CPM

Construction Management with Network Planning Technology CPM and PERT
by Dr Wang, ShouQing
Department of Building National University of Singapore
Introduction
Outline:
Undergraduate Module: BU3114/BU3380 Graduate Module: BS5235
Lectures service as guideline only and emphasis will be placed on those require calculation and logic thinking/inference. Please read additional books/journals, do the tutorial questions (1a+b, 2 & 3) and finish the assignment given in the Outline.
Dr Wang, ShouQing, Department of Building, National University of Singapore
An Daily Life Example

Plan 1: usual sequence
Get up 0m 8:00 AM Washup 10m 8:00 AM Hav ebreakf ast 10m 8:20 AM Set out 0m 8:30 AM Transportation 30m 8:30 AM Arriv e at NUS 0m 9:00 AM
Heat water & make cof fee 5m 8:10 AM
Let cof fee cool down 5m 8:15 AM
Plan 2: change logic will affect total project time (TPT)

Washup 10m 8:05 AM Hav ebreakf ast 10m 8:15 AM Set out 0m 8:25 AM Transportation 30m 8:25 AM Arriv e at NUS 0m 8:55 AM
Get up 0m 8:00 AM
Some activities determine the TPT
Plan 3: change activity duration will affect the TPT too

Washup 10m 8:05 AM Hav ebreakf ast 10m 8:15 AM Set out 0m 8:25 AM Transportation by Taxi 10m 8:25 AM Arriv e at NUS 0m 8:35 AM
Get up 0m 8:00 AM
A baseline for control established. Determine Finish from Start or vise versa
Importance of Planning/Mgmt
Lessons learnt from the example:
Working logic affects total project time Some activities are critical while other are not A baseline for control
Construction projects characteristics (unique, long period, outdoor, sequential & parallel activities, many parties/resources involved, lot of info) require well planning To construct safely a quality facility on time and within budget with given resources
Key Decisions in Constr Mgmt

Defining What to Do
Defining project scope based on contract
Planning How to Do
Organizing the project team Developing the construction plan Setting the cost budget
Planning When to Do It
Sequencing and scheduling activities Allocating people and resources to activities
Key Decisions (Cont)

Executing the Work According to the Plan Controlling
Monitoring and recording project progress in terms of time and cost spent versus quantities of work in place Comparing actual with planned progress Taking corrective actions to eliminate unfavorable deviations or amending the plan to reflect the reality for subsequent controls
Philosophy of Management
(similar to launching of a missile)
The planning sets the targets to form the basis for controlling/management. The controlling ensures the project execute as planned or amended.
Project Organization
Purposes of Project Organization: define flow of interactions among people
Who decides what Who tells whom what Who responds Who performs what work
Functions of Project Organization

Specialization (Horizontal division) Vertical Control (Down the levels of the hierarchy) Communication and Coordination
Structure of Project Organization

Based on centralized, top-down decision making which can be represented by a hierarchy chart
Type of Project Task Force

Project team is headed by a PM but with different authority and relation between the task force and the headquarters Arrangement depends on the project characteristics & companys policy and strategy on management
Pure project type (PM has strong authority) Functional department type (PM as coordinator) Matrix type (intermediate form)
Pure Project Type

QS Planning
Company Head
Project Manager
Construction
Administration
Accounting
PM has strong authority over his subordinate members. After project is completed, members are either sent to other sites or laid off. Adopted by most small-medium companies (also clients) to keep overhead cost low by deploying almost entire manpower on site and minimizing headquarters.
Functional Department Type

Top Management
Structural Department
Geotechnical Department
M&E Services Department
Project Member
Project Member
Project Coordinator
Project Member
Opposite to the pure project type. Team members work together as expertise-contributors from various functional departments. PM acts merely as a coordinator. Position of departments is stronger than the PM. Common in design firm and some specialist contractors
Matrix Type
Functional Department
Top Management
Project Manager
Project Member
Project Member
...
Project Member
In between pure project & functional department types. Decision-making shared by PM & functional depts. PM has authority over the team members while departmental managers have authority to instruct their staff assigned to the project. Found in large firms esp. design-build contractors.
Site Layout
First tasks to prepare a job layout for:
Permanent facilities to be erected Access roads Offices Warehouses for tools and small materials Storage of bulky materials & heavy equipment Yards for fabricating reinforcing steel & forms Tower cranes
Site Layout (cont)

