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APPROVE SPECIALIZATION: project management

INTRODUCTION: Project management

Project management is the discipline of planning, organizing, and managing resources


to bring about the successful completion of specific project goals and objectives. It is sometimes
conflated with program management, however technically a program is actually a higher level
construct: a group of related and somehow interdependent projects.

A project is a temporary endeavor, having a defined beginning and end (usually


constrained by date, but can be by funding or deliverables), undertaken to meet unique goals
and objectives, usually to bring about beneficial change or added value. The temporary nature
of projects stands in contrast to business as usual (or operations), which are repetitive,
permanent or semi-permanent functional work to produce products or services. In practice, the
management of these two systems is often found to be quite different, and as such requires the
development of distinct technical skills and the adoption of separate management.

The primary challenge of project management is to achieve all of the project goals and
objectives while honoring the preconceived project constraints. Typical constraints are scope,
time, and budget. The secondary—and more ambitious—challenge is to optimize the allocation
and integration of inputs necessary to meet pre-defined objectives.

As a discipline, Project Management developed from several fields of application including


construction, engineering, and defense activity. Two forefathers of project management are
Henry Gantt, called the father of planning and control techniques, who is famous for his use of
the Gantt chart as a project management tool; and Henri Fayol for his creation of the 5
management functions which form the foundation of the body of knowledge associated with
project and program management. Both Gantt and Fayol were students of Frederick Winslow
Taylor's theories of scientific management. His work is the forerunner to modern project
management tools including work breakdown structure (WBS) and resource allocation.

The 1950s marked the beginning of the modern Project Management era. Project
management became recognized as a distinct discipline arising from the management discipline.
[11] In the United States, prior to the 1950s, projects were managed on an ad hoc basis using
mostly Gantt Charts, and informal techniques and tools. At that time, two mathematical project-
scheduling models were developed. The "Critical Path Method" (CPM) was developed as a joint
venture between DuPont Corporation and Remington Rand Corporation for managing plant
maintenance projects. And the "Program Evaluation and Review Technique" or PERT, was
developed by Booz-Allen & Hamilton as part of the United States Navy's (in conjunction with the
Lockheed Corporation) Polaris missile submarine program; These mathematical techniques
quickly spread into many private enterprises.

At the same time, as project-scheduling models were being developed, technology for project
cost estimating, cost management, and engineering economics was evolving, with pioneering
work by Hans Lang and others. In 1956, the American Association of Cost Engineers (now AACE
International; the Association for the Advancement of Cost Engineering) was formed by early
practitioners of project management and the associated specialties of planning and scheduling,
cost estimating, and cost/schedule control (project control). AACE continued its pioneering work
and in 2006 released the first integrated process for portfolio, program and project
management (Total Cost Management Framework).

Project Manager: Roles and Qualities

A project manager is a professional in the field of project management. Project


managers can have the responsibility of the planning, execution, and closing of any
project, typically relating to construction industry, engineering, architecture, computing,
or telecommunications. Many other fields in the production, design and service
industries also have project managers.

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A project manager is the person accountable for accomplishing the stated project
objectives. Key project management responsibilities include creating clear and
attainable project objectives, building the project requirements, and managing the triple
constraint for projects, which is cost, time, and scope.

A project manager is often a client representative and has to determine and implement
the exact needs of the client, based on knowledge of the firm they are representing. The
ability to adapt to the various internal procedures of the contracting party, and to form
close links with the nominated representatives, is essential in ensuring that the key
issues of cost, time, quality and above all, client satisfaction, can be realized.

Qualities of a Good Project Manager

Inspires a Shared Vision

An effective project leader is often described as having a vision of where to go


and the ability to articulate it. Visionaries thrive on change and being able to draw new
boundaries. It was once said that a leader is someone who "lifts us up, gives us a reason
for being and gives the vision and spirit to change." Visionary leaders enable people to
feel they have a real stake in the project. They empower people to experience the vision
on their own. According to Bennis "They offer people opportunities to create their own
vision, to explore what the vision will mean to their jobs and lives, and to envision their
future as part of the vision for the organisation." (Bennis, 1997)

Good Communicator

The ability to communicate with people at all levels is almost always named as
the second most important skill by project managers and team members. Project
leadership calls for clear communication about goals, responsibility, performance,
expectations and feedback. There is a great deal of value placed on openness and
directness. The project leader is also the team's link to the larger organization. The
leader must have the ability to effectively negotiate and use persuasion when necessary
to ensure the success of the team and project. Through effective communication,
project leaders support individual and team achievements by creating explicit guidelines
for accomplishing results and for the career advancement of team members.

