A Structured Approach To Minimum Cost Recovery Scheduling.pdf

Microsoft PowerPoint Carson 2007 AACEi Presentation ppt A Structured Approach to A Structured Approach to Minimum Cost Recovery Minimum Cost Recovery SchedulingScheduling Chris Carson, PSP Project Con[.]

A Structured Approach to Minimum Cost Recovery

Scheduling

Chris Carson, PSP

Project Controls Manager

Alpha Corporation Norfolk, Virginia Email: chris.carson@alphacorporation.com

ƒ Project management requires

ƒ nimble response to daily occurrences on a project

ƒ hundreds of quick decisions

ƒ problems trend to promote crisis management

ƒ PM often evolves into a pattern of crisis project

management.

ƒ Three steps to eliminating systematic crisis

management:

1 Development of a scheduling program – place a company

on a schedule-driven project management program

2 Project management recovery system - develop a

structured approach to dealing with delays from a project management perspective

3 Scheduling recovery system – develop a clear prioritized process for analyzing schedules and providing recovery suggestions and solutions

Step One – Institute a Schedule-Driven Program

ƒ If a program has symptoms that include

ƒ late completion of projects

ƒ just-in-time completion of projects

ƒ Consistent two-minute warning completions

ƒ Budget-busting completions

ƒ The company needs to put a schedule-driven program in place

ƒ Implementing the new program consists of:

ƒ Senior Management buy-in for:

ƒ Planning and scheduling

ƒ Dedicated schedule development

ƒ Elimination of crisis management

ƒ Good analytical software

ƒ A process of mandated schedule development, updating and analysis, with consistent monitoring

Step 1 Schedule-Driven Program

3 Development of effective and simple reports

a Senior level management reports

i At-a-glance style

ii All Projects

iii Clear, meaningful metrics

b Project level management reports

i Predictive information

ii Focus on Critical Path work

iii Clear, meaningful metrics

4 Training the entire PM team in scheduling philosophy

5 Selection & training of the primary scheduler

6 Implementation of the process, with scheduling taking a prominent role in PM meetings

7 Follow through to ensure the process is adopted

8 Assessment of results

Step 1 Schedule-Driven Program

ƒ Senior management

ƒ little recognition of the problems behind visible symptoms

ƒ uses management “club” to treat those symptoms

ƒ management club is used for PM’s to work harder, so all the problems would go away.

ƒ Senior management must be convinced

ƒ stop focusing on the project managers “failings”

ƒ support dedicating time to planning the projects

ƒ Project managers have so many responsibilities that they cannot control

ƒ Invoicing, cost control, budgeting

ƒ problem resolution, client communications

ƒ resource management

ƒ communications & paperwork demands

ƒ Scheduling will not be consistently managed

ƒ Senior management must mandate a schedule-driven program

Step 1 Schedule-Driven Program

ƒ The scheduling program:

™ Written down

™ Explained step by step

ƒ Every project (no matter how small):

™ Have a schedule developed

™ Must be managed by the schedule

™ Have the project management team in agreement with the plan

™ Schedule process must be reported

™ Schedule must be updated weekly

™ Schedule prominent in meeting agenda

ƒ Running meetings by the schedule is the best way to show dedicated schedule planning

ƒ Once schedule is updated, results reported.

ƒ If slippage reported, must involve resolution.

Step 1 Schedule-Driven Program

ƒ Developing senior management reports is crucial;

Step 1 Schedule-Driven Program

ƒ Senior management must take report when they drive by sites This provides overview of planned visual progress

ƒ Project manager gets a copy of report, so he knows what

information is reported.

ƒ Project manager level reports

ƒ single most important report - Critical Path

ƒ project manager understands the use

ƒ PM walks the job with the report in hand

ƒ PM verifies that Critical Path is being worked

ƒ PM also verifies that other “mass volume” work is progressing and not eroding Total Float (or Free Float)

Step 1 Schedule-Driven Program

ƒ Best to keep update & report weekly (full metrics monthly)

ƒ Report should include general status summaries:

Step 1 Schedule-Driven Program

ƒ Provide project managers with additional standard reports - Earned Value metrics

