Project Scheduling Project Scheduling Presentation Presentation Association for the Advancement Association for the Advancement of Cost Engineering International of Cost Engineering International (AACEi) (AACEi) North Florida Section North Florida Section March 19th, 2009 Section Meeting March 19th, 2009 Section Meeting By John P. Orr, PSP By John P. Orr, PSP Scheduling and Cost Engineering on Overseas Projects: Scheduling and Cost Engineering on Overseas Projects: Earned Value and Performance Intensity Progress Measurement Earned Value and Performance Intensity Progress Measurement March 19, 2009
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Project Scheduling Presentation Association for the Advancement of Cost Engineering International (AACEi) North Florida Section North Florida Section March.
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I. Earned Value and Performance Intensity Progress Measurement
II. Tools for Monitoring and Controlling Project Objectives:
(Cost / Quality / Time)
III. Claims Avoidance & ResolutionPresent / Refute Claims:
Sword / Shield
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Importance of SchedulingImportance of Scheduling• Convert the Work Plan into a Map – “The scheduling process forces people to quantify
their effort in discrete terms and to place activities in proper relationship to each other.”
• Establish a Baseline Against Which Progress is Measured
• Monitor and Control Projects
• Goal: To Provide Accurate Information to Decision-Makers
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Who Sets Scheduling Standards?Who Sets Scheduling Standards?
• PMBOK – Project Management InstituteBody of Knowledge
• PMI – College of Scheduling– Scheduling Excellence Initiative (SEI)
Best Practices and Guidelines (being developed)• AACE International – Recommended Practices• CMAA – Scheduling Committee Guidelines• AGC – The Associated General Contractors• US Army Corps of Engineers– Impact Evaluation Guide (Productivity)
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Who Sets the Standards?Who Sets the Standards?• No Single Body is Authoritative• Training:– Collegiate– Corporate– Software Providers– Books
• No Consistency in the Universities as to how CPM Scheduling is Taught
• Schedulers Use a Variety of Techniques• No Single Standard for Certification of
Schedulers
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US Dept of State – Overseas Building US Dept of State – Overseas Building OperationsOperations
• Provide Facilities for Diplomatic and Consular missions overseas
• As of January 2009, OBO has opened 65 new facilities with an additional 31 under design or construction
• Point position overseas in the field:The OBO Project Director (PD)
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OBO Project Director ResponsibilitiesOBO Project Director Responsibilities
• Project Controls– Project Objectives (Cost/Quality/Time)– Primary Contact with Contractor & Subs– Interface with Embassy (Post) stakeholders– Interface with Stateside stakeholders• Project Status & Completion Projections
Introduction to “Momentology”Introduction to “Momentology”• A measurable rate of Performance Intensity– The Elusive “Miles-per-Hour”
– Maintaining the emphasis of the Project Schedule on the time-related aspects of project management
– Schedule performance measurement must reconcile the rate of work placement with that rate’s relationship to time-based goals• Earned Value does not accomplish this
“The concept of the critical path was all-important to the Scheduler, while it was of dubious value or interest to the Project Manager.”
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The “Duration-Day”The “Duration-Day”
• The Duration-Day = is the amount of work performance required to reduce a schedule’s remaining duration by one day.
• Also known as a “Crew-Day”
• Project Performance = Aggregate Duration-Days
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Performance IntensityPerformance Intensity
Work Performance / Time Consumption
• Add all Original Duration-Days for all (typically construction) activities in the schedule
• Divide by the number of workdays required for their performance
This is the basic formula for Performance Intensity (P.I.)
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P.I. equivalent to Miles per HourP.I. equivalent to Miles per Hour
• Car trip: 2,000 miles in five days. I must drive at 50 MPH for 8 hrs/day (40 hours driving) in order to travel 2,000 miles in 5 days.
• Tools: Odometer & Speedometer
• If at the end of the first hour I see I have only covered 48 miles, I can re-set the cruise control to 52 MPH to recover
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P.I. vs Total Float AnalysisP.I. vs Total Float Analysis
• Total Float analysis is subject to the Timeliness Issue (after-the-fact evaluation)– Car trip illustration: wait until the end of the
first day to learn that I have only travelled 384 miles
• Total Float is also subject to “Schedule Embezzlement” through logic changes or constraints that reserve or sequester float
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P.I. vs Earned ValueP.I. vs Earned Value
• Earned Value is also subject to the Timeliness Issue
• A resource-interpolation method, Earned Value is also performed after-the-fact.– Car trip illustration: wait for a gas fill-up in
order to check gallons of fuel consumed against miles-per-gallon estimates