Integrity

One of the most important things a project leader must remember is that his or her
actions, and not words, set the modus operandi for the team. Good leadership demands
commitment to, and demonstration of, ethical practices. Creating standards for ethical
behavior for oneself and living by these standards, as well as rewarding those who
exemplify these practices, are responsibilities of project leaders. Leadership motivated
by self-interest does not serve the well being of the team. Leadership based on integrity
represents nothing less than a set of values others share, behavior consistent with
values and dedication to honesty with self and team members. In other words the
leader "walks the talk" and in the process earns trust.

Enthusiasm

Plain and simple, we don't like leaders who are negative - they bring us down.
We want leaders with enthusiasm, with a bounce in their step, with a can-do attitude.
We want to believe that we are part of an invigorating journey - we want to feel alive.
We tend to follow people with a can-do attitude, not those who give us 200 reasons why

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something can't be done. Enthusiastic leaders are committed to their goals and express
this commitment through optimism. Leadership emerges as someone expresses such
confident commitment to a project that others want to share his or her optimistic
expectations. Enthusiasm is contagious and effective leaders know it.

Empathy

What is the difference between empathy and sympathy? Although the words are
similar, they are, in fact, mutually exclusive. According to Norman Paul, in sympathy the
subject is principally absorbed in his or her own feelings as they are projected into the
object and has little concern for the reality and validity of the object's special
experience. Empathy, on the other hand, presupposes the existence of the object as a
separate individual, entitled to his or her own feelings, ideas and emotional history
(Paul, 1970). As one student so eloquently put it, "It's nice when a project leader
acknowledges that we all have a life outside of work."

Competence

Simply put, to enlist in another's cause, we must believe that that person knows
what he or she is doing. Leadership competence does not however necessarily refer to
the project leader's technical abilities in the core technology of the business. As project
management continues to be recognised as a field in and of itself, project leaders will be
chosen based on their ability to successfully lead others rather than on technical
expertise, as in the past. Having a winning track record is the surest way to be
considered competent. Expertise in leadership skills is another dimension in
competence. The ability to challenge, inspire, enable, model and encourage must be
demonstrated if leaders are to be seen as capable and competent.

Ability to Delegate Tasks

Trust is an essential element in the relationship of a project leader and his or her
team. You demonstrate your trust in others through your actions - how much you check
and control their work, how much you delegate and how much you allow people to
participate. Individuals who are unable to trust other people often fail as leaders and
forever remain little more that micro-managers, or end up doing all of the work
themselves.

Cool Under Pressure

In a perfect world, projects would be delivered on time, under budget and with
no major problems or obstacles to overcome. But we don't live in a perfect world -
projects have problems. A leader with a hardy attitude will take these problems in
stride. When leaders encounter a stressful event, they consider it interesting, they feel
they can influence the outcome and they see it as an opportunity. "Out of the
uncertainty and chaos of change, leaders rise up and articulate a new image of the
future that pulls the project together." (Bennis 1997) And remember - never let them
see you sweat.

Team-Building Skills

A team builder can best be defined as a strong person who provides the
substance that holds the team together in common purpose toward the right objective.
In order for a team to progress from a group of strangers to a single cohesive unit, the
leader must understand the process and dynamics required for this transformation. He

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or she must also know the appropriate leadership style to use during each stage of team
development. The leader must also have an understanding of the different team players
styles and how to capitalize on each at the proper time, for the problem at hand.

Problem Solving Skills

Although an effective leader is said to share problem-solving responsibilities with


the team, we expect our project leaders to have excellent problem-solving skills
themselves. They have a "fresh, creative response to here-and-now opportunities," and
not much concern with how others have performed them. (Kouzes 1987)

Project Management Triangle

Like any human undertaking, projects need to be


performed and delivered under certain constraints.
Traditionally, these constraints have been listed as
"scope," "time," and "cost". These are also referred
to as the "Project Management Triangle", where
each side represents a constraint. One side of the
triangle cannot be changed without affecting the
others. A further refinement of the constraints
separates product "quality" or "performance" from
scope, and turns quality into a fourth constraint.

The time constraint refers to the amount of time available to complete a project.
The cost constraint refers to the budgeted amount available for the project. The scope
constraint refers to what must be done to produce the project's end result. These three
constraints are often competing constraints: increased scope typically means increased
time and increased cost, a tight time constraint could mean increased costs and reduced
scope, and a tight budget could mean increased time and reduced scope.

