The Effect of Early Freezing of

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T ECHNICAL A RTICLE

early identification of project requirements


and decisions that would significantly
The Effect of Early Freezing of affect the project delivery time. Such
methods would direct the attention to
Scope on Project Schedule selected issues and details that could be
postponed to be addressed at later dates.
Early identification and proper
Dr. Neil N. Eldin, PE handling of such tasks under normal
practice could favorably impact the project
ABSTRACT: With the objective of finding means to reduce project delivery time, a number of delivery time.
schedule improvement methods (SIM) were examined to determine their effectiveness in sched- MEFS can be viewed as a means to get
ule reduction. The researcher focused on means that lead to reduction of project delivery time all parties involved in the scoping of a
without increasing project overall cost. As a result, all the cost-time trade-off methods (e.g., over-
project to identify time-sensitive issues in
time, multiple-shifts, more costly crew mix, etc.) were excluded. Among the promising SIMs
were methods used to achieve early freezing of project scope. Three case studies were examined
the early development phases. It is a means
to determine the implementation highlights, success factors and implementation barriers. The by which input from key stakeholders (i.e.,
case studies verified that measurable schedule reduction could be realized by early freezing of engineering disciplines, operation /
project scope. The data suggested that reduction up to 20 percent of the project delivery time maintenance staff, owners, etc.) is obtained
compared to historical data could be realized. In addition, implementation of methods for early in the conceptual phase and monitored in
freezing of project scope resulted in net cost savings for the documented projects. Success fac- the detailed design phase to ensure
tors, implementation barriers, and lessons learned were grouped under management, employ- compliance with the approved scope and
ees, and process issues. These issues were further ranked according to their apparent frequency the identified decision points' deadlines.
in the case studies. Although the limited number of case studies did not allow the determina-
Designers should obtain input from
tion of statistical significance, such ranking provides a framework to which future data could be
added for more comprehensive conclusions.
owners, suppliers, constructors, and
operation and maintenance personnel
KEY WORDS: Project, schedule, scope prior to finalizing their designs. It is crucial
that all involved parties prioritize their key
requirements and identify their critical
he identification of methods implementation highlights, challenges,

T capable of reducing project delivery


time has been the goal of many
researchers and American companies [2, 3,
and success factors observed in three case
studies. Although the number of cases was
not enough for determining statistical
interfaces with others.
A comprehensive examination of the
prioritized requirements would result in
distinguishing critical design parameters
4, 5, 7, 8, 9, 10, 11]. significance, a process for the assessment of
that must be finalized early from those that
Researchers identified a number of the critical issues is presented just as a
can be postponed without adversely
techniques that seemed to have the highest framework to which data could be added in
impacting progress.
payoff potential [1]. These included the future for more comprehensive
Decisions must be finalized early on
methods that are used for early conclusions.
the critical ones. Deadlines for obtaining
identification of key design parameters to
final decisions on the identified critical
achieve early freezing of project scope. METHODS FOR EARLY
issues and parameters must be established
The objective of early freezing of FREEZING OF SCOPE
early with the concurrence of all affected
scope is to eliminate the uncertainties
parties. In other words, MEFS contrasts
associated with design and procurement of Continuing modifications to project
the traditional design process in which
major items so that various engineering scope beyond the final authorization of
decisions made by a discipline are
disciplines are able to proceed with funds would inevitably result in prolonging
controlled only by that discipline. In
detailed design and material procurement the project duration and hence increasing
MEFS approach, priorities and schedules
as soon as funding approval is obtained. final project costs. Freezing of scope at the
are developed by all disciplines,
Items viewed as having measurable earliest appropriate time is essential to
concurrently.
influence on project costs and duration allow efficient completion of detailed
In the investigated case studies, the
should be identified prior to enforcing a design and material procurement and
approaches to MEFS varied between
scope freeze. As an example from the eliminate inefficiencies inherent in
formal and informal procedures. On the
process industry, a major pump is defined redesign and rework.
formal side, one company's practice was to
by type, performance, material, and As a schedule reduction approach,
use preprinted forms and scheduled
operating parameters. Once the scope was methods of early freezing of scope (MEFS)
sessions to identify the critical issues and
frozen for the pump, detail design of its are defined as any systematic approach to
foundation, connecting piping, power/fuel
system, and other auxiliary systems could
start. Case Study # Specialty Type
This article describes some of the •1 Eng.-Construction Designer
methods used for achieving early freezing •2 Pulp and Paper Contractor
of project scope. The article presents the •3 Utility Owner
Table 1—Nature of Business of Companies Associated with Case Studies

