Engineering Project
Management
Civil Engineering Department
2
April 13, 2015
An-Najah National University
Civil Engineering Department
Faculty of Engineering
Construction Engineering and
Management
Nabil Dmaidi
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April 13, 2015
Your Expectations of Me
Be prepared
Be on time
Teach for full 50 minute period
Fair grading system
Front load the class work
Do not humiliate students
Practice golden rule
Provide real world examples
Make you think
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April 13, 2015
Topics
1) Management Functions and introduction of construction project
planning and scheduling
2)Construction scheduling techniques
3)Preparation and usage of bar charts
4)Preparation and usage of the Critical Path Method (CPM)
5)Preparation and usage of Precedence Diagramming Method (PDM)
6)Issues relating to determination of activity duration
7)Contractual provisions relating to project schedules
8)Resource leveling and constraining
9)Time cost tradeoff
10)Schedule monitoring and updating.
11)Communicating schedule
12) Project control and earned value Control
13) claims, Safety and Quality control
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April 13, 2015
Course Outline
Introduction and definitions
Float Analysis
Importance of Scheduling
The CPM Calculations
Networks, Bar Charts, and
Brief introduction on:
Imposed Finish Date and
Project Control and Earned
Value Analysis
Resource Allocation /Leveling
other CPM Issues
Time/Cost Trade-off
Precedence Networks
Updating Schedules
Time-Scaled Logic Diagrams
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What is the Project
April 13, 2015
In order to understand project management, one must
begin with the definition of a project. A project can be
considered to be any series of activities and tasks that :.
● Have a specific objective to be completed within certain
specifications
● Have defined start and end dates
● Have funding limits (if applicable)
● Consume human and nonhuman resources (i.e., money,
people, equipment)
● Are multifunctional (i.e., cut across several functional
lines)
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OR
April 13, 2015
‘‘a temporary endeavor undertaken to create
a unique product, service, or result’’
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Project Life Cycle
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Five Process group
Project initiation
● Selection of the best project given
resource limits
● Recognizing the benefits of the
project
● Preparation of the documents to
sanction the project
● Assigning of the project manager
April 13, 2015
Project planning
Project execution
● Definition of the work
requirements
● Definition of the quality and
quantity of work
● Definition of the resources needed
● Scheduling the activities
● Evaluation of the various risks
Project monitoring and control
● Tracking progress
● Comparing actual outcome to
predicted outcome
● Analyzing variances and
impacts
● Making adjustments
● Negotiating for the project
team members
● Directing and managing the
work
● Working with the team
members to help them improve
Project closure
● Verifying that all of the work has
been accomplished
● Contractual closure of the contract
● Financial closure of the charge
numbers
● Administrative closure of the paper
work
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April 13, 2015
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April 13, 2015
Successful project management can then be defined as
having achieved the project objectives:
● Within Time
● Within Cost
● At the desired performance/Technology level
● While utilizing the assigned resources effectively
and efficiently
● Accepted by the customer
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What is Project Management
April 13, 2015
Project management is the planning, organizing, directing,
and controlling of company resources for a relatively
short-term objective that has been established to complete
specific goals and objectives.
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April 13, 2015
The potential benefits from project
management are:
● Identification of functional responsibilities
● Minimizing the need for continuous reporting
● Identification of time limits for scheduling
● Identification of a methodology for
trade-off analysis.
● Measurement of accomplishment
against plans
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April 13, 2015
The above definition requires further comment. Classical
management is usually considered to have five functions
or principles:
● Planning
● Organizing
● Staffing
● Controlling
● Directing
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April 13, 2015
Planning
– Where the organization wants to be in the
future and how to get there.
Organizing
– Follows planning and reflects how the
organization tries to accomplish the plan.
– Involves the assignment of tasks, grouping of
tasks into departments, and allocation of resources.
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April 13, 2015
Leading
– The use of influence to motivate employees to
achieve the organization's goals.
– Creating a shared culture and values,
communicating goals to employees throughout
the organization, and infusing employees to
perform at a high level.
Controlling
– Monitoring employees' activities, determining if
the organization is on target toward its goals, and
making corrections as necessary
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Management Skills
April 13, 2015
Conceptual Skill—the ability to see the
organization as a whole and the relationship
between its parts.
Human Skill—The ability to work with and
through people.
Technical Skill—Mastery of specific
functions and specialized knowledge
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Constraints of the project
April 13, 2015
Project management is designed to manage or control
company resources on a given activity, within time, within
cost, and within performance. Time, cost, and performance
are the constraints on the project.
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Resources
April 13, 2015
We have stated that the project manager must control company
resources within time, cost, and performance. Most companies have
six resources:
● Money
● Manpower
● Equipment
● Facilities
● Materials
● Information/technology
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April 13, 2015
Actually, the project manager does not control
any of these resources directly, except perhaps
money (i.e., the project budget).
Resources are controlled by the line managers .
The project manager is responsible for
coordinating and integrating activities across
multiple, functional lines. The integration
activities performed by the project manager
include:
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April 13, 2015
● Integrating the activities necessary to develop a project plan
● Integrating the activities necessary to execute the plan
● Integrating the activities necessary to make changes to the plan
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April 13, 2015
Project Scheduling Planning,
Scheduling, and Control
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Planning and Scheduling
April 13, 2015
Planning and scheduling are two terms that are
often thought of as synonymous
 They are not!
 Scheduling is just one part of the planning effort.
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April 13, 2015
 Project planning serves as a foundation for several
related functions such as cost estimating, scheduling,
and project control.
 Project scheduling is the determination of the
timing and sequence of operations in the project
and their assembly to give the overall completion
time
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April 13, 2015
Planning is the process of determining how a
project will be undertaken. It answers the
questions:
1. “What” is going to be done,
2. “how”,
3. “where”,
4. By “whom”, and
5. “when” (in general terms: start and finish).
Scheduling deals with “when” on a detailed
level… See Figure 1 .
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April 13, 2015
How
much
What
when
The Plan
By
whom
where
How
Why
Figure 1 . Planning and Scheduling
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The Plan
April 13, 2015
PMI defines project management plan as a ‘‘formal,
approved document that defines how the project is executed,
monitored and controlled”.
The plan can include elements that has to do with
scope, design and alternate designs, cost, time,
finance, land, procurement, operations, etc.
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April 13, 2015
WHY SCHEDUALE PROJECTS ?
1- To calculate the project completion.
2- To calculate the start or end of a specific activity.
3-To expose and adjust conflict between trades or
subcontractor.
4- To predict and calculate the cash flow .
5-To evaluate the effect of changing orders ‘CH’ .
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April 13, 2015
6- To improve work efficiency.
7- To resolve delay claims , this is important in
critical path method ‘CPM’ discussed later..
8- To serve as an effective project control tool .
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The Tripod of Good Scheduling System
April 13, 2015
1. The Human Factor : A proficient scheduler or
scheduling team.
2. The Technology : A good scheduling computer
system (software and hardware)
3. The Management : A dynamic, responsive, and
supportive management.
 If anyone of the above three ‘‘legs’’ is missing, the system
will fail.
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Scheduling and project management
April 13, 2015
Planning, scheduling, and project control are extremely
important components of project management.
project management includes other components :
• cost estimating and management,
• procurement,
• project/contract administration,
• quality management,
• and safety management.
 These components are all interrelated in different ways.
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April 13, 2015
Quiz 1
True or False:
1. There are no two projects that are identical
2.Every construction project needs a CPM schedule
3.Planning and scheduling are two names for the same function
4.The maintenance of a large office building is considered a
project
5. The renovation of a large office building is considered a
project
6.There is one standard way to break down the project into
activities for the purpose of creating a schedule
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April 13, 2015
Bar (Gantt) Charts
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DEFINITION AND INTRODUCTION
April 13, 2015
• A bar chart is ‘‘a graphic representation of project
activities, shown in a time-scaled bar line with no
links shown between activities’’
 The bar may not indicate continuous work from
the start of the activity until its end.
or
 Non continuous (dashed) bars are sometimes
used to distinguish between real work (solid line)
and inactive periods (gaps between solid lines)
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April 13, 2015
• Before a bar chart can be constructed for a
project, the project must be broken into
smaller, usually homogeneous components,
each of which is called an activity, or a task.
Item
M 10
Activity
Mobilization
Bars ( Month or Year )
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ADVANTAGES OF BAR CHARTS
April 13, 2015
1- Time-scaled
2- Simple to prepare
3- Can be more effective and efficient if CPM based
- Still the most popular method
4- Bars can be dashed to indicate work stoppage.
5- Can be loaded with other information (budget,
man hours, resources, etc.)
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April 13, 2015
Bar Charts Loaded with More Info.
Such as : budget, man hours and resources .
500$
220$
400$
850$
140$
500$
900$
10
12
7
11
10
9
15
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DISADVANTAGES OF BAR CHARTS
April 13, 2015
1- Does not show logic
2- Not practical for projects with too many
activities
- As a remedy, we can use bar charts to show:
1. A small group of the activities (subset)
2. Summary schedules
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April 13, 2015
Quiz 2
True or False:
1. The bar representing a 4-day activity is twice as long as a bar
representing a 2-day activity in a bar chart
2.Bar chart method lost its applicability with the introduction of
the Critical Path Method
3.Bars in a bar chart must be connected with relationship lines
4.A bar representing an activity in a bar chart may not be
continuous
5. Bar charts and Gantt charts are two different methods.
6.Bar charts can be loaded with information other than the
timeline of the project
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Basic Networks
April 13, 2015
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April 13, 2015
DEFINITION AND INTRODUCTION
• A network is a logical and chronological graphic
representation of the activities (and events)
composing a project.
• Network diagrams are the preferred technique for
showing activity sequencing.
• Two main formats are the arrow and precedence
diagramming methods.
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April 13, 2015
Two classic formats
AOA: Activity on Arrow
AON: Activity on Node
Each task labeled with
Identifier (usually a letter/code)
Duration (in std. unit like days)
There are other variations of labeling
There is 1 start & 1 end event
Time goes from left to right
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April 13, 2015
Arrow Diagramming Method (ADM)
1. Also called activity-on-arrow (AOA) network
diagram or (I-J) method (because activities are
defined by the form node, I, and the to node, J)
2. Activities are represented by arrows.
3. Nodes or circles are the starting and ending
points of activities.
4. Can only show finish-to-start dependencies.
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April 13, 2015
Basic Logic Patterns for Arrow Diagrams
Node (Event) i
i
Node (Event) j
Activity Name
j
j>i
Each activity should have a unique i – j value
(a) Basic Activity
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April 13, 2015
2
A
4
B
10
(b) Independent Activities
3
A
6
B
9
(c) Dependent Activities
12
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April 13, 2015
4
A
C
6
B
8
2
Activity C depends upon the completion of both Activities A & B
(d) A Merge
B
2
A
4
6
C
8
Activities B and C both depend upon the completion of Activity A
(e) A Burst
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April 13, 2015
12
A
B
C
16
14
18
D
20
Activities C and D both depend upon the completion of Activities A and B
(f) A Cross
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Example
April 13, 2015
Draw the arrow network for the project given next.
Activity
IPA
A
-
B
A
C
A
D
B
E
C,D
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April 13, 2015
Solution :
B
30
10 A 20
D
E
40
C
50
50
Dummy activity (fictitious)
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* Used to maintain unique numbering of activities.
* Used to complete logic, duration of “0”
* The use of dummy to maintain unique numbering of
activities.
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April 13, 2015
A
Divide node to correct
4
10
B
(a) Incorrect Representation
4
A
10
B
Dummy
11
(b) Correct Representation
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Example
April 13, 2015
Draw the arrow network for the project given next.
Activity
IPA
A
-
B
A
C
A
D
B,C
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Solution :
April 13, 2015
B
10 A 20
D
30
40
C
Improper solution
B
30
Dummy
40 D 50
10 A 20
C
proper solution
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Example
April 13, 2015
Draw the arrow network for the project given next.
Activity
IPA
A
-
B
A
C
A
D
B
E
B,C
F
C
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April 13, 2015
Solution :
B
30
D
Dummy 1
10 A 20
50 E
Dummy 2
C
40
F
60
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April 13, 2015
Removal of Redundant Dummies
Original Diagram
Diagram after removal
of redundant dummies
(a)
A
B
A
B
(b)
A
B
A
B
C
C
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April 13, 2015
Original Diagram
(c)
(d)
Diagram after removal
of redundant dummies
A
C
A
C
B
E
B
E
A
C
A
C
B
E
B
E
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April 13, 2015
Activity
Depends Upon
Immediately Preceding
Activity (IPA)
A
B
C
----A
A, B
----A
B
A
B
Redundant
Relationship
C
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Activity List with Dependencies:
Activity
A
B
C
D
E
F
G
H
J
K
L
M
Description
Site Clearing
Removal of Trees
Excavation for Foundations
Site Grading
Excavation for Utility Trenches
Placing formwork & Reinforcement
Installing sewer lines
Pouring concrete
Obtain formwork & reinforcing steel
Obtain sewer lines
Obtain concrete
Steelworker availability
April 13, 2015
Depends Upon
--------A
A, B, C
A, B, C
B, C, J, M
B, C, D, E, K
D, E, F, G, L
-----------------
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Removing Redundant Relationships:
April 13, 2015
Activity
A
B
C
D
E
F
G
H
J
K
L
M
Description
Site Clearing
Removal of Trees
Excavation for Foundations
Site Grading
Excavation for Utility Trenches
Placing formwork & Reinforcement
Installing sewer lines
Pouring concrete
Obtain formwork & reinforcing steel
Obtain sewer lines
Obtain concrete
Steelworker availability
Depends Upon
--------A
A, B, C
A, B, C
B, C, J, M
B, C, D, E, K
D, E, F, G, L
-----------------
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April 13, 2015
L
J
M
A
20
10
F
15
B
5
25
C
G
E
D
35
30
K
AOA Representation
40
H
45
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April 13, 2015
NODE NETWORKS MTHOD (AON)
Link
Activity number
10
A
Activity name
20
B
a) Independent Activities
10
A
Link
20
B
b) Dependent Activities
B depends on A
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April 13, 2015
10
A
30
C
40
D
C depends on A & B
D depends on C
20
B
c) A Merge Relationship
10
A
20
B
30
C
40
D
d) A Burst Relationship
B depends on A
C depends on B
D depends on B
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April 13, 2015
A
D
A
Start
Dummy
B
C
E
D
Finish
Dummy
B
C
e) Start & Finish Dummy Activities
E
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Example
April 13, 2015
Draw the arrow network for the project given next.
Activity
IPA
A
-
B
A
C
A
D
B
E
C,D
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April 13, 2015
Solution :
B
D
A
E
C
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Example
April 13, 2015
Draw the arrow network for the project given next.
Activity
IPA
A
-
B
A
C
A
D
B,C
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April 13, 2015
Solution :
B
A
D
C
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Example
April 13, 2015
Draw the arrow network for the project given next.
Activity
IPA
A
-
B
A
C
A
D
B
E
B,C
F
C
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April 13, 2015
Solution :
B
A
D
E
C
F
PF
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Lags and Leads
April 13, 2015
In some situations, an activity cannot start until a
certain time after the end of its Predecessor.
Lag is defined as a minimum waiting period
between the finish (or start) of an activity and the
start (or finish) of its successor.
Arrow networks cannot accommodate lags. The
only solution in such networks is to treat it as a real
activity with a real duration, no resources, and a $0
budget.
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Examples
April 13, 2015
3
Place Concrete
3
Strips Forms
2
A lag in a node network
Place Concrete
Cure Concrete
A lag in an arrow network
Strips Forms
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April 13, 2015
The term lead simply means a negative lag. It is
seldom used in construction. In simple language: A
positive time gap (lag) means ‘‘after’’ and a negative
time gap (lead) means ‘‘before.’’
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April 13, 2015
Recommendations for Proper Node Diagram Drawing
Incorrect
Correct
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April 13, 2015
A
B
A
B
A
B
A
B
Improper
proper
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April 13, 2015
Improper
Proper
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April 13, 2015
Improper
Proper
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April 13, 2015
A
A
B
B
PS
C
C
Improper
Proper
(a) Do not start a network with more than one node
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April 13, 2015
Improper
A
A
B
B
C
C
Proper
(a) Do not end a network with more than one node
PF
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April 13, 2015
The Critical Path Method
(CPM)
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Introduction
April 13, 2015
Suppose you decide with your friend to go in
hunting trip.
You must do specific activity such that the trip well
be at the right way. The following activity must be
done.
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April 13, 2015
From chart you can see that the 3rd activity (preparing the
jeep) have the longest period of time any delay with this
activity leads to delay in the trip this activity is a “critical
activity”
Critical activity : An activity on the critical path any delay on
the start or finish of a critical activity will result in a delay in
the entire project
Critical path : The longest path in a network from start to
finish
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April 13, 2015
Steps Required To Schedule a Project
The preparation of CPM includes the following four steps:
1- Determine the work activities:
The project must be divided into smaller activities
or tasks .
The activity shouldn’t be more than 14-20
days (long durations should be avoided)
Use WBS in scheduling by using an order of
letters and numbers
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April 13, 2015
2- Determine activity duration:
Duration = Total Quantity / Crew Productivity
The productivity has many sources :
1. The company
2. The market
3. Special books
Note: The scheduler must be aware about the non-working days ,
such as holydays or rain days, etc……
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Estimating Activity Duration
April 13, 2015
Time Interval
 Time Interval is selected according to the nature of the
activity (seconds - minutes…)
 It is common practice in construction industry to use
calendar day.
 Use one and only one time unit for any schedule.
Sources
1. From company’s record
2. From standard estimating guide
3.Interviewing field personnel.
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Weather and Contingency Allowance
April 13, 2015
 Two approaches for assignment of weather allowance:
1. Add the Weather Allowance at the end of the project as a separate
activity.
2. Add Weather Allowance to those affected by the weather.
3.Add weather allowance at the end of each construction segment (site
preparation, foundation, … etc.)
Contingency items
Other activities can be added to allow for contingency such as strikes
Time Zero
The close of the work period immediately preceding the start of the
project.
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April 13, 2015
3- Determine the logical relationships :
This step is a technical matter and obtained
from the project manager and technical team,
and logical relationships shouldn’t confused
with constraints
4- Draw the logic network and perform the CPM
calculations
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April 13, 2015
5-Reiew and analyze the schedule:
1. review the logic
2. Make sure the activity has the correct predecessor
3. make sure there is no redundant activity
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April 13, 2015
6- Implement the schedule:
Definition: take the schedule from paper to the execution.
7-Monitor and control the schedule:
Definition: comparing what we planed with what
actually done.
8-Revise the database and record feedback.
9-Resource allocation and leveling.
(will discuss in chapter 6)
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The WBS
(Work Breakdown Structure)
April 13, 2015
 IT is used to break down the project from one main and
relatively big entity into smaller, defined, manageable
and controllable units, usually called work groups or
tasks, or, at the finest level of detail (which is
undesirable) activities
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Take care!!!
April 13, 2015
 The deeper you go into the lower levels of the
WBS, the more detailed knowledge you’ll need to
know.
 A good rule of thumb is the rule of 1-5-5-5, which
entails that each level be broken down into a
maximum of five lower levels.
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Who develops the WBS?
April 13, 2015
A WBS is developed by the A/E at the end of the
design phase.
and/or by the bidders during the proposal
(procurement phase).
93
The CWBS
(Contract Work breakdown Structure )
April 13, 2015
After contract award, the project manager expands
the WBS into a contract work breakdown
structure (CWBS).
 as the initial step in the PLANNING process.
The extended CWBS must include the levels at
which required reporting information is
summarized for submittal to the Owner
94
Uses of the WBS
April 13, 2015
 The WBS is used to report program status externally to
the Owner.
 The CWBS is used internally to plan the program in
detail and to collect status information on a periodic
basis for the lowest level of the CWBS, namely the
schedule activities.
 The basis for technical planning and project
achievement.
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The CWBS
April 13, 2015
 it is a major task to undo.
 Why???
 Because cost collections begins at a CWBS
element,
 The individuals assigned the responsibility for
WBS/CWBS development should never lose
sight of the fact that the WBS is used for
technical planning and status achievement.
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April 13, 2015
House
1.0
Level 1
Level 2
fine
works
1.2
Structural
Work
1.1
SubStructure
1.1.1
SuperStructure
1.1.2
Earthwork Foundation
1.1.1.2
1.1.1.1
Columns Roof slabs
1.1.2.1
1.1.2.2
Level 3
Excavation
1.1.1.1.1
Backfilling
1.1.1.1.2
Finishing
1.21
Plaster
1.2.1.1
Doors &
Windows
frames
1.2.2
Floor tile
1.2.1.2
Electrical
Works
1.3
Conduiting
1.3.1
Light
Fittings
1.3.2
Level 4
Level 5
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Conclusion
April 13, 2015
 The work breakdown structure defines the product
elements (work packages).
 And their interrelations to each other and to the
product.
 The WBS mostly ends with project tasks.
 Using the tasks you can extract project’s activities.
98
TYPES OF ACTIVITIES
April 13, 2015
1. Production Activities
Those that can be taken directly from plans and
specifications
2. Procurement Activities
Procurement of material and equipment
3. Management Decision Activities
Activities that can be created by management to avoid
certain situations
Delay Concrete
Company Vacation
Deer Hunting
99
Events and Milestones
April 13, 2015
 An event: a point in time that is usually the start or
finish of a certain activity(s)
Duration = 0
 Important events are called milestones
milestones such as NTP and
finish milestones such as Substantial Completion
 An activity has a start date and a finish date
 An event / milestone has a start date or a finish date
100
Example
April 13, 2015
Draw the logic network and perform the CPM calculations for the
schedule shown next.
Activity
IPA
Duration
A
-
5
B
A
8
C
A
6
D
B
9
E
B,C
6
F
C
3
G
D,E,F
1
101
Forward pass calculations
April 13, 2015
In mathematical terms, the ES for activity j is as follows :
ESj =max( EFi )
where (EFi) represents the EF for all preceding activities.
Likewise, the EF time for activity j is as follows :
EF j= ESj + Dur j
where Dur j is the duration of activity j
Forward pass: The process of navigating through a
network from start to end and calculating the completion date
for the project and the early dates for each activity
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April 13, 2015
Solution :
0,5
A
5
5,13
B
8
13,22
D
9
13,19
E
6
5,11
C
6
22,23
G
1
11,14
F
3
103
Backward pass calculations
April 13, 2015
In mathematical terms, the late finish LF for activity j is as follows :
LFj =min(LSk(
where (LSk) represents the late start date for all succeeding
activities.
Likewise, the LS time for activity j (LS j) is as follows :
LS j= LFj - Dur j
where Dur j is the duration of activity
Backward pass: The process of navigating through a network
from end to start and calculating the late dates for each activity. The
late dates (along with the early dates) determine the critical activities,
the critical path, and the amount of float each activity has.
104
April 13, 2015
Solution :
0,5
A
5
0,5
5,13
B
8
5,13
5,11
C
6
10,16
13,22
D
9
13,19 13,22
E
6
16,22
11,14
F
3
19,22
CPM ( ES = LS , EF = LF , TF = FF = 0)
22,23
G
1
22,23
105
Four Types Of Floats
April 13, 2015
There are several types of float. The simplest and most
important type of float is Total Float (TF)
 Total float (TF): The maximum amount of time
an activity can be delayed from its early start
without delaying the entire project.
TF = LS – ES
or
TF = LF - EF
or
TF = LF - Dur - ES
106
April 13, 2015
 Free Float: may be defined as the maximum
amount of time an activity can be delayed without
delaying the early start of the succeeding activities
FFi = min(ESi+1) - EFi
where min (ESi+1) means the least (i.e., earliest) of the early start
dates of succeeding activities
107
April 13, 2015
In the previous example we can find the free float and total float for
each activity as the following :
Activity C’s free float, FF = 11 - 11 = 0 days
And
Activity C’s total float, TF =16 - 11= 5 days …… and so on.
Activity
Duration
ES
EF
LS
LF
TF
FF
A
5
0
5
0
5
0
0
B
8
5
13
5
13
0
0
C
6
5
11
10
16
5
0
D
9
13
22
13
22
0
0
E
6
13
19
16
22
3
3
F
3
11
14
19
22
8
8
G
1
22
23
22
23
0
0
 Critical activity
 Note : We must always realize that FF ≤ TF
108
April 13, 2015
 Interfering float: may be defined as the maximum
amount of time an activity can be delayed without
delaying the entire project but causing delay to the
succeeding activities.
TF = FF - Int. or
Int. F = TF - FF
 Independent float (Ind. F): we may define it as
the maximum amount of time an activity can be
delayed without delaying the early start of the
succeeding activities and without being affected
by the allowable delay of the preceding activities.
Ind. Fi = min(ESi+1) – max(LFi-1) – Duri
Note: make sure that Ind. F ≤ FF
109
Node Format
ES
April 13, 2015
Activity ID
EF
Activity Name
LS
TF
Duration
LF
FF
110
Example
April 13, 2015
Activity
Duration
IPA
A
5
-
B
8
A
C
6
A
D
9
B
E
6
B,C
F
3
C
G
1
D,E,F
111
Tabular Solution
April 13, 2015
Activity
Duration
ES
EF
LS
LF
TF
A
5
0
5
0
5
0
B
8
5
13
5
13
0
C
6
5
11
10
16
5
D
9
13
22
13
22
0
E
6
13
19
16
22
3
F
3
11
14
19
22
8
G
1
22
23
22
23
0
112
April 13, 2015
Graphic Solution
5, 13
13, 22
B
8
0, 5
5, 13
A
5
0, 5
5 5, 11
C
6
10, 16
D
9
3 13, 19
13, 22
22, 23
E
6
G
1
16, 22
22, 23
8 11, 14
F
3
19, 22
All dates above represent the end of the day
113
Example
April 13, 2015
Activity
Duration
IPA
A
5
-
B
6
A
C
5
A
D
3
A
E
3
B
F
4
B, C
G
4
D
H
7
B,C,G
I
8
E, F
J
2
F
K
3
H, J
L
2
I, J
114
April 13, 2015
B
6
E
3
I
8
L
2
A
5
C
5
F
4
J
2
D
3
G
4
H
7
PF
K
3
115
April 13, 2015
Graphic Solution
5, 11
B
6
5, 11
0, 5
A
5
0, 5
1 5, 10
C
5
6, 11
1 11, 14
E
3
15, 23
12, 15
15, 23
11, 15
F
4
I
8
23, 25
L
2
5 15, 17
J
2
11, 15
23, 25
25
PF
20, 22
25
3 5, 8
D
3
8, 11
3 8, 12
G
4
11, 15
3
12, 19
3
19, 22
H
7
K
3
15, 22
22, 25
116
April 13, 2015
Tabular Solution
Activity
A
B
C
D
E
F
G
H
I
J
K
L
ES
0
5
5
5
11
11
8
12
15
15
19
23
EF
5
11
10
8
14
15
12
19
23
17
22
25
LS
0
5
6
8
12
11
11
15
15
20
22
23
LF
5
11
11
11
15
15
15
22
23
22
25
25
TF
0
0
1
3
1
0
3
3
0
5
3
0
FF
0
0
1
0
1
0
0
0
0
2
3
0
117
End-of-Day Convention
April 13, 2015
 The dates on the activities represent the “end of day”.
That’s why we always start with day 0: end of day 0 =
start of day 1
 This concept is not applied in computer programs. In
computer programs start dates (ES, LS) represent the
beginning of the day while finish dates (EF, LF)
represent the end of the day
118
Exercise Solution Using The
Computer
6, 11
1
12, 14
15, 23
B
6
E
3
I
8
6, 11
13, 15
16, 23
6, 10
12, 15
A
5
C
5
F
4
J
2
1, 5
7, 11
12, 15
21, 22
1, 5
1
5
April 13, 2015
24, 25
L
2
16, 17
24, 25
25
PF
25
3
6, 8
3
9, 12
3
13, 19
3
20, 22
D
3
G
4
H
7
K
3
9, 11
12, 15
16, 22
23, 25
119
Comments on the Solution
April 13, 2015
 Near-critical activities may be as important as critical
activities
 It is a good practice for the project manager not to give
subordinates two sets of dates
 PM has to choose one set of dates within the range of Early –
Late
 Management may reserve a number of days as “management
float” or “time contingency”
120
Float Discussion
April 13, 2015
 Total float –in general- belongs to a path rather than the
activity itself
 If an activity uses “its” float, successors may lose some or all of
“their” float
 Total float versus free float
 Total float is broken down into free float, independent
float, and interfering float.
 Researchers have come up with even more types
121
April 13, 2015
 The question is: “who owns the float”?
 Float distribution attempts
 Review the contract – what if it is not mentioned?
 Float with resource leveling
 Shifting activities within their float may affect:
 Start / finish dates of succeeding activities
 Resource usage: Labor and equipment (crews)
 Materials: delivery, storage
 Cash flow
122
Lags in Node Networks
April 13, 2015
 A lag is a minimum compulsory waiting period between
the start/finish of an activity and the start/finish of the
successor
 Actual waiting period may be greater, but never less than the
lag
 Lags are very common with SS and FF relationships
 A lead is a negative lag
 The lag is added in the CPM’s forward pass calculations
and subtracted in the backward pass
123
April 13, 2015
Examples:
 Concrete curing (before formwork stripping or
reshoring)
 Asphalt curing (before striping)
 Waiting for a permit to be issued
 Waiting for the delivery of a custom material or
equipment
124
Example
April 13, 2015
Activity
Duration
IPA
A
5
-
B
3
-
C
6
-
D
7
A
E
7
A
B
F
4
A,B,C
G
5
E
F
H
6
3
4
3
D
G
I
Lag
D,G
2
125
April 13, 2015
Graphic Solution
0, 5
5, 12
21, 27
A
5
D
7
H
6
2, 7
14, 21
0
0, 3
7, 14
14, 19
19, 22
27
PS
B
3
E
7
G
5
I
3
PF
0
0, 3
7, 14
14, 19
24, 27
27
0, 6
6, 10
C
6
F
4
1, 7
7, 11
4
2
3
21, 27
126
April 13, 2015
Tabular Solution
Activity
A
B
C
D
E
F
G
H
I
ES
0
0
0
5
7
6
14
21
19
EF
5
3
6
12
14
10
19
27
22
LS
2
0
1
14
7
7
14
21
24
LF
7
3
7
21
14
11
19
27
27
TF
2
0
1
9
0
1
0
0
5
FF
0
0
0
7
0
1
0
0
5
127
Constraints and the CPM
April 13, 2015
 A Constraint is an externally imposed restriction affecting
when an activity can start and/or finished
 Constraints may conflict with logical relationships
 Constraints are not alternatives for logic
128
Software Quiz
April 13, 2015
On a continuous path:
A
6
B
5
C
3
D
9
E
5
F
2
Activities A, B, and C are critical; but D, E, and F not
Why?
129
Effect of Imposed Finish Date
April 13, 2015
 Imposed Finish Date is the project’s completion date, as
specified in the contract or stipulated by the owner
 When compared to the calculated finish date:
 Calculated finish date < imposed finish date
• You are in good shape
• What happens if you enter the imposed date?
 Calculated finish date > imposed finish date
• Negative float appears when you enter the imposed date
• You need to accelerate / crash the schedule
130
April 13, 2015
Examples with Imposed Finish Dates
Repeat Example 3 with imposed finish
date of 28 days
Repeat Example 3 with imposed finish
date of 22 days
131
April 13, 2015
Imposed Finish Date > Calculated Finish Date
3
3
0, 5
5, 11
4
4
11, 14
3
15, 23
B
6
E
3
I
8
8, 14
15, 18
18, 26
5, 10
3
11, 15
8
3
L
2
15, 17
A
5
C
5
F
4
J
2
3, 8
9, 14
14, 18
23, 25
23, 25
26, 28
25
PF
28
6
5, 8
6
8, 12
6
12, 19
6
19, 22
D
3
G
4
H
7
K
3
11, 14
14, 18
18, 25
25, 28
132
April 13, 2015
Imposed Finish Date < Calculated Finish Date
-3
-3
0, 5
-2
5, 11
-2
11, 14
-3
15, 23
B
6
E
3
I
8
2, 8
9, 12
12, 20
5, 10
-3
11, 15
2
-3
L
2
15, 17
A
5
C
5
F
4
J
2
-3, 2
3, 8
8, 12
17, 19
23, 25
20, 22
25
PF
22
0
5, 8
0
8, 12
0
12, 19
0
19, 22
D
3
G
4
H
7
K
3
5, 8
8, 12
12, 19
19, 22
133
Negative Float
April 13, 2015
 Negative float is a situation that occurs when
performing an activity even on its early dates, fails
to meet the project’s imposed finish date or other
constraint
 It may occur in one of two cases:
Before construction starts
During construction (after normal start)
134
Calendars
April 13, 2015
 Each activity has to be assigned a calendar
 Different crews working for different activities work on
different calendars.
 The crew working for the same activity may work 5
days/week at normal times then switch to 6 or 7 days/week
 User has to be aware of the impact of such matter on
the duration of activities and consequently the project
135
April 13, 2015
 Computer scheduling programs can handle
calendars:
Global, default, and other calendars
 Recurring holidays
 Work hours per day
 Resource calendars
 Scheduling in other countries
136
Non-Work Days
April 13, 2015
 Schedulers must take in account non-work days.
This includes:
 Scheduled non-work days such as:.
• Holidays,
• Shut-downs.
 Unscheduled non-work days such as:
• Rain days (or severe weather),
• Other unforeseen interruptions
 Distribution of unscheduled non-work days
137
April 13, 2015
Event Times in Arrow Networks
 The early event time, TE, is the largest (latest) date
obtained to reach an event (going from start to finish).
 The late event time, TL, is the smallest (earliest) date
obtained to reach an event (going from finish to start).
Example
Perform the CPM calculations, including the event times, for the arrow
network shown below.
138
April 13, 2015
A
10
20 8D
d1
10
B
E
30 9
5
C
7
60
G5
H
50
8
40 4F
Arrow network for example
d2
70
139
April 13, 2015
The preceding logic is similar to that of the forward and backward
passes: When you are going forward, pick the largest number.
When you are going backward, pick the smallest number.
TEi
i
TEj
Act. Name
Dur.
j
TLj
TLi
CPM
140
April 13, 2015
10
A
(0,10)
10 (0,10)
D
20 8
(10,18)
(11,19)
B
5
d1
(0,5)
(5,10)
7
0
C (0,7)
7 (8,15)
40 4F
15
(19,24)
60
G5 (22,27)
(19,27)
H
50
27
10
0
10
24
10
(10,19)
E
30 9 (10,19)
10
(7,11)
(15,19)
19
8
19
(19,27)
d2
27
70
27
141
April 13, 2015
Float Calculations From Event Times
Total Float
TFij = TLj - TEi - Tij
Example ( In the previous network )
TF40-50 = TL50 – TE40 – T40-50
= 19 – 7 – 4 = 8
142
April 13, 2015
Free Float
FFij = TEj - TEi – Tij
Example
FF40-50 = TE50 – TE40 – T40-50
= 19 – 7 – 4 = 8
143
Interfering Float
INTFij = TLj – TEj
Example
INTF40-50 = TL50 – TE50
= 19 – 19 = 0
Independent Float
INDFij= TEj – TLi - Tij
Example
INDF40-50 = TE50 – TL40 – T40-50
= 19 – 15 – 4 = 0
April 13, 2015
144
Example
April 13, 2015
Draw a network for the following activities
Activity
Duration
IPAs
A
2
--
B
2
A
C
4
A
D
1
C
E
4
B,C
F
2
B
G
1
D
H
4
F,E
I
2
F
J
4
G,H
K
4
I,H
L
1
K,J
145
The
1
A
April 13, 2015
Arrow Network will be:
B
2
2
F
3
2
I
9
10
2
2
C 4
4
4
6
E
7
4
D
H
11
12
4
J
1
5
K
G
1
8
4
L
1
13
146
Forward
0
1
2
A
April 13, 2015
Pass calculations (ES, EF)
4
B
2
2
6
F
3
2
C 4
14
I
9
2
2
6
6
4
6
E
7
D
4
14
10
4
1
10
H
18
11
12
4
J
7
5
K
14
G
1
8
4
19
L
1
13
147
backward
0
1
2
A
April 13, 2015
Pass calculations (LS, LF)
6
B
2
2
10
F
3
2
C 4
14
I
9
2
2
6
6
4
6
E
7
D
4
14
10
4
1
10
H
18
11
12
4
J
13
5
K
14
G
1
8
4
19
L
1
13
148
April 13, 2015
Specify
the Critical Path
0
0
2
2
1
A
6
4
B
2
2
10
6
F
3
2
I
9
6
6
4
6
D
E
7
H
K 18
4
18
11
12
4
13
7
5
14
14
10
10
4
1
10
2
2
6
6
C 4
14
14
J
14
14
G
1
8
4
19
19
L
1
13
149
April 13, 2015
0
0
1
2
2
A
6
4
B
2
2
10
6
F
3
2
I
9
6
6
4
6
D
E
7
H
K 18
4
18
11
12
4
13
7
5
14
14
10
10
4
1
10
2
2
6
6
C 4
14
14
J
14
14
G
1
8
4
19
19
L
1
13
150
April 13, 2015
Table of activities
Activity
Duration
IPAs
ES
EF
LS
LF
TF
A
2
--
0
2
0
2
0
B
2
A
2
4
4
6
2
C
4
A
2
6
2
6
0
D
1
C
6
7
12
13
6
E
4
B,C
6
10
6
10
0
F
2
B
4
6
8
10
4
G
1
D
7
8
13
14
6
H
4
F,E
10
14
10
14
0
I
2
F
6
8
12
14
6
J
4
G,H
14
18
14
18
0
K
4
I,H
14
18
14
18
0
L
1
K,J
18
19
18
19
0
151
Activity
Bar / Gantt chart Early Start / Finish
EF = ES + D
A
April 13, 2015
B
C
D
E
F
G
H
I
J
K
L
2
4
6
8
10
Time
12
14
16
18
20
152
Activity
Bar / Gantt Chart Late Start / Finish
LS = LF - D
A
April 13, 2015
B
C
D
E
F
G
H
I
J
K
L
2
4
6
8
10
Time
12
14
16
18
20
153
Bar / Gantt of the previous network
April 13, 2015
A
B
C
D
E
F
G
H
I
J
K
L
2
4
6
8
10
12
14
16
18
20
154
April 13, 2015
Summary
TEi
i
TLi
Direction
TEj
T
j
TLj
Float
TF
FF
Int. F
Ind. F
155
True or False:
Quiz 4
April 13, 2015
•
Determining activities durations is primarily the scheduler’s job
•
You can find out the project’s estimated completion date after
•
performing the forward pass only
•
You can find out the project’s critical path after performing the
forward pass only
•
“Event” is another name for an activity
•
“Task” is another name for an activity
•
There could be more than one critical path in a CPM network
•
Total float must be equal to or greater than free float
156
Definitions
April 13, 2015
Activity, or task: A basic unit of work as part of the total project
that is easily measured and controlled. It is time- and resource
consuming.
Backward pass: The process of navigating through a network from
end to start and calculating the late dates for each activity. The late
dates (along with the early dates) determine the critical activities,
the critical path, and the amount of float each activity has.
Critical activity: An activity on the critical path. Any delay in the
start or finish of a critical activity will result in a delay in the entire
project.
Critical path: The longest path in a network, from start to finish,
including lags and constraints.
157
April 13, 2015
Early dates: The early start date and early finish date of an activity.
Early finish (EF): The earliest date on which an activity can finish within project
constraints.
Early start (ES): The earliest date on which an activity can start within project
constraints.
Event: A point in time marking a start or an end of an activity. In contrast to an
activity, an event does not consume time or resources.
Forward pass: The process of navigating through a network from start to end and
calculating the completion date for the project and the early dates for each activity.
Late dates: The late start date and late finish date of an activity.
Late finish (LF): The latest date on which an activity can finish without extending
the project duration.
Late start (LS): The latest date on which an activity can start without extending the
project duration.
158
April 13, 2015
Precedence Diagram
159
The Four Types Relationships
April 13, 2015
Activities represented by nodes and links that
allow the use of four relationships:
1) Finish to Start – FS
2) Start to Finish – SF
3) Finish to Finish – FF
4) Start to Start – SS
160
April 13, 2015
Finish to Start (FS) Relationship
. The traditional relationship between activities.
. Implies that the preceding activity must finish
before the succeeding activities can start.
. Example: the plaster must be finished before the
tile can start.
Plaster
Tile
161
April 13, 2015
Star to Finish (SF) Relationship
. Appear illogical or irrational.
. Typically used with delay time OR LAG.
. The following examples proofs that its logical.
Erect
formwork
steel
reinforcement
Pour
concrete
5
SF
Order
concrete
162
April 13, 2015
Finish to Finish (FF) Relationship
• Both activities must finish at the same time.
• Can be used where activities can overlap to a
certain limit.
Erect
scaffolding
Remove
Old paint
FF/1
sanding
FF/2
painting
inspect
Dismantle
scaffolding
163
April 13, 2015
Start to Start (SS) Relationship
• This method is uncommon and non exists in
project construction .
Clean surface
Spread grout
SS
Set tile
Clean floor area
164
April 13, 2015
Advantages of using Precedence Diagram
1. No dummy activities are required.
2. A single number can be assigned to identify each
activity.
3. Analytical solution is simpler.
165
Calculation
1) forward calculations
EF = ES + D
Calculate the Lag
LAGAB = ESB – EFA
Calculate the Free Float
FF = Min. (LAG)
April 13, 2015
166
April 13, 2015
2) Backward calculations
For the last task
LF=EF ,
if no information deny that.
LS=LF-D
Calculate Total Float
TF = LS – ES OR
LF – EF
TFi = Min (lag ij + TFj )
Determine the Critical Path
167
Example
April 13, 2015
1) Forward pass calculations
4) Backward pass calculations
5) Calculate total Float (TF = LS – ES OR LF – EF)
A
1
2
B
0
1
2
0 0 2
11
1
9
0
D
0
2
11
0 11
16
5
0 0 16
7
E
0
5
7
0 3 10
11
5
4
0
H
0
16
20
20 0 0 20
21
4
5
0
2
16
11
4
C
F
0
1
20
0 0 21
3
G
0
10
11
3 14
17
6
3
14
3 20
2) Calculate the Lag ( LAGAB = ESB – EFA)
3) Calculate the Free Float (FF) FF = min.( LAG)
ES
Dur. LS
EF FF 167
TF LF
168
April 13, 2015
6) Determine the Critical Path
A
1
2
B
0
1
2
0 0 2
11
1
9
0
D
0
2
11
0 11
16
5
0 0 16
7
E
0
5
7
0 3 10
11
5
4
0
H
0
16
20
20 0 0 20
21
4
5
0
2
16
11
4
C
F
0
1
20
0 0 21
3
G
0
10
11
3 14
17
6
3
14
3 20
The critical path passes through the critical activities where TF = 0
ES
Dur. LS
EF FF 168
TF LF
169
April 13, 2015
Resource Allocation and
Resource Leveling
170
April 13, 2015
CATEGORIES OF RESOURCES
 Labor
 Materials
 Equipment’s.
171
Labor
April 13, 2015
1. Salaried staff: like-project engineer, secretary.
2. Hourly workers: like-carpenters.
Equipment and Materials
1. Construction equipment and materials
2. Installed equipment and materials
172
April 13, 2015
What is resource allocation?
Resource allocation(resource loading) :
Is the assignment of the required resources to
each activity, in the required amount and timing.
What Is Resource Leveling?
Is minimizing the fluctuations in day-to-day
resource use throughout the project.
It is usually done by shifting noncritical activities
within their available float. It attempts to make the
daily use of a certain resource as uniform as
possible.
173
April 13, 2015
Why level Resources?
1. When the contractor adds the daily total demand
for a specific resource for all activities he must
provide the required amount, or work will be
delayed.
2. Leveling may also be necessary for an expensive
piece of equipment.
3. The main idea of resource leveling is to improve
work efficiency and minimize cost during the life of
the project.
Note: In general, materials do not need to be leveled
174
April 13, 2015
Leveling Resources in a Project
oResource leveling is a mathematically complex
process.
oThe resource-leveling method is called the
minimum moment algorithm.
o discussed by Robert B. Harris (1978) in his classic textbook, Precedence
and Arrow Networking Techniques for Construction
175
Resource
need
Resource Profiles
April 13, 2015
Actual, not leveled
Leveled, realistic
Ideal
Time
176
Sort
April 13, 2015
Sort : the process of arranging
activities in a list to certain specific
order.
177
Priorities & Sorts
April 13, 2015
 The activities making up the network must be
listed in order of their priority of resources
allocation.
 The network shows the logical sequence of
activities. (predecessor and successor).
 The listing of activities must therefore reflects the
dependency of some activities .
178
April 13, 2015
Activities Sort
Activity
Duration
ES
TF
Resource
unit
A
1
1
0
8H
B
9
2
0
9H
C
5
2
3
7H
D
5
11
0
5H
E
4
7
3
4H
F
4
16
0
8H
G
6
11
3
2H
H
1
20
0
4H
Activity sort reflects the logic sequence of the network.
179
April 13, 2015
Major Sort
Activity
Duration
ES
TF
Resource
unit
A
1
1
0
8H
B
9
2
0
9H
C
5
2
3
7H
E
4
7
3
4H
G
6
11
3
2H
D
5
11
0
5H
F
4
16
0
8H
H
1
20
0
4H
Activity sort with ES time as Major sort
180
April 13, 2015
Major & Minor Sorts
Activity
Duration
ES
TF
Resource
unit
A
1
1
0
8H
B
9
2
0
9H
C
5
2
3
7H
E
4
7
3
4H
D
5
11
0
5H
G
6
11
3
2H
F
4
16
0
8H
H
1
20
0
4H
Activity sort with ES time as Major sort & TF as Minor Sort
181
Allocated resources
April 13, 2015
8H
A
9H 9H 9H 9H 9H 9H 9H 9H 9H
Activity
B
7H 7H 7H 7H 7H
C
4H 4H 4H 4H
E
5H 5H 5H 5H 5H
D
2H 2H 2H 2H 2H 2H
G
8H 8H 8H 8H
F
4H
H
2
4
6
8
10
Time
12
14
16
18
20
182
2
4
6
8
Time
10
12
14
April 13, 2015
16
18
20
8H
A
9H 9H 9H 9H 9H 9H 9H 9H 9H
B
7H 7H 7H 7H 7H
Activity
C
4H 4H 4H 4H
E
5H 5H 5H 5H 5H
D
G
2H 2H 2H 2H 2H 2H
8H 8H 8H 8H
F
4H
H
Total Labor
8 16 16 16 16 16 1313 13 13 7
7
7 7
7 10 8
Early start resources aggregation
8 8 4
183
Resource Aggregation
April 13, 2015
Resources aggregation: is a summation of the
resources that are used to carry out the program on
a time period basis. For example, day to day , or
week to week.
184
April 13, 2015
Total Labor
8 16 16 16 16 16 1313 13 13 7
7
7 7
7 10 8
8 8 4
Labor
16
14
12
10
8
6
4
2
2
4
6
12
8
10
14
16
18
20
184
Early start resources aggregation diagram (Histogram) Time
185
Late start
April 13, 2015
 Another histogram can be obtained if Late
start considered. Shows different resources
demand.
 And many histograms can be obtained
considering a different time in the network.
 Each histogram shows different resources
demand.
186
April 13, 2015
late Start Sorts
Activity
Duration
LS
TF
Resource
unit
A
1
1
0
8H
B
9
2
0
9H
C
5
5
3
7H
E
4
10
3
4H
D
5
11
0
5H
G
6
14
3
2H
F
4
16
0
8H
H
1
20
0
4H
Activity sort with LS time as Major sort & TF as Minor Sort
187
Time
2
4
6
8
April 13, 2015
12
10
14
16
18
20
8H
A
9H 9H 9H 9H 9H 9H 9H 9H 9H
B
7H 7H 7H 7H 7H
Activity
C
4H 4H 4H 4H
E
5H 5H 5H 5H 5H
D
2H 2H 2H 2H 2H 2H
G
8H 8H 8H 8H
F
4H
H
Total Labor
8 9 9
9 16 16 1616 16 13 9
9
9 7
7 10 10 10 10 4
Late start resources aggregation
188
April 13, 2015
Total Labor
8 9 9
9 16 16 1616 16 13 9
9
9 7
7 10 10 10 10 4
Labor
16
14
12
10
8
6
4
2
2
4
6
8
10
12
14
16
18
Late start resources aggregation diagram (Histogram)
20
Time
189
April 13, 2015
Total Labor
8 9 9
9 16 16 1616 16 13 9
9
9 7
7 10 10 10 10 4
Labor
16
14
12
10
8
6
4
2
2
4
6
8
10
12
14
16
18
20
Time
189
Early start vs Late start resources aggregation diagram (Histogram)
190
April 13, 2015
Total Labor
8 9 9
9 16 16 1616 16 13 9
9
9 7
7 10 10 10 10 4
Labor
16
14
12
10
8
6
4
2
2
4
6
8
10
12
14
16
18
20
190Time
Early start vs Late start resources aggregation diagram (Histogram)
191
E
Example
10
5
6 0 0
F
13
10 0 6 16
13 0 6 19
16
C
G
4
5
12
1
6
6
11 0 0 11
6
11
I
17
A
1
April 13, 2015
16
16 6 6 22
B
6
6
11
2
3
2
22
14 0 0 14
12
14
8
14
22 0 0 22
H
8
6
16
14 8 8 22
2
22
24 0 0 24
J
Dur. LS
EF FF TF LF
6 6 22
11
8 0 6 14
ES
19
K
D
6
3
192
Activities Sort
April 13, 2015
Activity
Duration
ES
TF
Resource
unit
A
5
1
0
8H
C
5
6
0
2H
D
2
6
6
4H
B
4
6
6
9H
H
6
8
8
5H
E
6
10
6
5H
G
3
11
0
2H
F
2
11
6
8H
I
3
13
6
5H
J
8
14
0
2H
K
2
22
0
6H
Activity sort with ES time as Major sort & TF and duration as Minor Sorts
2
4
6
8
Time
10
12
14
16
18
April 13, 2015
A
8H 8H 8H 8H 8H
C
2H 2H 2H 2H 2H
D
4H 4H
B
9H 9H
9H
9H 9H 9H
9H
H
5H 5H 5H
E
5H 5H 5H
5H 5H 5H 5H 5H 5H
G
2H 2H 2H
F
8H 8H
I
5H 5H 5H
J
2H 2H 2H 2H 2H 2H 2H 2H
6H 6H
K
Total
Labor
20
193
22
24
8 8
8 8
8 15 1516 16 12 20 20 17 12 12 2 2
Early start resources aggregation
2 2 2 2 6
6
Total
Labor
8 8
8 8
8 15 1516 16 12 20 20 17 12 12 2 2
2 2 2 2 61946
April 13, 2015
20
18
Labor
16
14
12
10
8
6
4
2
2
4
6
8
10
12
Time
14
16
18
20
22
24
Early start resources aggregation diagram
195
Activities Sort
April 13, 2015
Activity
Duration
LS
TF
Resource
unit
A
5
1
0
8H
C
5
6
0
2H
D
2
12
6
4H
B
4
12
6
9H
E
6
16
6
5H
H
6
16
8
5H
G
3
11
0
2H
F
2
17
6
8H
I
3
19
6
5H
J
8
14
0
2H
K
2
22
0
6H
Activity sort with LS time as Major sort & TF and duration as Minor Sorts
2
4
6
8
Time
10
12
14
16
18
April 13, 2015
A
20
196
22
24
8H 8H 8H 8H 8H
C
2H 2H 2H 2H 2H
D
4H 4H
B
9H 9H 9H 9H
E
5H 5H 5H 5H 5H 5H
H
5H 5H 5H 5H 5H 5H
G
2H 2H 2H
F
8H 8H
I
5H 5H 5H
J
2H 2H 2H 2H 2H 2H 2H 2H
6H 6H
K
Total
Labor
8 8
8 8
8
2 2 2
2
2
2 15 15 11 11 12 20 2017 17 17 6
Late start resources aggregation
6
Total
Labor
8 8
8 8
8
2 2 2
2
2
2 15 15 11 11 12 20 20 17 17 17 61976
April 13, 2015
20
18
Labor
16
14
12
10
8
6
4
2
2
4
6
8
10
Time
12
14
16
18
20
22
24
Late start resources aggregation diagram
198
April 13, 2015
Early start
Labor
20
18
16
14
12
10
8
6
4
2
Labor
20
18
16
14
12
10
8
6
4
2
Late start
199
Smoothing/Leveling
April 13, 2015
 Let us program activity F to start by its late start
day which is day 17.
 And activity I to start by day 14.
 The resulting resources aggregation histogram
will be as follows:
2
4
6
8
Time
10
12
14
16
18
April 13, 2015
A
20
200
22
24
8H 8H 8H 8H 8H
C
2H 2H 2H 2H 2H
D
4H 4H
B
9H 9H
9H
9H 9H 9H
9H
H
5H 5H 5H
E
5H 5H 5H
5H 5H 5H 5H 5H 5H
G
2H 2H 2H
F
8H 8H
I
5H 5H 5H
J
2H 2H 2H 2H 2H 2H 2H 2H
6H 6H
K
Total
Labor
8 8
8 8
8 15 1516 16 12 12 12 12 12 12 7 10 10 2 2 2 6
Early start resources aggregation
6
201
Total
Labor
8 8
8 8
8 15 15 16 16 12 12 12 12 12 12 7 10
10 2 2 2 6
April 13, 2015
20
18
Labor
16
14
12
10
8
6
4
2
2
4
6
8
10
12
Time
14
16
18
20
22
24
6
202
Smoothing/Leveling
April 13, 2015
 Let us program activity H to start by its late start
time.
 So its resources demand starts with its Late
start date.
 The resulting resource aggregation and
histogram will be as follows:
203
2
A
4
6
8
Time
10
12
14
16
April 13, 2015
20
22
24
8H 8H 8H 8H 8H
C
2H 2H 2H 2H 2H
D
4H 4H
B
9H 9H
9H
9H 9H 9H
9H
H
5H 5H 5H
5H 5H 5H
E
5H 5H 5H 5H 5H 5H
G
2H 2H 2H
F
8H 8H
I
5H 5H 5H
J
2H 2H 2H 2H 2H 2H 2H 2H
6H 6H
K
Total
Labor
18
8 8
8 8
8 15 1516 16 7 15 15 12 7 7
7 7
7 7 7 7 6
6
204
Total
Labor
8 8
8 8
2
4
8 15 15 16 16 7 15 15 12 7
7
7 7
7 7 7 7 6
April 13, 2015
6
20
18
Labor
16
14
12
10
8
6
4
2
6
8
10
12
Time
14
16
18
20
22
24
205
Smoothing/Leveling
April 13, 2015
 In case activity D is split able activity. It could be
interrupted to be carried out in tow parts.
 Let us program activity B to start by 7th day .
 And activity H to starts by its Late start date.
 And activity E to start by day 14.
 The resulting resource aggregation and histogram
will be as follows:
2
A
4
6
8
Time
10
206
12
14
16
18
April 13, 2015
20
24
8H 8H 8H 8H 8H
C
2H 2H 2H 2H 2H
D
4H
B
4H
9H 9H 9H 9H
H
5H 5H 5H
E
5H 5H 5H
5H 5H 5H 5H 5H 5H
G
2H 2H 2H
F
8H 8H
I
5H 5H 5H
J
2H 2H 2H 2H 2H 2H 2H 2H
6H 6H
K
Total
Labor
22
8 8
8 8
8 6
11 11 11 11 10 10 11 12 12 12 12 12 12 7 7
Early start resources aggregation
6
6
207
Total
Labor
8 8
8 8
8 6
11 11 11 11 10 10 11 12 12 12
12 12 12 7 7
April 13, 2015
6
20
18
Labor
16
14
12
10
8
6
4
2
2
4
6
8
10
12
Time
14
16
18
20
22
24
208
Early Start OR Early Finish
April 13, 2015
 There are many solutions between the
limits of Early Start and Early Finish.
 The optimal solution is zero fluctuation
histogram. Which is hard to be achieved.
 It is preferred to solve the problem
toward the Early start resources
aggregation diagram.
WHY ?!
209
April 13, 2015
 Because if there are labor availability
problems to be overcome, they will occur
in the early beginning of the project.
 By other words, if the program based on
the Late Start date, it means that all the
activities are Critical, and any labor
problem will affect the project
completion.
210
April 13, 2015
Allocation within resources restraints
 Another situation which you may face in practice
is the restricted resources availability.
 Where you have to carry out the job with the
available resources only.
 In this case the project duration may be
prolonged to suit the availability of the restricted
resources.
211
April 13, 2015
Rules for scheduling activities with
limited resources
1) schedule activities to start as soon as their predecessors have
been completed.
2) if more than one activity using a specific limited resources
can be scheduled, priority is given to the activity with early Late
Start. ( LS as Major Sort)
3) if tow or more activities have the same Late start, give
priority to the activity with least Total Float. (TF as Minor Sort)
4) if the activities have the same Total Float in the minor sort,
give the priority to the activity with the Largest Number of
Resources.
5) If the activities are tied in the number of resources, give
priority to the activity that has already started.
212
Example
April 13, 2015
A
1
2
1
0
0
B
1
2
2
11
8H
9
0
Activity desc.
ES Dur. LS
EF FF TF LF
Resources
2
0 11
11
5
16 0
F
11
0 16
16
4
20 0
5H
8H
C
E
G
5
7
3 10
11
5
0
7H
4
0
10
3 14
4H
11
H
16
0 20
9H
2
7
D
6
17 3
2H
20
1
21 0
4H
14
3 20
20
0 21
213
April 13, 2015
Activity
Duration
ES
TF
Resource
unit
A
1
1
0
8H
B
9
2
0
9H
C
5
2
3
7H
E
4
7
3
4H
D
5
11
0
5H
G
6
11
3
2H
F
4
16
0
8H
H
1
20
0
4H
Activity sort with ES time as Major sort & TF as Minor Sort
214
April 13, 2015
 Assume that the available labors in the
company restricted to 10 helpers, and the
company decided to carry out the job without
resorting to hire more labor.
 The resulting program will exceed the Early
finish date based on the network.
215
April 13, 2015
Total Labor
8 16 16 16 16 16 1313 13 13 7
7
7 7
7 10 8
8 8 4
Labor
16
14
12
10
8
6
4
2
2
4
6
12
8
10
14
16
18
20
215
Early start resources aggregation diagram (Histogram) Time
Activity
2
A
B
C
E
D
G
F
H
Total Labor
4
6
8
Time
10 12 14 16 18 20 22
24 26
April 13, 2015
8H
9H 9H 9H 9H 9H 9H 9H 9H 9H
7H 7H 7H 7H
4H 4H 4H 4H
5H 5H 5H 5H 5H
2H 2H 2H 2H 2H 2H
8H 8H 8H
4H
8 9 9 9 9 9 9 9 9 9 7 7 7 7 9 9 9 9 7 10 10 10 2 2 4
12
Labor
Limit
10
Labor
216
8
6
4
2
Time
Resources aggregation diagram
217
Money and network schedules
April 13, 2015
Reminder, cost was one of the elements of project constraints triangle
( COST, TIME & QUALITY).
An effective management tries to minimize and integrate the above
mentioned elements.
CPM provides a mean for relating time and money.
The application of resources to a project (materials, manpower and
machinery) related to another resource which is MONEY.
The value of the resources for each activity represents
a component of project cost.
218
Hint
Construction costs includes:
1) Materials costs.
2) labor costs.
3) plant and equipment costs
4) overhead costs and profit.
April 13, 2015
219
E
Example
10
5
6 0 0
F
13
10 0 6 16
13 0 6 19
16
C
G
4
5
12
1
6
6
11 0 0 11
6
11
I
17
A
1
April 13, 2015
16
16 6 6 22
B
6
6
11
2
3
2
22
14 0 0 14
12
14
8
14
22 0 0 22
H
8
6
16
14 8 8 22
2
22
24 0 0 24
J
Dur. LS
EF FF TF LF
6 6 22
11
8 0 6 14
ES
19
K
D
6
3
220
April 13, 2015
Activity
Duration
ES
TF
Cost ($(
A
5
1
0
650
C
5
6
0
1300
D
2
6
6
400
B
4
6
6
1450
H
6
8
8
500
E
6
10
6
1100
G
3
11
0
600
F
2
11
6
350
I
3
13
6
1000
J
8
14
0
1300
K
2
22
0
200
221
2
A
C
4
6
8
Time
12
10
B
100 250
9H
9H 300
9H 100
9H
F
150 100
K
Total
cost
22
24
200 200 100 150 100 150
200 200 200
J
20
50 100 150 200 50 50
G
I
18
April 13, 2015
150 100 200 200 150
200 200
E
16
200 100 200 100 50
D
H
14
200 100100
100 100 150 200 100100 150 100
100 100
200 100 200 100 50 350 550550 400 500 750 450 600 300 350 150 200 100100150 100 100 100
222
Total
cost
200 100 200 100 50 350 550550 400 500 750 450 600 300 350 150 200 100100 150 100 100 100
April 13, 2015
800
700
600
500
400
300
200
100
2
4
6
8
10
Time
12
14
16
18
20
22
24
223
Cash Flow
April 13, 2015
 It is quite significant to the contractor to know the
amount of money that would be spent in each stage
of the project.( Expenditures)
 And compare it to the amount of money that would
be received. (income)
Overtrading
 Overtrading: arises when the current liabilities of
a company exceed the current assets, even though
the business is solvent.
224
Total
cost
Com.
cost
200 100 200 100 50 350 550550 400 500 750 450 600 300 350 150 200 100100 150 100 100 100
April 13, 2015
200 300 500 600 650 1000 1550 2100 2500 30003750 4200 4800 51005450 5600 580059006000 6150 6250 63506450
$
6400
6000
5600
5200
4800
4400
4000
3600
3200
2800
2400
2000
1600
1200
800
400
2
4
Com. cost = Cumulative Cost
6
8
10
Time
12
14
16
22
24
18
20
Cash Flow Diagram
225
April 13, 2015
Retainage Release
Expenditures
Revenues
Cumulative
Expenditure
s
& Revenues
Amount of
Negative
Cash Flow
Time (Months)
Cash Flow Curve for revenue and expenditures
226
Cash Flow Example
April 13, 2015
$
$$$
early
$$
planned
$
late
Time
227
Cash Flow: In and Out
$
April 13, 2015
Profit
Spending
Reimbursement
Time
228
Cash Flow Analysis
April 13, 2015
 Cash flow analysis consists of a detailed
examination of funds disbursement
(expenditures) and the receipt of revenue.
 Cash flow shows if surplus fund available during
project, or if negative cash position will occur
during construction.
 The cash position of contractor during project
whether positive or negative is important.
229
Negative cash position
April 13, 2015
 Negative cash position means that the
revenues obtained from a project
insufficient to meet the financial
obligations (expenditures) of the project.
 In this case other fund from the company
or from outside sources must be used.
230
Positive cash position
April 13, 2015
 Positive cash position means that the
revenues obtained from a project exceed
the financial obligations (expenditures) of
the project.
 In this case surplus (extra) fund available
with the contractor.
 And the contractor may invest this
surplus funds for short duration.
231
Materials Management
April 13, 2015
Is defined as the planning and controlling of all
necessary efforts to ensure that the correct quality
and quantity of materials and equipment are
appropriately specified in a timely manner, are
obtained at a reasonable cost, and are available
when needed.
232
Materials management functions
April 13, 2015
 Identifying.
 Acquiring.
 Distributing.
 Disposing.
233
Objectives of materials management
April 13, 2015
 Ensure that materials meet the specifications
and are on hand when and where required.
 Obtain the best value for purchased materials.
 Provide efficient, low-cost transport, security,
and storage of materials at construction sites.
 Reduce any surplus to the lowest level possible.
234
Schedule Updating and
Project Control
April 13, 2015
235
Schedule updating
April 13, 2015
Schedule updating is just one part of the project
control process.
Schedule updating must reflect
 Actual work , and
 involves change orders (CO) .
236
What is an updated schedule?
April 13, 2015
A revised schedule reflecting project information at
a given data date regarding completed activities , in
progress activities , and change in the logic , cost ,
and resources and allocated at any level .
What is data date?
The data date is the date as of which all
progress on a project is reported.
It is also called as- of date and status date .
237
Why Update Schedules?
April 13, 2015
 Schedules (like cost estimates) are always
prepared before the project begins. However,
updates must take place routinely for the
following two reasons:
a. Unintentional events
b. Intentional changes
 Schedules without updating, monitoring,
controlling, and corrective action are useless
238
What kind of information is needed for
updating schedules ?
April 13, 2015
1. Past information : what has happened since the
last update ?.
2. Future information : the future category
comprises any changes to schedule or schedule
items.
Future changes are two types :
A. logic – driven changes
B. user’s changes
239
Frequency of updating
April 13, 2015
 Construction schedules may be updated
monthly , biweekly, weekly, or according to
another time interval .
 Project managers must achieve a delicate
balance between updates is too long and
one is too short
240
Updating schedules and pay requests
April 13, 2015
 In many cases , project updating is tied to payment
requests.
 In general , a pay requests is a document submitted by the
contractor to the owner , asking for payment for work
actually performed (whether .finished or not)during the
period since the last pay request.
241
Effect of adding or deleting
activities on logic
April 13, 2015
 An activity in a schedule is usually like a link in a chain
; removing a link may disturb the whole chain if it is
not done properly.
For example :
Deleting activity AS520 in the partial network shown in figure will remove
any link between activities in each side.
AS210
TL160
AS250
AS245
AS260
242
April 13, 2015
 It is strongly recommended that the scheduler
review the logic before making any change by
first printing a logic report showing all
predecessors .and successors for the activity be
deleted.
243
Steps for Updating a Schedule
1.
April 13, 2015
The Schedule activity list
•
Filter out completed activities
•
Eliminating activities in the far future?
•
Scheduler sends it to the project
PM / superintendent
•
Possibility that PM/superintendent wants to change
past events
244
Example 1: No Cost
April 13, 2015
245
Example 2: With Cost
April 13, 2015
246
April 13, 2015
2.
The PM (or superintendent) fills up the form, signs
and dates it; and submits it back to the scheduler

It is a good idea for the PM to keep a copy for his/her
records

It is a good idea to assign “ink colors” to different parties
3. The scheduler enters the info in the computer and
updates the project, signs and dates the forms
247
April 13, 2015
4.
The scheduler prints a preliminary report and
discusses it with the PM

It is a good idea to produce a summary report (what
happened between last update and this update)

Based on this discussion, the scheduler makes any
necessary adjustments to the schedule or reports

Any changes to the schedule requested by the PM
have to be documented by the scheduler
248
Myths/Misconceptions About
Schedule Updating
April 13, 2015
 We always produce a complete schedule before
the commencement of construction. We just
don’t update it, We trust our field staff and
subcontractors to follow it.
 We update projects only when there is a “need”
for the update
 Everything is going well. There is no need for an
update
249
Quiz 6
April 13, 2015
True or False:
1. Updating is needed for projects that have duration of at
least one year or a minimum budget of QAR 10 million
2. Data date is the date all information was entered in the
computer
3. In updating schedules, we must enter not only actual
work progress but also any future changes
4. Negative float is an indication that the schedule is not
meeting its expected completion date or an interim
imposed date
250
April 13, 2015
Project Control
251
Project Control
April 13, 2015
Project control is the continuous practice of
1. monitoring work progress,
2. comparing it to baseline budget and schedule,
3. detecting any deviations and their causes, and
4. taking a corrective action wherever and whenever
necessary
The ability to determine a project status as it
relates to the time and schedule selected
Also called project tracking
Project monitoring?
252
Why Project Control?
April 13, 2015
 Project control is needed because projects never
run exactly as planned.
 Project control is a cyclical iterative task: do
small part of the work and compare to baseline,
do corrective measure, adjust plan (if needed),
do another part of the work, and so on..
 Project control requires measuring work
progress and calculating activities percent
complete
253
What is a baseline schedule?
April 13, 2015
A baseline schedule is a schedule prepared by
the contractor ,usually before the start of the
project ,and used for performance
comparison.
Baseline Budget: The project’s original
approved budget including any approved
changes
254
Percent Complete
April 13, 2015
 Percent Complete (PC or PCT): is an estimate,
expressed as a percent, of the amount of work that
has been completed on an activity or a work
breakdown structure component. (PMBOK 2008)
 Percent complete may be used to estimate:

Activity

Groups of activities / assembly / work package

Project
255
Types of Percent Complete
April 13, 2015
 Depending on the type and nature of the
activity, percent complete may be calculated
using one of several methods that may yield
different results
 Some methods are more subjective than others
 None of these methods is wrong. None of them is
uniquely considered the right method.
 Most importantly:
 Know exactly what each percent complete means
 Pick one or two parameters to use and then be
consistent
256
April 13, 2015
Major objectives for a good control plan:
1. Should accurately represent the work.
2. Permit deviations to be detected,
evaluated and forecasted.
3. Should make provision for periodic
corrective actions.
257
Level of Control
April 13, 2015
 Small projects - low cost - short duration
 Detailed network
 Reporting mechanism
 Middle-sized projects (300 activities)
 Detailed network
 Summary network
 Area and craft network
258
Monitoring the Project
April 13, 2015
1. Feedback from direct contact
 Efficient but requires close cooperation between
the manager and field personnel.
2.
Feedback from photography
 Record progress and provide permanent
documentation of the work.
 Tell nothing about the time taken to perform the
work.
3.
Feedback from check-off list
 Planner prepares a check-off list that is started, to
be continued, or to be finished in the next time
interval.
 Effective if the reporting periods are short “Daily,
Weekly” and small number of activities involved.
 Disadvantage: false reporting
259
April 13, 2015
4.Feedback from bar chart.
5.Feedback from networks
Advantage:
Superintendent has complete information about the
status of the project.
Disadvantage:
Diagram may appear confusing to field personnel.
260
Setting the Target Schedule
April 13, 2015
 Early Start Schedule: As Target for Control
Problem:
Required high effort to keep the plan working.
 Late Start Schedule As Target for Control
Problem:
Because every activity is timed to start as its
latest, project overruns are sure to follow.
 Activities may be positioned early or late start or somewhat in
between.
 Non-critical activities allow intermediate start.
261
Anticipated target S-Curve
April 13, 2015
262
The S-Curve field
April 13, 2015
263
April 13, 2015
Sample Project Cost Data
264
April 13, 2015
Early Start Tree
265
Late Start Tree
April 13, 2015
266
Target Network
April 13, 2015
267
Project S-Curve
April 13, 2015
268
Actual Versus Target S-Curves
April 13, 2015
269
April 13, 2015
Earned Value Analysis
270
Earned Value Analysis
April 13, 2015
 Earned Value (EV) Analysis: Earned Value analysis is
an integrated cost-schedule approach to monitor and
analyze the progress in a project.
 Earned Value Management (EVM), started in the
1960’s as a method for integrated project cost and
schedule control, was designed by the U.S. Air Force
and named the Cost/Schedule Planning and Control
System.
 In 1967, it became U.S. DOD policy and was renamed
Cost/ Schedule Control Systems Criteria, or C/SCSC
271
The Concept of EVM
April 13, 2015
 The concept of Earned Value is simple; at any given point
find out:
1.
The cost of work you have actually done (ACWP),
2. The cost of work you planned to do by this date (BCWS),
3. The amount earned for work performed (BCWP),
4. Calculate schedule and budget variances (SV, CV)
5. Analyze causes for major variances and suggest remedies,
6. Extrapolate these variances to the end of the project (FSV, FCV).
272
Foundations of modern cost control
April 13, 2015
 What’s more important?
• Knowing where you are on schedule?
• Knowing where you are on budget?
• Knowing where you are on work accomplished?
 Earned Value Analysis (EVA) addresses all three:
• It compares the PLANNED amount of work with what has
actually been COMPLETED to determine if COST,
SCHEDULE, and WORK ACCOMPLISHED
are progressing as planned.
273
EVA Terminology
April 13, 2015
 BCWS – Budgeted Cost of Work Scheduled
Planned cost of the total amount of work scheduled to be
performed by the milestone date. (a.k.a. your original plan)
 BCWP – Budgeted Cost of Work Performed
The planned (not actual) cost to complete the work that has
been done.
Also known as “Earned Value”
 ACWP – Actual Cost of Work Performed
Cost incurred to accomplish the work that has been done to
date.
274
Input data for EVA
April 13, 2015
 Activity schedule, usually in the form
of a bar chart.
 Budgeted cost for each activity.
 Percent complete for each activity.
 Cost to date for each activity.
275
Information Needed to Compute
April 13, 2015
 Budgeted Cost of Work Scheduled (BCWS)
Activity budget at completion (BAC)
Activity schedule
Data date
 Budgeted Cost of Work Performed (BCWP)
Activity budget at completion (BAC)
Physical activity progress as a percentage of its total work
 Actual Cost of Work Performed (ACWP)
Each activity’s cost to date from the job costing system
276
Earned Value Reporting - Costs
April 13, 2015
 Budgeted Cost of Work Performed (BCWP) = earned
value of project
 Actual Cost of Work Performed (ACWP)
 Cost Variance (CV)
Difference between earned and actual costs for the
completed work
 Cost Performance Index (CPI or CI)
CV  BCWP  ACWP
BCWP
CPI 
ACWP
CPI = 1, on budget
CPI < 1, over budget
CPI > 1, under budget
277
April 13, 2015
Earned Value Reporting - Schedule
 Budgeted Cost of Work Performed (BCWP)
 Budgeted Cost of Work Scheduled (BCWS)
 Schedule Variance (SV)
Difference between the value of work that was planned for
completion and the value of the work that was actually
completed
 Schedule Performance Index (SPI or SI)
SV  BCWP  BCWS
BCWP
SPI 
BCWS
SPI = 1, on schedule
SPI < 1, behind schedule
SPI > 1, ahead of schedule
278
Earned Value Reporting
April 13, 2015
(budgeted)
(earned)
(actual)
Nabil Dmaidi
278
279
April 13, 2015
Example
A simple problem will help to illustrate the application
of the principles of earned value . A project has been
defined that consist of 12 activities for which the
estimated cost and duration have been defined see
figure .
After three and a half month , the activates 1,2,4,5,7
are completed and (6) is one half complete and(8) is
three –fourth complete and (3) is half complete. The
incurred cost to date are 152000$ . What is the status
of this project in terms of the schedule and the budget?
Solution
280
April 13, 2015
Activity
cost
1
$22000
2
$10000
3
$18000
4
$30000
5
$50000
6
$40000
7
$6000
8
$16000
9
$13000
10
$4000
11
$34000
12
$14000
m1
m2
m3
m4
m5
m6
281
April 13, 2015
Solution
ACWP =152000$
BCWS=22000+30000+50000+10000+18000+0.5(40000+
6000+16000)=161000$
BCWP=22000+30000+50000+10000+6000+0,5(40000)
+0.75(16000)+0.5(18000)= 159000$
SV= BCWP-BCWS= -2000$ its behind schedule
CV=BCWP-ACWP= 7000$
below the budget
EAC=ACWP+(BAC-BCWP)=152000+(257000-159000)
= 250000$
282
Earned Value: Cost and Time Status
April 13, 2015
$
+
II
I
-
+
Time
III
IV
-
283
EVA: The Curve
April 13, 2015
284
Quiz 7
April 13, 2015
True or false:
1. Project control is to be practiced by both contractor and owner
2. Project monitoring is part of project control
3. For assistance in calculating progress payments, percent
4. complete for the project is more important than percent
complete of individual activities
5. It is possible that different parties compute the “project percent
complete” and come up with different estimates, yet none of
them is wrong!
6. It is possible to have the scheduler report saying the project is
behind schedule while the earned value analysis is showing a
positive schedule variance.
285
April 13, 2015
Time-Cost Trade-Off
Some amount of knowledge brings more……
286
Time /cost trade –off analysis
April 13, 2015
Time /cost trade –off analysis is the compression of
the project schedule to achieve a more favorable outcome
in term of project duration , cost , and projected revenues
Objective of time /cost trade-off
-compress project to an acceptable duration
-minimize total project costs
Done by selectively crashing specific activities to shorten
project duration
287
Time /cost trade –off analysis
April 13, 2015
 You might think that total project costs will increase
when we begin to crash activities
 But ,total project cost consist of both indirect (project
–based ) costs (PBC) and activity – based cost (ABC )
 -ABC goes up when we crash activities in an effort to
finish the project early
 -but ,PBC (the indirect cost ) goes down if we finish the
project early
288
What Is ‘‘Accelerating’’ a
Project?
April 13, 2015
 Accelerating a project means shortening the normal
duration of the project schedule .
 (also called schedule compression).
 schedule crashing
 Schedule acceleration
289
Why Accelerate a Project?
April 13, 2015
1.
The contractor’s ‘‘normal’’ finish date in the planned
schedule does not meet the imposed finish date of the
contract.
2.
After starting construction and completing a certain
percentage of the project, the contractor realizes that the
project is behind schedule.
3 -when the contractor may have a contractual monetary
incentive to finish ahead of schedule.
4- Sometimes, especially when the economy is doing well,
finishing early
means—to the contractor—starting another job earlier and, thus,
making
more profit.
290
Schedule Compression:
Multiple Paths
April 13, 2015
Path 1
Path 2
Path 3
Path 4
Path 5
Path 6
Path 7
Path 8
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
291
Cost Changing with
Schedule Acceleration
April 13, 2015
Cost
$
Direct Cost
Total Cost
Indirect Cost
292
Cost
April 13, 2015
For the following discussions it is important to
remember:
Direct costs: Related to putting the facility
components in place. They represent the resources
used by an activity. (material, labor and
equipment).
293
April 13, 2015
Indirect job costs (job overhead): costs that
could not be attributed to a specific work item.
(such as, site offices, superintendents, security
fence & etc.)
These costs are generally incurred whether or
not productive work achieved.
Longer project duration will result in higher
indirect costs.
294
April 13, 2015
 Operating Overhead costs (company overhead):
If the cost cannot be attributed to any specific job,
they are operating overhead costs, costs of
running business. (head office costs,
communications & etc).
 These costs continue as long as the company
exists even one project is running.
295
Logic of Time-Cost Trade-Off
April 13, 2015
Assumption: increasing or decreasing an
activity’s duration will lead to increased direct
costs for that activity.
296
April 13, 2015
Direct
Costs
Direct costs
Project duration
General relation of direct costs to project duration
297
April 13, 2015
Assumption: decreasing a project’s duration will
lead to lower indirect costs.
Indirect
Costs
indirect costs
Project duration
General relation of indirect costs to project duration
298
April 13, 2015
Assumption: A project’s duration can be
decreased by decreasing the duration of one or
more critical activities on the critical path.
Assumption: Decreasing a project’s duration may
increase or decrease the total cost of a project
depending upon whether the additional direct
costs required to decrease the activity duration
are greater or less than indirect costs savings of
decreasing the project’s duration.
299
April 13, 2015
Total project costs
Project
Costs
Direct costs
indirect costs
Project duration
General relation of project costs to project duration
300
Graph analysis
April 13, 2015
 A project’s total costs combines direct costs and indirect
costs. Therefore, the curve of total costs versus duration
involves adding the cost amounts of direct and indirect
costs curves.
 Remember, the direct costs curve has a negative slope
(direct costs increase as duration decrease) and
indirect costs curve has a positive slope (indirect costs
decrease as duration decreases).
 So, the slope of the total costs curves at any point
depends whether the slope of direct costs curve less
than that of indirect cost curve.
301
How does accelerating a
project work
April 13, 2015
 The duration of the project is equal to the duration of the
critical path .Thus to shorten the duration of the entire
project ,shorten the duration of the critical path.
 The cost will vary depending upon which activity
duration decreased.
 Usually, select the activity with least shortening costs.
(lowest additional cost per day of shortening) to
minimize the additional costs of shortening
302
Reducing Project Duration
April 13, 2015
- As the critical path of the network decreased,
some non-critical activities lose some amount
of their total float.
A
B
C
D
F
303
April 13, 2015
-Thus, the extent to which an activity can be shortened
and still has the effect of shortening the project is
limited by the amount of total float exists in the parallel
activities.
A
B
C
D
F
304
April 13, 2015
-As the projects duration decreases, the
number of critical paths through the network
increases.
A
B
C
D
F
305
April 13, 2015
-If more than one critical path exist, it is necessary to
reduce all critical paths in the network simultaneously,
which becomes expensive.
A
B
C
D
F
306
Four Different Solutions
for Each Network
April 13, 2015
The schedule can be viewed in several different ways
in order to satisfy the client. A client may with to
perform the project in the lease cost, or in the least
time. Or in any manner satisfies him.
1) All Normal: the original network and activity
duration result in all normal solution, based on each
activity being performed in its “NORMAL” least cost
manner.
Remember, it is not necessarily the least cost or least
time solution to schedule a project.
307
April 13, 2015
2) Least Cost: considering both direct and indirect
costs, it may be possible to find a project duration
that minimizes these total costs. By paying more to
decrease one or more critical activity (direct cost)
and save greater indirect costs. (Means that the
result will be total cost saving.)
308
April 13, 2015
Total project costs
Project
Costs
Direct costs
indirect costs
Project duration
General relation of project costs to project duration
309
April 13, 2015
3) Least Time: A project can be shortened beyond its
least cost duration. Until a point reached where no
activities in the critical path can be physically shortened
regardless of how many resources are applied. (results in
higher costs)
4) All crash: in this solution, every activity has been
shortened as much as physically possible. Its
duration the same as the least time solution, but its
costs greater. Because the direct cost increases
without further reductions in the indirect costs.
 A fully crashed schedule occurs when all activities
shortened to their shortest possible duration
310
April 13, 2015
All crash
It is not an efficient approach since some
non-critical activities will be shortened
without having any shortening influence
on the project duration.
311
Logically reducing Project
Duration
April 13, 2015
 The logical approach is to shorten those activities that
contribute to reduce the project duration.
 To begin the time-cost trade-off in a rational manner,
basic calculations needed.
 First compute the early start and early finish times for
each activity
312
Example
April 13, 2015
Reducing Project Duration to shortest possible duration
B
E
2
7
2
9
0 0
9
0
0
9
13
16
12 4 4 16
23
3
1
1
2
2
0 0
2
8
6
F
3
1 1 9
1
9
16
7
0 0 16
J
16
18
5
21 2
2
5
3
9
0 7 12
5
13
8
3 7 20
3
16
3
19 4 4
20
23
5
23
28 0 0 28
2 23
K
12
23
4
G
0
L
2
0
D
EF FF TF LF
0
9
0
Dur. LS
0 23
0
0
C
0
1
ES
16
7
0
0
A
H
4
313
April 13, 2015
 By computing the link lag values between activities.
(Lag = ESB – EFA). It is logical that there is at least one
path between the first activity and last activity where lag
values are 0.
 These activities forming the critical path. (other solution
can be derived by computing TF).
 In the previous network. Activity A,B,F,H and L forming
the critical path.
314
April 13, 2015
 To shorten the project’s duration it is essential to
shorten on of the critical activities. A or B or F or H or L.
 Without shortening the project will end after 28 days
with a cost of 5300 $.
 This is the normal duration cost. And any decrease in
duration will increase the direct cost.
 The following table shows information about activities.
315
April 13, 2015
Activity
Cost / day
Normal
Duration
Crash
Duration
Normal
Cost
Crash
Cost
Days to
shorten
A
-
1
1
800
800
0
B
200
7
4
1000
1600
3
C
100
6
4
300
500
2
D
400
3
2
400
800
1
E
50
3
1
100
200
2
F
150
7
5
500
800
2
G
300
8
4
200
1400
4
H
250
7
6
350
600
1
J
75
5
3
700
850
2
K
500
3
2
500
1000
1
L
350
5
4
450
800
1
316
Identifying activities for
1st compression cycle
April 13, 2015
Activity
A
B
F
H
L
Cost/day
-
200$
150$
250$
350$
F : Least cost activity to shorten
317
April 13, 2015
From the previous table, it can be noticed that
activity F has the least incremental shortening cost.
( 150 $ per day).
E.g. Shortening F for 2 days costs 150 x 2 = 300 $.
Bear in mind, activities for shortening selected
based on cost per day. Not on cycle cost basis.
318
April 13, 2015
How many days activity F could be shortened?
The answer in computing the Network Interaction
Limit (NIL).
So, reducing activity F by 2 days will affect the link
lag values of the succeeding activities and TF of
parallel activities
319
April 13, 2015
B
E
2
7
2
9
0 0
9
0
0
9
13
16
12 4 4 16
23
3
1
1
2
2
0 0
2
8
6
F
3
1 1 9
1
9
16
7
0 0 16
J
16
18
5
21 2
2
5
3
9
0 7 12
5
13
8
3 7 20
3
16
3
19 4 4
20
23
5
23
28 0 0 28
2 23
K
12
23
4
G
0
L
2
0
D
EF FF TF LF
0
9
0
Dur. LS
0 23
0
0
C
0
1
ES
16
7
0
0
A
H
4
320
April 13, 2015
B
E
2
7
2
9
0 0
9
0
9
3
1
1
1
2
2
0 0
2
8
6
F
3
1 1 9
1
9
14
5
0
9
0 0 16
0 21
J
14
16
5
19 2
D
2
5
3
7
0 5 10
5
13
8
1 5 18
1
14
3
17 4 4
18
21
5
21
26 0 0 26
2 21
K
10
21
4
G
0
L
2
0
0
EF FF TF LF
21 0
0
C
0
Dur. LS
14
7
0
0
ES
14
13
12 2 4 16
0
A
H
2
321
April 13, 2015
Summary of the first compression cycle
Cycle
#
Activity
to
shorten
Can be
shortened
NIL
Days
shortened
Cost
per
day
Cost
per
cycle
Total
cost
Project
duration
0
--
--
--
--
--
--
5300
28
1
F
2
3
2
150 $
300 $
5600
26
322
Identifying activities for
2nd compression cycle
April 13, 2015
Activity
A
B
F
H
L
Cost/day
-
200$
-
250$
350$
B : Least cost activity to shorten
323
April 13, 2015
B
E
2
7
2
9
0 0
9
0
9
3
1
1
1
2
2
0 0
2
8
6
F
3
1 1 9
1
9
14
5
0
9
0 0 16
0 21
J
14
16
5
19 2
D
2
5
3
7
0 5 10
5
13
8
1 5 18
1
14
3
17 4 4
18
21
5
21
26 0 0 26
2 21
K
10
21
4
G
0
L
2
0
0
EF FF TF LF
21 0
0
C
0
Dur. LS
14
7
0
0
ES
14
13
12 2 4 16
0
A
H
2
324
April 13, 2015
B
E
2
6
2
8
0 0
9
0
8
3
1
1
1
2
2
0 0
2
8
6
F
2
0 0 8
0
8
13
5
0
8
0 0 13
0 20
J
13
15
5
18 2
D
2
5
6
5
0 4 9
13
3
8
0 4 17
0
13
3
17
16 4 4 20
5
20
25 0 0 25
2 20
K
9
20
4
G
0
L
2
0
0
EF FF TF LF
20 0
0
C
0
Dur. LS
13
7
0
0
ES
13
13
11 2 4 16
0
A
H
2
325
Summary of the 2nd compression cycle
April 13, 2015
Cycle
#
Activity
to
shorten
Can be
shortene
d
NIL
Days
shortene
d
Cost
per day
Cost
per
cycle
Total
cost
Project
duratio
n
0
--
--
--
--
--
--
5300
28
1
F
2
3
2
150 $
300 $
5600
26
2
B
3
1
1
200
200
5800
25
326
Identifying activities for
3rd compression cycle
April 13, 2015
Activity
A
B,C
F
H
L
Cost/day
-
300$
-
250$
350$
H : Least cost activity to shorten
327
April 13, 2015
B
E
2
6
2
8
0 0
9
0
8
3
1
1
1
2
2
0 0
2
8
6
F
2
0 0 8
0
8
13
5
0
8
0 0 13
0 20
J
13
15
5
18 2
D
2
5
6
5
0 4 9
13
3
8
0 4 17
0
13
3
17
16 4 4 20
5
20
25 0 0 25
2 20
K
9
20
4
G
0
L
2
0
0
EF FF TF LF
20 0
0
C
0
Dur. LS
13
7
0
0
ES
13
13
11 2 4 16
0
A
H
2
328
April 13, 2015
B
E
2
6
2
8
0 0
8
0
8
3
1
1
1
2
2
0 0
2
8
6
F
2
0 0 8
0
8
13
5
0
8
0 0 13
0 19
J
13
14
5
18 1
D
2
5
5
5
0 3 8
13
3
8
0 3 16
0
13
3
16
16 3 3 19
5
19
24 0 0 24
1 19
K
8
19
3
G
0
L
1
0
0
EF FF TF LF
19 0
0
C
0
Dur. LS
13
6
0
0
ES
13
10
11 2 2 13
0
A
H
2
329
Summary of the
3rd
April 13, 2015
compression cycle
Cycle
#
Activity
to
shorten
Can be
shortene
d
NIL
Days
shortene
d
Cost
per day
Cost
per
cycle
Total
cost
Project
duratio
n
0
--
--
--
--
--
--
5300
28
1
F
2
3
2
150 $
300 $
5600
26
2
B
3
1
1
200
200
5800
25
3
H
1
2
1
250
250
6050
24
330
Identifying activities for
4th compression cycle
April 13, 2015
Activity
A
B,C
F
H
L
Cost/day
-
300$
-
-
350$
B,C : Least cost activities to shorten
331
April 13, 2015
B
E
2
6
2
8
0 0
8
0
8
3
1
1
1
2
2
0 0
2
8
6
F
2
0 0 8
0
8
13
5
0
8
0 0 13
0 19
J
13
14
5
18 1
D
2
5
5
5
0 3 8
13
3
8
0 3 16
0
13
3
16
16 3 3 19
5
19
24 0 0 24
1 19
K
8
19
3
G
0
L
1
0
0
EF FF TF LF
19 0
0
C
0
Dur. LS
13
6
0
0
ES
13
10
11 2 2 13
0
A
H
2
332
April 13, 2015
B
E
2
4
2
6
0 0
6
0
6
9
0
3
1
1
2
2
0 0
2
6
4
F
2
0 0 6
0
6
11
5
0
6
0 0 11
0 17
J
11
12
5
16 1
D
2
5
3
5
0 1 6
13
3
8
0 1 14
0
13
3
14
16 1 1 17
5
17
22 0 0 22
1 17
K
6
17
1
G
0
L
1
2
0
EF FF TF LF
17 0
2 2 11
0
C
0
Dur. LS
11
6
0
1
ES
11
8
0
A
H
2
333
Summary of the 4th compression cycle
April 13, 2015
Cycle
#
Activity
to
shorten
Can be
shortene
d
NIL
Days
shortene
d
Cost
per day
Cost
per
cycle
Total
cost
Project
duratio
n
0
--
--
--
--
--
--
5300
28
1
F
2
3
2
150 $
300 $
5600
26
2
B
3
1
1
200
200
5800
25
3
H
1
2
1
250
250
6050
24
4
B,C
2
3
2
300
600
6650
22
334
Identifying activities for
5th compression cycle
April 13, 2015
Activity
A
B,C
F
H
L
Cost/day
-
-
-
-
350$
L : Least cost activity to shorten
335
April 13, 2015
B
E
2
4
2
6
0 0
6
0
6
9
0
3
2
1
1
2
2
0 0
2
6
4
F
2
0 0 6
0
6
11
5
0
6
0 0 11
0 17
J
11
12
5
16 1
D
2
5
3
5
0 1 6
13
3
8
0 1 14
0
13
3
14
16 1 1 17
5
17
22 0 0 22
1 17
K
6
17
1
G
0
L
1
2
0
EF FF TF LF
17 0
2 2 11
0
C
0
Dur. LS
11
6
0
1
ES
11
8
0
A
H
336
April 13, 2015
B
E
2
4
2
6
0 0
6
0
6
9
0
3
1
1
2
2
0 0
2
6
4
F
2
0 0 6
0
6
11
5
0
6
0 0 11
0 17
J
11
12
5
16 1
D
2
5
3
5
0 1 6
13
3
8
0 1 14
0
13
3
14
16 1 1 17
4
17
21 0 0 21
1 17
K
6
17
1
G
0
L
1
2
0
EF FF TF LF
17 0
2 2 11
0
C
0
Dur. LS
11
6
0
1
ES
11
8
0
A
H
2
337
April 13, 2015
Summary of the 5th compression cycle
Cycle
#
Activity
to
shorten
Can be
shortene
d
NIL
Days
shortene
d
Cost
per day
Cost
per
cycle
Total
cost
Project
duratio
n
0
--
--
--
--
--
--
5300
28
1
F
2
3
2
150 $
300 $
5600
26
2
B
3
1
1
200
200
5800
25
3
H
1
2
1
250
250
6050
24
4
B,C
2
3
2
300
600
6650
22
5
L
1
∞
1
350
350
7000
21
338
Identifying activities for
6th compression cycle
April 13, 2015
Activity
A
B,C
F
H
L
Cost/day
-
-
-
-
-
NO Crashing
339
April 13, 2015
Reports and presentations
340
INTRODUCTION
April 13, 2015
 Without a doubt, good communication
is an essential component of the
successful management effort. This
means conveying the right
information to the right party at
the right time and in the right
form.
341
Characteristics of good
communication
April 13, 2015
1- clarity
The information must be clear to the receiving
party.
2- simplicity
Helps improve understanding. Butting
information in briefed sentence/s using a simple
language .
342
April 13, 2015
3- Accuracy
Professional communications must be accurate,
objective, and up to date.
4- preciseness and relevance to the subject
Providing too much or irrelevant information May
be confusing and counterproductive. (example:
LDS)
5- legibility
People whose handwriting illegible or difficult to
read, should type their communications using the
computer.
343
April 13, 2015
6- proper support tools
Pictures, tables, charts, statistics, etc.
They are more helpful and unilingual.
7- proper level of detail
The communicator must balance the amount of
information in an intelligent way.
8- good organization and formality
sorting and organizing the info. to make it easy for
the viewer to read, follow and retrieve.
Formality means following the company’s
procedures, including the use of standard forms.
344
April 13, 2015
9- Retrievable and transformable
Retrieving info. for live (current) projects may be
performed easily by Using the computer
commands.
The ability to convert and open electronic files and
to read the info is extremely important ,so using
unknown software should be prohibited .
10- Conformance to industry standards
Using common language when determining
specifications and standards such as ISO,IAI.
345
Reports and Presentations
April 13, 2015
-Both are types of communications that aim at conveying
information
-Report should be clear and complete because its printed
materials are the only vehicle for conveying information
between the person preparing the report and the person
receiving it.
- Presentations focus on speakers’ persuasive skills, And
the speaker focuses on certain points using oral, visual
and written (or printed) tools. Audiences have the
opportunity to ask for explanation any point unclear to
them.
346
Types of presentations
April 13, 2015
1- contract candidate presentations
The main focus of this presentation is to convince the
owner (or the decision maker) that the presenter not only
can do the job but also can do it better than other
candidates, Answering the owner’s question “ why should
I hire you?”
2- sales and demonstration presentations
a presentation to demonstrate a product given by a
representative of a manufacturing or vendor.
347
April 13, 2015
3- project status presentations
a presentation to upper management about a particular
project and its status given by the PM or a team member.
4- management presentations
a presentation conducted by the management of a
company to its staff to inform them about a new work plan,
a new system, a new organization, or something else.
348
Presenter’s skills for
good presentation
April 13, 2015
1- Focus on the client’s needs
Presenting the product or service in the best way
that serves the client /audience.
2- honesty
the presenter should be honest and objective at all
times, especially with regard to facts and numbers.
349
April 13, 2015
5- eye contact
The presenter should speak to the audience not to
himself or to his notes.
6- body language
Body language and hand and arm gestures are
important.
8- Manage time wisely
Presentations almost always have time limits.
Besides, human beings have limited attention span.
9- have a backup plan
350
The power of presentation
April 13, 2015
To create a good report we should ask ourselves
the following questions:
1- does the report include all the information
the report user needs?
2- does the report include any un needed
information ?
3- is the information clear and well organized?
351
April 13, 2015
4- is the information presented in the required
format?
5- can the look of the report be enhanced ?
Remember:
1)Computer is still a tool .
2)There is no “one size fits all” .
352
The power of presentation
April 13, 2015
Any report (text or graphic) should contain the
following information:
1- the name, the address and the logo of the company
and department or division.
2- the name of the person preparing the report and
supervisor’s approval (if needed).
3- the name and the location of the project.
353
April 13, 2015
4- date
5- title of the report
6- attachments if any.
7- page numbering.
8- legends.
9- definitions of terms, acronyms and abbreviations
that may not be known.
354
printing reports
April 13, 2015
After reviewing the final form of the report and before
printing it consider the following :
 make sure that only the needed activities and
information are included .
 margins may be slightly reduced to allow more
information per page.
355
April 13, 2015
 use the “fit to one page” function in the Print menu.
 in limited cases you may print o both sides of the
paper.
 using a smaller or a different (narrower) font may
help.
 many reports may remain in electronic form and need
not be printed.
 The scheduler must relate the schedule information to
the project manager not only as computer-generated
colorful charts ,but in clear language as well.
356
SUMMARY REPORTS
April 13, 2015
Summary report should contain :
 The overall situation of the project.
 The preceding information as compared with that in
the last update.
 The new critical path, if it changed.
 Cost information (if applicable).
357
April 13, 2015
 Any other information that may help the project
manager identify trouble spots or makeup for any lost
time.
 No unnecessary details.
 The summary report should not exceed one page.
 It should be written in the form of a memorandum.
358
April 13, 2015
Scheduling as Part of the
Project Management Effort
359
Project manager team
April 13, 2015
The project manager team consist of: (for large project)
 assistant PM
 project superintendent
 project engineer
 scheduler
 estimator
 safety manager
 procurement manager
 accountant
360
Management team
April 13, 2015
 field personal
 office personal
it may include teams member who are dedicated
exclusively to particular project and others who are
assigned to project part time or serve on the project
for only temporary period .
managing project requires several skills as:
 technical skills
 managerial skills
361
Scheduling and Estimating
April 13, 2015
Scheduling and estimating are related and their relationships is probably
one of the most important relationships in project management
These two areas intersected in many ways such as the following eight:
1)the estimator need to know how long the project will last in order to
estimate certain cost , particularly overhead
2) Scheduling and Estimating department collaborate to provide
information to the procurement department
3) The scheduler estimate the duration of activities with help from the
estimating department
4)Many schedules are cost loaded . The cost must be imported from the
cost estimate
362
April 13, 2015
5) Earned value management
6) progress payment depend on the schedule of value and the percent
complete
7) resource allocation and resource leveling may be cost related
,although they are scheduling issues
8)schedule compression always involves a balance between cost and
time
363
Construction project
involved from many parties
1- General contractor.
2- owner.
3- architect (engineer).
4- subcontractors.
5- government.
6- vendors.
April 13, 2015
364
In order to schedule a project
there are two approaches
April 13, 2015
1- build a master schedule that includes several sub
schedule .
2- include all activities in one schedule and assign a
responsibility code for each contracting party.
365
Time contingency and
management options
April 13, 2015
 The scheduler or project manager must include a time
contingency representing the non work days.
 This time contingency includes two types of non work
days.
1- known dates such as a holidays and planned shut down
days.
2-Unknown dates.
366
Scheduling and change
orders
April 13, 2015
 The contractor must then implement the
CO in the estimating, scheduling,
accounting, and other tracking systems.
367
Procurement Management
April 13, 2015
 Procurement is the process of acquiring
materials , equipment , and services from
external sources for use in a project .
 Procurement is a process that usually
starts long before the start of the
construction process and ends with project
completion or project closeout .
368
April 13, 2015
 The two objectives of procurement, from the general
contractor’s viewpoint, are as follow:
1- To hire the subcontractor who will actually
erect and assemble the project.
2-To purchase the materials called for in the
contract.
369
April 13, 2015
Linear Scheduling Method
370
April 13, 2015
Definition
A simple diagram to show location and time at which
a certain crew will be working on a given operation.
371
Characteristics
April 13, 2015
 Shows repetitive nature of the construction.
 Progression of work can be seen easily.
 Sequence of different work activities can be easily
understood .
 Have fairly high level of detail.
 Can be developed and prepared in a shorter time period
than other formats.
372
Advantages of LSM
April 13, 2015
 Provides more information concerning the
planned method of const. than a bar chart.
 In certain types of projects, LSM offers some
advantages over the network approach.
373
Line of Balance Technique
April 13, 2015
 LSM has relationships to the line of balance
(LOB) technique, developed by US. Navy in the
early 1950s.
 First applied to industrial manufacturing and
production control.
374
Three diagrams are used in
LOB
April 13, 2015
1. Production Diagram
Shows the relationships of the assembly operations
for a single unit. Similar to AOA, except that it shows
only one unit of production.
2. Objective Diagram
Used to plot the planned or actual number of units
produced vs. time. LSM diagram resembles this
diagram.
3. Progress Diagram
Shows the number of units for which each of the
subassembly operations has been completed.
375
Difference between Objective
Diagram and LSM
April 13, 2015
 O.D. is used to schedule or record the
cumulative events of unit completion.
 LSM is used to plan or record progress on
multiple activities that are moving continuously
in sequence along the length of a single project.
376
Implementation of LSM
April 13, 2015
 Can be used for continuous activities rather than
discrete activities.
 Transportation projects; highway const., highway
resurfacing and maintenance, airport runway const.
and resurfacing, tunnels, mass transit systems,
pipelines, railroads.
 High-rise building construction.
 Repetitive building units.
377
Elements of the LSM
April 13, 2015
 Axis Parameters
 Location
 Measure of progress.
 In high-rises and housing const., measures may be
stories, floors, subdivisions, apartments, housing
units.
 In Transportation projects, distance (ft. or mile can be
used, but division by stations (100ft.) is common) is
general.
378
Time
April 13, 2015
 Hours, days, week, or month - depends on
the total project time and level of detail
desired in the schedule.
 Preferable to prepare the schedule based on
working days and convert to calendar days
only at the end.
379
Activity Production Rates
April 13, 2015
Obtained by the usual estimating methods as a
function of the activity, equip. characteristics,
labor, and job conditions.
The initial rate should be associated with the
min. direct cost of accomplishing the single
activity.
380
Activity Interruption
and Restraint
April 13, 2015
 Prod. rate may vary with locations or time
periods.
 Progress may be interrupted intentionally and
restraints may occur between activities due to
limited equip. or crews.
381
Buffers
April 13, 2015
 When const. activities progress
continuously in a chain, some spacing
between activities is required.
 This spacing serves as a buffer and may
require distance or time interval between
activities.
382
Activity Intervals
April 13, 2015
 Used to describe the period of time between the start and finish of
an activity at a particular location.
 Intervals can be indicated by a broad line, two narrow lines, etc.
 Monitoring Progress.
 Working calendar can be marked with a moving symbol or a line,
tape, etc.
 vertically across the diagram.
 Progress on individual activities would be marked by location
rather than time.
383
Project Time Optimization
April 13, 2015
 The total project time may be such that indirect costs
and liquidated damages assessed are more costly than
the expense of accelerating certain activities.
 Cost-duration analysis can be used to minimize the
total cost, as follows :
 Identify all activities that can be accelerated or
decelerated.
 Among the above, consider only those that are at a
buffer limitation at both the start and the finish of
the activity.
384
April 13, 2015
 Of these, select the one activity with the lowest
cost slope associated with acceleration (or
deceleration).
 Accelerate (or deceleration) the activity rate of
production the maximum feasible amount.
 Repeat the above steps successively until the
optimum project cost and associated duration
are obtained.
385
April 13, 2015
Discrete Activities
Discrete are best scheduled by other methods. Once the
duration is determined by network analysis, it can be
scheduled on the LSM diagram and coordinated with the
linear activities.
Seasonal Adjustments
When developing LSM, appropriate adjustments can be
made for seasonal effect on construction
386
April 13, 2015
Project Progress and Resource Management
 Project progress is often estimated by the S-curve
with bar chart development.
 In LSM, the determination of activity progress is
facilitated and made more rigorous.
387
April 13, 2015
LSM Schedule
4
3
2
1
2
4
6
8
10 12 14 16 18
20 22 24
388
April 13, 2015
LSM Schedule with
Brickwork
4
3
2
1
2
4
6
8
10 12 14 16 1820 22 24
Buffer
389
Four-unit Duplex I-J
Fragnet
2
EXC FNDS
BLDG 1
7
F&P FNDS
& SLAB
BLDG 1
2
EXC FNDS
BLDG 2
April 13, 2015
8
FRAME
BLDG 1
7
F&P FNDS
& SLAB
BLDG 2
8
FRAME
BLDG 2
2
EXC FNDS
BLDG 3
7
F&P FNDS
& SLAB
BLDG 3
8
FRAME
BLDG 3
2
EXC FNDS
BLDG 4
7
F&P FNDS
& SLAB
BLDG 4
390
April 13, 2015
Duplex Number
LSM Schedule
4
3
2
1
2
4
6
8
10
Days
12
14
16
18
391
April 13, 2015
Construction Delay Claims
392
DEFINITIONS
April 13, 2015
Delay: An event or a condition that results in finishing
the project later than stipulated in the contract .
Claim: a request from one contracting party to another
party for additional compensation ,a time extension , or
both .
Note:
a claim is not always a negative action ,nor does it
automatically indicate a confrontation .
393
Delay claims and
change order
April 13, 2015
 A CO may be initiated at the request of the Owner
,Contractor , Sub-Contractor.
 They must submit a request for quotation
(RFQ) to initiate their CO , And this request could
be an owner decision or a “what if ” inquiry , the
quotation may includes a cost estimate and the
impact on the schedule .
394
April 13, 2015
 To minimize the number of CO’s Owners should
define the scope of the project and select a
competent designer .
 Many projects suffer from scope-creep
syndrome , in which CO’s keep adding to the
project budget and put it at levels far beyond
what the owner originally planned.
395
Reasons for delay claims
1- Differing site conditions
2- design errors or omissions
3- changes in Owner’s Requirements
4- Unusually adverse weather
5- Miscellaneous factors
6- Force Majeure
April 13, 2015
396
Changes in owner’s
requirements
April 13, 2015
 May constitute a change in the contract and
provide a foundation for Cos. Owners are always
encouraged to know exactly what the want within
their budgetary limits.
397
Force Majeure
(superior force)
April 13, 2015
In the context of construction projects, this term usually
involves three important elements :
1- Something that is superior, overwhelming, or
overpowering (i.e, can not be prevented)
2- Something that is unexpected or cannot be reasonably
anticipated or controlled.
3- Something that has a destructive or disruptive effect on
the construction process.
398
Types of delays resulting
in claims
1- Excusable delay.
2- Non excusable delay.
3- Concurrent delays.
April 13, 2015
399
Delay claims prevention
April 13, 2015
1- Baseline schedules that don’t show logic.
2- baseline schedule with dates rather than logic.
3- Overuse of constrains.
4- Erasing footprints.
5- unrealistic baseline schedule.
6- schedule with logic errors.
7- skipping periodic updates.
8- lack of proper documentation.
9- lack of a reasonable time contingency.
400
Communication and
documentation
April 13, 2015
 Communication
means conveying information from one party to
other parties across the organization
 Documentation
means saving the information in an organized
manner for possible future retrieval.
401
April 13, 2015
 Communications and documentation must both
contain:
 Clear information.
 Provide the proper a mount oh details.
 Be stored efficiently, so that the information can
be retrieved easily .
402
We must document
these information
April 13, 2015
1- The project baseline schedule that the owner
accepted
2- Periodic schedule updates
3- Change orders
4- Job diary
5- Correspondence with the home office
6- Submittal records, such as shop drawings and
material samples.
403
April 13, 2015
7- Records of any transmittals
8- Meeting minutes
9- Procurement records
10- Government records
11- Records of payment
12- Project manager’s daily log
404
April 13, 2015
Logbook should include daily information
such as the following :
• Weather condition: temperature, wind.
• Work performance during that day.
• The number of workers on-site.
• Equipment on-site and its condition.
• Any accidents that occurred on-site
405
Methods of resolving
claims
April 13, 2015
 Negotiation
The most direct method for resolving any type of
construction claim.
Requires certain skills that reduce the gap between the
negotiation parties.
The objective: is to reach a solution that might be
acceptable to both parties.
406
April 13, 2015
 Mediation
When negotiation does not work, either because of lack
of trust or a lack of skills, mediation may be an option.
The mediator may be an individual or a team.
 Dispute review boards
The owner and the contractor select an independent
neutral panel with construction experience when the
contract is signed .
Rather than waiting until the end of project to settle
claims, (DRBs) resolve disputes as they arise.
407
 Arbitration
April 13, 2015
It is usually a formal process performed by an independent
professional arbitrator.
 Arbitration is voluntary.
 Arbitration does not require the use of lawyers
 Litigation
When none of the previous work and parties can not
reach a settlement, the complaining party uses the
other party in a court of law.
Construction litigation is usually complicated lengthy,
and expensive.
408
Method of Schedule
Analysis
 As- build schedule
 As – planned schedule
 Comparison schedule
 Accelerated schedule
 Recovery schedule
April 13, 2015
409
As-Built Schedule
April 13, 2015
 The as-built schedule should reflect what actually
happened in the filed.
 Activities are plotted by their real start and real finish
, disregarding any logic
 Contain real budget and real resources
410
As – planned schedule
April 13, 2015
 The as-planned schedule describes the
manners in which the contractor in
tended to built the project.
411
Comparison schedule
April 13, 2015
 revised to incorporate any claimed delays .
 for delay claim the contractor submits two
schedules.
 without the causative factors
 with the causative factors
412
Accelerated schedule
April 13, 2015
Submitted by the contractor.
 The project can finish by the contractor finish
date.
413
April 13, 2015
Safety
& Health Management
414
Introduction
April 13, 2015
One of the most important factors that should be
taken in consideration in the site, (from
engineering point view), is the safety and health
management.
Safety and health management; is considered as a
progress measure of the engineering and
construction companies.
415
April 13, 2015
Safety: The condition or state of being safe; freedom from
danger or hazard; exemption from hurt, injury, or loss.
416
April 13, 2015
Hazard: A condition with the potential of
causing or contributing to an accident or illness.
417
April 13, 2015
418
April 13, 2015
419
April 13, 2015
420
April 13, 2015
421
April 13, 2015
422
April 13, 2015
423
April 13, 2015
Rules in construction area under safety
outline:
1) knowing hazards and how to avoid them.
 this mean know Construction Activity /
Corresponding Hazard Identification and activity
classification with respect to hazard as shown in the
following table .
424
April 13, 2015
• Heavy Equipment Operation
• Material Handling
• Temporary & Permanent Electricity
• Cranes & Critical Lifts
• Slings & Lifting Gear
• Welding, Cutting & Brazing
• Hand/Power Tools
• Sanitation & Housekeeping
• Scaffolding/Ladders
• Manholes Excavations, Pits, Trenching & Shoring
• Camp, Site Office & Lay down Yard
• Over head Obstruction
• Road Construction & Re-routing of Existing Roads
• Concrete, Concrete Forms & Shoring
• Sandblasting
• Thrust Boring
• Hot Taps
• Personal Safety
• Paints & Coatings
• Piling Operations
• Demolition
• Mechanical Equipment
• Chemical
• Liquefied Petroleum Gas (LPG)
• Fuel
• Site Operations & Hydrocarbon
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
-Class
II
II
III
III
III
III
II
I
III
III
II
III
I
I
II
I
I
I
I
II
III
II
III
III
III
III
425
Rules in construction area under safety
outline: (cont.)
April 13, 2015
2) use Personal Protective Equipments (PPE). •
426
Rules in construction area under safety
outline: (cont.)
April 13, 2015
3) how to deal with emergency situations and
what are the proper steps.
427
Rules in construction area under safety
outline: (cont.)
April 13, 2015
4) follow the instructions carefully. •
428
Occupational Safety & Health
Administration
April 13, 2015
An organization that interests in achieving and
applying safety factors in the construction field.
It deals with the identification and control of
environmental and personal hazards in the
work place.
429
OBJECTIVE OF S&H
MANAGEMENT
April 13, 2015
Minimize losses
– Avoid injuries
– Avoid OSHA fines
– Avoid litigation
Development and implementation of S&H
program is key to good management
430
April 13, 2015
ELEMENTS OF S&H PROGRAMS












Top management commitment
Goal setting and planning
Organization & administration
Project safety rules
Substance abuse program
Emergency management
Safety orientation & training
Accident investigation & recordkeeping
Safety budget
Safety in contracts
Safety program evaluation
TQM integration.
431
UNIQUE FACTORS IN
CONSTRUCTION AFFECTING S&H
April 13, 2015
 Large but diverse and fragmented industry
 every job is unique with numerous complex tasks
 Labour intensive work involving large forces
 Transient workforce which is difficult to train.
 Complex contractual arrangements leading to multiemployer projects
432
HOW SAFETY SAVES
MONEY
 Economic impacts
 Direct and indirect accident costs
 Workers compensation and EMR
 Accident cost accounting
April 13, 2015
433
ECONOMIC IMPACTS OF
S&H
April 13, 2015
 Myth: There is a trade-off between safety
and cost and productivity
 Truth: Safety saves money
434
COSTS ASSOCIATED WITH
S&H
April 13, 2015
A. Direct (insured) costs of accidents, injuries and
illnesses
B. Indirect (hidden) costs – uninsured
C. Costs associated with company s&h programs
-Resource allocations for:
 Safety director/coordinator
 Equipment and supplies
 Time (meetings, inspections, etc.)
435
DIRECT COSTS
April 13, 2015
 Workers compensation insurance premiums

paid by contractor (mainly for medical bills)
 Liability insurance costs
 Property related insurance costs.
436
INDIRECT (HIDDEN) COSTS












April 13, 2015
Transportation for first aid/medical treatment
Delays resulting from accident
Wages paid to injured worker for time not worked
Loss of crew efficiency
Training new/substitute worker.
Clean-up, equip. repair, stand-by
Rescheduling work
Post accident extra safety supervision
OSHA and civil fines
Legal fees
Cost of administrative time for investigations and
reports.
437
BASIC AIM OF THE
OSHA
April 13, 2015
 To ensure, so far as possible, every working person
safe and healthful conditions in the workplace, which
must be free from recognized
hazards likely to cause death or serious physical
harm.
 Applicable to all employers
– Records of illness/injury must be kept by
employers with more than ten employees.
– Not applicable to self-employed and work
places covered by other federal agencies
438
SUMMARY
April 13, 2015
 Accidents can be tragic and costly.
 Safety and health programs prevent injuries and
fatalities, and save money
 Effective program organization and implementation will
help achieve OSHA compliance and lead to success at
corporate and project levels.
439
April 13, 2015
remember
If it is unsafe, just don’t do it...
If it is dangerous, always avoid it
for all we know
Safety is everyone‘s
responsibility
Good Luck
THE END