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NETWORK SCHEDULING TECHNIQUES Project planning and scheduling can serve as an

effective means of preventing:


Project planning
- Problems, low worker morale and decline in
- process of identifying all the activities necessary
productivity
to successfully complete the project.
- first step to project scheduling. PRINCIPLES OF PLANNING AND SCHEDULING
- Good planning detects changes and adjusts the
schedule in the most efficient manner. WBS (Work Breakdown Structure)
- Lack of planning, and in some instances no
planning at all. - the project must be broken down into well-
defined units of work that can be measured and
It must be recognized that changes are a necessary part managed.
of project work
KEY PRINCIPLES FOR PLANNING AND SCHEDULING
- If changes in the work are expected, or probable, 1. Begin planning before starting work, rather than after
then project planning should include provisions starting work
for a reasonable allowance of the anticipated 2. Involve people who will actually do the work in the
changes. planning and scheduling process
3. Include all aspects of the project: scope, budget,
Project scheduling schedule, and quality
4. Build flexibility into the plan, Include allowance for
- the process of determining the sequential order changes and time for reviews and approvals
of the planned activities 5. Remember the schedule is the plan for doing the work,
Project Planning Is a Prerequisite to Project Scheduling and it will never be precisely correct
6. Keep the plan simple, eliminate irrelevant details that
- because there is no way to determine the prevent the plan from being readable
sequence or start and finish dates of activities 7. Communicate the plan to all parties; any plan is
until they are identified. worthless unless it is known

Planning and scheduling are performed interactively. Techniques for Planning and Scheduling
Planning is more difficult to accomplish than scheduling. 1. The Gantt Chart (Bar Chart)

Desired Results of Planning 2. The Critical Path Method (CPM or network analysis
system)
- track the quantity, cost, and timing of work
required to successfully complete the project. - provides interrelationships of activities and
- most common desired result of planning is to scheduling of costs and resources.
finish the project on time - commonly used in the engineering and
construction industry.
Other benefits that can be derived in project planning - requires an extensive description of the
interrelationships of activities.
1. Finish the project on time - Most common used NAS method.
2. Continuous (uninterrupted) flow of work (no delays)
3. Reduced amount of rework (least amount of changes) Using a network schedule to plan:
4. Minimize confusion and misunderstandings - Could break a project down into identifiable
5. Increased knowledge of status of project by everyone tasks and to relate the tasks to each other in
6. Meaningful and timely reports to management a logical sequence in much greater detail
7. You run the project instead of the project running you than a bar chart.
8. Knowledge of scheduled times of key parts of the - identify conflicts in resources before they
project occur.
9. Knowledge of distribution of costs of the project Network analysis system (NAS)
10. Accountability of people, defined
responsibility/authority - NAS is a general title for the technique of defining
11. Clear understanding of who does what, when, and and coordinating work by a graphical diagram
how much - shows work activities and the inter dependencies
of activities.
12. Integration of all work to ensure a quality project for
the owner Terminologies used in NAS:
 Activity- task required to complete the project,
requires time, cost, or both time and cost.
 Network- A diagram to represent the relationship
of activities to complete the project. "Arrow
diagram" or a "precedence diagram."
 Duration (D)-The estimated time required to 4. Compute the schedule to determine start, finish, and
perform an activity. float times
 Early Start (ES) -The earliest time an activity can a. Perform a forward pass to determine early starts and
be started. finishes
 Early Finish (EF)-The earliest time an activity can b. Perform a backward pass to determine late starts and
be finished. finishes
(EF = ES + D) c. Determine the differences between start and finish
 Late Finish (LF) -The latest time an activity can be times to determine float time and critical activities
finished.
 Late Start((LS) -The latest time an activity can be 5. Analyze costs and resources for the project
started without delaying the completion date of a. Compute the cost per day for each activity and for the
the project. entire project
(LS = LF – D) b. Compute the labor-hours per day and/or other
 Total Float (TF) (Total Slack)-The amount of time resources that are required to complete the project
an activity may be delayed without delaying the
completion date of the project. 6. Communicate the results of the plan and schedule
(TF = LF – EF = LS – ES) a Display time schedule for activities
 Free Float (FF) (Free slack) -The amount of time b. Display cost schedule for activities
an activity may be delayed without delaying the c. Display schedule for other resources
early start time of the immediately following
activity. Development of CPM Diagram from WBS
 Critical Path-A series of interconnected activities  The WBS identifies the tasks and activities that
through the network diagram, with each activity must be performed, but does not provide the
having zero, free and total float time. The critical order in which they must occur.
path determines the minimum time to complete  The CPM network diagram is prepared to show
the project. the sequencing and inter-dependencies of the
 Dummy Activity-An activity (represented by a activities in the WBS.
dotted line on the arrow network diagram) that  The purpose of CPM is to plan the work to guide
indicates that any activity following the dummy the progress of a project and provide a baseline
cannot be started until the activity or activities for project control.
preceding the dummy are completed. The  The CPM network diagram, by itself, identifies
dummy does not require any time. the sequencing of activities but does not provide
the scheduled start and finish dates, the
If a well-defined WBS is developed first, the task of
distribution of costs, or the allocation of
developing a CPM diagram is greatly simplified.
resources.
The CPM Diagrams Assigning Realistic Duration
- common mistake that is made by many people is
 Arrow Diagram (activity on arrow or AOA) to calculate the time to accomplish an activity
 Precedence Diagram (activity on node or AON). assuming a continuous flow of uninterrupted
STEPS IN PLANNING AND SCHEDULING work.
Generally. the duration of an activity can be
1. Develop a work breakdown structure (WBS) that determined by one of three methods;
identifies work items (activities) 1. by analyzing historical records from previously
a. Consider activities that require time completed projects.
b. Consider activities that require cost 2. by referencing commercially available manuals
c. Consider activities that you need to arrange that provide costs and production rates for
d. Consider activities that you want to monitor various types of work.
3. or from the experience and judgement of the
2 Prepare a drawing (network diagram) that shows each person who will be performing the work. It is
activity in the order it must be per formed to complete often desirable to determine the probable
the project duration by several methods so the results
a Consider which activities immediately precede each
activity b. Consider which activities immediately follow 3. The program evaluation and Review technique (PERT)
each activity
c. The interrelationship of activities is a combination of - The PERT method uses an arrow network
how the work must be done (constraints) and how you diagram to show the logical sequence of activities
want the work to be done in a project.
- The circles are called events that represent an
3. Determine the time, cost, and resources required to instant in time.
complete each activity - The circle at the beginning of the activity
a. Review work packages of the WBS represents the start of an activity
b. Obtain input from project team members - the circle at the end of the arrow represents the
finish of the activity.
- The major difference between the PERT method Early Cost Estimates
and CPM is the estimation of duration.
- For the sponsoring organization, early cost
Three durations: estimates are often a basis for business unit
decisions
�= optimistic time - An early estimate is also important to the project
- shortest possible time in which the activity team because it helps formulate execution
could possibly be completed, assuming that strategies and provides a basis to plan
everything goes well. engineering and construction.

� = pessimistic time
- longest time the activity could ever require, Classification of Early Estimates
assuming that everything goes poorly. Early estimate-an estimate that has been prepared after
� = most likely time the business unit study but prior to completion of
detailed design.
- the time the activity could be accomplished if
it could be repeated many times under Examples:
exactly the same conditions. Cost estimate classifications by:
Expected Time (te)
 Association for Advancement of Cost Engineering
- Overall average project duration (AACE)
� + �� + �
�� =

σ (standard deviation).
- The measure of the spread of the distribution
Variance (�)
- Determines probability of the project completing  International and by the Construction Industry
earlier or later than expected. Institute (CII)
- Square of the standard equation

�−�

�=� =

The expected time of an event (�� )
- for the final event in a project has all the critical
path activities in the chain that lead up to the
final event in the project. ESTIMATING WORK PROCESS
Standard deviation of expected time (σTE) Primary factors in preparing estimates.
- The measure of uncertainty of the final event in a 1. Standardization of the cost estimate preparation
PERT diagram is the standard deviation process
2. Alignment of objectives between the customer
and team
3. Selection of estimate methodology
commensurate with the desired level of accuracy
Deviation (�) I
4. Collection of project data and confirmation of
- probabilities of certainty.
historical cost information
5. Organizing the estimate into the desired format
6. Documentation and communication of estimate
basis, accuracy, etc.
7. Review and checking of estimate
8. Feed-back from project implementation

