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Types of Projects 1

No

TYPE 4 TYPE 3
Product R&D and Organizational
Development Project Change Project
well defined
Methods

TYPE 1 TYPE 2
Engineering Applications Software
Project Development Project

Yes

Yes No
Goals well defined

Figure 3.1 Turner and Cochrane’s Goals and Methods Matrix

Chapter 3 - Project Planning, Scheduling and Controlling


Project Planning and Controlling 2

Objectives
- To arrange the activities appropriately
- To make a realistic time scheduling
- To make a resources estimation and planning
- To implement time and cost controlling
- To ease the contract administration

Chapter 3 - Project Planning, Scheduling and Controlling


Scheduling Techniques 3

Planning, Scheduling
And controlling Techniques

Bar Linear Balance


Charts Method

Progress Curve Matrix


or S-Curves Schedules

Critical Path
Method (CPM)

Figure 3.2 Techniques of Project Planning, Scheduling and Controlling

Chapter 3 - Project Planning, Scheduling and Controlling


Bar Charts 4

Advantages Disadvantages

- Simple graphical - Very cumbersome as the number


- Easy for general comprehension of line activities, or bars
- Wide spread used in industry increases
- Mostly used in small project - Logical interconnections and
- Fairly broad planning and constraints of the various
scheduling tools, so they activities is not expressed
require less revision and - Difficult to use it for
updating than more forecasting the effects that
sophisticated systems changes in a particular
activity will have on the
overall schedule

Figure 3.3 Techniques of Project Planning, Scheduling and Controlling

Chapter 3 - Project Planning, Scheduling and Controlling


Bar Charts 5

Table 3.1 Bar Chart for Concrete Gravity-Arch Dam

No. Description Month


    1 2 3 4 5 6 7 8 9 10
1 Mobilization                    
2 Foundation Excavation                    
Original Schedule
3 Diversion Stage                    
4 Foundation Grouting                    
5 Dam Concrete                    
6 Install Outlet Gates                    
7 Install Trash Racks                    
8 Prestress                    
Actual progress
9 Radial Gates                    
10 Spillway Bridge                    
11 Curtain Grout                    
12 Dismantle Plant, Clean Up                    

Chapter 3 - Project Planning, Scheduling and Controlling


Bar Charts 6

Example 3.1

A project consist of six activities that should be done in a


period of time. Try to create a bar chart to ease the
project planning and scheduling.

Activity A : 1 week, starting from 1 Oct 2014


Activity B : 2 week, starting from 5 Oct 2014
Activity C : 3 week, starting from 15 Oct 2014
Activity D : 2 week, starting from 25 Oct 2014
Activity E : 2 week, starting from 29 Oct 2014
Activity F : 1 week, starting from 5 Nov 2014

Chapter 3 - Project Planning, Scheduling and Controlling


Bar Charts 7

Table 3.2 Bar Chart for Example 4.1

No Activity Duration Week


      1 2 3 4 5 6
1/10 8/10 15/10 22/10 29/10 5/11

1/10 8/10 15/10


    22/10 29/10 5/11 12/11
 

1 A 1            

2 B 2          

3 C 3      
`

     

4 D 2        

5 E 2            

6 F 1            

Chapter 3 - Project Planning, Scheduling and Controlling


Modified Bar Charts 8

Example 3.2

Data of a project consist of four activities with their


duration and also amount of amount needed for this project.
Create a modified bar chart according to the data above.

No Activity Duration Starting Human Resources Successor


    (week) Date (people)  

1 G 1 01 October 2014 5 H, I
2 H 2 08 October 2014 8 J
3 I 3 10 October 2014 15 K
4 J 2 22 October 2014 4 K
5 K 2 05 November 2014 3 -

Chapter 3 - Project Planning, Scheduling and Controlling


Modified Bar Charts 9

Table 3.3 Modified Bar Chart for Example 4.2

No Activity Duration Human Resources Week


    (week) (people) 1 2 3 4 5 6
        1/10 8/10 15/10 22/10 29/10 5/11 12/11
 
5
1 G 1 5            
4
4
2 H 2 8            
4
5 5 1

3 I 3 15            
2 2
4 J 2 4            
3
5 K 1 3 Resources (People)
           

10

0
Duration (week)

Chapter 3 - Project Planning, Scheduling and Controlling


Progress Curves 10

Table 3.4 Combination between S-Curves and Bar Charts

No. Description Month


    1 2 3 4 5 6 7 8 9 10
100
1 Mobilization                    
2 Foundation Excavation                    
Original Schedule
3 Diversion Stage                    
4 Foundation Grouting                    

Cumulative progress (%)


5 Dam Concrete                    
6 Install Outlet Gates                    
7 Install Trash Racks                    
8 Prestress                    
Actual progress
9 Radial Gates                    
10 Spillway Bridge                    
11 Curtain Grout                    
12 Dismantle Plant, Clean Up                    
0

Chapter 3 - Project Planning, Scheduling and Controlling


Progress Curves 11

Step by step to make s-curve

- Calculate cost for each activity


- Calculate total cost for all activity
- Calculate the progress ratio between cost for each
activity and total cost
- Divide those progress ratio equally for each activity
according to its duration
- Add the progress ratio which already divided for each
unit of time
- Calculate the cumulative progress ratio
- Draw S-Curve as a relationship between cumulative
progress ratio and duration of a project

Figure 3.4 Step by Step to Make Progress or S-Curve

Chapter 3 - Project Planning, Scheduling and Controlling


Progress Curves 12

Example 3.3

As a bar chart is created in Example 3.1, try to draw a


progress or S-Curve of the project with additional data as
follow :
No Activity Duration Cost
    (week) ($ )

1 A 1 1600
2 B 2 2000
3 C 3 6000
4 D 2 4900
5 E 2 3600
6 F 1 2000
Total 20000

Chapter 3 - Project Planning, Scheduling and Controlling


Progress Curves 13

Table 3.5 Progress or S-Curve for Example 4.3

No Activity Duration Progress week


      Ratio 1 2 3 4 5 6
1/10 15/10
22/10
5/11

    (week) (%) 8/10   29/10


100

1 A 1 8   8
         

Cumulative progress (%)


2 B 2 10   2.1 5 2.9
     
10
3 C 3 30       10
  10    
50

4 D 2 24     6.9 12
 
5.1

9 9
5 E 2 18            
6 F 1 10             10
0

Work progress ratio (%) 10.1 5 12.9 16.9 31 24.1


8
Cumulative wok progress ratio (%) 10.1 15.1 28 44.9 75.9 100

Chapter 3 - Project Planning, Scheduling and Controlling


Linear Balance Method 14

Facts about linear balance method

- Also called as Vertical Production Method (VPM)


- Apply best to linear and repetitive operations, such as
tunnels, pipelines, highways etc.

100

ing
ing

p
g

u
gin
g
g

ld

an
nd
in
n

ing
we
ari

cle
in
ch

be

p
str
cle

n
Cumulative progress

ap
tre

wr
& g
tin
(%)

oa
g ,c

testing
ill
nin

ing

backf
ea

ay
Cl

el
pip
0
Time
Figure 3.5 Linear Balance Method for Pipeline

Chapter 3 - Project Planning, Scheduling and Controlling


Matrix Schedules 15

Facts about matrix schedules

- Fairly common used on high-rise buildings with


successive floors repeating essentially the same plan.
- The vertical correlation of floors to rows is
immediately obvious to anyone and requires no
explanation (see Table 2.6)
- The chronological, left-to-right flow of each floor’s
operations is east to see (see Table 2.6)
- The logical interrelationships among operations are also
more obvious than in a bar chart
- With some forethought, the vertical columns can be made
to correspond to the specialty subcontractors

Figure 3.6 Facts about Matrix Schedules

Chapter 3 - Project Planning, Scheduling and Controlling


Matrix Schedules 16

    Sequence of operations on each floor   


             
             

suspended
decking
        Intermediate Operations      
frame

ceiling
Place

Install
Erect

carpet
floor

Paint
             

and
             
  30            
  29            
             
Building floor

Typical Element
numbers

             
scheduled start Actual start
             
scheduled finish Actual finish
             
scheduled duration Actual duration
  2            

  B1            
  B2            

Figure 3.7 Matrix Schedule for High-Rise Building

Chapter 3 - Project Planning, Scheduling and Controlling


Critical Path Method 17

Advantages Disadvantages

- Networks can much more - A little bit difficult to


concisely represent large understand the network system
numbers of activities
- The logical interrelationships
and dependencies among
activities is really shown
- Much more useful for
forecasting and control Types of CPM
- It identify the most critical
elements in the project
- Arrow Diagram Method (ADM)
schedule
- - Precedence Diagram Method
Easy to adjust if any delay is
happen in the project (PDM)