Principles to follow:
Enhance productivity: should minimize time consumed in moving heavy machines & bulky materials from storage areas to work places Maintain safety: offices/warehouses to be near entrance to reduce chance of injuries to visitors Facilitate communication: among participants Security: to prevent theft & intrusion Keep work flows smooth: take into account constraints and requirements at different stages
Background Information Needed for Planning/Scheduling

Scope of work: e.g. quantity, quality Job condition: e.g. site area, access Calendar and holidays: e.g. work-day/week Weather condition: e.g. raining, windy Availability of resources (4Ms): e.g. constrain (limitation) per unit of time Productivity: e.g. concrete in m3/man-hour
How/Where to Get Information

Construction contract Site visit Management strategies/policies Reasonable assumptions for unknown Past data/information Experiences
Items to Be Adequately Planned

Identification of activities of work required Identification of inter-relationships of work The optimum time to complete the project The time for delivery of materials The types, quantities, and duration of construction plant The classification and numbers of workers needed and the periods they are needed The amount and timing of finance required
Construction Activities
A construction project is broken down into specific activities (definable objective, scope, beginning and ending points) Work breakdown structure (WBS) is often used Once the activities are identified, the sequence of the activities (logic) should also be determined according to technical and managerial requirements
General Form of WBS

Project
Task 1.0
Task 2.0
Task 3.0
Subtask 1.1
Subtask 1.2
Subtask 1.3
Subtask 2.1
Subtask 2.2
Subtask 3.1
Subtask 3.2
Work package 2.1.1
Work package 2.1.2
Work package 2.1.3
Work package 2.2.1
Work package 2.2.2
Fourth-Level WBS
Level 1
Task 1.0 site preparation Task 2.0 masonry Construction of apartment
Level 2
Task 3.0 plumbing and electrical work
Task 4.0 heating & air conditioning work
Task 5.0 carpentry
Task 6.0 finishing
Subtask 2.1 chimnies
Subtask 2.2 piers
Subtask 2.3 exterior walls
Subtask 2.4 footings
Level 3
Work package 2.4.4 remove forms
Level 4
Work package 2.4.1 construct forms
Work package 2.4.2 mix concrete
Work package 2.4.3 pour concrete
WBS Codes/Numbers
Similar to the Chapter Table of Contents numbers of a book/ Chapter 1 (level 1) dissertation. Chapter 2 (level 1) Numbering depends Chapter 2.1 (level 2) on level. Chapter 2.2 (level 2) Useful for structuring Chapter 2.2.1 (level 3) project & arranging Chapter 2.2.2 (level 3) Chapter 2.2.3 (level 3) activities. Chapter 2.3 (level 2) Software can autoChapter 3 (level 1) assign WBS Chapter 3.1 (level 2) codes/numbers.
Activity Duration
To determine the length of time to accomplish an activity, the planner needs to:
Take off the quantity of work for each activity Determine the method of construction, crew types/ numbers and plant types/numbers to be used Estimate the productivity of selected crew/plant performing the defined work based on job conditions and experiences etc.
Usually, the more input of resources, the shorter the duration (Effort/Resource-driven Duration).
Activity Duration (cont)

Formula: D = (P x Q)/(T x L)
D: duration in days, P: productivity in man-hour/plant-hour per unit of work, Q: Quantity of work, T: hours per day, L: number of workers/plants
Example: Excavation of earth

Given: Q = 500 m3, P = 0.8 man-hours/m3, L = 4 men, T = 8 hours/day Then: D = (0.8 x 500)/(8 x 4) = 13 days
The duration of some activities such as curing of concrete depends on specifications. Sometimes it is hard to know the exact duration of some activities but its distribution.
Planning Method
Bar chart (Gantt Chart)
Popularised by Henry L Gantt and Frederick W Taylor in early 20 century Shows works versus time (see next slide)
Left part shows activities ID, name, duration, resources, cost, start/finish time, values etc. Right part, using time-related bars, shows each activitys start time, finish time and duration, etc.
Principal advantage: readily understandable Yet an extremely useful tool and may often be seen accompanying a network diagram
Example of Barchart
Total Project Time (TPT)