The discipline of Project Management is about providing the tools and


techniques that enable the project team (not just the project manager) to organize their
work to meet these constraints.

Project Management Goals: The SMART Goals

SMART is an acronym used as a mnemonic to make sure goals or objectives are


actionable and achievable. Project managers use the criteria spelled out in SMART to
evaluate goals, but SMART can also be used by individuals for personal development or
personal productivity.

What Does SMART Mean?

There are many variations to the SMART definition; the letters can alternately signify:

S - Specific, significant, simple


M - Measurable, meaningful, manageable
A - Achievable, actionable, appropriate, aligned
R - Relevant, rewarding, realistic, results-oriented
T - Timely, tangible, track able

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Specific

 Well defined
 They are clear to anyone that has a basic knowledge of the project

Measurable

 Have some means to be able to know if the goal is obtainable or how far away
completion is.

Agreed Upon

 Have agreement between the users and the project team on what goals should
be

Realistic
 Looking at the resources, knowledge, and time available can the goal be
accomplished

Time-Framed

 How much time is needed to accomplish the goal


 Having too much time can affect the project performance

Project Quality Management

Project quality management begins by defining the quality standards to be used for the
project. This definition will come from the stakeholders, beneficiaries, and often from
the overall standards for the organization. Careful identification of the quality standards
will help to insure a successful project outcome that will be accepted by the
stakeholders. In addition to quality standards for the end result of the project, there
may also be organizational quality standards that must be met for the actual
management of the project, such as certain types of reporting or project tracking
methods.

Quality Characteristics

The deliverables of the project will be measured against certain characteristics that will
determine their level of quality, dependent on how well they meet the needs of the
stakeholders. Quality characteristics such as performance, functionality, suitability,
reliability, and consistency are commonly used to measure the project's end result.
These quality characteristics are not only applied to the deliverable itself, but also any
processes or methods used to deliver the end product, such as equipment or
computers. Therefore, the required quality characteristics must be fully stated and
understood before any services, materials or equipment used in any part of the project
are procured

Quality Plan

A quality plan should be written to state the overall activities and tasks that are needed
to meet the project's quality standards. This plan will include a description of all relevant
quality standards and definitions, as well as a description of all conditions that must be

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met to satisfy the stakeholders. The procedures that will be used to ensure that all
quality standards are followed will also be part of the quality plan. All quality elements
that are relevant to the project should be included, such as management responsibility,
documented quality procedures already in existence, design and document control
procedures and purchasing requirements. Procedures designed to deal with inspection
testing, non-conformance and resulting corrective actions are also important, as are the
methods by which quality records are maintained. The schedule for quality audits and
any necessary training requirements should also be included.

Quality Assurance

Quality assurance processes are used to provide the stakeholders with the guarantee
that standards are being maintained, and that the end result will meet their needs. As
opposed to quality control, which occurs at the end of the process, quality assurance is
planned during the project's earliest stages. To facilitate this assurance, quality audits
are scheduled, which provide a structured review of the project activities. As a result of
these audits, corrective actions can be approved if necessary via change control
processes.

The Shewhart Cycle

Often abbreviated as PDCA, this model includes four steps designed to help insure
quality assurance. This includes "planning" to establish processes and objectives,
"doing" to implement the processes, "checking" to evaluate and monitor the processes,
and "acting" to implement changes if required to achieve the desired quality result. This
cycle is considered to be never-ending in a constant quest for continual improvement.

Quality Control

Quality control is used to evaluate the project's end results as compared to the stated
goals and requirements, as well as how successful the project was in terms of budget,
schedule and scope management. Evaluations are performed during quality control that
will determine if the stakeholders accept or reject the end result. If rejected, rework
actions must be planned in order to bring the end result up to expectations. As a result,
adjustments are added to the overall process by means of a change control process.

Quality Improvement

Quality improvement is a continuous and systematic process that is used to find ways of
removing waste or unnecessary actions to make processes more efficient and effective.
If the current level of quality doesn't match the expected level, quality improvement
processes can be used to help identify and address the issues that may be causing the
discrepancy. Quality improvement concentrates on identifying what needs to be
improved, analyzing the processes, developing solutions or revisions that will solve the
problem, and testing to verify that the new solution is effective

Cost of Quality

In every project, there is a cost associated with the methods used to maintain quality
levels. Poor quality is defined as the end result failing to meet the stakeholders'
requirements, or any level of error or waste. These costs include any expenses that
would be associated with the overall failure of the project, if that were to occur, in
addition to the preventative costs needed to avoid quality problems and the appraisal
costs for testing, evaluation and inspection.

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Project Management Tools: The 5 Scheduling Techniques

Good project management deals with three factors: time, cost and performance.
Projects are successful if they are completed on time, within budget, and to
performance requirements. In order to bring the many components of a large project
into control there is a large toolkit of techniques, methodologies, and tools. These
techniques provide the tools for managing different components involved in a project:
planning and scheduling, developing a product, managing financial and capital
resources, and monitoring progress.

Bar Chart/Gantt chart

The most frequently used type of program is a Bar Chart, which is a list of those
activities required for the project. The planned start and planned finish of each activity
are shown in a time grid and are connected as a bar. The bar therefore represents the
duration of the activity. The assumption usually made is that the bar represents a
continuing uninterrupted activity, but this may not be intended. The Bar Chart is also
commonly referred to as a Gantt chart. It is said that there is a difference between a Bar
Chart and a Gantt chart, but this is a matter of semantics and of little practical
significance.

The Bar Chart is easily prepared and can be used to show estimated timing and duration
of activities, or to record actual progress. It does not require computers or special
software and can be drawn easily by hand. Experience shows that it is the most natural
representation of activities used by engineers and project managers. The types of
activities are not limited in any way, since the Bar Chart is simply a diagramatic
representation of the time characteristics of an activity. So, for example, the activity
could be the operation of design or construction, but equally could be the timing and
duration of the use of different resources. There is no logical restriction to the number
of activities that are shown against an activity. "Multiple line-bars" are useful to show
the duration of the same type of activity in different areas of the project for instance,
usually differentiated by color or shading.

The Bar Chart does not model the inter-relationship between activities, and does not
model the consequences on expected completion, if the actual timing or duration of an
activity is not met. So, for example, if an activity is started later than shown on the Bar
Chart, the Bar Chart does not allow the effect on completion to be analyzed, without
additional information. The Bar Chart simply shows that an activity started later than
planned. Similarly if an activity requires a longer duration than shown on the Bar Chart,
this only shows that an activity took longer than estimated. The Bar Chart therefore
simply provides a model of the time characteristics of the activity, and does not model
the relationship of the activity with the time characteristics of the project.

The absence of logic links between activities means that the use of the Bar Charts is
limited to monitoring progress rather than forward planning of the project. It is used in
the initial stages of delay analysis to compare planned and actual progress so as to
identify problem activities. Care is required, since the implicit assumption that the
planned durations were an accurate and still valid estimate, may not be correct.

Example:

The Tables below shows the data entered for the Example Construction Schedule.

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Example Bar Chart from above mentioned schedule

Linked Bar Chart

The introduction of logic links to create the


Linked Bar Chart allows the time dimension of
the project to be defined by the relationship
of activities one to the other. The "Equipment
Project" shown above as a Bar Chart is shown
to the left, as a Linked Bar Chart. The
introduction of logic links and the
presentation in a cascade format, means that
the operations involved are easily understood
and particularly the restraints on each activity.
This structure and presentation has meant that the Chart has become the main
management tool for deciding for example which activities have priority to achieve the
project completion date and for example how to allocate resources for optimum
efficiency.

Projects are not static. When progress does not follow the program, the Linked Bar
Chart allows the analysis of the consequences of events that have occurred. More
dynamically the Chart allows prediction of the effect of events yet to occur. This is
possible with modern software which allows precedence networks to be constructed by
linking directly on screen the bars representing activities.

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S-curve

The S-Curve is a form of mathematical


theory, which aims to represent the
utilization of resources over the
proposed time of the project. Simply
stated, the curvature illustrates the
side by side comparisons of the actual
time and expenditure components vs.
the proposed time and costs
allocations of specific resources.

(Fig.1 S-curve diagram)

As a tracking tool, comparisons of different S- Curves against the standard S-Curve help
in monitoring the growth or progress of the project. Data that is simultaneously plotted
in graph form will clearly present how efficiently the team has performed so far, in
accordance with the time or budget limitations.

Two or more curved lines running symmetrically should both be flat at the beginning
and become steep in the center and become flat again towards a convergence at the
project’s completion date. This is how most project timelines would be depicted. In
today’s highly technological work environment, there are various software-scheduling
packages that can automatically generate these S-Curves.