The Scheduled time of an event (�� )

PROJECT ESTIMATION AND COSTING


Estimating work process: Lessons learned
1. Alignment - during project execution must also be
documented and incorporated into estimating
- Alignment between the customer and the standards and procedures.
estimating team must be established before - During construction must be communicated back
starting an estimate. to the estimating team, to enable them to
- accomplished by early communications to ensure establish better standards for preparing future
a clear understanding of the customer's project estimates.
expectations and the estimating team's ability to
meet those expectations. Scope Definition and Early Estimates

 Estimate Kick-Off Meeting - accuracy of any estimate depends on the


- provides an excellent forum for amount of information that is known about
establishing alignment. the project when the estimate is prepared.
- provides an exchange of Variables that determine a good scope definition:
information regarding the
customer's expectations and the Lack of Scope Definition
team's ability to meet those - has been identified as the root cause
expectations. of cost overruns, late completion
2. Scope Definition dates, excessive rework, unnecessary
disputes, poor team alignment, and
- clear understanding of the work to be other problems associated with
performed and the products that will be engineering and construction
produced. projects.
- estimator must communicate to the business unit
the expected range of accuracy based on the The Skills and Experience of The Project Team
level of scope definition. and the estimating procedure also play an
important role.
3. Estimate Work Plan
Reality Checks based on the estimator’s experience and
- identifies the work that is needed to prepare the familiarity with the project, this may include:
estimate including who is going to do it, when it
is to be done, and the budget for preparing the 1. Simple "intuitive" checks for reasonableness
estimate. 2. Comparisons with similar projects
- The plan also includes the tools and techniques
that are appropriate for the level of scope 3. Comparisons with industry data ($/square foot,
definition and the expected accuracy of the cost/megawatt, indirect/direct costs, etc.)
estimate.
4. Check ratios such as lighting costs/fixture, fire
4. Estimate preparation protection, costs/sprinkler, etc.
- The estimating team must keep the requesting Establishing an Estimate Work Plan
party informed of the work being performed, and
- a document to guide the team in preparing
the requesting party must respond to questions
accurate estimates and improving the estimating
that may arise from the estimating team.
process.
5. Estimate Documentation - unique for each project, based on specific project
parameters and requirements.
- a document should be prepared that defines the
basis of the estimate. The quality of any estimate is governed by the following
- improves communications among project major considerations:
participants, establishes a mechanism for
A) Quality and amount of information available for
estimate reviews, and forms a basis for early
preparing the estimate
project cost control.
B) Time allocated to prepare the estimate
Contingency
C) Proficiency of the estimator and the estimating team
- amount of money that must be added to the
base estimate to account for risk and uncertainty. D) Tools and techniques used in preparing the estimate
- Typically, risk analysis is a prerequisite to
assigning contingency.
To improve early estimates the estimating process must
be a continuous cycle.
Methods and Techniques Risk Assessment
A) Cost capacity curves - Assessing risk and assigning contingency to the
base estimate
- a graph that plots cost on the vertical axis and - not the sole responsibility of the estimators.
capacity on the horizontal axis. - requires a participatory approach with
- Information required: type of unit and capacity. involvement of all project stakeholders
B) Capacity ratios raised to an exponent Risk Analysis
- This approach takes into account the effect of - Purpose is to improve the accuracy of the
economy of scale on the total installed cost. estimate and to instill management's confidence
C) Plant cost per unit of production in the estimate.

- used to estimate the total plant cost based Contingency


on the average plant costs per unit of - amount of money that must be added to the
production on previously completed projects. base estimate to account for work that is difficult
- assumes that the relationship between plant or impossible to identify at the time a base
cost and production capacity is linear estimate is being prepared.
D) Equipment factored estimates - assigned based on uncertainty and may be
assigned for many uncertainties, such as pricing,
- derived by applying various factoring techniques escalation, schedule, omissions, and errors.
to estimated equipment costs.
TRADITIONAL METHODS OF ASSIGNING CONTINGENCY
E) Computer-generated estimates
Percentage of Base Estimate
- commercially available computer software
systems for estimating capital costs for a number - A percentage is applied to the base estimate to
of different types of industries derive the total contingency.
- contingency may be assigned based on personal
Considerations to maximize the benefits of the use of past experience.
software systems in developing early estimates:
Expected Net Risk
A) Index or benchmark the unit costs and installation
work-hours in the computer software's databases to - estimator may determine contingency based on
match the company's cost databases. expected maximum risk and likelihood.