Based on activities duration and logic, TPT can then be calculated
e.g. The construction of 1 retaining wall consists of 9 sequential activities. TPT and each activities start/finish times could be determined using barchart as shown below (TPT=24days)
ID Activity Duration A B C D E F G H I
Predecessor
Total Project Time (Cont 1)

TPT vs. Resource Input: If there are 3 walls:
Parallel: Shortest TPT (24d) while max. resource input (3 teams/sets)

TPT vs. Resource Input: above 3 walls example, if:
Sequential: Longest TPT (34d) while min. resource input (1 team/set)

TPT vs. Cost
In general, cost increases with longer/shorter TPT
Cost
Total Cost
Min Cost
Direct Cost
Indirect Cost
Optimum TPT
TPT
Required Schedule vs. Balanced Schedule

Planning Method (cont)

Velocity Chart:
Shows the relationship between time and output of a construction project Construction advance rate (production velocity) is indicated by the slope of line Suitable for linear-in-nature projects but not for vertical project e.g. high-rise building
Velocity Diagram

Line-of-Balance Chart:
Derived from manufacturing industry and specialised tool for repetitive work Relating resources, activity duration, and the general pace of work Difficult to use on projects that require a large no. of trades or operations Good for repetitive activities, e.g. tunnels, highrise building
Line-of-Balance Example
Discontinuity of work allowed: e.g. after Remove form 1, stop 3 days, then Remove form 2. Pros: each activities finish at earliest time with shortest TPT=34d
Wall
Layout Excavate Fix earth rebar
Elect form
Place Remove concrete Cure form Finishing concrete concrete 3days
3days
Line-of-Balance Example (Cont)

Discontinuity in work flows not allowed: e.g. Remove forms 1 to 3 continuously. Cons: longest TPT (=38d)
Wall Layout Excavate earth Fix rebar Elect Place Cure Remove Finishing form concrete concrete form concrete

Network Technology (Diagram):
Shows not only work-versus-time but also interrelationship (logic) among work (activities) Developed in 1950s as an application to construction projects Good analytical technique for planning, scheduling, controlling and co-ordinating Theory: a branch of OR - graphical theory Two basic types: CPM and PERT
Modelling an Activity & Project
Project Model established if each activity is modelled

Activity-on-Arrow Diagram with Determined Activity Duration

4 days 1 days 1 days
2 days
1 days
2 days 3 days 1 days
3 days
2 days
Advantage of Network Technology

Inter-relationship shown, know where & how an activity affects other activities and the project A model for project established hence every activities time & other info can be calculated -> project plan can be optimised Critical activities & critical path identified, hence know where to concentrate on Resources allocation could be optimised (nCP->CP) With software, comprehensive tabular/graphic reports, e.g. Gantt Chart, S-Curve etc., are also available hence their advantages remain
Types of CPM Diagrams

Activity-on-Arrow (Arrow Diagram)
An activity is represented by one arrow & two nodes Dummy activities are needed sometime to express correct logic
Activity-on-Node (Precedence Diagram)

An activity is represented by one node Arrows depict logic only No need for dummy activity (hence easier to draw & to apply computer
Activity-on-Node is now more popular

Examples of Diagram
Activity-on-Arrow Diagram (see previous slide) Activity-on-Node Diagram
A node can be a circle, rectangle, etc.
Key Rules for Drawing Network Diagram

Depict correctly inter-relationship (logic) among every activities For a projects diagram, only one starting node and one ending node are allowed, i.e. no dangling node is allowed For Activity-on-Arrow diagram, an activity should be represented by two unique nodes (ID), sometime dummy needed (Try to avoid bending/crossing of arrows & backward arrows to make diagram neat)
Logic Representation (A-O-A diagram)
Tutorial
Logic Representation (A-O-N diagram)
Tutorial
Example of Diagram Drawing
A site is divided into three areas. In each areas, four activities A, B, C, D are carried out in sequence, i.e. A->B->C->D, and from area 1->2->3, Draw network diagram.
A1,B1,C1,D1 A2,B2,C2,D2 A3,B3,C3,D3
Assume only one crew/plant for A, B, C and D respectively, e.g. one Excavator for A (excavation), Labor-1 for B (formwork), Labor-2 for C (steel bar), Labor-3 for D (concrete). Activity-on-Node Diagram: Technical Logic
A1
B1
C1
D1
Arrangement Logic (Flow)
A2
B2
C2
D2
A3 Activity-on-Arrow Diagram:
B3 Technical Logic
C3
D3
A1
B1
C1
D1
A2 Arrangement Logic (Flow) A3
B2
C2
D2
B3
C3
D3
CPM Calculation: Why?