12 Cost Engineering Vol. 47/No. 2 FEBRUARY 2005


interfaces early in the project development On the informal side, one company were similar in nature and short in
cycle. established a less structured procedure for duration (less than $100,000 and 3-month
Another company adopted quality identifying critical issues and their duration).
function deployment (QFD) as a formal appropriate deadlines. The procedure
procedure for identifying requirements, involved preparing a monthly milestone CASE STUDIES
translating requirements to design schedule showing critical decision points
parameters, prioritizing such parameters as identified by the project manager. The Three case studies were documented
and identifying the critical interfaces that milestone schedule was used as a reminder in which MEFS was the primary means to
needed early decisions or commitments. to all disciplines of setting deadlines for reduce project delivery time. The case
Full discussion of QFD method and their critical decision points. This studies involved:
implementation steps could be found in company advocated that a more formal
reference [6]. approach was not justified, as all its projects

Case-1 Case-2 Case-3


A pharmaceutical R&D facility with 1.1 The project involved the A number of capital improvement
million sq. ft. of usable space of office, development of a new product that projects for the power industry. Average
commercial, and industrial areas. The required new technology, new process, cost was $100 K each. These were short
facility is built on over 200 acres site. new mill, and new training operators. The projects (1-3 months) in which the focus
The project contract price was $260 project delivery time was 18 months and was on plant outage and impact on
million and involved 150 bid packages. the contract price was $100 million. related projects.
The project delivery time was 46
months, of which 20 months were the
design phase.

Table 2—Scope Summary of Case Studies

Case-1 Case-2 Case-3


1. Over 20% reduction of project 1. The mill was completed one month 1. Early freeze of scope (up to 18
delivery time. Project was placed ahead of schedule and met planned months before construction)
online 8 months sooner than similar production during the start-up phase. resulted in early establishment of
fast track projects. 2. The mill was completed 5% under fiscal year budget and project funds.
2. The timesavings resulted in unit budget. 2. Working off a well-defined early
prices 15 % below company's 3. The time reduction resulted in early scope enhanced the utilization of
historical performance. destaffing of 4 months ahead of the limited capital resources.
3. Construction had fewer incidents of schedule, which typically starts 12 3. Reductions of up to 7 days in a 60-
rework and fewer number of change months after construction day outage (12%). Reduction of
orders. completion. outage durations due to early scope
4. Customers' satisfaction improved, 4. As a result of excellent quality records, definition, thus allowing early
which resulted in increased number 90% acceptance on lot audit was completion of engineering and
of negotiated contracts and achieved in the first month (increased long-lead materials procurement.
development of formal partnering to 99% by 7 month), which resulted in 4. Outage reduction allowed higher
with major customers. saving the cost of 12 auditing power availability (in lieu of
personnel. purchasing power).
5. Better power generation planning
due to well-defined outage scope
and duration.
Table 3—Results and Pay-off

Case-1 Case-2 Case-3


1. Owner requested a more accurate 1. Learning the QFD process and 1. Top management demand of
project budget. realizing its benefits encouraged a improved capital utilization.
2. Project profitability was sensitive to young product developer to pursue its 2. A forced downsizing required
capital cost and hence to the scope application. reduction of project delivery time to
attempted. 2. A department manager who believed improved processes efficiency.
in empowering up-coming promising
staff and decided to support the ideas
of a young product developer.

Table 4—Drivers for Implementation

Cost Engineering Vol. 47/No. 2 FEBRUARY 2005 13


• installation of a research and RESULTS AND PAYOFFS were interested in achieving more efficient
development facility; work processes for personal job satisfaction,
• a new paper mill; and Measurable schedule reduction was individuals who were interested in
• the refurbishment of an existing utility achieved on the three case studies as a enhancing their skills by applying new
plant. result of implementing MEFS. Up to a 20 tools, and top management that was
percent reduction of project delivery time interested in shortening project delivery
The nature of the business associated compared to historical performance was time to maintain its reputable stature in
with each case study is shown in Table 1 realized. In addition, other payoffs the market. Table 4 summarizes the
and the scope of each case study is included reduction in cost of audit and MEFS implementation drivers as stated by
summarized in Table 2. Throughout this maintenance of control budget, reduction the projects' personnel.
article, data is provided in a tabular format of rework, improved customer relationship,
to facilitate presentation and comparison and improved product performance. Table SUCCESS FACTORS
among the case studies. Because of space 3 summarizes the payoffs as stated by the
limitations, only a data summary is project personnel. It was found that the use of graphic
provided. A complete listing of the raw communication/design tools such as 3-D
data including preprinted interview forms IMPLEMENTATION DRIVERS computer aided design and drafting (3-D
for each case study can be found in CADD) contributed to good
reference [1]. Details of the The implementation of MEFS was communication with the end-users. The 3-
implementation of driven in some cases by top management's D CADD gave the users the ability to see
mandates and in others by employees' and understand the project details, as they
initiatives. That included individuals who were conceived/developed by the design

Employee Related Issues Management Related Issues Process Related Issues


1. Technical skills of individuals. Success Factor 1. Use of the latest technologies (3-D
2. Interpersonal skills. 1. Visible support for achievers. CADD, walk-through computer
3. High personal commitment to team 2. Willingness to accept the results of models, operations simulation
success. risk taken by the staff. techniques, etc.
4. High trust between owner, 3. Investment in Training. 2. Involvement of end-users.
contractor and designer staff. 4. Development of high trusting 3. Process continuity.
/empowerment environment among
management and project teams.
5. Top management's visible/direct
support of project teams' decisions.
Implementation Barriers
1. Lack of continuity of project 1. Lack of budget. 1. Exploring alternatives and VE
personnel (moving staff in the efforts could turn into open-ended,
middle of the project). time-consuming exercise unless it is
controlled.
2. Misconception of the optimum
degree of end-user involvement
3. Lack of process understanding
4. Under-developed procurement
strategy and construction schedule
5. Inability to determine cost-benefit
ratio for MEFS.

Lessons Learned
1. A sponsor/ champion is a must for 1. Visible, strong support is a must 1. Proper involvement of end-users
every major task 2. Set demanding, but achievable goals 2. Early invitation of ideas from all
2. Cultivating team spirit is essential 3. Owners/proponents must drive/lead parties involved
the MEFS implementation 3. Maintaining system flexibility in
handling valid exceptional changes
4. Focusing attention on process not
participants
5. Training is the first step

Table 5—Description of Common Issues

14 Cost Engineering Vol. 47/No. 2 FEBRUARY 2005


Issue Case-1 Case-2 Case-3 Frequency Weight (%)
Employee Related
1. Technical skills of individuals YES YES 2 40%
2. Interpersonal skills YES 1 20%
3. High personal commitment to team YES 1 20%
success
4. High trust between owner, contractor YES 1 20%
and designer staff
Management Related
1. Visible support for achievers YES YES YES 3 44%
2. Willingness to accept the results of risk YES 1 14%
taken by the staff
3. Investment in Training YES 1 14%
4. Development of high trusting YES 1 14%
/empowerment environment among
management and project teams
5. Top management's visible/direct support YES 1 14%
of project teams' decisions

Process Related

Issue Case-1 Case-2 Case-3 Frequency Weight (%)

1. Use of the latest technologies (3-D CAD, YES 1 33%


walk-through computer models, operations
simulation techniques, etc.
2. Involvement of end-users YES 1 33%
3. Process continuity YES 1 33%

