why are schedule components vital in one
TRANSCRIPT
Why are Schedule Components Vital in One Industry and Useless in Another?
(Improving Industry Cross-Pollination by Classification of Schedule Types)
Chris Carson, PMP, PSP, CCMAlpha CorporationCorporate Director of Project Controls
Raf Dua, FAICD, MACS (Snr), PCP, CP, GradDISCMicro Planning InternationalPresident and Owner
Schedule Types
ā¢ Resources and leveling?ā Crucial to IT
ā Leveling rarely used in construction
ā¢ Other examplesā Earned Value
ā Risk Management
ā¢ How can schedulers communicate across industries?
ā¢ How do sectors and industries use scheduling?
ā¢ Can we categorize by common needs and component solutions?
ā¢ Can we provide an understanding of the differences between industry schedule use?ā Allow better communications
ā Increase opportunity to spread innovation across all industries
Schedule Types
ā¢ Industry or segments of industries stagnate
ā Common buzz words
ā Fairly standardized scheduling methodologies
ā Common although unique needs
ā¢ Innovation
ā Common practices in one industry are innovative in others
ā Example: EVMS ā originally defense, spread to commercial ā Example: EVMS ā originally defense, spread to commercial construction
ā¢ No wide categorization of scheduling types
ā Minimal cross-pollination
ā This type of conference is one of few ways
Schedule Types
ā¢ Our experiences reinforce thisā Resources use
ā¢ Dua
ā Extensive use of individual manpower resources
ā Resource leveling used widely
ā Resource driven schedules common
ā¢ Carson
ā Wide use of crew manpower resourcesā Wide use of crew manpower resources
ā Resource leveling only done manually
ā Resource driven schedules only used for what-if scenarios
ā Highly technical schedules ā careful network development
ā¢ Both require accurate total float values
ā¢ Both require careful identification of critical and near-critical work
ā¢ Both are subject to high penalty and legal risks for failure
ā¢ Both deal in claims (which may explain this category)
ā¢ Scheduling Component Determinants
ā Scheduling techniques
ā Use of features of schedule software
ā Define schedule use
ā Appear to unify sectors and industries
ā Investigation into the use of various componentsā Investigation into the use of various components
ā¢ What drives the use in various industries?
ā¢ How do they use them?
ā¢ Scheduling Component Determinants
ā Level of detail of the schedule
ā Frequency of schedule updates
ā Resource data and techniques used
ā Activity level data collected in updates
ā Project participants (categories monitored in schedules)
ā Scheduling componentsā Scheduling components
ā Drivers for update monitoring and analysis
ā Primary project management constraint
ā Schedule accuracy
ā¢ Scheduling Component Determinants
ā Level of detail of the schedule
ā¢ Function of how schedule is developed
ā Bottom up produces higher level of detail
ā Top down produces lower level of detail
ā¢ Based on needs as well
ā Reporting to senior management
ā Managing field resources
ā Managing engineering resources
ā General project management
ā Direct management of contractors and resources
ā¢ Scheduling Component Determinants
ā Frequency of schedule updates
ā¢ Hourly level monitoring
ā Plant maintenance and shutdown
ā Engineering
ā Software design
ā¢ Weekly monitoring
ā Management of field resources
ā Short interim planning
ā¢ Monthly monitoring
ā Management and client reporting
ā Overview of separate system of short interim planning
ā¢ Scheduling Component Determinantsā Resource data and techniques used
ā¢ Area of wide variance
ā¢ Individual resource management
ā Generally large counts of resources
ā Requires equivalence in resource, such as engineering designers or piping installers
ā Individual resource consumption is large driver of progress
ā Enables ability to level automaticallyā Enables ability to level automatically
ā¢ Crew resource management
ā Lowered use of similar individual resources
ā Wider variation of resources comprising a crew
ā Easy to identify
ā Leveling is more likely to be done manually
ā Legal risks increase need to avoid resource leveling changes to CPM network
ā¢ Scheduling Component Determinantsā Activity level data collected in updates
ā¢ Actual resource data collected in detail
ā Yes, individual resource data
Ā» Generally supports individual resource assignments