Figure 3.8 Advantages and Disadvantages of Critical Path Method

Chapter 3 - Project Planning, Scheduling and Controlling


ADM vs. PDM 18

Table 3.6 Differences between ADM and PDM Method

Item ADM PDM

ES D EF
A
A

LS TF LF
Activity
ES: Early Start LS: Late Start
EF: Early Finish LF: Late Finish
D : Duration TF: Total Float

ES D EF ES D EF
ES A LS 1
Event 1 2 A B
EF LF
LS TF LF LS TF LF

Chapter 3 - Project Planning, Scheduling and Controlling


ADM vs. PDM 19

Table 3.6 Differences between ADM and PDM Method (cont.)

Item ADM PDM

Definition
Activity which has not Dummy activity is not used
duration. It is only in Precedence Diagram
Dummy used to show any Method (PDM)
Activity relationship between
activities.
D Function
• If there is a situation
or
where one event is used
to show relationship
more than one activity.
• To show a complicated
relationship clearly

Chapter 3 - Project Planning, Scheduling and Controlling


ADM vs. PDM 20

Table 3.6 Differences between ADM and PDM Method (cont.)

Item ADM

False True
A
Dummy A
Activity

B B
D

or
A C A C

B D B D

Chapter 3 - Project Planning, Scheduling and Controlling


ADM vs. PDM 21

Table 3.6 Differences between ADM and PDM Method (cont.)

Item ADM

1. D is preceded by A only
2. E is preceded by A and B
3. F is preceded by B and C

Dummy
False True
Activity
A D A D
D

or B E B E

C F C F

Chapter 3 - Project Planning, Scheduling and Controlling


ADM vs. PDM 22

Table 3.6 Differences between ADM and PDM Method (cont.)

Item ADM PDM

F - S F – S
Relationship F – F
S – S
S - F
- Critical Path
: A path consist of few activities which will
determine the overall project duration.
1. Es = Ef, or
Critical path
2. Ls = Lf, or
3. Total Float (TF) = 0
- Possible to have more than one critical path
- Activities which lay on critical path cannot suffer
any delay

Chapter 3 - Project Planning, Scheduling and Controlling


ADM vs. PDM 23

Table 3.6 Differences between ADM and PDM Method (cont.)

Item ADM PDM

- Total float
: The maximum amount of time that the activity can be
Total float delayed without extending the completion time of the
overall project.
1. TFx = LSx – ESx, or

2. TFx = LFx – EFx

- FORWARD PASS
: To establish the earliest expected start and
Estimating duration finish times for each activity in the network.
- BACKWARD PASS
: To establish the latest allowable start and finish
times for each activity in the network.

Chapter 3 - Project Planning, Scheduling and Controlling


Arrow Diagram Method 24

Note

a : Early Start (ES)A


Forward pass b : Late Start (LS)A
c : Early Finish (EF)A = (ES)B
d : Late Finish (LF)A = (EF)B
A e : Early Finish (EF)B
a c B e
1 2 2 d : Late Finish (LF)B
b X d Y f X : Duration of activity A
Y : Duration of activity B

Forward pass Backward pass


Backward pass
a = 0 f = e
c = a + X d = f – Y
e = c + Y b = d - X

Figure 3.9 Estimating Project Duration using Arrow Diagram Method (ADM)

Chapter 3 - Project Planning, Scheduling and Controlling


Arrow Diagram Method 25

Example 3.4

Activity Successor Duration


  (week)
A B, C 2
B D 3
C E 2
D F 4
E G 5
F H 2
G H 3
H - 1

Estimate the total project duration.


Calculate the total float for each activity in the project
Draw the bar chart according to your calculation

Chapter 3 - Project Planning, Scheduling and Controlling


Arrow Diagram Method 26

Solution 3.4

5 D 9
2 2
5 9 F
B 4

3 2

0 A 2 11 H 12
1 2 2
2
0 2 2 11 1 12
C G

2 3
4 E 7
2 2
5 3 8

Total Project Duration = 12 weeks

Chapter 3 - Project Planning, Scheduling and Controlling


Arrow Diagram Method 27

Solution 3.4 (cont.)