Table 6—Significance of Common Issues in Success Factors

and execution teams. Good visual IMPLEMENTATION BARRIERS and decision points seemed to cause
communication of plans through 3-D problems.
models eliminated misunderstanding of Implementation of MEFS can be Overlooking the inclusion of
deliverables and contributed to earlier hampered by a number of issues. Although constructability reviews, project turnover
elimination of some uncertainties. In the involvement of end-users is important, plan and value engineering issues prior to
addition, the use of work breakdown they often had difficulties separating needs freezing the scope resulted in unnecessary
structures (WBS) to divide a project into its from wants. This problem added time to late design modifications and rework
smaller components seemed to contribute the process of freezing project scope and efforts.
to a quicker and more concise definition of led to a strained working environment
systems. It was also apparent to the staff in within the project team. Engagement in LESSONS LEARNED
charge of the case studies that MEFS team-building efforts early in the project
demands higher level of flexibility in seemed to help minimize this problem. The following lessons were extracted
rotating, staffing and de-staffing project Exploring alternatives while involving from the case studies:
resources to cope with the short-term needs a large multi-discipline team that included
for dedicated resources necessary to meet the designers, owner representatives, 1. It appeared that owners were the best
certain decision points' deadlines and customers, and the contractor created group to drive the efforts of early
permit certain components/systems to be open-ended, time-consuming exercises. It freezing of project scope, and the
developed concurrently in shorter than appeared that the process of assessing efforts of resisting changes after a scope
normal durations. The projects' staff also alternatives could have been made more freeze. Owners' representatives must
emphasized the criticality of close efficient by involving only a smaller group understand the benefits of early
management of interfaces between various encompassing the primary discipline(s) freezing of scope, be committed to the
components and disciplines. instead of attempting the evaluation in overall project objectives and stop
open session format. Also, the lack of pursuing minor incremental
intermediate checkpoints and absolute improvements beyond the scope
completion dates for identified milestones freeze point. Attempting a scope freeze
with no commitment from the owner

Cost Engineering Vol. 47/No. 2 FEBRUARY 2005 15


Issue Case-1 Case-2 Case-3 Frequency Weight (%)
Employee Related
1. Lack of continuity of project personnel YES 1 100%
(moving staff in the middle of the
project)

Management Related
1. Lack of budget YES 1 100%

Process Related
1. Exploring alternatives and VE efforts YES YES YES 3 42%
could turn into open-ended, time-
consuming exercise unless it is
controlled.
2. Misconception of the optimum degree YES 1 14%
of end-user involvement.
3. Lack of process understanding. YES 1 14%
4. Under-developed procurement strategy YES 1 14%
and construction schedule.
5. Inability to determine cost-benefit ratio YES 1 14%
for MEFS

Table 7—Significance of Common Issues in Implementation Barriers

organization would result in disruption process must be adhered to when In other words, the weight is the ratio
of engineering, design, procurement, dealing with such exceptions. of frequency of an issue (i.e., number of
and construction activities and 7. Early freezing of scope was valid times appeared in the case studies) to the
ultimately in longer overall project regardless of projects' type or size. total frequency (i.e., the summation of the
duration. Emphasis on early, thorough planning number of issues times their frequencies).
2. Achieving buy-in from all stakeholders returned high dividends.
is essential prior to freezing scope in he case studies suggested that
order to ensure collective support of
the down stream decisions and to avoid
single-ownership attitudes. The use of
COMMON ISSUES

Examination of the detailed success


T conceptual development and
preliminary engineering needed to
be completed prior to freezing of project
a structured approach to project factors, implementation barriers and scope.
planning, involving all stakeholders, lessons learned suggested that they could Project definition should progress to
can facilitate this process. be viewed as employee, management, or the point of obtaining funds authorization
3. A formal structured process for review process related issues. Further (identification of project packages and
of key documents must be established examination of these issues suggested that preparation of semi-definitive cost
and enforced to support timely each group (employee, management, or estimates) before freezing scope.
review/approval process. process) can be summarized under more Evaluation of alternatives, value
4. It was recommended that executive generalized description such as that shown engineering, constructability input and
management must be involved in the in Table 5. Consolidation of the data in safety reviews should be completed prior to
approval of key project deliverables this manner facilitated the observation of freezing of the scope. All design concepts
prior to freezing the scope. In the common issues among the case studies. and project definition documents required
addition, management must show In an attempt to quantify the to solidify the scope of work should be
support of the project team in resisting significance (weight) of each of the reviewed and approved by representatives
changes and scope additions common issues shown in Tables 5, the of the end-user prior to development of the
advocated after the scope has been frequency of each issue was determined. authorization estimate and freezing of the
frozen. Tables 6 through 8 show the frequency scope.
5. It was recommended that the approval and weight of each issue describing success Deliverables required to be completed
of a set of agreed upon key documents factors, implementation barriers and prior to freezing of project scope vary by
would establish the baseline from lessons learned. The weight shown in industry and project type. Each company
which changes are measured. these tables is calculated as the weighted should prepare a list of typical deliverables
6. Provisions must be made for frequency of each issue. that once approved they serve as the
exceptional late changes. A structured baseline from which changes are