Uncalculated network shows only logic, eg slide To know time parameters of each activities and the project so as to produce plan To know more info about activities and project, e.g. critical/non-critical activities To facilitate plan optimisation & adjustment
Reduction of project time: e.g. where to reduce? Resource allocation: e.g. how many required daily? Resource levelling: to use resources evenly & avoid peak of demand for resources through TPT Time-cost trade-off: accepted time with min. cost
Calculation Procedure
Based on correctly drawn Network Diagram Forward Pass Calculation (EST, EFT) Determine TPT Backward Pass Calculation (LFT, LST) Compute TF Compute FF Identify Critical Path (CP) Above concepts will be explained in next example
Example: Calculation Directly on Diagram

Follow the Train of Thought
D 2 0 2 0 C 1 0 2 0 A Start 2 1 0 1 B 2 2 3 F 2 3 5 0 3 5 0 5 6 6 1 2 3 4 5 2 0
Definition:
E
3 2 5 2 5 0 0 0 0
2 3 2 3
0 1 2 3
Timescale
0 1
A B C F E
1 2
2 3
3 4
4 5
Earliest Start Time: EST EST1st Activity=Start Time=0 ESTjk= max{EFTij} 4 H 3 5 3 Earliest Finish Time: EFT 2 EFTij= ESTij + Dij 6 8 3 G 0 Total Project Time: TPT Finish TPT=max{EFT 3 3 2 last Activity}=Tcp 6 5 5 2 Latest Finish Time: LFT 8 LFTlast Activity=TPT TPT LFTij=min{LSTjk} I 5 8 0 Latest Start Time: LST 3 5 8 0 5 LSTij=LFTij - Dij Total Float: TF Legend: A-O-A TFij=LSTij-ESTij=LFTij-EFTij Activity i j k Free Float: FF Duration FFij=ESTjk-EFTij EST EFT TF Characteristics of TF & FF LST LFT FF Critical Path TFijFFij TFcritical activity=FFcritical activity =0
Comparison of TF and FF
TF: assume all activities start at EST; excess time (less duration) by which an activity can delay or expand without affecting TPT (but possibly affecting the EST of its succeeding activities) FF: assume all activities start at EST; excess time by which an activity can delay or expand without affecting the EST of its succeeding activities and the TPT For an activity, always TF FF (? When =)
Comparison of TF & FF
B
DA
ESTA
TFA
EFTA
B is As immediate successor
TFA=LSTA-ESTA=LFTA-EFTA FFA=ESTB-EFTA ? TFB= ? FFB= LFTA
FFA A
LSTA
TFA
DA
ESTB LSTB
EFTB
LFTB
DB
Critical Path
Critical Path (CP) is the chain of activities with zero TF; it is the longest duration path from Start Node to End Node in the network TPT=Tcp=(Dactivities on CP) Increase/decrease of the Dactivities on CP affect TPT (?) Critical activities have zero TF and FF Activities on CP must be carefully monitored (?) There may be more than one CPs in a network Non-CP may become CP if reduce Dactivities on CP ? How to calculate Activity-on-Node Diagram?
AON Diagram Calculation

Similar to AOA, the only difference is: FFi = min{ESTj EFTi} Example: Calculation based on Calendar dates)
Start
End
Program Evaluation & Review Technology (PERT): Basics

Similar in concepts and objectives with CPM Differs in the time estimates: activities duration are with uncertainty, e.g. in new jobs which are subject to states of nature This uncertainty is represented by probability distribution (beta distribution)
Uncertainty in Activity Duration - Beta Distribution
PERT Basics (cont)