Event Activity Duration ES LS EF LF Total Float

(1) (2) (3) (4) (5) (6) (7) (8) = 7-3-4

1 - 2 A 2 0 0 2 2 0 *
2 - 3 B 3 2 2 5 5 0 *
2 - 4 C 2 2 2 4 5 1
3 - 5 D 4 5 5 9 9 0 *
4 - 6 E 3 4 5 7 8 1
5 - 7 F 2 9 9 11 11 0 *
6 - 7 G 3 7 8 11 11 1
7 - 8 H 1 11 11 12 12 0 *

Critical Path : A – B – D – F – H

Chapter 3 - Project Planning, Scheduling and Controlling


Arrow Diagram Method 28

Solution 3.4 (cont.)

No Activity
Week

1 2 3 4 5 6 7 8 9 10 11 12

1 A                        
2 B                        
3 C                        
4 D                        
5 E                        
6 F                        
7 G                        
8 H                        

Chapter 3 - Project Planning, Scheduling and Controlling


Arrow Diagram Method 29

Example 3.5

Activity Predecessor Duration


  (week)
• Estimate the total
A - 2
B - 1 project duration.
C - 3 • Calculate the total
D A 1 float for each activity
E B 3 in the project
F C 2
G D 4 • Draw the bar chart
H D, E 1 according to your
I D, E, F 2 calculation
J G 1
K H 2
L I 3

Chapter 3 - Project Planning, Scheduling and Controlling


Arrow Diagram Method 30

Solution 3.5 (cont.)

2 D 3 G 7

4 1 5 4 9
A J
2
3

00 B 1 E 4 H 5 K 10

0 1 2 3 5 1 8 2 10

3 L

C
3
3 F 5 I 7

3 5 7
2 32

Total Project Duration = 10 weeks

Chapter 3 - Project Planning, Scheduling and Controlling


Arrow Diagram Method 31

Solution 3.5 (cont.)

Week
No Activity Total Float
1 2 3 4 5 6 7 8 9 10
1 A 2                    
2 B 1                    
3 C 0                    
4 D 2                    
5 E 1                    
6 F 0                    
7 G 2                    
8 H 3
9 I 0
10 J 2
11 K 3
Total
12 Project
L Duration0= 12 weeks
                   

Chapter 3 - Project Planning, Scheduling and Controlling


Precedence Diagram Method 32

Time calculation for f-s and s-s relationship

Table 3.7 Formula for Calculating Time F-S and S-S

item A-B (F-S) A-C (S-S)

a c e Forward Pass (choose the largest number, if >1)


X Y g
LA-B ESA a 0
A B
EFA c = a + X
b d f h
F-S ESB e = c + LA-B

EFB g = e + Y

ESC i = a + LA-C

EFC k = i + Z
i Z k Backward Pass (choose the lower number, if >1)
LA-C
C LFB h = g

j l LSB f = h - Y
S-S
LFA d = f - LA-B

LSA b = d - X = j - LA-C

Figure 4.10 Time Calculation for F-S and S-S Relationship LFC l = k

LSC j = l - Z
Chapter 3 - Project Planning, Scheduling and Controlling
Precedence Diagram Method 33

Time calculation for S-F and F-F relationship

Table 3.8 Formula for Calculating Time S-F and F-F


item A-C (S-F) A-B (F-F)

a X c e Y g Forward Pass (choose the largest number, if >1)


ESA a 0
A B
EFA c = a + X
b d f h
ESB e 0

LA-C EFB g = e + Y

EFC k = a + LA-C = g + LA-B


S-F ESC I = k – Z = k – Z
i Z k Backward Pass (choose the lower number, if >1)

C LA-B LFC l = k
j l LSC j = l - Z
F-F
LSA b = l - LA-C

LFA d = b + d

Figure 4.11 Time Calculation for S-F and F-F Relationship LFB h = l - LA-B

LSB f = h - Y
Chapter 3 - Project Planning, Scheduling and Controlling
Precedence Diagram Method 34

Example 3.6

No Activity Duration Successor Relationship Lag (L)


  (week) (week)

1 A 2 B,D A-B (F-S) 0


A-D (S-S) 1
2 B 2 C B-C (F-S) 1
3 C 1 - - -
4 D 1 E D-E (F-S) 0
5 E 1 C E-C (F-S) 2

1. Estimate the total project duration.


2. Calculate the total float for each activity in the project
3. Draw the bar chart according to your calculation

Chapter 3 - Project Planning, Scheduling and Controlling


Precedence Diagram Method 35

Solution 3.6

0 2 2 2 2 4 5 1 6
L=0 L=1
A B C
0 0 2 2 0 4 5 0 6

L=0
1 1 2 2 1 3
L=1 L=0
D E
3 2 4 4 2 5

Note
Tf
Total Float (TF):
Total Project Duration = 6 weeks Critical Path :

Chapter 3 - Project Planning, Scheduling and Controlling


Precedence Diagram Method 36

Solution 3.6 (Cont.)