However, the matter of understanding the significance of its theory and its analyses is of
utmost importance.

Plotting and Analyzing the S Curves

If done accurately, the S-Curve analysis of the "actual progress to-date curve" against
the "baseline curve" facilitates the achievement of project goals by providing a warning
of any project deviations from the baseline standards. The S-Curve is constructed using
the dates on the X-Axis and the calculated values on the Y-Axis and by plotting data
extracted from baseline or production schedules for each task.

The Necessary Tools

The Baseline Schedule: It contains information about the actual start date and finish
date as well as the information on proposed man-hours and expenditure allocations.
Use the data contained in this schedule to create the Baseline S Curve.

The Production Schedule: It contains information of the actual man-hours and


expenditures incurred for a particular stage of the project.

The Different S-Curve Models and Analysis

The Standard S-Curve Metrics:

Baseline S-Curve:

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This is the S-Curve against which all other S-Curves will be compared as it comprises the
proposed allocation of expenditures and man hours to be used for the project’s
completion within a proposed duration.

The Growth Metrics – this makes use of the Target S-Curve:

The Target S-Curve represents the modified Baseline S-Curve figure, inasmuch as the
constant monitoring of project performance could result to certain adjustments of the
baseline elements. A new standard will then be calculated and becomes the
representative of a new set of metrics.

They are, however, called target values, to distinguish them from the originally
proposed time and costs. As such, these values now represent the new set of metrics
after the original baseline was modified. They are applicable as bases for analyses of
succeeding work performances after the adjustment cut-off date.

Comparisons between the Baseline and the Target curvatures denote growth of the
project as far as scope is concerned. Plotting of the Target S-Curve may finish above or
below the Baseline S-Curve, in which case:

 If the scope increases and the baseline duration or time allotment is fixed, then it
is likely that the project will be completed beyond the targeted date. This results
to what is called the Project Slippage, or the difference between the targeted
finish dates vs. the baseline finish date.

 If the scope increases and the baseline costs or proposed costs are fixed, then it
is likely that the project will be completed beyond the budgeted costs, which
could result to fewer profits or even potential losses.

 If the scope decreases and the baseline duration or time allotment is fixed, then
it is likely that the project will be completed ahead of the targeted date.

 If the scope decreases and the baseline costs or proposed costs are fixed, then it
is likely that the project will be completed at less than the budgeted costs, which
spells greater profits.

The Progress Metrics – This is a comparison between the Target S-Curve and the Actual
S-Curve, in which the latter is a measure of the actual man-hours and expenditures of a
project on a specific completion stage date.

Ordinarily, the Actual S-Curve is expected to run below the lines of the Target S-Curve,
since the results of constant monitoring entails compliance and observance of the
targeted time and costs. Hence, the two curved lines are expected to meet or converge
towards the end of the project completion.

If the curvatures present a graph where the Actual S-Curve runs open-ended above the
Target S Curve as of cut-off monitoring date, consider the possibility of errors in the data
contained in the production schedules. A careful review should be made to pinpoint
unrealistic values of man-hours and costs incurred for the already completed stage.

Value and Percentage Metrics:

 Cost vs. Time S-Curve: This type of analysis is suitable for projects that require
both labor and non-labor intensive elements. The main concern here is the

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cumulative costs at a specific stage of the project and its effect on the cash flow
as well as the potential risks of exceeding the allotted costs.

Creating the Cost vs. Time S-Curve

Use the actual cumulative amount of expenditures incurred from baseline start date to
cut-off date of progress stage and compare the S curve created against the Baseline S
curve for total cost allotment for the same cut-off date.

 Man Hours vs. Time S-Curve: This type of analysis is suitable for projects that are
estimated as labor intensive, in which the project manager has to know the
cumulative amount of man hours worked at a specific stage of the project.
Results of the graph will provide the basis for adjustment, whether there is
underperformance that warrants additional labor force or the implementation of
closer supervision.

Creating the Man Hours vs. Time S-Curve:

Use the actual cumulative amount of man-hours worked from baseline start date to cut-
off date of progress stage and compare the S curve created against the Baseline S curve
for man-hour allotment for the same cut-off date.

As a note, the models and analyses can be used to monitor the different phases or tasks
of a project. Since time is of the essence, the convenience of using the most appropriate
and multi-faceted project management software allows the application of this theory for
different project management scenarios.

