A-l Dick Sharad, Field Member Project Services AACE Control Division

Supervisor Nuclear

Sargent 55 East

&

Lundy

Engineers Street 60603

Monroe Illinois

Chicago,

ABCS

OF

MULTIPROJECT

CONTROL

SYSTEM

INTRODUCTION The requirements of cost and schedule control in the case of a multi-million dollar industrial to manage a major engineerproject are enormous; ing and construction program involving several projects is a real challenge for the owner as well as the architect-engineer/construction manager. A systems approach facilitates meeting this Either challenge generally in one of two ways: by integrating existing stand-alone systems involving estimating and cost control, planning and and production and productivity; or scheduling, by developing a new integrated management system with modular design of subsystems for various aspects of project control. 3. This paper will discuss basic principles of the design and implementation of a project management system in a multi-project environment. The discussion is generic and educational, rather than a presentation of any particular system. PROJECT CONTROL Criteria In the case of any large industrial project, cost and schedule control ought to receive the same high level of management attention as the engineering, procurement and construction work itself. The project control criteria for project management are based on: 1. Manageability - To keep management abreast of the exact project status, and to assist supervisory personnel in the planning and execution of project work, it is ensured that the necessary extent of compatibility is maintained in the detail with which plans and schedules, estimating and cost accounting, and progress monitoring and status reporting are done. This facilitates making timely decisions to keep the project in line with specified objectives of target dates and budgets. The level of detail is maintained 2.

throughout the project control process within practical, manageable limits. Dependability - Detail and summary planning is done basically by the responsible members of the project team. Each discipline supervisor details his own work plan; the planning engineer coordinates and integrates work plans of various disciplines. An adequate common data base is developed and kept up-to-date to be utilized for integrating cost, schedule, production, productivity, and accounting. This participative dependable project approach reporting. yields

Computer Applicability - The computer applications to the control process are established by the manageability and dependability criteria. The computer systems employed are meant to provide the practical tool for the control purposes with the capability of producing detailed and summary The reports on an as-required basis. reports are distributed at the appropriate level of management. The computer outputs are supplemented by manually prepared analyses/critiques/interpretationsirecommendations. A balanced use of computerization and analytical review sustains the interest of the project personnel in making full use of what the computer systems can offer.

Profile

of a Typical

Project

Control

System

Before considering the multi-project Situation, be worthwhile to look at the profile Of a typical project control system. The exhibit "Functional Criteria for Controln points out the major aspects of project control. The project control technique applied to a specific project will consist of employing three main systems:
it may

I
l

. A realistic . A dependable . A selective

scheduling system. cost/estimating system. progress measurement system.

FUNCTIONAL

CRITERIA FOR CONTROL

e.

P
PLAN 1.

& SCHEDULE

Stand-Alone or Interconnected Networks - The system is capable of simultaneous processing of: - A multiple of totally independent networks. - A multiple of totally independent groups of interconnected component networks. - A combination of the above two sets of networks. Interconnections of component networks may optionally be removed at run time, whereby the component networks may be analyzed as stand-alone networks. This feature is particularly useful for construction/project management work where interdependencies of various contracts may be required to be evaluated for impact of work progress of one contract on others; and variations in individual contract performance may be prevented from influencing schedules already committed. Resource Allocation and Cost Control By establishing a compatible relationship between network activities and the code of construction or project activity accounts, the scheduling system presents an excellent tool to integrate the cost/estimating and monitoring aspects of project control. The system has the capability to process the allocation of estimated and available resources by activity in conjunction with the cost module. A cross-referencing method is employed in cases where more than one code numbering system is required for output reporting. Network Drafting - The system can be instructed to draw logic network, histograms of resource-loading, cumulative curves, and bar chart schedules for any selected length of project period. Input and Output - The system accepts a variety of input data: - Calendar related, such as: Project period, unit of time (hour, holidays/ day, week, or month), weekends. - Activity related, such as: Activity on node/arrow, activity identification/duration/description, any imposed start/finish dates, progress/update information. Time/ - Processing related, such as:

f.