Week
No Activity
1 2 3 4 5 6

1 A            
2 B            
L=1
3 C  
L=1          
4 D            
5 E            

Chapter 3 - Project Planning, Scheduling and Controlling


Project Controlling Procedure 37

Project
plan

- What performance measures should be


selected?
Project
implementation
- What data should be used to estimate
the current value of each performance
measure?
Measurement - How should raw data be collected, from
Of work performance which sources, and in what frequency?
- How should the data be analyzed to
detect current and future deviations?
Project - How should the results of the analysis
control
be reported, in what format, to whom,
and how often?
Project
updating

Figure 3.12 Project Controlling Procedure

Chapter 3 - Project Planning, Scheduling and Controlling


Project Controlling 38

Design
Main office
Procurement

Construction
Project Site
Implementation of
Project Controlling Subcontract

Figure 3.13 Implementation of Project Controlling in Construction Project

Chapter 3 - Project Planning, Scheduling and Controlling


Elements of Project Controlling 39

Forecasting

Elements of
Tools Project Controlling
Budget

Milestone Action Plan

Figure 3.14 Elements of Project Controlling

Chapter 3 - Project Planning, Scheduling and Controlling


Controlling vs. Project Phases 40

Cost of Controlling

Result of
Controlling

1 2 3 Project phases

Figure 3.15 Relationship between Result of Controlling and Project Phases

Chapter 3 - Project Planning, Scheduling and Controlling


Project Controlling Approach 41

Project controlling
approach

Variants Value
Analysis Engineering

Earned C/S-CSC
Value

Figure 3.16 Relationship between Result of Controlling and Project Phases

Chapter 3 - Project Planning, Scheduling and Controlling


Variants Analysis 42

Date of Reporting

1000
Cost Budget
850
Cumulative progress

800
Cost Variant
= 850-600 = 250
600
(Rp)

Disadvantages
It cannot describe
400 both cost and
schedule variants at
the same time
200

0 Month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Figure 3.17 Example of Cost Variants Analysis

Chapter 3 - Project Planning, Scheduling and Controlling


Earned Value Approach 43

Terms used in Earned value approach

- BCWS (BUDGETED COST OF WORK SCHEDULED)


The value (in monetary units) of the work scheduled to
be accomplished in a given period of time.
- BCWP (BUDGETED COST OF WORK PERFORMED)
The monetary value of the work actually accomplished
within the control period.
- ACWP (ACTUAL COST OF WORK PERFORMED)
The cost actually incurred and recorded in accomplishing
the work performed within the control period.

Figure 3.18 Terms used in Earned Value Approach

Chapter 3 - Project Planning, Scheduling and Controlling


Earned Value Approach 44

PROGRESS and PERFORMANCE’S PARAMETERS

SCHEDULED DEVIATIONS (SV) SCHEDULED PERFORMANCE INDEX (SPI)

= BCWP
= BCWP – BCWS
BCWS

COST DEVIATIONS COST PERFORMANCE INDEX


(CV) (CPI)

= BCWP
= BCWP – ACWP
ACWP

Figure 3.19 Parameter to Measure Project Progress and Performance using Earned Value Approach

Chapter 3 - Project Planning, Scheduling and Controlling


Earned Value Approach 45

Table 3.9 Parameter to Measure Project Progress and Performance using Earned Value Approach

SV CV SPI CPI Description


The project is ahead of schedule
+ + >1 >1
A lower actual cost than budget
The project is on time
0 + 0 >1
    A lower actual cost than budget
The project is ahead of schedule
+ 0 >1 0
    The project is on budget
The project is on time
0 0 0 0
    The project is on budget
The project is late
- - <1 <1
    Cost overrun than budget
The project is on time
0 - 0 <1
    Cost overrun than budget
The project is late
- 0 <1 0
    The project is on budget
Chapter 3 - Project Planning, Scheduling and Controlling The project is ahead of schedule
+ - >1 <1
Earned Value Approach 46