Importance of S-curve

S-curves are an important project management tool. They allow the progress of a
project to be tracked visually over time, and form a historical record of what has
happened to date. Analyses of S-curves allow project managers to quickly identify
project growth, slippage, and potential problems that could adversely impact the
project if no remedial action is taken.

Determining Growth

Comparison of the Baseline and Target


S-curves quickly reveals if the project
has grown (Target S-curve finishes
above Baseline S-curve) or contracted
(Target S-curve finishes below
Baseline S-curve) in scope. A change in
the project's scopes implies a re-
allocation of resources (increase or
decrease), and the very possible
requirement to raise contract
variations. If the resources are fixed,
then the duration of the project will
increase (finish later) or decrease (finish earlier), possibly leading to the need to submit
an extension of time claim.
Determining Slippage

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Slippage is defined as the amount of time a task


has been delayed from its original baseline
schedule. The slippage is the difference between
the scheduled start or finish date for a task and
the baseline start or finish date. Slippage can
occur when a baseline plan is set and the actual
dates subsequently entered for tasks are later
than the baseline dates or the actual durations
are longer than the baseline schedule durations.

Comparison of the Baseline S-curve and Target S-


curve quickly reveals any project slippage (i.e. the
Target S-curve finishes to the right of the Baseline
S-curve). Additional resources will need to be allocated or additional hours worked in
order to eliminate (or at least reduce) the slippage. An extension of time claim may
need to be submitted if the slippage cannot be eliminated or reduced to an acceptable
level.

Determining Progress

Comparison of the Target S-curve


and Actual S-curve reveals the progress
of the project over time. In most cases,
the Actual S-curve will sit below the
Target S-curve for the majority of the
project (due to many factors, including
delays in updating the production
schedule). Only towards the end of the
project will the curves converge and
finally meet. The Actual S-curve can
never finish above the Target S-curve. If
the Actual S-curve sits above the Target S-curve at the Cut off Date, the Production
Schedule should be examined to determine if the project is truly ahead of schedule, or if
the Production Schedule contains unrealistic percentage complete values for ongoing
tasks.

Line of Balance Method

Many types of projects contain repeated blocks of activities. Examples of these kinds of
projects include road and high-rise construction. In both of these types of projects there
is a set of tasks repeated across many work areas. Arrow and Precedence Diagramming
are both able to model these types of schedules effectively. The Line-of-Balance (also
known as the Vertical Production Method) is a graphical technique that can be used in
conjunction with Arrow or Precedence Diagrams.

In the Line-of-Balance diagram, the x-axis represents (as in the bar chart) the timeline of
the project. The y-axis identifies the work areas that define the project. The blank chart
below is the starting point for the Line-of-Balance schedule.

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As crews arrive on the project, they begin at the first work area and move through the
project. In the figure below, Activity A has a total duration of 10 weeks. Spread across
each of the work areas the productivity of Activity A can be shown to be 2 weeks per
floor.

Now consider the implication of an Activity B that has a productivity of one week per
floor. If we try to start Activity B as soon as possible, then the start of activity B on the
first floor can occur at the end of week 2.

As it continue to add Activity B throughout the remaining work areas we can see that
Activity B starts on the second floor, at the end of week 4; on the third floor, at the end
of week 6 and so on; as shown in the diagram below.

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The breaks in the Activity B line, shown as red dashed lines above, are significant. This
gap means that the crew is waiting around for Activity A to clear out before it can start.
In the case of the project above, starting work as soon as you can will result in a lost
productivity of 4 crew weeks.

The diagram below shows that it should delay starting Activity B for four weeks. If you
do that, then you will keep the crew productive for their entire stay on your project. If
you were running a real project, you might include a bit extra time in case things
backup, but you would likely not start Activity B as soon as it could start!

PERT – CPM

Complex projects require a series of activities, some of which must be performed sequentially
and others that can be performed in parallel with other activities. This collection of series and
parallel tasks can be modeled as a network.

In 1957 the Critical Path Method (CPM) was developed as a network model for project
management. CPM is a deterministic method that uses a fixed time estimate for each activity.
While CPM is easy to understand and use, it does not consider the time variations that can have
a great impact on the completion time of a complex project.

The Program Evaluation and Review Technique (PERT) is a network model that allows for
randomness in activity completion times. PERT was developed in the late 1950's for the U.S.
Navy's Polaris project having thousands of contractors. It has the potential to reduce both the
time and cost required to complete a project.

