CE-310C CONSTRUCTION PROJECT MANAGEMENTUNITI CONSTRUCTION AGENCIES INVOLVED AND THEIR METHODS OF EXECUTION construction company is not a single entity and does not carry out one role; they are large- scale multitasking agencies. Construction industry sectors are categorized into Building construction (residential and non- residential), Infrastructure construction, and Industrial construction. In general, there are four types of construction projects to be carried out; Residential Building. Institutional and Commercial Buil Specialized Industrial Construction. Infrastructure and Heavy Construction ng. Building construction is usually further divided into residential and non-residential (commercial/institutional). Construction is the process of constructing a building or infrastructure. Construction differs from manufacturing in that manufacturing typically involves mass production of similar items without a designated purchaser, while construction normally takes place on location for a known client. Construction is directly tied to the fields of civil engineering and architecture. A construction company is responsible for building structures in both the commercial and private sectors. In simple words, we can say that a construction company is a type of business, enterprise, or similar organization created and operating to construct a wide variety of buildings, developments, housing, path, pavement, roads, motorways, and other types of construction projects, VARIOUS TYPES OF CONSTRUCTION COMPANIES Construction companies are categorized as follows Civil Engineering Company Acivil engineering company designs the structural elements, e.g., foundation, structural steel, concrete desks. At the same time, a construction company builds the structure created by civil engineers. A civil engineering company typically would only offer engineering and surveying services. Itsimply d services if they have the appropriate personnel on staff or a subcontractor they hire out for. Civil engineering companies design the project and manage the construction while the construction company will build the project. ines the services they offer. A construction company can provide civil engineering Civil engineering companies designs and specifies the scope of projects and may do projects like design roads or bridges. A construction firm does the actual building of the project and works with civil engineers to accomplish itConstruction engineering is a part of civil engineering. A civil engineer can apply for any construction engineering job, but a construction engineer cannot apply for every civil engineering job. Civil engineering companies deal with the design, construction, and maintenance of the physical and naturally built environment, including public works such as roads, bridges, canals, dams, airports, sewerage systems, pipelines, structural components of buildings, and railways. Examples of Companies AECOM, Bechtel Fluor Corporation L&T Engineering & Construction Company (L&T ECC), Hindustan Construction Company (HCC), IRB Infrastructure, Sadbhav Engineering Limited, ete. Construction Contracting Company / General Contractors Ageneral Construction contractor, main contractor, or prime contractor is responsible for the day-to-day oversight of construction site, management of vendors and trades, and the communication of information to all involved parties throughout the course of a building project. Ageneral contractor is responsible for providing all of the material, labor, equipment (such as engineering vehicles and tools), and services necessary for the construction of the project. A general contractor often hires specialized subcontractors to perform all or portions of the construction work. Examples of Companies Vinci Construction, Turner Constructions, Larsen and Toubro ECC, Shapoorji Pallonji Engineering & Construction (SPCL), NCC Heavy Engineering and Construction Companies in this industry construct Road (highways, streets) and dams, bridges; utility systems; and other heavy and civil engineering projects, including subdivisions of land. Example of Companies Major companies include US-based Bechtel, Fluor, Granite Construction, Kiewit, and The Walsh Group, as well as ACS (Spain), China State Construction Engineering, Skanska (Sweden), VINCI (France), L&T ECC, & SPCL Group. Industrial Infrastructural companies Industrial Infrastructure means any site, structure, building, industrial park, water dock, wharf or port facilities, fixtures, machinery, equipment, and related facility, including real and personal property, or any combination thereof, suitable as a factory, mill, or shop, or processing, assembly, manufacturing or fabricating project, etc. Infrastructure is the term for the basic physical systems of a business or nation — transportation, communication, sewage, water, and electric systems are all examples ofinfrastructure. Projects related to infrastructure improvements may be funded publicly, privately, or through public-private partnerships Industrial construction, industrial infrastructure is a specific form of building that requires expert training and highly experienced workers who can multi-task. Many industrial construction companies are large, multi-national firms. Projects are run by a bevy of managers, engineers, and architects. The construction companies involved in the construction of infrastructures like captive power plants, water supply, roads, waste management, drainage, effluent treatment, bridges, dams, roads, and urban infrastructure development are the Example of Companies Balfour Beatty, Hochtief, Reliance Infrastructure, GMR, IRB, et. EPC- Engineering, Procurement, and Construction Companies EPC stands for Engineering, Procurement, and Construction, a prominent form of contracting agreement in the construction industry. These construction companies, the engineering and construction contractor, will carry out the detailed engineering design of the project, procure all the equipment and materials necessary, and then construct to deliver a functioning facility or asset to their clients. Companies that deliver EPC Projects are commonly referred to as EPC Contractors or EPC Companies. Example of Companies Fluor, CB & I, WorleyParsons, Sterling and Wilson, Technip, Samsung Engineering, Shriram EPC, etc, PMC - Project Management Consultant PMCstands for Project Management Consultant or Project Management Contract. Under a project management contract, an engineering contractor will overlook the EPC Contractors work to ensure compliance with the client’s work scope. Project Management Consultants manage the Project by applying their Knowledge, Skills, and Experience at various stages. However, at the same time, these types of construction companies, PMC also has to face various challenges like Design Issues, Constructability Issues, Long lead material Issues, Inter Contractor Coordination Issues, Engineering Issues, Safety Issues, etc. which can be tackled only by a well-organized approach of the PMC. Example of Companies Mott MacDonald, Amec Foster Wheeler, KBR, Tata Consulting Engineers (TCE), AMs Project Consultants, etc.Real Estate Companies Real estate is “property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this an item of real property, buildings or housing in general. Real estate is the property, land, buildings, air rights above the land, and underground rights below the land. The term real estate means real, or physical, property. “Real” comes from the Latin root res or things. ... The U.S. Constitution initially restricted voting rights to only owners of real estate. Example of Companies Lodha Group, Godrej Property, Sobha Group, Brigade Group, L&T Realty, etc Residential Real Estate Companies Residential real estate is an area developed for people to live in. As defined by local zoning ordinances, residential real estate cannot be used for commercial or industrial purposes. Such laws vary from location to location and restrict how many buildings are allowed on a single block and what kinds of municipal services reach those buildings. Commercial Real Estate Companies Commercial real estate (CRE) is property used exclusively for business purposes or to provide a workspace rather than a living space. Most often, commercial real estate is /eased to tenants to conduct business. This category of real estate ranges from a single gas station to a huge shopping center. Commercial real estate includes retailers of all kinds, office space, hotels, strip malls, restaurants, and convenience stores. INTRODUCTION TO CONSTRUCTION MANAGEMENT The construction industry is heterogeneous and enormously complex. There are several major classifications of construction that differ markedly from one another: housing, nonresidential building, heavy, highway, utility, and industrial. In addition, these construction types are further divided into many specialties, such as electrical, concrete, excavation, piping, and roofing, Construction work is accomplished by contractors who vary widely in size and specialty. Some contractors choose to concentrate on a particular task or aspect of the construction project and are therefore referred to as specialty contractors. Others assume broader responsibility for a comprehensive work package and are referred to as prime contractors. Commonly, prime contractors will subcontract specific aspects of a project to the specialty contractors, forming a contractual web of prime contractors and specialty contractors. Within the industry, very large contractors handle annual volumes in excess of $15 billion; their annual budgets rival the gross national products of many small countries. However, the construction industry is typified by small businesses. Good project management is essential. In many developing countries construction alone accounts for about 10 percent of gross national product, and 50 percent or more of the wealth invested in fixed assetsManaging a project is quite different from managing a "steady-state" organization. A project has a distinct beginning and end, whereas steady-state organizations run continuously. Examples of the latter are hospitals and mass production factories. In a hospital the basis of medical care changes slowly, despite technological advances and the administration works to a routine. In mass production industries the routine of production proceeds continuously, except when new models are being intraduced. The elements included of project management starting from goals and ending with end- product is given in figure 1.4 FUNDS END PRODUCT Fig. 1.1. Elements of Management Construction industry supplies the basic requirements of shelter, water, sanitation, roads, schools and hospitals. Therefore, performance of construction industry has a marked effect both on the economy and on social conditions. This is especially true in developing countries, where much of this infrastructure is lacking It follows that the efficient management of construction project is vital if scarce resources are not to be wasted. A proper construction management should provide the cycle of activities to achieve the project goals The managerial cycle is shown in figure 1.2. Since changes often unforeseen, occur during the lifetime of a project, figure 1.2 represents a continuous action aimed at achieving the best possible result. COMPETITIVE BID CONTRACTS 1. Unit Price Contracts The bid is based on the price per unit of work on of material. Total cost =Estimated quantity x Unit price in the bid. Estimated quantity is taken from prepared bill of quantities, where measured from the contract drawings. When the work is completed, the quantities are replaced by the measurements of the actual quantity of the work the contractor carried out.Advantages: i) The payment to the contractor can be calculated easily according to the amount of work he did ii) The method gives freedom to alter the work of construction ill) Ald tenderers price on exactly the same basis and their tenders may be closely with one another, iv) Plans and specifications do not need to be completed in detail. But this method has a disadvantage which is the employer doesn't know the exact cost of the work until it is completed. 2 Lump-Sum Contracts Bidding is done on a total amount of the works and services required by the plans and specifications. To avoid later trouble, the specification and drawings need to be completed in every detail before a lump-sum offer is called for. A bill of quantities may even be provided, not for pricing, but to list out every operation he must do, thus assisting him to calculate his tender. Advantages i) Avoid a lot of detailed accounting and measuring work ii) Owner does know the exact cost of the work to him, ii) The work is a straightforward job for the contractor and he will try to complete it as early as possible in order to increase his profit. Disadvantages: i) Alteration of design or addition during construction by employer or engineer causes troubles, ii) Plans and specifications must be comprehensive and must show complete details which require a lot of time and money, iii) Contractor has interested to use cheaper labor and materials. But again Lump-Sum contracts work quite well when: = The job is not very large. ~ The work required can be precisely described in all details. * - There is no great risk attached to its construction (unforeseen troubles) = No large or numerous alterations are called for during construction. Sometimes, Combination of both unit price contract and Lump-sum contract may be used in one work. The substructure of a large work may be based on unit price contract whereas the superstructure of the same work may be based on -Lump- sum contracts. NEGOTIATED CONTRACTS (COST + CONTRACTS) Price of the work is not definitely fixed. Price = cost + profit Here profit is a professional fee and is subjected to negotiation and bidding. They are used in such cases where - The complete plans and specifications are not available- There is uncertainty to exact cost of the construction - There are possible wishes to change the work during the construction - Work efficiency is required in the case of emergency or in war. Types of Negotiated Contracts a. Cost + Percentage of Cost It is forbidden in some countries, because has great disadvantages such as; - Contractor will tend to pull up the cost of the work in order to get more money from the same work. ~ Owner has a great risk. b. Cost + Fixed Fee Contract To avoid the disadvantage of cost + percentage of cost contract this type a contract is used. Itis used in war and in private building constructions; for which an accurate bidding estimate is difficult to be prepared. Disadvantages: = Owner has the risk of the construction - Contract has not any incentive for the contractor to minimize the cost. c. The cost + Fixed Fee + Contract with a Profit-Sharing Clause There is increase in the contractor's profit if the contractor decreases the cost of the construction. Contractor may get 25 to 50% of the saving he makes. d. Contracts Based on Cost + Sliding Scales of Fees Contractor's fee changes proportionally to the actual cost of the work in accordance with a sliding scale of fixed fee. He gets increasing fee with decreasing of construction costs and vice versa. A minimum fee is guaranteed to him. Construction Cost Contractor Fee $6.0 x 10® $ 200,000.. $5.5 x 106 $ 220,000. $5.0 x 106 $ 240,000. Here the normal cost is estimated as $ 6 x 106 and a fixed fee $ 200,000.- will be paid to the contractor. But if however he decreases the cost to $ 5.5 x 106 he will get this time $ 220,000.- as profit, etc. e. Cost + Guaranteed Ceiling Price Contract The contractor guaranties that the construction will not exceed a certain maximum. He can not receive the compensation for the exceeding amount. These contracts require exact plans and specifications for the establishment of a reasonable ceiling prices. Sources of Controversy in (Cost+) Contracts In (cost+) contracts, the contractor overhead (expenses) and the depreciation of contractor's equipment are sources of disagreement. Itis always tried to get them counted as parts of the costs by the contractor. In reality they are to be paid by the contractor as the costs of doing his business and should be included in contract documents.DOCUMENTS OF THE CONTRACT A contract describes comprehensively what the works are and how payment b is to be made. The works are often quite complex, involving the contractor in thousands of different operations and requiring him to buy hundreds of different manufactured items and materials and to employ a wide variety of men and machinery. The construction contracts binds the contractor to construct the work and the employer to pay to the contractor for them. Hence the contract itself comprises a number of documents as follows. a) