Application & Management of CPM Schedules

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1 Application & Management of CPM Schedules Matthew Milliet James Construction Group, LLC 2009 Louisiana Transportation Conference Session 60 Project Scheduling

2 DISCLAIMER The following is intended to outline a general approach to Project Schedule Updating. It is intended for information purposes only. Any representations made here in are not to be construed as procedures, guidelines, recommendations, requirements, or directives by James Construction Group, LLC and may not be incorporated into any contract. Nothing in this presentation is intended to bind James Construction Group, LLC to the content herein. All Rights and Reservations to the content of this presentation is reserved by James Construction Group, LLC.

3 CPM ~ Skipping the Basics Does everyone know what a CPM Schedule is? Has everyone created or seen a created Schedule? Key Phrases: Longest Path Critical Float Resource Calendar Logic Basic Process: Monitor Progress Update Progress Modify as Needed Report Progress Agree / Approval Repeat

4 Case Study EXAMPLE Driving Down I-10 towards Lafayette 9:00 a.m. You have a blow out. Left rear tire of your company vehicle. 2 Able bodied people in the car. Your meeting starts at 3:00 p.m. Create a Schedule showing what happens next. Take about 3 to 5 minutes Ready Go!

5 Key Parts of a Schedule Activity Description Detailed enough to know item of work WBS-Area-Resp.-Mile-Step-Other Activity ID Unique number assigned Activity Duration Original Duration based upon original K Remaining Duration based upon balance % Complete Quantity Complete Activity Resources Can be Money Better as Manpower / Equipment Activity Budgets Cost / Qty / Earnings P3 / P6 Offer Contractors and Owners 100 s of options

6 CPM SCHEDULE OVERVIEW Create the Original Schedule Sounds Simple but is far from it. Flat Tire Example Update the Schedule: Monitor Progress Update Progress Modify as Needed Report Progress Agree / Approval Repeat

7 Update the Schedule In Lump Sum or Fixed Price Contracts Experience shows having Contractor Responsible for creation and maintenance works best. Other Options Owner Creates and Updates Schedule GC or Construction Manager Updates Whomever Does it Monitor Progress Daily Reports Time Sheets Quantity Installed Reports Major Vessels / Procurement Objects Subcontractors Progress Reports

8 Need to Update Schedule Construction Projects are Dynamic Plans / Estimates are bound to change Unusually Bad Weather Strikes / Acts of God / Public Convenience Material Shortages Unforeseen Subsurface Conditions Change Orders Labor Shortages Many Many others

9 Definition The Periodic review and assessment of the project s plan, schedule, and progress is UPDATING. Updating the Network of Activities their logic, physical progress, & changes is critical to accurate reporting. Without this, Delays Encountered and the ability to deliver the Project as intended is impossible.

10 Preparing to UPDATE Updates should take place Monthly at a minimum. Higher frequency should be determined by the project team. Turn Around Documents A listing of Activities with Blank locations for reporting Start & Finish Dates Support Dates with factual reports from records. Started Activities Need to have projected remaining durations evaluated. Activities that Need Resequesnced, Added, Deleted, or Modified. Fragnets (mini schedules) that need to be incorporated into the Schedule Small units to reflect delays, change conditions, etc

11 What about Recovery? If after Updating you find yourself behind What can you do? Many options Need to be Evaluated Look for Preferential vs. Actual Logic Look for Additional Resources Look for Multiple Shifts Look for Dovetailing tasks (lug nuts & lower) Extend the work week if required Some of these are free others cost $$

12 Approval Joint efforts should be made during the update process. Ultimately there needs to be concensus on the Schedule with each update. Be willing to spend the time needed to Support you contentions in the Schedule.

13 Submission Every update should include a Detailed Project Narrative Narrative should be PROBLEM / SOLUTION oriented philosophy. Every Change in the Schedule should be recorded for Historical Reference. Finally, it should include an analysis of the CRITICAL Path and the other float variances of consequence.

14 REPEAT After Approval of the Submission and Documentation for that update is complete file it and monitor it. Move on to the NEXT Update Start the Process over again.

15 PITFALLS #1 The Computer #2 Forcing the Software to say what we want. Adding Constraints Modifying Calendars Not enough Detail Starting too Soon to look good #3 Laziness in the Update Not keeping up with logic revisions

16 #1 - The Computer Just because the computer prints it out doesn t make it right. Increased power and Access Makes Scheduling a more sophisticated process. (See Peter s presentation to follow on the NEW Direction of the Software) Left to the uninformed, GIGO is a problem in Schedule Updates

17 #2 - Forcing the Software Advanced Scheduling Software offers Many Features. Constraints, Lags/Leads, Calendar Manipulation, Customizable Reports, Resource Constraints, Huge Databases Not Understanding those is Disastrous. Too much Preferential Logic Forcing Cost Loading Completion activities for Billing & Starting too soon. Setting of Constraints is almost always Bad.

18 #3 Laziness in Update or Review The single biggest culprit to a BAD schedule is BAD LOGIC Out of Sequence activities can give false impressions of the Project Progress override and Retained Logic are both BAD. Try to fix your logic by increasing detail, or modifying it to reality. Lags & Leads can mask this problem.

19 #3 Laziness in Update or Review The second worst offender BAD Dates Starting a Task before you really begin work. Dropping off forms doesn t = FORM Footer Leads to elongated activity durations More out of Sequence work Non-consistent pursuit of activity = False Paths Not Completing a Task just as Bad Not picking up cure blankets doesn t mean the deck isn t 100% complete. See above consequences

20 Conclusion & Summary CPM Schedules are becoming more & more sophisticated. (See Peter s presentation to follow.) Accurate Updates are essential. Open & honest reporting of updated progress is ONLY way to achieve success. 10 Experts = 10 opinions. Settle your fights as they happen and have competent persons perform your updates and reviews. Share your RESULTS. If everyone knows the Goal and Critical activities you will have a good project.

21 Questions & Comments Matthew Milliet Senior Contract Manager James Construction Group, LLC (225) or (225)

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