Project Execution Plan/Master Project Schedule

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9.5 CompressingtheSchedule
As mentioned in Section 9.4, the minimum capital cost execution plan is rarely consistent with the optimum overall project cost when marketing and other business considerations are taken into account. When the project driving force is thepush for early completion, the execution plan must be adjusted through the introduction and implementation of viable schedule reduction measures. The most cost-effective measures are those that can be implemented during the early execution stages when themajority of the activitiesfall on the critical path. The following schedule reduction schemesaresomeofthemost frequently used and are listed in order of the project execution progress, which seems very close to the orderof increasing costs and potential drawbacks:
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Approve fundingto start engineering andprocurement oflong delivery equipment prior to formal project approval. Potential Drawback - wasted engineering and losing the cancellation charge on early purchases. When engineering work is being held. waiting fordecision on alternative schemes, proceed with both in parallel until a decision has been reached. Potential Drawback - wasted engineering. Work regular overtime in the engineering officc. Potential Drawback - 3-5% of engineering cost on overtime premium and drop in productivity. Place bulk orders of heavier-than-expected structural steel before the design is complete. Potential Drawback - premium for heavier materials or. worse, finding that the "overdesign" was not enough. Purchasebulk materialsfromexisting stockratherthanwaitforlonger deliveries from the steel mills a n d o r fabricators. Potential Drawback - pay higher prices. Authorizetanks and vesselfabricators toorder materialsbefore drawings approval. Potential Drawback - risk of ordering inadequate materials. Pay premiums for early delivery of equipment. Potential Drawback - higher cost. Waive competitive bidding. Potential Drawback - lose the advantage of lower competitive prices. Break down construction into several discrete subcontracts and dctailed engineering to support a staged subcontractingplan. plan

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