Example 3.7

Estimation has been made for concreting work as one of


activity that should be done in a project. The amount of
overall concreting work in the project is about 10.8 m3 (40
columns @ 0.3m x0.3m x3m) with total budget of $1,620. For
the first stage of this work, it is hoped that 20 columns
will be constructed. Determine the three variables BCWS,
BCWP, and ACWP if we use Earned Value Approach to analyze
the project controlling

Chapter 3 - Project Planning, Scheduling and Controlling


Earned Value Approach 47

SOLUTION 3.7

BCWS = $ 1,620 ($ 40.5 for each column)

BCWP = 20 columns is planned to be constructed


= 20 columns x $ 40.5
= $ 810, or

= (0.3 x 0.3 x 3) x 20
x $ 1,620
(0.3 x 0.3 x 3) x 40
= $ 810

ACWP = It is not specified in this example.


It mean that actual cost (ACWP) can be less
or more than budget (BCWP)

Chapter 3 - Project Planning, Scheduling and Controlling


Earned Value Approach 48

Example 3.8

Determine the three variables BCWS, BCWP, and ACWP from a


project report as stated below:

No Activity Budget Scheduled progress (%)

    ($) per activity

1 Preliminary Work 4,000 100


2 Civil Works & Building 3,000 100
3 Equipment Installation 4,000 40
4 Piping Work 6,000 10
5 Electric 2,000 -
6 Finishing Work 1,000 -
Total 20,000  

Chapter 3 - Project Planning, Scheduling and Controlling


Earned Value Approach 49

Solution 3.8

No Activity Budget Ratio Scheduled progress (%)


per
    ($) (%) per activity project
1 Preliminary Work 4,000 494 100 20
2 Civil Works & Building 3,000 370 100 15
3 Equipment Installation 4,000 494 40 8
4 Piping Work 6,000 741 10 3
5 Electric 2,000 247 - -
6 Finishing Work 1,000 123 - -
Total 20,000 100   46

BCWS = $ 20,000
BCWP = $ 20,000 x 46% = $ 9,200

Chapter 3 - Project Planning, Scheduling and Controlling


Earned Value Approach 50

No Activity Budgeted Week


    Ratio (%) 1 2 3 4 5 6
        100
1 A 8 Original Schedule
         
2        
  B 10

Cumulative progress (%)


       
3        
  C 30
       
4        
  D 24
  Actual progress      
5        
  E 18
       
6 F        
    10
           
Scheduled Progress (%) 10.5 10 12.5 26.5 26 14.5 0
Cumulative Scheduled Progress (%) 10.5 20.5 33 59.5 85.5 100
Actual progress (%) 5 9 14 19 30 23
Cumulative Actual Progress (%) 5 14 28 47 77 100
Schedule Variants -5.5 -6.5 -5 -12.5 -8.5 0

Figure 3.20 Project is Behind Schedule

Chapter 3 - Project Planning, Scheduling and Controlling


Earned Value Approach 51

No Activity Budgeted Week


    Ratio (%) 1 2 3 4 5 6

        100
1 A 8 Original Schedule
         
2        
  B 10

Cumulative progress (%)


       
3        
  C 30
       
4        
  D 24 Actual progress
       
5        
  E 18
       
6 F        
    10
           
Scheduled Progress (%) 5 9 14 19 30 23 0
Cumulative Scheduled Progress (%) 5 14 28 47 77 100
Actual progress (%) 10.5 10 12.5 26.5 26 14.5
Cumulative Actual Progress (%) 10.5 20.5 33 59.5 85.5 100
Schedule Variants 5.5 6.5 5 12.5 8.5 0

Figure 3.21 Project is Ahead of Schedule

Chapter 3 - Project Planning, Scheduling and Controlling


Time Controlling 52

Factors causing delay in construction project

Procurement of resources which is not on schedule


Inappropriate work capacity
Low productivity
Ineffective project management
There are some redesign and extra work to the project
Bad communication among parties involved in project
Inefficient decision making
Force majeure, etc.