16 Cost Engineering Vol. 47/No. 2 FEBRUARY 2005


Issue Case-1 Case-2 Case-3 Frequency Weight (%)
Employee Related
1. A sponsor/ champion is a must for every YES 1 50%
major task.
2. Cultivating team spirit is essential. YES 1 50%

Management Related
1. Visible, strong support is a must YES YES 2 40%
2. Set demanding, but achievable goals YES YES 2 40%
3. Owners/proponents must drive/lead the YES 1 20%
MEFS implementation

Process Related
1. Proper involvement of end-users YES YES YES 3 42%
2. Early invitation of ideas from all parties YES 1 14%
involved. YES 1 14%
3. Maintaining system flexibility in YES 1 14%
handling valid exceptional changes. YES 1 14%
4. Focusing attention on process not
participants.
5. Training is the first step

Table 8—Significance of Lessons Learned

measured. In addition, each company ACKNOWLEDGEMENT International Journal of Cost


should determine the specific steps in the Estimating and Project
appropriate approval cycles required to This study was funded by the Management, Vol. 41 No. 5, (April
accurately define the project and to freeze construction Industry Institute (CII), 1999): pp. 25-33.
the scope of work. Project 41-11. The author is indebted to 5. Eldin, N.N. and A. E. Senouci, A
Capital processes within individual the Schedule Reduction Reviewers' Panel Dynamic Programming Approach To
companies may not support the for their invaluable contributions to the Scheduling of Non-serial Linear
completion of these deliverables prior to success of this investigation. Projects with Single Loop Structure,
completing funding authorization. In such Journal of Advances in Engineering
cases, the scope should not be frozen until REFERENCES Software Vol. 31, No. 10, (2000): pp.
the deliverables have been completely 803-814.
determined. In addition, an effective scope 1. Eldin, N.N., An Investigation of 6. Eldin, N., A promising Planning Tool:
change control process must be in place to Schedule Reduction Techniques for the QFD, The International Journal of
handle changes beyond the scope freeze Engineering and Construction Cost Estimating and Project
point that are deemed crucial to the project Industry, Construction Industry Management, Vol. 44 No. 3, (March
success. Owners are the best group to Institute, Report 41-11, (Sept. 1996): 2002):pp. 28-37.
enforce early freezing of scope. pp. 143. 7. Karim, A. and H. Adeli. OO
The above conclusions are based on 2. Eldin, N.N., Concurrent Engineering: Information Model for Construction
the case studies examined in this study. A A Schedule Reduction Tool, American Project Management, Journal of
literature search did not result in data to Society of Civil Engineers, ASCE- Construction Engineering and
add to that presented in this article. Journal of Construction Engineering Management, ASCE, Vol. 125, No. 5,
Because of the small number of cases and Management, Vol. 123, No. 3, (1999): pp. 361-367
examined, this work should be viewed as (Sept. 1997): pp. 354-362. 8. Karim, A. and H. Adeli. CONSCOM:
an early attempt to understand the effect of 3. Eldin, N.N., Constructability Impact An OO Construction Scheduling and
early freezing of project scope on the on Project Schedule, Journal of Change Management System, Journal
project delivery time. It is hoped that more Construction Management and of Construction Engineering and
data will be added in the future to allow a Economics, Vol. 17, No. 6, (Sept. Management, ASCE, Vol. 125, No. 5,
more comprehensive conclusions. ◆ 1999): pp. 711-720. (1999): pp. 368-376.
4. Eldin, N.N., Key Issues in 9. Karim, A. and H. Adeli. A New
Implementing Cycle Time Analysis as Generation Software for Construction
A Schedule Reduction Tool, American Scheduling and Management,
Association of Cost Engineers, The Engineering, Construction and