B) Establish system defaults that correspond to the Simulation


company's engineering and design standards. - A simulation of probabilistic assessment of critical
C) Create a program that allows conversion of the output risk elements
of the software programs to the company's account Assessing Estimate Sensitivity
codes and format.
- The contingency added to an estimate includes
Estimate Checklists the combined impact of all risk elements.
- Check lists are useful during initial client- Estimate Feedback for Continuous Improvement
customer meetings where they serve as agenda
items for discussion. - Feedback from project execution provides
- valuable tools to reduce the potential of lessons learned to the estimator that allows the
overlooking a cost item by: estimating team to modify estimating standards
 Listing information required to prepare the early and practices.
estimate - A process for providing feed-back loops is
 Listing miscellaneous and other costs that may be necessary for improving the accuracy of early
required in the estimate estimates.
 Listing the project scope that may be required
but not identified in the definition provided for
the estimate
Estimate Reviews
- increase the credibility and accuracy of the
estimate.
- helps the customer to understand the contents
and level of accuracy of the estimate, allowing
the customer to make better business decisions.
WEEK 8: PROJECT QUALITY MANAGEMENT Total Quality Management (TQM) - 1980’s
→ a set of techniques and more — it is a mindset, an
What Quality is ambitious approach to improving the total
 meeting specifications effectiveness and competitiveness of the
 a project should aim beyond specifications organization.
 product or end item is fit for the intended
purpose Key Elements of TQM
 the absence of defects, often associate the  Identifying the mission of the organization
terms quality and defects  Acting in ways consistent with the goals &
objectives of the organization
Defects  Focusing on customer satisfaction
→ nonconformity --- something other than what the TQM involves…..
customer had expected. 1. Total organization
2. Teams of front line workers
Quality Management 3. Visible support of top management
 attempts to identify and correct as many Quality problems are systematically identified and
nonconformities --- problems, mistakes, and resolved to continuously improve processes.
defects In projects, this purpose is served by closeout
 seeks to identify nonconformities as soon as sessions or after project completion.
possible.
Just-in-Time (JIT)
A quality project is one that satisfies multiple → lean production, complements TQM.
requirements, and devoting too much attention to → recognizes that quality problems are often hidden
any particular one, such as eliminating all defects, by excessive work-in-progress inventory
may detract from fulfilling other, more important → includes relatively easy-to-implement measures
requirements. that improve quality and reduce costs and lead times

The point is, it depends on the customer. In many Six Sigma (6σ) - 1980’s
cases the customer would prefer that an end-item be → started at Motorola and popularized by General
delivered on time at lower cost with a few defects Electric.
than delivered late at a higher cost with no defects. → provides a more structured approach to quality
than TQM
Good Enough Quality
→ where preset priorities on performance “six sigma” - refers to the fact that in a normal
requirements, time, and cost preclude satisfying all of distribution, 99.99966 percent of the population falls
the requirements and force the project team to meet within -6σ or +6σ of the mean, where “σ” (sigma) is
only those that are the most important. the standard deviation
→ customer is the judge of what is “good enough”
and to be able to make that judgment must be kept If the quality of a process is controlled to the Six Sigma
constantly updated as to project problems, costs, standard, there would be less than 3.4 parts per million
and schedules. scrap or defects in the process—near perfection!