PERT utilises three time estimates:
Optimistic or shortest duration possible (a) Most likely or normal duration (m) Pessimistic or longest duration possible (b)
Duration distribution falls within a and b with m representing most likely, not (a+b)/2 Assumptions:
activities duration are independent TPT is with normal distribution
PERT Procedure
Draw network diagram (same as CPM) Calculate expected time for each activity: te=(a+4m+b)/6 (beta distribution theory) Calculate forward & backward & identify CP Calculate for activities on CP the Std Deviation = V =(b-a)/6 where Variance V=[(b-a)/6]2 Calculate expected: TPT=(tcp) Calculate Std Deviation of TPT: SDTPT = cp2 Estimate the probability of project completing by certain time and the level of confidence
te = 3.33 vt =0.444
2 3 6
te = 3.0 vt =0.444
1 3 5 E
te = 5.33 vt =1.778
2 5 10 F
te = 8.33 vt = 1.00
6 8 12
PERT Example
te = 3.0 vt =0.111
2 3 4 G
te = 6.83 vt = 0.25
5 7 8
te = 3.0 vt =0.111
2 3 4
Legend: Activity te=(a+4m+b)/6 vt=[(b-a)/6]2 a m b
Find critical path (CP) and TPT using te values: path ABCD duration=3.33+3.0+5.33+8.33=20 path AEFD duration =3.33+3.0+6.83+8.33=21.49 (CP) path AGD duration=3.33+3.0+8.33=14.66 (or calculate the diagram using the same method of CPM) Find the Variance Vt and Standard Deviation of TPT: Vt=vt(AEFD)=0.444+0.111+0.25+1.0=1.805; =Vt=1.344
PERT Example (cont)

What is the probability of completing the project between 20 and 24 days? Za = (x-u)/ = (20-21.49)/1.344 = -1.11 from the Normal Distribution Table: P(T<20)=P(Z<-1.11)=14% Zb = (24-21.49)/1.344 = 1.87 from the Table: P(T<24)=P(Z<1.87)=97% Hence, P(20<T<24)=97%-14%=83%
Normal Distribution Table

Z 0 % 50 Z 1.2 1.4 1.6 1.8 2.0 2.5 % Z %
88 -0.6 27 92 -0.7 24 95 -0.8 21 97 -0.9 18 98 -1.0 16 99 -1.2 12 8 5 3 2 1
0.1 54 0.2 58 0.3 62 0.4 66 0.5 69
0.6 73 -0.1 46 -1.4 0.7 76 -0.2 42 -1.6 0.8 79 -0.3 38 -1.8 0.9 82 -0.4 34 -2.0 1.0 84 -0.5 31 -2.5
Relationship between Probability, Z & X
Usage of Calculation Results

Know more info about activities and the project (7 time parameters & CP) Various forms of plan (network, barchart, table, form, histogram, curve etc.) obtainable with auto-transfer/report functions of software Concentrate mgmt. on CP to ensure TPT Determine the Effect of an activitys delay on its succeeding activities & the TPT (How?)
Usage of Calculation Results (cont)

Adjust & optimise plan, e.g.:
Pure TPT reduction & Time-cost Trade-off analysis: reduce Dactivities on CP (? Reduce which type of activities first & reduce which ones first?) Resource re-allocation: e.g. transfer from Non-CP to CP so as to help shorten TPT (? To what extent) Resource levelling: use resource evenly throughout project duration & avoid peak of demand (? What for)
Without resource constrain: reschedule within TF (TPT) With resource constrain: reschedule may beyond TF (TPT)
Costing & cashflow: get reasonable cashflow (?How)

Resource Allocation
Early vs. Late Schedules & Smooth
Smooth Resource Allocation
Resource Leveling Example

(based on previous AON example)
Earliest Schedule (ES/EF): TPT=46
Resource Histogram
Smoothness: Max=19, and #2 =8x142+10x192+2x172+=8181

Resource Leveling Example (Cont 1)

Latest Schedule (LS/LF): TPT=46; Activities have no TF/FF (?why)
Resource Histogram
Smoothness: Max=19 and #2 =10x82+8x142+2x132+ =8053

Resource Leveling Example (Cont 2)

Leveling: Reschedule D and E between ES and LS (why?), TPT=46
Resource Histogram
Smoothness: Max=14 and #2 =8x142+12x132+10x142+ =7453

Resource Leveling with Constraint

If with resource constraint 12 men/day: TPT=72 (cf. ES/LS/Leveled)
Resource Histogram
Smoothness: Max=11 and #2 =8x62+30x82+10x112+ = ?