ā No, crew/equipment resource data
Ā» Use resources to validate duration estimates, progress
ā¢ Comparison to planned resources
ā Captured for job cost monitoringā Captured for job cost monitoring
ā Captured for claims avoidance or analysis
ā¢ Updating methodology
ā Percent complete (cost)
ā Remaining duration (time)
ā¢ Control of resources depends on need
ā Subcontractors ā less control of individual resources
ā Direct hire employees ā more control of individuals
ā¢ Scheduling Component Determinants
ā Project participants (categories monitored in schedules)
ā¢ Labor only
ā Engineering, IT
ā¢ Labor, equipment, materials
ā Transportation, bridge building
ā¢ Labor, equipment, materials, subcontractors
ā Military construction
ā¢ High subcontractor involvement
ā Reduces ability to manage individual resources
ā¢ Scheduling Component Determinants
ā Scheduling components focus
ā¢ Labor resources
ā Engineers, materials quantities
ā¢ Costs resources
ā Used for billing
ā¢ Earned value ā Earned schedule
ā Needs both cost and time information for accuracy
ā¢ Correlation with project budget
ā Generally used in areas of higher maturity in cost/time
correlation
ā WBS usually tied to cost control accounts
ā Often deliverables based
ā¢ Scheduling Component Determinantsā Drivers for update monitoring and analysis
ā¢ Critical path slippage
ā Based on penalties for late completion
ā High risk increases need to monitor
ā Claims culture due to case law from litigation
ā Near-critical path slippage close in importance
ā¢ Milestone monitoringā¢ Milestone monitoring
ā Near-critical path monitoring equally important
ā Milestones tied to performance or other projects
ā Often called gates and completion launches other phases
ā¢ Activity monitoring
ā Risk of inefficiency drives monitoring to activity level
ā Associated with large resource type projects
ā Disruption risks
ā¢ Scheduling Component Determinants
ā Primary project management constraint
ā¢ Triple constraints ā time, cost, scope/quality
ā Sometimes add scope and risk
ā¢ Primary driver helps categorize schedule types
ā Alignment of primary drivers among the project participants
increases probability of success
Ā» A quality oriented contractor working for a cost oriented
owner will likely fail financially
Ā» A cost driven contractor working for a quality oriented
owner will likely end in disputes related to quality
Ā» A time driven contractor works well with a cost oriented
owner, but less well with a quality oriented owner
ā¢ Projects may have multiple drivers but usually one is primary
ā¢ Scheduling Component Determinantsā Schedule accuracy
ā¢ Smallest time period used for planning
ā Hour
Ā» Plant maintenance and shutdown, software design
ā Day
Ā» Military or commercial construction; monitored to the day but updated to monthbut updated to month
ā Week
Ā» Project documents generated daily or weekly for record purposes
ā Month
Ā» Common, but overview use
ā Longer
Ā» Long term projects, program monitoring schedules
ā¢ Concept of the Schedule Matrixā Maps categories of schedules with industries/sectors
ā Designed to facilitate ordering of scheduling into appropriate types based on use of schedule and component determinants
ā Based on a number of industries
Commercial construction
Military construction
Hospital construction
Shipbuilding and aerospace
construction
Pharmaceutical projectsHospital construction
Power plant construction
Maintenance and shutdown of
factories and plants
Defense projects
Oil and gas projects
Manufacturing
Energy projects
Pharmaceutical projects
Software development projects
Information technology projects
Engineering projects
Transportation construction
High-rise construction
Wide-rise housing construction
Financial projects
ā¢ Comments about Schedule Matrix
ā Worthy of a scheduling industry-wide study
ā Some sectors or industries operate with different schedule types at different times in the life-cycle
ā¢ Pharmaceutical
ā Research ā Critical Chain
ā Regulatory phase ā Milestones only
ā Engineering ā EVMS
ā Construction ā EVMS
ā Matrix study requires development of a taxonomy
ā¢ Compile Matrix Markers into Summaries
ā Study of schedule types requires combination of schedule techniques and component determinants
ā Results in a Schedule Type Matrix
ā¢ Schedule types fall into 11 broad categories