Need an effective supervision

Chapter 3 - Project Planning, Scheduling and Controlling


Cost Controlling 53

Example 3.9

Contractor makes a progress report to claim their payment to


owner based on actual progress they made. As stated in the
contract, the agreement is as follow:

Down payment = 15 %
First claim - 25 % actual progress = 20 %
Second claim - 50 % actual progress = 20 %
Third claim - 75 % actual progress = 20 %
Fourth claim - 100 % actual progress = 20 %
Fifth claim, after maintenance period end = 5 %

Chapter 3 - Project Planning, Scheduling and Controlling


Cost Controlling 54

Example 3.9 (cont.)

The progress is reporting every month in table below. The


payment will only be paid to the contractor in the first of
a new month after the claim made. Determine the contractor’s
cash flow based on all data given.

Item Month
  1 2 3 4 5 6 7 8

Scheduled Progress (%) 5.5 10.5 11 24 18 12 10 9


Cumulative Scheduled
Progress (%) 5.5 16 27 51 69 81 91 100

Chapter 3 - Project Planning, Scheduling and Controlling


Cost Controlling 55

Solution 3.9

 Item Month

  1 2 3 4 5 6 7 8 9 10 11

Progress Payment 15%     20% 20%   20%   20%   5%


  UM     I II   III   IV   V

Scheduled Progress (%) 5.5 10.5 11 24 18 12 10 9      


Cumulative Scheduled
Progress (%) 5.5 16 27 51 69 81 91 100      

Variants (%) 9.5 -1 -2 -16 -14 -26 -16 -25 -5 -5 0

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 56

Definition
All activities of the overall management function that
determine the quality policy, objectives and responsibilities,
and implement them by means such as quality planning, quality
control, quality assurance and quality improvement.
BS EN ISO 8402

Four stages of quality management (BS EN ISO 8402)


Inspection
Activity such as measuring, examining, testing or gauging
one or more characteristic of an entity and comparing these
results with specified requirements in order to establish
whether conformity is achieved for each characteristic

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 57

Quality Control (QC)

Operational techniques and activities that are used to


fulfill requirements for quality
Statistical techniques is used to show the trends
where certain problems are occurring, based on data
collection
Quality Assurance (QA)

All the planned activities implemented within the


quality system, and demonstrated as needed, to provide
adequate confidence that an entity will fulfill
requirements for quality

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 58

Total Quality Management (TQM)

Management approach of an organization, centered on


quality, based on the participation of all members and
aiming at long-term success through customer
satisfaction, and benefits to all members of the
organization and to society
According to Stephen Robbins, five essentials for TQM :
Intense focus on the customer
Concern for continual improvement
Improvement in the quality of everything
Accurate measurement
Empowerment of employees

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 59

Advantages

- Meeting customer requirements


- Communicating customer requirements
- Staying on tender lists and getting new business
- Doing it right first time

Disadvantages

- Bureaucracy
Using - Cost
Quality Assurance (QA)

Figure 3.22 Advantages and Disadvantages of Using Quality Assurance (QA)

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 60

TQM
QA

QC
Continuous improvement
Empowering people
Caring for people
Involvement (teams)
Compliance to specification Inspection
Allocating blame

Figure 3.23 Essential of Total Quality Management (Dale, Boaden and Lascelles)

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 61

Inspection Quality Control


- Salvage - Develop quality manual
- Sorting, grading, reblending - Process performance data
- Corrective actions - Self-inspection
- Identify sources of non-conformance - Product testing
- Basic quality planning
- Use of basic statistic
- Paperwork controls
1 2

Total Quality Management Quality Assurance


- Policy deployment - Quality system development
- Involve suppliers and customers - Advanced quality planning
- Involve all operations - Comprehensive quality manuals
- Process management - Use of quality costs
- Performance measurement - Involvement of non-production operations
- Teamwork - Failure mode and effects analysis
- Employee involvement - Statistical process control
4 3

Figure3.24 The Four Stages of Quality Management (cont.)