Cost Engineering Vol. 47/No. 2 FEBRUARY 2005 17


Architectural Management, Vol. 6, Year Award in 1997, 1998, 1999, and 2002. the graduate program at Texas A&M
No. 4, (1999): pp. 380-390. He has impressive research records of over University and a faculty senator.
10. Senouci, A. E. and N.N. Eldin. A $1.5 million of funded research He can be contacted by e-mail at
Dynamic Programming Approach To documented in 50+ publications included neldin@archone.tamu.edu.
Scheduling of Nonserial Linear 30+ refereed journal papers. His research
Projects, American Society of Civil interest includes cost-schedule integration, Technical Articles - Each month, Cost
Engineers, ASCE-Journal of environmental assessment of construction Engineering journal publishes one or more peer-
reviewed technical articles. These articles go
Computing in Civil Engineering, materials, solid waste as construction through a blind peer review evaluation prior to
Vol. 10, No. 2, (1996): pp. 106-114. materials, expert systems, neural networks, publication. Experts in the subject area judge the
11. Soh C.K., K.W. Phang, and W.P. and robotic applications in construction. technical accuracy of the articles. They advise the
Wong. An Integrated Intelligent System Dr. Eldin enjoyed 15 years in the authors on the strengths and weaknesses of their
submissions and what changes can be made to
for Scheduling Construction Projects, construction industry and served recently improve the article.
ICE Journal of Civil Engineering, as a project manger on power generation
97(4), papers no 10067, (1993): pp projects totaling over $250 million. His
156-162, UK. experience involved engineering design,
procurement, and construction. His years
in the industry necessitated his work in:
ABOUT THE AUTHOR North America, Europe, Asia, and Africa.
This unique exposure to multi-cultures
Dr. Neil N. Eldin, PE, has over 30 years of enriched his life at professional and
professional experience involving teaching, personal level.
research, professional service and industrial Dr. Eldin is a licensed Professional
experience in the construction engineering Engineer (PE), CPC and OSHA trainer.
and management field. During his 15 He has served actively in many professional
years in academia he taught the more organizations: ASCE, AACE International,
challenging engineering and management CII, and CSI. Dr. Eldin is the director of
courses. He received The-Teacher-of-The-

Proposed AACE International Constitution and Bylaws Amendment


Mechanics of Conducting Elections amended by letter ballot as prescribed in the Bylaws.”
• Remove the wording “shall be mailed” from ARTICLE
Recommendation II—NOMINATION AND ELECTION OF OFFICERS
The AACE International Board of Directors recommends AND DIRECTORS, Section 3, and replace it with, “Shall
a vote “for” the following changes to the Association’s be distributed”
Constitution and Bylaws. • Section 5—Amends the wording from “Election of
Officers and Directors shall be by sealed letter ballot” to
Background “Election of Officers and Directors shall be by ballot as
The current AACE International Constitution and Bylaws prescribed by the Board of Directors.”
provisions for the Election of Officers and Directors calls for • Section 7—Removes the word “unopened.” The section
the use of “sealed letter ballots.” As technology advances, more currently reads, “Three months prior to the Annual
efficient ways of conducting elections become available. Meeting, the Vice President-Administration shall deliver to
Recognizing that the continued use of sealed letter ballots the tellers, unopened, all ballots received.” If amended, it
is cumbersome, slow, and requires considerable staff time and will read: “No later than three months prior to the Annual
expense, the board is recommending adoption of an amend- Meeting, the Vice President-Administration shall deliver to
ment removing the requirement for use of “sealed letter bal- the tellers, all ballots received.”
lots” and authorizing instead for the Board of Directors to be • ARTICLE XI—PROCEDURE FOR AMENDING THE
given authority to approve alternate means of conducting CONSTITUTION AND BYLAWS,
Association elections. • Section 5—removes the words, “shall mail” and changes
these to, “shall distribute.”
Approval of This Proposed Amendment Would: • Section 6—removes the words, “are mailed” and changes
to, “are sent.”
• Remove the word “letter” from ARTICLE XI—AMEND-
MENTS, Section 1. “The Constitution and Bylaws may be

18 Cost Engineering Vol. 47/No. 2 FEBRUARY 2005

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