ā Technically-oriented scheduling
ā Complex phasing-oriented scheduling
ā Recovery-oriented scheduling
ā Large resource-oriented scheduling
ā EV-oriented scheduling
ā Rolling wave oriented scheduling ā Rolling wave oriented scheduling
ā Timesheet-oriented or small resource-oriented scheduling
ā Location-oriented scheduling
ā Program-oriented overview scheduling
ā Financial management oriented scheduling
ā Forensic scheduling
ā¢ Schedule types fall into 11 broad categories
ā Technically-oriented scheduling ā¢ Used where litigation requires highly technical network calculations
ā¢ Analysis of delay and disruption becomes an area of expertise, including
expert witness testimony
ā¢ Risk of time related disputes results in claims
ā Claims drive the preparation, review and approval of schedules
ā¢ Resources limited to macro levelā¢ Resources limited to macro level
ā Used to verify duration calculations
ā Helps identify benchmark against which to analysis progress and
measure delay
ā Specifications often require resource loading
ā Examples: military and commercial scheduling
ā¢ Schedule types fall into 11 broad categories
ā Complex phasing-oriented scheduling
ā¢ location coordination
ā¢ Logistics of resource movement
ā¢ Component assembly of systems
ā¢ Also carries needs of technical scheduling
ā¢ May be combined with technically-oriented and large resource ā
oriented scheduling
ā¢ Examples: hospital construction, process plants
ā¢ Schedule types fall into 11 broad categories
ā Recovery-oriented scheduling
ā¢ Costs of each day of delay mount into millions of dollars
ā¢ Main goal is to mitigate all delay to meet milestones
ā¢ Highly important to capture full scope of work
ā¢ Often spawns rapid response teams
ā¢ Project participants may include multiple parties with highly evolved
coordination requirements to avoid disruption
ā Airport renovation, shut down and maintenance of power plants
ā¢ Schedule types fall into 11 broad categories
ā Large resource-oriented scheduling
ā¢ crosses several industries or sectors
ā¢ Huge resources, mostly labor, must be planned and managed
ā¢ Requires high level of detail in monitoring of those resources
ā¢ Resources drive production
ā¢ Examples: defense, some phases of oil and gas, manufacturing
ā¢ Schedule types fall into 11 broad categories
ā EV-oriented scheduling
ā¢ Separated due to method of monitoring, EVMS
ā¢ Focused on budgets and metrics
ā¢ Need for identification of the critical path not as important
ā¢ Milestone slippage must be monitored
ā¢ Examples: large energy projects, ship and plane building, some
defense, some phases of pharmaceutical
ā¢ Schedule types fall into 11 broad categories
ā Rolling wave oriented scheduling
ā¢ Project cycles are very long
ā¢ Different phases of the project have vastly different available
information
ā¢ Ability to plan in detail for work to be done in future is limited
ā¢ Individual project phases may fall into other types of scheduling
ā¢ Examples: pharmaceuticals, research and development
ā¢ Schedule types fall into 11 broad categories
ā Timesheet-oriented or small resource-oriented scheduling
ā¢ Small resource oriented
ā¢ Schedules are used to manage personnel and actual costs
ā¢ All about managing individuals
ā¢ Examples: IT projects, software development, engineering
ā¢ Schedule types fall into 11 broad categories
ā Location-oriented scheduling
ā¢ Defined by many repetitive fragnets
ā¢ Logic is used to sequence work within specific locations of the
project
ā¢ Sometimes combines velocity diagrams and CPM
ā¢ Linear scheduling is popular for this type of scheduling
ā¢ Examples: transportation-type projects such as utilities, roadways,
bridges, tunnels, and facilities-type projects such as high-rise office
buildings, condominiums, apartments
ā¢ Schedule types fall into 11 broad categories
ā Program-oriented overview scheduling
ā¢ Schedules have both resource and delivery constraints
ā¢ Budgets span across years
ā¢ Sections of development opened, completed, closed
ā¢ Work is also repetitive so low level of detail works
ā¢ Often phases operate under more detailed schedules
ā¢ Completion dates are not rigid, so critical path slippage is not as
important
ā¢ Examples: āwide-riseā housing industry, general program master
schedule monitoring
ā¢ Schedule types fall into 11 broad categories