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 62

Cost decreases because of:


- Less rework
Improve - Fewer mistakes Productivity
quality - Fewer delays improves
- Snags
- Better use of machine time & materials

Provide jobs and more Stay in Capture the market with better quality and lower price
jobs business

Figure 3.25 The Deming Chain Reaction

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 63

Design and Customer


Redesign Research

Receipt and test of materials

Assembly
Suppliers and
Consumers
Subcontractors
Production Inspection

Tests of processes machines, methods, costs

Figure 3.26 The Deming Flow Diagram

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 64

Action Plan
Possible change Policy
of plan based Development
on the
diagnosis

Check Do
- Auditing Policy
- Diagnosing
- Reporting Development

Figure 3.27 The Deming Plan, Do, Check, Action (PDCA) Cycle

Chapter 3 - Project Planning, Scheduling and Controlling


Quality Management 65

Voice of
producer

Action Plan

Suppliers and Input Process or Output


Consumers
Subcontractors - Equipment system - Products
- People - Services
- Materials
- Methods
Check - Environment Do

Voice of
customer

Figure 3.28 The PDCA Cycle and A System for Ensuring Customer Satisfaction

Chapter 3 - Project Planning, Scheduling and Controlling


Standards of Excellence 66

Standards of Excellence

ISO Deming prize State


awards
9000 (Japan)

President’s award Baldrige award

Figure 3.29 Standards of Excellence

Chapter 3 - Project Planning, Scheduling and Controlling


ISO 9000 67

Table 3.10 The ISO 9000 Series of Standards for Quality Management

ISO Reference Subject


9000-1 Guidelines for selection and use of ISO 9000
9000-2 Guidelines for application of ISO 9000
9000-3 Guidelines for application of ISO 9001 to the development, supply &
maintenance of software
9000-4 Dependability management
9001 Model for quality assurance in design, development, production, installation
and servicing
9002 Model for quality assurance in production, installation and servicing
9003 Model for quality assurance in final inspection and testing
9004-1 Guidelines for quality system elements

9004 GUIDELINES
9004-2 Services
9004-3 Processed materials
9004-4 Quality improvements
9004-5 Quality plans
9004-6 Project management
Chapter 39004-7
- Project Planning, Scheduling and Controlling
Configuration management
ISO 9000 68

The clauses of ISO 9000


The construction industry normally follows ISO 9001 and
ISO 9002

ISO 9001
For organization carries out design work
For example : architectural practices, design and
build contractors or subcontractors
Has 20 parts (clauses)

ISO 9002
For organization do not carries out design work
Has 19 parts (clauses)

Chapter 3 - Project Planning, Scheduling and Controlling


ISO 9000 69

Table 3.11 ISO 9000 Documents and Their Clauses

Clause Requirement 9001 9002 9003

4.1 Management Responsibility * * *

4.2 Quality system * * *

4.3 Contract review * *

4.4 Design control * *

4.5 Document and data control * * *

4.6 Purchasing * *

4.7 Control of customer-supplied product * *

4.8 Product identification and traceability * * *

4.9 Process control * *

4.10 Inspection and testing * * *

4.11 Control of inspection, measuring and test equipment * * *

Chapter 3 - Project Planning, Scheduling and Controlling


ISO 9000 70

Table 3.11 ISO 9000 Documents and Their Clauses

Clause Requirement 9001 9002 9003

4.12 Inspection and test status * * *

4.13 Control of non-conforming product * * *

4.14 Corrective and preventive action * *

4.15 Handling, storage, packaging, preservation and delivery * * *

4.16 Control of quality records * * *

4.17 Internal quality audits * *

4.18 Training * * *

4.19 Servicing * *

4.20 Statistical techniques * * *

Chapter 3 - Project Planning, Scheduling and Controlling


ISO 9000 71

Total quality costs

Internal + External
Failure Costs
Costs per Good
Unit of Product

Minimal cost of quality

Costs of Appraisal +
Prevention

100% defective Defect rate Optimal 100% good


Conformance
level

Figure3.30 Minimal Cost of Quality Curve

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 72

Figure 3.31 Activity Codes Figure 3.32 Calendars

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 73

Activity Bar

Activity ID
Activity Description

Activity codes

Figure 3.33 Screen Layout of Project SNP1 in Primavera Project Planner 3.1

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 74

Figure 3.34 Relationship between Activities

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 75

Figure 3.35 Bar Chart

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 76

Figure 3.36 Data for Each Activity in The Project

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 77

Figure 3.37 Table of Resources Needed in The Project

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 78

Figure 3.38 Layout for Project Reporting

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 79

Figure 3.39 PERT or PDM View

Chapter 3 - Project Planning, Scheduling and Controlling


Primavera Project Planner 3.1 80

Figure 3.40 Graph of Resources which Needed in This Project

Chapter 3 - Project Planning, Scheduling and Controlling

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