SCHEDULE COMPRESSION
In real practice – how would you
compress your Schedule?
SCHEDULE COMPRESSION
How to compress your Schedule?
1. Identify significant critical and near
critical Activities remaining to be
completed
2. Meet with Superintendent,
Foremen, Subs to discuss
Schedule compression options
SCHEDULE COMPRESSION
How to compress your Schedule?
3. Target critical Activities for
acceleration that will shorten
Schedule
4. Authorize OT or extra shifts and
additional $$$ expenditures
5. Intensively manage the targeted
Activities
SCHEDULE COMPRESSION
How to compress your Schedule?
 Collaborative Effort
 Almost always less efficient and
more expensive
Activity Time-Cost Curve
Project Time-Cost Curve
Activity Time-Cost Curve
SCHEDULE COMPRESSION
Project Time-Cost Curve
 Crashing the Schedule
 Step-by-Step Process – One
Activity at a Time
 Shorten Total Project Duration until
you achieve the new allotted time
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 Looks the same as Activity Cost
Curve
 What does this Graph Represent?
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What does this Graph Represent?
 There is an optimum Total Project
Cost – that is a summation of:
1. Direct Costs
2. Indirect Costs
3. Market Profit Losses (Owner)
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What are Market Profit Losses?
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What are Market Profit Losses?
 Income (Revenues) that the Owner does
not earn since the facility is not
available for their use.
 Hospital can be > $1 million/day
 Walmart store > $100,000/day
 Reflected in contract as LDs
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What do the Indirect Costs
represent?
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What do Indirect Costs represent?
1. Field Office Overhead (FOOH)
2. Home Office Overhead (HOOH)
3. Liquidated Damages (LD’s)
 If you can shorten the Job – these
costs reduce linearly
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What would be the opposite of an
Indirect Cost?
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What would be the opposite of an
Indirect Cost?
 An incentive bonus for finishing
early.
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What are the Direct Costs and why
are those costs parabolic rather
than linear?
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What are the Direct Costs?
 The Actual costs of getting the Job
done – labor, equipment, materials,
and supplies
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 Why are the Direct Costs parabolic
rather than linear?
 The Project Direct Costs are the
summation of all the individual
Activity Costs (which are parabolic
shaped curves)
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 When you sum the Direct + Indirect
+ LDs/MPLs (- Bonuses) = Total
Project Cost
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What is the Total Project Cost
curve stating when you analyze it?
SCHEDULE COMPRESSION
Project Costs/Duration Relationship
 What is the Total Project Cost
curve stating when you analyze it?
 There is an optimum point-in-time
when you can complete the project
at a minimum cost