The Network Diagram

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In a project, an activity is a task that must be performed and an event is a milestone marking the
completion of one or more activities. Before an activity can begin, all of its predecessor activities
must be completed. Project network models represent activities and milestones by arcs and
nodes. PERT originally was an activity on arc network, in which the activities are represented on
the lines and milestones on the nodes. Over time, some people began to use PERT as an activity
on node network. For this discussion, we will use the original form of activity on arc.

The PERT chart may have multiple pages with many sub-tasks. The following is a very simple
example of a PERT diagram:

PERT Chart

CPM or  "Critical Path Method":

 tool to analyze project and determine duration, based on    identification of "critical
path" through an activity network.
 Knowledge of the critical path can permit management of the project to change
duration.
 A single estimate for activity time was used that did not allow for variation in activity
times
 Activity times are assumed to be known or predictable ("deterministic")
 Activities are represented as nodes or circles

PERT or "Project Evaluation and Review Technique":

 Another derivative of the GANTT chart


 Multiple time estimates were used for each activity that allowed for variation in activity
times
 Activity times are assumed to be random, with assumed probability distribution
("probabilistic")

Activities are represented by arrowed lines between the nodes or circles

CPM/PERT

Over time, CPM and PERT merged into one technique referred to as "CPM/PERT".

 Visually easier to see precedence relationships


 Ideal for large projects with many activities

They consist of a network of branches and nodes.

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Two types:

Activity-on-node (AON) -- nodes represent activities and arrows show precedence relationships.
Activity-on-arrow (AOA) -- arrows represent activities and nodes are events for points in time.

Dummy
inserted into the network to show a precedence relationship, but it does not represent any
actual passage of time.

Activity Slack

Slack is computed by:

           Sij = LSij – ES ij OR   Sij = LFij - EF ij

Slack enables resources to be temporarily diverted other activities to:

 avoid delays
 compensate for an inaccurate time estimate Most network activities are estimates
 project uniqueness means little historical basis
 subject to a lot of uncertainty

Using probabilistic methods rather than deterministic to minimize uncertainty

Activity Scheduling

Earliest Start time (ES):


the earliest time an activity can start

Forward pass:
start at the first node and move forward through the network to determine the earliest start
time for an activity

Earliest Finish time (EF):


the earliest start time plus the activity time

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EFij = ESij + t ij

Latest Start time (LS):


the latest time an activity can start without delaying the completion of the project beyond
the critical path time

           LSij = LFij - tij

Latest Finish time (LF):


The latest time an activity can be completed and still maintain the critical path time

Probabilistic Time Estimates

PERT-type approach uses 3 time estimates for each activity

 most likely time (m)


 subjective estimate of most frequent time
 optimistic time (a)
 shortest possible time (ideally)
 pessimistic time (b)
 longest time possible if everything went wrong

Beta distribution:
 Estimate the mean and variance of a beta distribution of the activity times.
 continuous w/ no predetermined shape
 others types of distribution are no more or less accurate

Human judgment element

   
 Process no better than network and resource estimates
   
 Project teams  make these subjective estimates
   
 Knowledgeable people must determine which events must precede others and how
long activities will take.

PERT/CPM: DIFFERENCES

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Both tools lead to the same end: a critical path and critical activities with slack time equal to
zero. The differences between these tools come from how they treat the activity time. PERT
treats activity time as a random variable whereas CPM requires a single deterministic time value
for each activity. Another difference is that PERT focuses exclusively on the time variable
whereas CPM includes the analysis of the Time/Cost Trade-off.

Benefits

PERT/CPM is useful because it provides the following information:

 Expected project completion time.


 Probability of completion before a specified date.
 The critical path activities that directly impact the completion time.
 The activities that have slack time and that can lend resources to critical path activities.
 Activity start and end dates.

Limitations

The following are some of PERT's weaknesses:

 The activity time estimates are somewhat subjective and depend on judgment. In cases
where there is little experience in performing an activity, the numbers may be only a
guess. In other cases, if the person or group performing the activity estimates the time
there may be bias in the estimate.
 Even if the activity times are well-estimated, PERT assumes a beta distribution for these
time estimates, but the actual distribution may be different.
 Even if the beta distribution assumption holds, PERT assumes that the probability
distribution of the project completion time is the same as the that of the critical path.
Because other paths can become the critical path if their associated activities are
delayed, PERT consistently underestimates the expected project completion time.