Each person contributes to quality implies:


 Knows what is expected of him/her Quality Product: Meeting Mutually Agreed
 Able and willing to meet those expectations Specifications
 Knows the extent to which he/she meets the - Whenever the customer provides a requirement or
expectations specification that seems unrealistic, the contractor
 Has the ability and authority to take necessary should review it with the customer and alter it so the
corrective actions desired end-result can be attained.
What Quality is NOT Configuration Management
 the quality and grade of a product are not the → identifying important product specifications, the
same. associated components, their configuration in the
product, and subsequently controlling these
Quality Movements components and their configuration
1950 - “quality revolution” in Japan under the
influence of American, Dr. W. Edwards Deming. The Process of Project Quality Management
- includes quality management processes as well as
Few Quality movements that has kept evolving and certain techniques to reduce the risk of products or
improving: end-items not meeting requirements.
 Total Quality Management (TQM)
 Just-in-Time (JIT) Consists of:
 Six Sigma (6σ)  Quality Planning
 Quality Assurance
 Quality Control
Quality Planning The Cost of Quality
→ process to guide future quality activities - the quality planning process should consider the cost
→ sets the requirements and standards to be met, as and benefits of quality activities
well as the actions necessary to meet those Commonly Classified as:
requirements and standards.  Prevention
 Appraisal and Control
Quality Assurance  Internal Failure
→ process to perform the planned quality activities  External Failure
→ ensure that the project utilizes processes
Cost-Benefit Analysis
necessary to meet the quality standards and project
→ performed to evaluate and justify proposed quality
requirements.
activities, and to compare the savings or benefits from
→ the “healthy lifestyle” to prevent nonconformities. fewer or eliminated nonconformities to the costs of
quality assurance and control activities
Quality Control
→ process to ensure that quality assurance activities Prevention Costs
are being performed (or have been performed) → include costs of quality training, design reviews, and
→ “the medicine” to eliminate nonconformities other activities aimed at preventing errors
→ The cost of quality planning

PROJECT QUALITY MANAGEMENT PROCESS Appraisal and Control Costs


→ the evaluation of products and processes, including
product reviews, audits, tests, and inspections

Internal Failure Costs


→ costs associated with nonconformities discovered by
the producer, such as the cost of scrap, rework, and
retest

External Failure Costs


→ costs incurred after delivery to a client and include
costs for replacements, warranty repairs, liability, and
lost sales as a result of a damaged reputation
→ associated with failures discovered by the customer

Quality Assurance
- reduces the risks related to features or performance of
deliverable, and provides confidence that end-item
requirements will be met
Project Quality Control overarches Quality planning and - relies heavily on HR, usually involves considerable
Quality Assurance. training of project team members
This is to emphasize quality control’s role in ensuring
that quality assurance is performed according to the 1. Activities done in a specific project to ensure
quality plan. that requirements are being met. This includes
Project quality assurance helps guarantee compliance demonstrating that the project is being
executed according to the quality plan
with project requirements, while systematic project
2. Activities that contribute to the continuous
closeout and continuous improvement help future improvement of current and future projects, and
projects by providing lessons learned from completed to the project management maturity of the
projects. organization
Quality assurance should provide confidence that
Quality Planning everything necessary is being done to ensure the
→ provide the confidence that all steps necessary to appropriate quality of project deliverables
ensure quality have been thought through
Two Aspects: Project Closeout and Continuous Improvement
 establishing organization-wide project quality - Project organizations should strive to continually
management procedures and policies improve their technical operations and managerial
 establishing a quality plan and including it in the processes
project plan for each project - review takes place upon completion of the project,
although, ideally, also upon completion of each phase
ISO 9001 STANDARD of the project
→ specifies the requirements for such a quality - to understand what happened, to learn lessons that
can be applied to other projects and avoid repeating
management system
Mistakes
An organization should:
- process is essential for continuous improvement,
 the design and development stages
although unfortunately it is often neglected because
 the necessary review, verification, and validation
people lose interest as the project winds down
appropriate to each design and development stage
- result is that organizations repeat mistakes, “reinvent
 the responsibilities and authorities for design and
the wheel” and do not benefit as much as they could
development
from their experiences
Quality Control  Cost of ownership
→ the ongoing process of monitoring and appraising  Safety and product liability
work, and taking corrective action so that planned-for  Reliability
quality outcomes are achieved  Availability
→ subset of scope verification  Ability to be constructed or manufactured
→ conformance to specifications set by the contractor  Shelf life
→ includes inspections to verify that deliverables are  Operability
meeting specifications  Maintainability
 Patentability
Scope Verification  Ergonomics
→ the acceptability of project deliverables or end-items
by the customer Audits
→ includes verifying the general acceptability of those → to verify that management processes comply with
specifications and standards prescribed processes, procedures, and specifications
→ verify that technical processes such as welding
Waiver adhere to prescribed procedures, and to determine the
→ applies to an unplanned condition that is discovered status of a project whenever a thorough examination of
only after the item has been produced certain critical aspects of the work is required
→ authorizes a temporary nonconformity → verifying that the work is being performed as
required
Deviation
→ also a temporary departure from specification, but Classification of Characteristics
might affect more items and extend for a longer period → can be specified or described in terms of numerical
of time specifications, which often include tolerances of
acceptability
Modification
→ any change to a design or manufacturing process Pareto Principle - states that, in general, the large
specification that is considered permanent majority of problems in any situation are caused by a
relatively small number of sources
Techniques for Quality Assurance During System
Development Characteristics are typically classified into:
 Configuration Management  Critical - reserved for characteristics where a non
 Design Reviews conformance would pose safety risks or lead to
 Audits system failure. subjected to 100 percent inspection
 Classification of Characteristics  Major - non conformance would cause the loss of
 Failure Mode and Effect Analysis a major function of the deliverable
 Modeling and Prototyping  Minor - non conformance would lead to small
 Testing of Models and Prototypes impairment of function or to problems with
manufacturability or serviceability
Configuration Management  Incidental - minimal effect or relate to relatively
→ any project aimed at delivering a technical product unimportant requirements
should include provision to keep up with and control all
this information Failure Mode and Effect Analysis
→ represents policies and procedures for monitoring → system can potentially fail as the result of a variety of
and tracking design information and changes, and conditions in its design production, or operation
ensuring that everyone involved with the project and, FMECA (failure mode, effect, and critically analysis)
later on, the operation of the end-item has the most → technique to determine in what ways a technical
current information possible system might fail, and what effects the identified
failures would have on the system’s performance and
Configuration Identification safety, and on the environment
→ inherent part of systems design that involves
defining the structure of the system, its subsystems,
and components.