Step 1 Schedule-Driven Program

ƒ Customized reports – PM - myPrimavera

Step 1 Schedule-Driven Program

ƒ Customized reports – PM - myPrimavera

Step 2 Project Management Recovery

Step 2 Project Management Recovery

ƒ Develop strategy for addressing slippage

ƒ Brainstorm before need

ƒ Use Lessons Learned approach

Step 2 PM Recovery

ƒ Design Source Slippage Recovery

ƒ Use RFI system

ƒ Monitor & document

ƒ Watch for patterns of response delay

ƒ String dimensions & identify problems early

ƒ Get answers prior to shop drawings

ƒ Constructability review

ƒ Submit RFI’s for all issues

ƒ Use results in planning

ƒ Document substandard plans & specs

ƒ Monitor quality of reissued drawings

ƒ Prepare TIA’s for all changes

Step 2 PM Recovery

ƒ Design Clarity Source Recovery

ƒ Use standard scope of work forms

ƒ Ensure no scope holes

ƒ Identify unclear scope

ƒ Use bid process to assign all scope

Step 2 PM Recovery

ƒ Planning Source Slippage Recovery

ƒ Schedule the buyout process

ƒ Include all procurement items

ƒ Incorporate into schedule delivery/install

ƒ Prioritize the buyout

ƒ Do not allow convenience buyout

ƒ Monitor open buyout in schedule

ƒ Provide clear Area Designation Plan

ƒ Mirror the contract documents

ƒ Subs and foremen must understand it

ƒ Schedule the submittal process

ƒ Monitor delivery items

ƒ Watch submittal/approval cycles

ƒ Sequence the shop drawings

Step 2 PM Recovery

ƒ Project Management Source

ƒ Review & include admin process in schedule

ƒ Schedule ALL Owner responsibilities

ƒ Focus on historically weak subcontractors

ƒ Keep resources at forefront of planning

ƒ Resource load schedule

ƒ Get commitment about crew sizes from subs

ƒ React immediately to under-staffing

ƒ Work to minimize substitution of good workers

ƒ Involve responsible subs in recovery discussions

ƒ Stress working the Critical Path

ƒ Treat dry-in as major milestone & monitor

ƒ Create and evaluate lay-down area

(cont.)

Step 2 PM Recovery

ƒ Project Management Source Recovery

ƒ Emphasize sequenced materials storage

ƒ Mandate site organization for efficiency

ƒ Consider use of materials distribution crew

ƒ Mandate helper/labor use as appropriate

ƒ Give access priority to CP trades

ƒ Create & maintain travel corridors

ƒ Keep interior halls clean & lighted

ƒ Clean, clean, clean – entire site

ƒ Watch stair traffic flow and accommodate

ƒ Label floors & columns clearly

ƒ Restrict moisture from building, close openings

(cont.)

Step 2 PM Recovery

ƒ Project Management Source Recovery

ƒ Develop & use tower crane schedule

ƒ Assign time block to each major trade

ƒ Trade has priority in their time block

ƒ Look at pre-assembly component opportunity

ƒ Prefab on ground

ƒ Prefab as per schedule sequencing

ƒ Set up bad weather assembly locations

ƒ Monitor delivery sequencing to meet schedule

ƒ Ensure QC is continuous (use completion lists)

ƒ Consider worker cash bonuses for production

ƒ Use additional workers rather than overtime

(cont.)

Step 2 PM Recovery

ƒ Change Management Source Recovery

ƒ Use formal change management procedure

ƒ Institute it

ƒ Follow it

ƒ Clean up change ramifications

ƒ Do it every update

ƒ use TIA methodology for all change

ƒ Ensure PM team understands contract scope

ƒ Close out changes with schedule updates

ƒ Incorporate changes into schedule

ƒ Submit CO & time extension requests

ƒ Do it timely

Step 3 Schedule Recovery

Step 3 Schedule Recovery

ƒ Scheduling Lessons Learned ideas

ƒ Huge opportunity

ƒ Incorporates legal ramifications

ƒ Provides risk management

ƒ Be prepared to use historical data to suggest recovery strategies

ƒ Plan for good schedule maintenance

ƒ Identifies source of delays/slippages

ƒ Analysis can identify constructive acceleration

ƒ Provides ability to supply timely notification

ƒ Involve responsible party in recovery

Step 3 Schedule Recovery

ƒ Checklist ideas when recovery required

ƒ Clean up issues and schedule

ƒ Clean up outstanding claims/time impacts

ƒ Determine causal activities for delay

ƒ Identify responsibility

ƒ Notify responsible parties

ƒ Involve responsible parties in recovery

ƒ Be careful if responsible party is weak player

ƒ Review efficiency of work

ƒ Solicit contractor identification of disruption

ƒ Involve foremen and superintendents

ƒ Discuss practical crew sizes, materials flow

ƒ Isolate potential delay problems

(cont.)

Step 3 Schedule Recovery

ƒ Checklist ideas when recovery required

ƒ Review efficiency of work (continued)

ƒ Identify disruption issues between trades

ƒ Watch sub jumping into open space out of sequence

ƒ Monitor slipped start dates

ƒ Identify reason

Subcontractor mobilization Superintendent coordination

ƒ Verify WORK THE SCHEDULE

ƒ Look for potential parallel Critical Path work

ƒ Actual concurrent work opportunities

(cont.)