Scheduling System - A versatile scheduling system is generally an activity network based system with several desirable features: a. Integrated Modular Design - Depending on the specific application, the user may activate those modules which he needs to control his tasks. The basic modules required for the input, analysis and report. The system may have any of a variety of forms of modules, such as: - Input Processor (including file generating and storage procedure). - Time Analysis Processor. - Resource Allocation and Analysis Processor. - Cost Analysis Processor. - Network Drafting Processor. - Report Processor. to Use Partial/Total b. Flexibility Capability - The system provides several options of selecting the processor as well as obtaining desired modules, set of sorts/reports within a module. Comprehensive diagnostic procedures are built into the system to correct input errors and to guide the user. CPM or PERT Option - Single duration C. estimates (Critical Path Method) or three duration - optimistic, normal, pessimistic - estimates (Program Evaluation and Review Technique) are accepted for the network activities. d. Arrow or Precedence Diagramming Method (ADM/PDM) - The system can process networks whether they have activities on the arrow (ADM) or on the node (PDM). PDM has certain inherant advantages for construction logic network structure, but ADM, being simpler, is more commonly

g.

h.

resources/cost

as

applicable,

used.

optional output/reports required, network drafting as required. - Resource related, such as: Resource category, quantity required and units, associated activity reference, availability. - Cost related, such as: Cost breakdown structure/code of accounts, resource unit costs, estimates.

- Progress related, such as: Start/ completion of activities, percent complete, projection for remaining work. The system provides a variety of -output data: - Structure listing of predecessors and successors. - Time listing of computed start/ finish dates and floats, with optional sorts with variable time spans. - Gantt Diagram reflecting dates and floats. - Criticality listing showing critical paths in a decreasing hierarchical order. - Resource distribution by selected time units, cumulative subtotals and totals. - Estimate, forecast and actual cost data. - Actual/projected starts and finishes, histogram/resource distribution, percent complete. - Network plots with variable scale.

b.

c. 2. Cost/Estimating System - The cost/estimat-, ing system may consist of two component systems: A cost estimating system and a cost monitoring system. a. Cost Estimating System - Four basic types of cost estimates may be produced by the program: Initial, budget, and detailed estimates. preliminary, These estimates follow a chronological sequence, and progressively contain more precise information as project details continue to become available. The project estimating system is designed to assist the client and the project manager in the decision making process related to financial and The project schedule project planning. is utilized to furnish information in two primary areas: Physical requirements of design drawings, materials and time requirements and equipment, for erection and construction labor. The data gathered is useful in calculating the escalation/inflation costs and in developing the cash flow. The estimate program calculates material and labor costs, total manhours utilizing input data for quanunit costs, manhours per tities, unit of work, and manhour rates. A contingency amount, listed under each major account, is usually proSummary of vided in all estimates. detailed cost estimate is provided with subtotals and grand total of estimated project cost, indirect escalation cost, etc. cost, Computer-plotted cash flow projections for short and long-term reports are prepared to reflect interruption 3

or delays in schedules as well as possible impact of any design or work scope change on construction. Cost Monitoring System - The basis for the project cost monitoring system rests in the scheduling system, since the two complement each other in terms of the level of detail at which the planning is done and the work measurement is made. The system basically assists the management/supervisory personnel in keeping track of resource expenditures on project activities associated with the account codes, and evaluating current or potential overruns vis-a-vis schedule delays. Following are the highlights/benefits of such a system: - Translate design/scope changes as reflected in construction into financial facts. - Relate project progress to costs incurred. - Establish cost centers for accountability. - Evaluate alternate or corrective courses of action. Summary of Outputs - The outputs of a good cost/estimating system may be summarized as follows: - Project estimates - Initial, Budget, Preliminary, Detail. - Cash Flows - Monthly/Yearly Reports, Histograms and/or "S" Curves. - Detail Cost Reports - Committed and Actual Costs, By Account, Purchase Order, Contract, and/or Work Package. - Financial Reports - Monthly Summary Reports for Entire Project, Individual Contract or Work Packages, Committed vs. Budgeted and Budgeted vs. Actual costs.

3.