Resource Leveling with Constraint Rescheduling Conflicting Activities

A & B are parallel activities requiring the same limited resource. AB =EFTA LSTB
ESTA
EFTA
BA=EFTB LSTA
A
LSTA
B
ESTB LSTB
A
EFTB
LFTA
B B
LFTB
n! If A & B cant be carried out concurrently, there are two reschedule schemes: If reschedule B after A, the delay AB =? If reschedule A after B, the delay BA =? If more than 2 parallel activities, how many reschedule schemes?
Time-Cost Trade-off at Activity

Time for finishing a given activity varies with direct cost: Normal Point: the job is Crash Cost Crash done with normal cost (min Drag out Point (abnormal) cost) in normal time Crash Point: the job is done in crash time (min time) with crash cost Normal Min Cost Point How to Squeeze? Assign more men to work Time Time Normal More shift or work overtime Min Time Pay premium to expedite material/equipment delivery Adopt alternative technology, e.g. fast but more expensive one Take risks on preliminary data to get a jump on design to gain time
Cost
Time-Cost Trade-Off at Project

Time-Cost Relationship at Project Level
Max cost with all activities being crash
Optimum Project Duration
Total Cost Min Cost
Min cost for min duration

Min cost for normal duration Min duration (crash duration)
Indirect Cost
Direct Cost
Optimum Duration
Duration for min cost (normal duration)
Time-Cost Trade-Off Example

Act A B C D E F G Predecessor Normal Dur A C A B,D 3 6 2 5 2 7 4 Normal Cost 50 140 50 100 55 115 100 Crash Dur 2 4 1 3 2 5 2 Cost Slope ($/d) 50 60 30 40 30 70
Duration (day) 12 Indirect cost ($) 900 Normal: Critical path Normal duration Direct cost Indirect cost Total cost
11 10 820 740 A, D, G 12 (how?) 610 900 1510
9 700
A D
8 660
F
7 620
B
C E
G
12
Time-Cost Trade-Off Example (Cont)

Shorten Duration to 10 Days: Need to cut off 2 days
Activity Normal Duration Crash Duration Cost Slope ($/day) A 3 2 50 D 5 3 40 G 4 2 70 Solution: Shorten D from 5 to 3 days with added cost 2x40=80 Normal direct cost 610 Added cost 80 Indirect cost 740 (see last slide) Total cost 1430
? How to chose activities for shortening:

Path: CP/non-CP which duration > target duration Activity: Along above paths, activities with less Cost Slope Other rules: e.g. common activity of paths, longer duration?
Time-Cost Trade-Off Example (Cont)

Shorten to 7 days: Check all paths in network diagram
Path Normal dur Days to cut Additional cost A, D, G 12 -5 1x50(A)+2x40(D)+2x70(G) = 270 B, G 10 -3 1x60(B) = 60 A, F 10 -3 2x30(F) = 60 C, E 4 0 Solution: Cut off 1, 2, 2, 1, 2 day from A, D, G, B, F respectively 1620 Added cost 270+60+60 = 390 Normal direct cost 610 1510 Indirect cost 620 (see slide) 1430 Total cost 1620
? Selection of Schedule:
According to management strategy etc.
Cost
10
Time
12
Schedule Update & Performance Review

Rescheduling is the same as scheduling a new project Additional info required are % complete & actual dur. Actual duration = total duration* % complete Remaining duration = total duration*(1 % complete)
Completed portion in a barchart is marked accordingly The Current Date (Review Date) is the basis for rescheduling. All unfinished activities will be scheduled forward from this date according to their duration/logic For already finished, actual starts should be furnished to update the project schedule so as to make it consistent
Evaluating Project Performance

The starting point of project control. Original schedule & cost serve as baseline (target/budge), against which the actual performance in progress will be evaluated BCWS: budget cost for work scheduled (the planned value of work so far) BCWP: budget cost for work performed (the earned value so far) Actual Cost: the real expenditure so far Variances of performance: negative is unfavorable Schedule Variance = BCWP BCWS Cost Variance = BCWP Actual Cost
Graphic Representation of Performance
Evaluating Project Performance