Step 3 Schedule Recovery

ƒ Checklist ideas when recovery required

ƒ Review durations

ƒ Calculate OD / Path Duration Days / Total Float (TF+1)

ƒ “Importance Ratio” (IR)

ƒ Sort by IR, smallest to largest

ƒ Smallest IR activities = best recovery opportunity

ƒ Uses TF as a path value

ƒ Identify historical trades with AD < OD

ƒ Chase these areas for recovery

ƒ Use “Tipper” (TPR) report, TPR = AD/OD

ƒ Low TPR trades have contingency time available

ƒ Watch for high TPR values – monitor those trades

ƒ Review logic

ƒ Identify all out-of-sequence work

ƒ Separate hard logic from soft logic

(cont.)

Step 3 Schedule Recovery

ƒ Review Time Performance Ratio per trade (AD/OD)

ƒ In chart below Electrical contractor shows poor opportunity for recovery help, Mechanical contractor would be better choice

Time Performance Ratio

tals

Carpent ry

Roof

ing

Doors/ Windo

Electrical

Type of Work

Step 3 Schedule Recovery

Relative Total Float of Area Completion Milestones

10 KN

11 KN

12 KN

13 KN

14

KN1

5 KN

16 KN

17 KN

18 KN

19 KN

20 KN 21

SI22

SS2

3 KN

24 KN 25

ƒ Watch erosion of float, do not let it continue

ƒ Print by trade when assessing available resources

Step 3 Schedule Recovery

ƒ Checklist ideas when recovery required

ƒ Review logic (continued)

ƒ Hard logic cannot be changed easily

ƒ Soft logic is good target for recovery

ƒ Resource restraints

Identify historical better performanceIncrease resources

Additional crewsRemove resource logic if satisfied

(cont.)

Step 3 Schedule Recovery

ƒ Checklist ideas when recovery required

ƒ Resource Loading - Review Resources

ƒ Run resource comparison reports

ƒ Look for built-in contingency time

ƒ Filter by Areas

ƒ Look at Resource Table

ƒ Consider worker count in areas

ƒ Review CP in areas

ƒ Reallocate resources by CP by area

ƒ Load activities with Crews

ƒ Review Resource Table for 3 week look-ahead

ƒ Manually level crews to eliminate slippage

ƒ Discuss additional crews when stacked CP activities

ƒ Target areas and crews, don’t just man-up

(cont.)

Step 3 Schedule Recovery

ƒ Checklist ideas when recovery required

ƒ Resources

ƒ Look at repetitive tasks portion of work

ƒ Go to modified linear scheduling

Set up crews to follow each other Promote competition

Take advantage of learning curve

ƒ Scheduling actions

ƒ Verify requirements for Substantial Completion

ƒ Revise logic if necessary (go to minimum)

ƒ Review CP (near critical)

ƒ Start at Data Date

ƒ Review every relationship

ƒ Look at concurrent work opportunities

ƒ Focus on dissimilar trades to avoid ramp-up

(cont.)

Step 3 Schedule Recovery

ƒ Checklist ideas when recovery required

ƒ Scheduling actions

ƒ Compare out-of-sequence work with soft logic

ƒ See if this caused changes to the planned work

ƒ If this worked, duplicate the out-of-sequence work by removing the soft logic in future work

ƒ If this is done with FS changes to SS or FS with lags

ƒ Review carefully

ƒ Add FF relationships to control completion

ƒ See if critical trades can bring in additional resources to add another workday or shift

ƒ If trade has performed, look at overtime option

ƒ Last choice

ƒ Remember risks & inefficiencies of overtime

(cont.)

Step 3 Schedule Recovery

ƒ Checklist ideas when recovery required

ƒ Scheduling actions

ƒ Print schedule with Free Float column exposed

ƒ Push contractors to work within FF values

ƒ Eliminate disruption

ƒ Eliminate slippage and delay to other trades

ƒ Provide interim milestones for important events

ƒ Celebrate achievement of every milestone

ƒ Review all Calendars

ƒ Assess non-work time

ƒ Verify appropriateness

ƒ Review weather calendars, look for contingency

ƒ Reduce non-work weather days if reasonable

ƒ Every project runs into problems

ƒ A Schedule-Driven Program is the most cost effective way to minimize slippage

ƒ A proactive Project Management Recovery plan to deal with delays & slippage will improve response

ƒ A proactive Schedule Recovery plan to deal with delay will improve response

ƒ Brainstorming for Lessons Learned takes advantage of PM team experience

ƒ Developing checklists allows LL to be applied to future

problems

ƒ Applying the three stages will ensure the ability to recover from almost any problems

A Structured Approach to Minimum Cost Recovery

Scheduling

Chris Carson, PSP

Project Controls Manager

Alpha Corporation Norfolk, Virginia Email: chris.carson@alphacorporation.com