Progress Monitoring System - For an effective project control program, a progress monitoring and status reporting system should be operational in conjunction with the cost and schedule systems. The progress monitoring system may provide a combination of computerized and manually prepared analysis reports. In effect, it may have two modules, namely, Physical Measurement System and Progress Reporting System.
P

The progress monitoring mechanism has the following aspects to it: Schedule Related - The management a. reporting of progress against the schedule is affected by the criticality analysis report prepared each month to reflect critical problems causing a delay or having the potential of causing delays. Detailed computer printouts resulting from periodical revisions/updates are made available to the supervisors for their res-

b.

c.

d.

systems and dispective areas, cipline responsibility. Cost Related - The cost/estimating systems provide various summary and detail reports that are comprised of expenditures by project account, manpower/material forecasts and cash flow projections. Accomplishments Related - To compare the resource expenditures with physical accomplishments, information reports are developed to include percent completions of installed quantities and manhours, variances of actuals from estimates, and production in relation to the productivity. Accomplishments in various project areas, such as: Design, engineering, procurement, construction, and start-up, are established, and by using appropriate weightings, they are combined to determine overall project status. Narrative Synopsis/Project Reports Since computer printouts have a tendency to overwhelm the manager/ supervisor with too much information, and often in a coded fashion, a narrative synopsis is prepared for the month's highlights and included in the Monthly Progress Reports. Inputs from contractors are collected and incorporated in the project reports. CONTROL SYSTEM (MPCS)

3.

To better utilize existing data systems with minimum additional

processing effort.

System Scope 1. The multi-project control system may draw data, in a manual or automated mode, from existing (this is an assumption) systems, such as: a. Scheduling System (SS). System (CES). b. Cost Estimating c. Cost Monitoring System (CMS). Measurement System (PMS). d. Physical e. Progress Reporting System (PRS). The system, though primarily intended to serve management needs at the top level, may have the capability to generate detailed reports for backup and reference purposes. The amount of detail may be extended and segregated to any level considered desirable or practicable. The system may generate tabulated and/ or graphical reports to cover basically comparative information assimilated in some manner as follows: sorted and grouped by a. Projects similarity. - Type and size (Fossil/Nuclear, PWR/BWR/HTGR, 600/800/1200 MW Range). - Chronological sequence (Year 1971-72-73....76, and/or Years 1960-65, 65-70, 70-75). - Major equipment and supplier (T-G/NSSS, GE/GE/Westinghouse). - Type of contract for services. - Other. b. Comparison of main features or key work items (Total, by area, ect.). - Excavation, concrete, steel, piping, cable. - Direct labor, indirects. - Total costs/fees and billing formulas/revenues/profits/ cash flows/cost per KW. - Indicator ratios, e.g., direct labor to indirects, direct labor to total labor. - Field force at peak construction. - Home office services (mandays), sub-grouped for design and disciengineering - Total/By pline, project/construction related services, management, overa-l project. - Other. The overall scope of a multi-project control system ordinarily envelops estimating and budgeting, scheduling and resource allocation, cost accounting and control, monitoring and reporting. The exhibits, "A Typical Multi-Project Control System" and "An Overview of Multi-Project Control System", delineate the interaction of these aspects of the system in a graphical manner. The exhibit "Multi-Project Control System Processll provides a visual aid in understanding how input from project

2.

3.

DESIGN OF A MULTI-PROJECT

Perhaps the best approach to explain the design of a multi-project control system, as in the case of any information system, might be to take a hypothetical case to demonstrate how a preliminary specification for the system could be developed for management review. Preliminary Specification for a MPCS

The system specification outlined below briefly relates to multi-project construction programs for power generating stations in the utility industry. General Purpose

To develop a unique degree of management sophistication as part of corporate business strategy to increase the company's share of power plant construction market in the utility industry. Specific 1. Objectives To provide a practical management information tool for better monitoring and controlling of individual projects by comparing performance with similar projects, and by maintaining a balanced supply of resources. To develop a reliable data bank whereby precise historical information could become available for guidance in preparing new business proposals, as well as planning upcoming projects. 4.