Status of Project Completion: Alternative method
Project % complete=(Activity % complete*Activity % in project)
Assume value of work is used to represent activity weight in project

Project % complete=(Activity % complete*Activity budge/Project budget) =(Activity % complete*Activity budget)/Project budget
Therefore
Planned project % complete= project budget (actual activity % complete*activity budget) Actual project % complete = project budget
BCWS
(planned activity % complete*activity budget)

BCWP
Comparison can be made between the planned project % complete and the actual project % complete to evaluate project performance
Project Performance Example

Info is given. Current date is day 15. Only labor cost is considered. Activity cost is uniformly distributed over time. Evaluate Performance at Ori dur& Actual dur % Act Schedule Budget & Schedulecomplete end of day 15:
BCWS=3840+19200*50%+ 4800*58%+4800*70% =19600 (see next slide) BCWP=3840+19200*60%+ 4800*20%+4800*60% =19200 (see next slide) Schedule Variance=19200 19600= 400 (see slide)
A B C D E F G H
8(0-8) 30(0-30) 12(8-20) 10(8-18) 7(18-25) 7(30-37) 9(37-46) 6(37-43)
3840 19200 4800 4800 2240 3920 4320 3360
10(0-10) 20(3-23) 15(12-27) 10(9-19) 10(19-29) 7(27-34) 9(34-43) 6(34-40)
100 60 20 60 0 0 0 0
Graphic Representation of the Example

Day A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 100% 100% 50% 60% 58%=7/12 20% 70% 60% 0% 0% 0% Legend: Original Schedule Revised Schedule % Complete on Review Day 0% 0% 0% Review Day 6 6 Total: Revised Total: Save in Cost: 3360 3360 46480 43200 3280 Duration Budget 8 3840 10 4800 30 20 12 15 10 10 7 10 7 7 9 9 19200 12800 4800 6000 4800 4800 2240 3200 3920 3920 4320 4320
C A C T I V I T Y
H Day
0% 0% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
(Click on the picture to download the MS-Excel file)

Project Performance Example (cont)

Actual Cost=3840/8*10+19200/30*12+4800/12*3+4800/10*6=16560 (see last slide) Cost Variance = 19200 16560 = 2640
Evaluate the Planned vs Actual Project % Complete: Planned project % complete = BCWS / Project budget =19600/46480 = 42% Actual project % complete = BCWP / Project budget =19200/46480 = 41% Schedule Variance in % =41% - 42%= -1% (slightly behind) (based on Schedule Variance, also = -400/46480-1%) Forecast of project cost at completion: $43200 (save 3280) Conclusions: the project is now on schedule & well under budget while the forecasts are also good.
Construction Planning with CPM

Analyse & breakdown project into activities For each activity, determine:
dependence/sequence (logic) with other activities estimate duration needed to complete this activity assign resources needed to carry out this activity
Draw & calculate network, preferably by software Identify CP, TPT, resource histogram, cost etc. Consider (physical, safety, resource, management etc.) constrains & make adjustments/optimisation Implement, monitor, control & adjust the plan
Why Use PM Software (PMS)

The mathematical computations are instantaneous and error free The speed & accuracy of computations and analysis of information benefit greatly the project planning/scheduling and control The low cost and superb on-screen and hard copy graphics make it an effective communication and project control tool The advantages of CPM are fully achieved only with use of PMS. Hence, No PMS, No CPM.
Major Functions of PMS

Network processing (drawing & calculating the diagram based on calendar date) Resource allocation & levelling
Cost calculating/summarising
Reporting & communication See hardcopy examples by Primavera Project Planner (P3) and MS-Project
The Advantages of P3 & Its Vendor: Primavera System, Inc.

P3 is the best construction planning software P3 and its sister package, SureTrak, Primavera Systems, Inc., controls 75% market of the construction planning software in the US Primavera Systems, Inc.s total market is construction management software Primavera Systems, Inc. is among the top fifty computer software vendors in the US
The Advantages of MS-Project & Its Vendor: Microsoft Cor.