The underestimation of the project completion time due to alternate paths becoming critical is
perhaps the most serious of these issues. To overcome this limitation, Monte Carlo simulations
can be performed on the network to eliminate this optimistic bias in the expected project
completion time.

EXAMPLE OF PERT/CPM METHOD IN CONSTRUCTION MANAGEMENT

LIST OF ACTIVITIES/NODES PROJECT NETWORK

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LENGHTH OF THE PATH

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Safety Management

Safety Management is a systematic, explicit and comprehensive process for managing


safety risks and reducing of risk to a level that is as low as is reasonably practicable.
There is an implied moral obligation placed on an employer to ensure that work
activities and the place of work to be safe, there are legislative requirements defined in
just about every jurisdiction on how this is to be achieved and there is a substantial
body of research which shows that effective safety management (which is the reduction
of risk in the workplace) can reduce the financial exposure of an organization by
reducing direct and indirect costs associated with accident and incidents.

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Common Safety Practices in Construction

Formulation of Authority

The first thing that commonly occurs in practicing construction safety is to make a
committee or group to monitor the safety procedures within the jobsite. In some
jobsites, they formulate a committee which is led by a safety officer. In order to become
a safety officer, you must be declared by the top management to gain authority. Safety
officer must be a duly accredited professional by the PRC or DOLE. The number of years
of practice for accreditation for engineering professionals is 3 years while 5 years for
non-engineering. Renewal of license occurs every 3 years. The role of the safety officer
is to enforce the safety rules and regulation within the jobsite. The safety officer
organizes a safety committee and performs a day to day site meeting which is called a
toolbox meeting. Toolbox meeting tackles accomplishments and reports concerning to
the activities that happens in the project.

Safety for the Workers

Implementation of safety for workers is also enforced


within the jobsite. The common practice is full body
protection from face, body, limb, foot, eyes, hearing
and breathing. Common elements and gadgets within
the site vicinity is the hard hats, protective vest,
safety shoes, gloves, gas masks, face masks, and in
some special conditions, SCBA or Self Contained
Breathing Apparatus is used. These full body
protections are implemented if the structure is more
than 6 ft.

Machineries and Equipment

Proper handling of these equipments shall be considered to avoid equipment related


accident. To ensure these safety practices, jobsite inspections is undertaken. For the
whole project team which includes top managements, once a month routine inspection
is undertaken while for safety officer is once a week. Operation of machine equipment is
only permitted to those duly accredited and licensed machine operators (e.g. cranes,
booms, pile drillers). Tools and materials handling is also being enforced. Workers shall
have their own tool cases (e.g. belt bags, tool box) to ensure proper handling before and
after work. In some cases which have chemical elements within the sites, Isolation is
considered.

Construction Site Safety

Not only the workers and the equipments but also the site as whole is concerned in
safety practices. Protective nets around the structure are required for protection from
falling debris. Temporary barriers and signages are within the site is also installed not
only for safety in jobsite but also for public awareness.

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The Importance of Construction Safety

Construction is one of the areas of employment where hazardous conditions are part of
the everyday working environment. Safety is important in construction because of many
risks to workers’ health. After all, safety in the job site will be maintained if all the
workers on the site work together. Because it is hard to create safe work zones in the
dynamic job sites, workers have to be double cautious to observe all safety practices on
the jobsites.

Accountability

As the workers are already on the jobsites and reported as a present body, their
employers are legally accountable for workers injuries. In order to protect the workers
and employers, managers and workers must follow uniform safety procedures so that
everyone is safe. Violating safety procedures can result in worker injury and even death.

Public Safety

The general public’s safety is also concern of the construction safety because many
construction jobsites occur in urban settings. For example, in the sidewalks near
construction sites, pedestrians and bicyclist are depending on safe conditions. If workers
are not performing the safety protocols, lives of innocent bystanders and passerby are
at stake as well as the construction worker.

Jobs

Construction companies are important source of jobs in many communities especially in


the Philippines where in the infrastructure sector is at boom. According to Engr. Ericson,
construction accidents results job losses. In this situation, the family of the workers
who’s involved in the accidents is at stake so safety practices in the jobsite should be
strongly enforced.

Laws and Regulations Pertaining to Safety Practices

The following laws that will be mentioned are connected to the safety practices of
construction in our country.

 National Building Code Rule 7 and 8 Safety Construction


 Labor Code of the Philippines (PD 422)
 DOLE Occupational Safety and Health Standards
 Fire Code of the Philippines

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