2.

made for each project at the home office computer installation on a This makes it possible to monthly basis. harness selected items of information from such data flowing in from all job sites, with the help of "interface programs". Such an interface system will accomplish integration of subsystems (like scheduling and cost estimating/ monitoring), and also allow interproject processing. 2. Each time a SS-CES-CMS interface run for a project is made, with an appropriate connector program, key project data can be filtered out, sorted and stored on a MPCS file. Similar data collection can be made from PMS and PRS interface runs and added on to the master MPCS file. This file keeps building up until all major projects are processed on individual bases by other systems. In effect, the outputs for individual projects the necessary selective project processing. from these systems will provide input for multi-

Once the update run cycle for all participating projects is completed, the output generating phase of the MPCS can be entered into and reports produced as prescribed. 3. scope with design/estimating/construction information on each project is processed through scheduling, cost and resource modules - on a project-by-project basis, and for selective inter-project comparison. Once a central data base is established, output reports can be produced in numerous convenient ways by shuffling and rearranging the data. Methodology 1. Data processing runs on various dual systems (scheduling, etc.) indiviare 5 The real trick in facilitating extraction of relevant information out of each constituent system of the MPCS is the manner in which various linking codes are constructed to identify type, size, vendor, resources, and similar items as applicable for each system in relation to the MPCS. The methodology described so far is also adaptable to nuclear projects (especially force account contracts), where the field computer system may be installed for convenient automated exchange of schedule and cost/production related data.

4.

For full-size fossil and other limited scope projects, however, provisions may be made for manual input to cover pertinent data to fulfill MPCS requirements. Manual input provision for new entries, and for overriding earlier entries, is customarily built into an well designed system. It may be useful in case of nuclear projects also, during pre-construction stages when a field based automated system may not have been put into operation. 5. The MPCS may be programmed to utilize the interface system to compare durations and timing for various design stages, such as: Completion of general arrangement drawings, or excavation and foundation drawings required for start of construction. The scheduling system may be upgraded to process resource allocation of selected resource categories (salaried professional staff, major construction equipment like cranes, etc.) so that a schedule review/adjustment can be made for like resources competing over a few projects on a priority basis. Reports of

MULTI-PROJECT COST/SCHEDULE ITYPICAL NUCLEAR

CONTROL MANAGEMENT POWER PLANTS

SYSTEM SUMMARY PRMjRAM,

2. MILESTONES SELECT A-E SCHEO.: ACT. SCHED.: ACT. : SCHEO.: ACT. : SCHEO.: ACT. : LWA SCHED.. ACT. : PERMIT SCHED: ACT..

SELECT FILE

NSSS PSAR

FILE

ER

RECWE

RECEIVE 3. MANPOWER

CONST. ,oml MDS)

ENOtNEERING

TOTALS TO OATE: TOTAL: TO DATE. TOTAL: TO DATE:

CONSTRUCTION RELATE0 4. COSTS ,ow ssl ESTIMATE: FORECAST. TO LIATE: SERWCES

6.

ORIGINAL CURRENT

COMMITTMENTS COST PER KW:

MULTI-PROJECT

RESOURCE

PLANNING

Management

There is practically no limit to the number ways in which a management report out of an inIt stretches formation system can be structured. with the imagination of the systems designer as limited only by specific decision making needs A versatile high-capaexperienced by management. city computer installation (like B6700, IBM 370, UNIVAC 1106) with a plotter is capable of creating a meaningful variety of outputs.

In line with what has been discussed so far, one important report may look like the exhibit, "Cost/Schedule Management Summary". Whichever way it can enlist all projects the layout is preferred, or groups of compatible similarity, and furnish the latest selected updated information regarding milestone attainment, manpower situation, cost performance, and the like. "Multi-Project Resource Planning" The exhibit, presents a graphical display or a plot of resources It may planned against time in months or years. strikingly point out how Project A followed by planned, will Projects B and C, as currently demand resources of an identical nature. These resources may involve designers, engineers, field supervisors/labor, dollars or materials of construction. The exhibit, "Manpower Requirements" may be of particular interest to Project Management who has the responsibility of committing professional staff to all projects and of continuously reviewing estimates and forecasts against actual usage. A monthly report extending into the next quarter's manpower picture, for example, could be of significant VdUt? to a manager of projects while examining home office services in design and engineering. 6 DISCUSSION If there is a formal project control system already operational in a project services organithe maintenance and operation of the MPCS zation, may not necessitate any significant addition of The responsibility for its upkeep, and manpower. possible enhancement with increasing experience/ needs, will naturally be with projects management. With the in-house computer sophistication already being utilized, and with the accompanying expertise and varied personnel talent, an A-E or C-M organization can successfully accomplish the development and implementation of a multi-project control system. The assistance of an outside management consultant quite often provides the necessary objectivity and management commitment to expedite such systems enhancement efforts. The heavy inhouse involvement ensures that the management