Configuration Control
→ orderly scheme to manage and keep track of all
changes
Modeling and Prototyping
Design Reviews (formal and informal) → models to ensure the quality of their products,
→ provide confirmation of the data used during the including computer simulation models, mathematical
design process, design assumptions, and design models, three-dimensional scale models, and full-scale
calculations prototypes, each to gain a better impression of how the
→ ensure that the users’ requirements and inherent final product, system, or subsystem will look and
assumptions have been correctly identified, and that perform
the proposed design is able to meet those requirements
in an appropriate way Testing of Models and Prototypes
→ systematically reduce the risk that the final product
These aspects include: will not be satisfactory
 Omissions or errors in the design
 Compliance to regulations, codes, specifications, For products that are to be manufactured in quantities, the
and standards design should be verified by means of a qualification test.
Basic Tools of Quality Control
1982 - Kaoru Ishikawa “seven basic tools” or
“magnificent seven of quality control”
 Check Sheet
 Flowchart
 Run Chart and Control Chart
 Scatter Diagram
 Pareto’s Law (Vilfredo Pareto)
 Histogram
 Cause-and-Effect Diagram

Check Sheet
→ a sheet created especially for collecting data about a
problem from observations
→ sheet are uniquely designed by the team
investigating the problem

Flowchart
→ shows the steps in a procedure and their
relationships

Run Chart and Control Chart


→ graph of observed results plotted versus time to
reveal potential trends or anomalies
Run Chart - spot upward and downward trends
Control Chart - include upper and lower control limit
lines with a center line.

Scatter Diagram
→ used for tracking and control of repetitive events
→ tool for analyzing relationships between two
variables for determining how closely the two variables
are related

Pareto’s Law
→ dubbed the “80/20 rule”
→ 20 percent of the people own 80 percent of the
wealth

Histogram
→ frequency distribution showing how often each
different value in a set of data occurs
→ most commonly used graph to show frequency
distributions

Cause-and-effect Diagram
→ fishbone or Ishikawa diagram
→ a scheme for arranging the causes for a specified
effect in a logical way.

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