diagram that was developed from the WBS shown in Figure 8-3. Note that each activity on the CPM is derived from the work tasks that are shown on the WBS. Dr. Ala'a Alshdiefat

29. Project Planning and Scheduling Development of CPM Diagram from The WBS Dr. Ala'a Alshdiefat

30. Project Planning and Scheduling Development of CPM Diagram from The WBS Dr. Ala'a Alshdiefat

31. Project Planning and Scheduling Development of CPM Diagram from The WBS Dr. Ala'a Alshdiefat

32. Project Planning and Scheduling Schedule Coding System One of the advantages of CPM scheduling by computer methods is the ability to sort specific activities from the complete list of activities for the project. For example, the project manager may only want information about sewer activities, the time required for trenching equipment, or the assignment of the surveying crew. The sorting of these activities can easily be accomplished by a coding system. Example: Table 8-4 is a simple 4-digit coding system to illustrate sorting capabilities for the sewer and water lines project that is shown in Figure 8-5. All activities related to the sewer line are represented by the number "1" in the first digit. Water line activities are represented by the number "2." The second code digit represents the type of work, such as, surveying, forming manholes, trenching, laying pipe, and backfilling. Thus, a 4-digit code is assigned to each activity in the project. Dr. Ala'a Alshdiefat

33. Project Planning and Scheduling Schedule Coding System Dr. Ala'a Alshdiefat

34. Project Planning and Scheduling Cost Distribution The distribution of costs, with respect to time, must be known to successfully manage a project. A cost analysis can also be performed by assigning the cost that is anticipated to complete each activity. The cost of an activity may be distributed over the duration of the activity; however, the activity may be performed over a range of time, starting from the early to late start and ending from the early to late finish. Because activities can occur over a range of time, a cost analysis must be performed based on activities starting on an early start, late start, and target schedule. The target schedule is the midpoint between the early start and late start. Dr. Ala'a Alshdiefat

35. Project Planning and Scheduling Cumulative Project Cost ( S curve) Dr. Ala'a Alshdiefat

36. Project Planning and Scheduling Example (4); CPM, Cost, and Crushing The RELIABLE CONSTRUCTION COMPANY has just made the winning bid of $5.4 million to construct a new plant for a major manufacturer. The manufacturer needs the plant to go into operation within a year. Therefore, the contract incudes the following provisions: • A penalty of $300,000 if Reliable has not completed construction by the deadline 47 weeks from now. • To provide additional incentive for speedy construction, a bonus of $150,000 will be paid to Reliable if the plant is completed within 40 weeks. 1.What is the total time required to complete the project if no delays occur? (using CPM). 2. If extra money is spent to expedite the project, what is the least expensive way of attempting to meet the target completion time (40 weeks)? 3. Draw cumulative project cost ( S curve) based on ES and LS. Dr. Ala'a Alshdiefat

37. Project Planning and Scheduling Example (4); CPM The RELIABLE CONSTRUCTION COMPANY has just made the winning bid of $5.4 million to construct a new plant for a major manufacturer. The manufacturer needs the plant to go into operation within a year. Therefore, the contract incudes the following provisions: • A penalty of $300,000 if Reliable has not completed construction by the deadline 47 weeks from now. • To provide additional incentive for speedy construction, a bonus of $250,000 will be paid to Reliable if the plant is completed within 40 weeks. 1.What is the total time required to complete the project if no delays occur? (using CPM). 2. If extra money is spent to expedite the project, what is the least expensive way of attempting to meet the target completion time (40 weeks)? 3. Draw cumulative project cost ( S curve) based on ES and LS. Dr. Ala'a Alshdiefat

38. Project Planning and Scheduling Example (4); CPM Dr. Ala'a Alshdiefat

39. Project Planning and Scheduling Example (4); CPM (Solution) Presented in the Class Dr. Ala'a Alshdiefat

40. Project Planning and Scheduling Resource Allocations for Construction During the construction phase, the primary resources are labor, materials, and equipment. The correct quantity and quality of material must be ordered and delivered to the job-site at the right time to ensure efficiency of labor. Equipment to be installed in the project often requires a long lead time from the fabricator. Thus, the project plan should include material and equipment required by the construction work force. The construction plan shows the desired sequence of work. However, to be workable, the plan must also show the distribution of resources, such as the required labor for each craft on the job The demand for labor should be uniformly distributed for each craft on the project, to prevent irregularities. Dr. Ala'a Alshdiefat

41. Project Planning and Scheduling Example (5) CPM Dr. Ala'a Alshdiefat

42. Project Planning and Scheduling Example (5) CPM (Solution) Presented in the Class Dr. Ala'a Alshdiefat

43. Project Planning and Scheduling Program Evaluation and Review Technique (PERT) In the Critical Path Method of scheduling projects, the duration of each activity is usually defined with a reasonable degree of certainty. For most projects the type and amount of work is known, which enables the project manager to establish the approximate duration for each work activity. Using the CPM, the assignment of one duration to each activity provides a deterministic process for the start and finish dates of each activity and a single finish date for the entire project. The Program Evaluation and Review Technique (PERT) method of scheduling uses three durations for each activity and the fundamental statistics to determine the probability of a project finishing earlier or later than expected. Although the PERT method is not used extensively in engineering and construction projects, it provides valuable information for assessing the risks of a schedule slippage of a project. Dr. Ala'a Alshdiefat

44. Project Planning and Scheduling Program Evaluation and Review Technique (PERT) The PERT method uses an arrow network diagram to show the logical sequence of activities in a project, whereas the CPM uses a precedence diagram as discussed in preceding sections of this book. In a PERT diagram, activities are represented by arrows with circles at each end of the arrow. The circles are called events that represent an instant in time. The circle at the beginning of the activity represents the start of an activity, and the circle at the end of the arrow represents the finish of the activity. The major difference between the PERT method and CPM is the estimation of durations of activities. Using PERT there are three durations that are assigned to each activity: a = Optimistic time b = Pessimistic time m = Most likely time Dr. Ala'a Alshdiefat

45. Project Planning and Scheduling Program Evaluation and Review Technique (PERT) a = Optimistic time: The optimistic time is the shortest possible time in which the activity could possibly be completed, assuming that everything goes well. There is only a very small chance of completing the activity in less than this time. b = Pessimistic time:The pessimistic time is the longest time the activity could ever require, assuming that everything goes poorly. There is only a very small chance of expecting this activity to exceed this time. m = Most likely time: The most likely time is the time the activity could be accomplished if it could be repeated many times under exactly the same conditions. It is the time that it would take more often than any other time. The most likely time is the time the manager would probably give if asked for a single time estimate. Dr. Ala'a Alshdiefat

46. Project Planning and Scheduling Program Evaluation and Review Technique (PERT) PERT uses a weighted average of the three times to find the overall project duration. This average is called the expected time, teand is found by the following simple equation: Where, te(µ) is the expected time of an activity. The above equation is used to calculate a single duration for each activity in the PERT network diagram. Then a forward pass can be performed to calculate the early start and early finish for each activity in the PERT network and a total project duration, similar to the CPM scheduling method. A backward pass can be performed to calculate the last start and late finish for each activity. Total float, free float, and the critical path can be identified. At this stage of a PERT analysis it is identical to the CPM analysis. Dr. Ala'a Alshdiefat

47. Project Planning and Scheduling Program Evaluation and Review Technique (PERT) The three time estimates of PERT can be used to measure the degree of uncertainty involved in the activity. The measure of the spread of the distribution is called the standard deviation and is denoted by the Greek letter (σ). To determine the probability of the project completing earlier or later than expected using PERT, the variance of each activity along the critical path must be calculated. The variance of an activity is the square of the standard deviation of the activity and can be calculated using the following equation: Where, v is the variance of an activity. Dr. Ala'a Alshdiefat

48. Project Planning and Scheduling Program Evaluation and Review Technique (PERT) Since the duration (te) of each of the activities in the arrow network diagram is uncertain, the time of occurrence of each event is also subject to uncertainty. The expected time of an event is denoted as TE. Although the distribution of uncertainty of individual activities may not necessarily be symmetrical, the distribution for event times is assumed symmetrical because there are numerous activities in the chain ahead of the event. For example, the TE, for the final event in a project has all the critical path activities in the chain that lead up to the final event in the project. The measure of uncertainty of the final event in a PERT diagram is the standard deviation of the expected time, denoted the σTE is the square root of the sum of the activities ahead of the event. Thus, the σTE, for the last event in a PERT diagram is the square root of the sum of the variance of all activities along the critical path. The σTEis calculated with the following equation: Dr. Ala'a Alshdiefat

49. Project Planning and Scheduling Program Evaluation and Review Technique (PERT) Where, σTE, is the standard deviation of the expected time. The final calculation necessary to perform PERT calculations is the deviation, which is denoted by the symbol zin the following equation: Where, z is the deviation. Dr. Ala'a Alshdiefat

50. Project Planning and Scheduling Program Evaluation and Review Technique (PERT) Example (PERT) 1. Given the uncertainties in accurately estimating activity durations, what is the probability of completing the project by the deadline (47 weeks)? Dr. Ala'a Alshdiefat