MULTI-PROJECT MANPOWER

CONTROL

SYSTEM

REQUIREMENTS

ENGINEERS/DESIGNERS

ECAN1CAL lCLEN WI1 LLECTlllCAL NSTRUMENTATION :OST ENOlNCENS LANNINO IsrIMATONS :ONSTRUCTION ENOINEERS ENOlNEENS

--1

i
presents expansion an excellent tool for possible and long-range planning. company

finally receives a remarkable operating tool with minimal modification to current information systems, and the least additional inputs or procedural requirements. Then, of course, there is the choice of adopting a "canned" system package from an outside supplier, and modifying that system and/or the in-house existing systems to make them mutually compatible. Most organizations require a resource usage projection and utilization monitoring device particularly, for instance, when they have multiple project assignments concurrently made to some of their professional staff individually and to service functions as groups. Supervisors responsible for controlling operations on several projects welcome one report - or a set of reports - to cover all their activities, rather than having to piece together separate reports developed on individual projects. Generally, an extension of the payrool system provides the basic mechanism to identify manpower utilization for various cost centers, by projects, by organizational units, by personnel classification, skills, etc. A convenient project charge numbering scheme may also provide a breakdown by tasks or major activities within each project. The multi-project system concept essentially draws on this to isolate, assemble and summarize such details for comparison among similar projects, as well as for enabling the corporate management to obtain a total company-wide picture, in terms of operating cash requirements and anticipated and in terms of ongoing manpower planrevenues, The multi-project scenario ning requirements. 7

There are several scheduling systems available in the market today - some from computer manufacturers, some from firms specializing in computer services, and in project management software packages. Systems that deal with the multi-project environment do generally carry out resource allocation functions. PMI's "Computer Software Survey 1975" provides good basic information on some of these systems. Notable among them are Management Scheduling and Control System (MSCS) of McDonnell Douglas Automation Company; Multi-Project Management System (MPM) of Florida Power Corporation available through General Electric Mark III remote batch/time sharing service; PROJECT/2 of Project Software & Development, Inc.; PERT 6 of Dynamic Solutions Inc.; PROMIS of Burroughs Corporation; and Project Management System (PMS) of R. J. Hansen Associates, Inc. Not included in the survey are two major computer suppliers' systems, namely, Project Management System IV (PMS IV) of IBM and OPTIMA llOO/PMS of UNIVAC.

It is doubtful if any ready-made system package could be easily assimilated into the in-house sophistication already being utilized for various purposes like payroll, scheduling, cost/estimating, etc. The efforts involved in changing forms, procedures, and perhaps the organizational structure, could be enormous. It is difficult to generalize and recommend any one approach; each case has to be studied on its own merit. This discussion is aimed at bringing as many relevent

factors

into

focus

as possible.

quite

comparable

to other

projects

anyway.

Another benefit resulting from the MPCS approach is the consistency or uniformity which has to be established in the scheduling, cost estimating, and For example: reporting techniques for all projects. Activity networks must be structured at an accpeted level of detail, be of the same kind (arrow diagramming or precedence diagramming, CPM or PERT, same calendars in terms of units of time, holidays, etc.). The resource categories/identification codes, the reporting cycle and turn-around time, reporting formats, and similar aspects of project control become better defined and refined, and ultimately more acceptable to the user. Of course, certain projects by their very nature may need special tailoring of what the control system can be fed and be asked to produce. Flexibility to handle such exceptions has to be provided for, and if not practicable, such projects can be exempted from the multi-project family since they may not be

It must be emphasized again that in spite of the computer's capabilities to provide ready information, its output must be analyzed and explained adequately in some selective narrative form for proper perspective, evaluation, and necessary action. REFERENCES 1. D. Sharad, "A Systems Approach to LongRange Planning", 1976 TRANSACTIONS, American Association of Cost Engineers, Boston, MA, July, 1976, pages 301-310. "Computer Software Survey 1975", Projelt Management Institute, Technology Committee, Drexel Hill, PA, 1975, Pages 81, 97, 109, 114, 143, and 164.

2.