ā Financial management oriented scheduling
ā¢ Used to plan and monitor business acquisitions, restructuring and
spin offs of divisions
ā¢ CMP methodology not important
ā¢ Schedule used to direct wide range of participants
ā¢ Requires no real monitoring of critical path or float
ā¢ Examples: restructuring of energy companies, bands, insurance
companies
ā¢ Schedule types fall into 11 broad categories
ā Forensic scheduling
ā¢ Schedules used to determine causality and identify responsibility
ā¢ Assess liability and resolve time-related delay and disruption
ā¢ Used in conjunction with technical-, complex phasing-, large
resource- and location-oriented types
ā¢ Examples: dispute resolution, claims analysis
THE PROJECT PLAN
PDM SHOWING CRITICALITY
ARROW DIAGRAM
EVPM COST SCHEDULE GANTT
PROGRESSED REBASELINED COST CURVE
RESOURCE LIMITED SCHEDULE HISTOGRAM
RESOURCE DISTRIBUTION PIE CHART
BUDGET VARIANCE BY WBS
Schedule Type Matrix
Technical Phasing RecoveryLarge
Resource
Earned
Value
Rolling
Wave
Small
Resource
Location -
LinearProgram
Financial
Mgmnt.Forensic
Examples:Commercial
Construction
Hospitals,
Process
Plants
Plant
Shutdown &
Maintenance
Defense,
Oil/Gas,
Manufacturing
Energy,
Defense,
shipbuilding,
Pharma
Pharma-
ceuticals
IT, Software
Development,
Engineering
Transportation,
High-Rise
Construction
Wide-Rise
Housing
Industry
Also called
Mgmnt
Accounting
Dispute
Resolution &
Claims
Analysis
Level of detail
Overview Management for Reporting x x
Resource Management x x x x x x x x x
Detailed Labor Management x x x x x x
Detailed Subcontractor Management x x x x x
Frequency of Updates
Hourly
Daily x x x x
Weekly x x x x x x x x
Monthly x x x x x x x x x
Schedule Technique & Component Determinants
Schedule Type Matrix Schedule Types - Crosses Industry or Segments of Industry
Monthly x x x x x x x x x
Larger Period
Resource Data Managed
No resources x
Individual resources (by name) x
Role resources (by position) x x x x x
Crew resources (by trade crew) x x x x x
Cost resources x x x x x x x x x x
Quantity resources x x x x x x x x x
Leveling of resources commonly performed x x x x x
Activity Level Data Collected in Updates
Resource Time Consumed x x x x x x x x x x
Resource Quantity Consumed x x x x x x x
Time Remaining x x x x x
Percent Complete x x x x x x x
Project Participants
Labor only x
Labor and Materials x
Labor, Materials, Equipment x x
Labor, Materials, Equipment, Subcontractors x x x x x x
Subcontractors only x x
Schedule Type Matrix
Technical Phasing RecoveryLarge
Resource
Earned
Value
Rolling
Wave
Small
Resource
Location -
LinearProgram
Financial
Mgmnt.Forensic
Examples:Commercial
Construction
Hospitals,
Process
Plants
Plant
Shutdown &
Maintenance
Defense,
Oil/Gas,
Manufacturing
Energy,
Defense,
shipbuilding,
Pharma
Pharma-
ceuticals
IT, Software
Development,
Engineering
Transportation,
High-Rise
Construction
Wide-Rise
Housing
Industry
Also called
Mgmnt
Accounting
Dispute
Resolution &
Claims
Analysis
Level of detail
Schedule Technique & Component Determinants
Schedule Type Matrix Schedule Types - Crosses Industry or Segments of Industry
Scheduling Components
Resources - Labor
Resource loading x x x x x x x x x
Resource leveling x x x x x x x
Resource driving x x x x x
Consumed labor x x x x x x x x x x
Resources - Costs
Sell costs x x x x x
Planned costs x x x x x x x x x xPlanned costs x x x x x x x x x x
Actual costs x x x x x x x
Resources - Quantity
Planned quantities x x x x x
Consumed quantities x x x x x
Earned Value Orientation
Costs x x x x x x x
Quantities x x x x
Labor x x x x x
Uses Earned Schedule x x
Correlation with Budget
WBS x x x x x x x x x x x
Cost Accounts x x x x x x x x
Primary Driver for Update Monitoring/Analysis
Critical Path Slippage x x x
Near Critical Path Slippage
Non-Critical Path Slippage
General Activity Slippage x
Conclusions
ā¢ Topic needs a taxonomy developed
ā Should be formal study by industry association
ā Talking to Planning Planet about engaging with their 30,000 member base
ā¢ Common scheduling techniques from one industry or
sector can be innovative in another
ā¢ Discussions will improve communications among ā¢ Discussions will improve communications among
different industries and sectors
ā¢ Ultimate goal is cross-pollination of different industries to
improve the quality and value of scheduling
Thank YouFor Attending!For Attending!