MS-Project is for general planning purpose Operation of MS-Project is similar to MSOffice, hence very easy for MS-Office users MS-Project is weak in Costing function MS-Project is cheap and more obtainable MS-Project is suitable for beginner Microsoft Cor. is the dominant operation system and other software vendor in the world
MS-Project Software
Some Concepts in PMS

SS, SF, FS or FF Lags (S-Start, F-Finish)
SS, ie SASB=2d
Activity A, 3d Activity B, 4d
FS= -1d
FF=3d
Effort-driven or Resource-driven Duration Various Concepts of Time/Schedule: Calculated, Actual, Constrain, Baseline Project Calendar (the calculation based on) Resources Calendar (different resources may have different calendars)
SF=6d
New Management Technique Lean Construction

Critique of current practice, eg CPM/PERT
Rests on implicit transformation or activity theory No wrong but incomplete. It ignores work flow, uncertainty, and value creation & delivery
LC is a new way to manage construction production, with implications for commercial relationships & project delivery processes. Concept borrowed from M&P industry; started in construction in 80; still under developing.
New Management Technique Lean Construction (cont)

LC planning & control techniques reduce waste by improving work flow reliability. The starting point is improving the reliability of assignments at the production level. Other features of LC:
Combines flow & value, & max customer value Simultaneous design & delivery process (D&B) Performance: instant delivery from 0 inventory-JIT Coordinating logistics/crew through look-ahead Pull: release resources only when system is ready
New Management Technique Lean Construction (cont)

Current development of LC
Theory & need have been well discussed (alternative name: Just-in-time (JIT), Total quality control (TQC), world class manufacturing, time based competition, re-engineering, etc) But lack of tools/software (research topic?).
For more information on LC, visit web sites of:

Lean Construction Institute International Group for Lean Construction Lean Enterprise Institute

CPM

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Construction Management with Network Planning Technology CPM and PERT

An Daily Life Example

Heat water & make cof fee 5m 8:10 AM

Let cof fee cool down 5m 8:15 AM

Plan 2: change logic will affect total project time (TPT)

Heat water & make cof fee 5m 8:00 AM

Let cof fee cool down 5m 8:05 AM

Some activities determine the TPT

Plan 3: change activity duration will affect the TPT too

Heat water & make cof fee 5m 8:00 AM

Let cof fee cool down 5m 8:05 AM

Key Decisions in Constr Mgmt

Key Decisions (Cont)

Functions of Project Organization

Structure of Project Organization

Dr Wang, ShouQing, Department of Building, National University of Singapore

Type of Project Task Force

Pure Project Type

Functional Department Type

M&E Services Department

Dr Wang, ShouQing, Department of Building, National University of Singapore

Site Layout (cont)

Background Information Needed for Planning/Scheduling

How/Where to Get Information

Dr Wang, ShouQing, Department of Building, National University of Singapore

Items to Be Adequately Planned

General Form of WBS

Work package 2.1.1

Work package 2.1.2

Work package 2.1.3

Work package 2.2.1

Work package 2.2.2

Dr Wang, ShouQing, Department of Building, National University of Singapore

Task 3.0 plumbing and electrical work

Task 4.0 heating & air conditioning work

Task 5.0 carpentry

Task 6.0 finishing

Subtask 2.1 chimnies

Subtask 2.2 piers

Subtask 2.3 exterior walls

Subtask 2.4 footings

Work package 2.4.1 construct forms

Work package 2.4.2 mix concrete

Work package 2.4.3 pour concrete

Dr Wang, ShouQing, Department of Building, National University of Singapore

Activity Duration (cont)

Example: Excavation of earth

Dr Wang, ShouQing, Department of Building, National University of Singapore

Total Project Time (TPT)

Dr Wang, ShouQing, Department of Building, National University of Singapore

Total Project Time (Cont 1)

Dr Wang, ShouQing, Department of Building, National University of Singapore

Total Project Time (Cont 2)

Dr Wang, ShouQing, Department of Building, National University of Singapore

Total Project Time (Cont 3)

Required Schedule vs. Balanced Schedule

Planning Method (cont)

Dr Wang, ShouQing, Department of Building, National University of Singapore

Dr Wang, ShouQing, Department of Building, National University of Singapore

Planning Method (cont)

Layout Excavate Fix earth rebar

Place Remove concrete Cure form Finishing concrete concrete 3days

Dr Wang, ShouQing, Department of Building, National University of Singapore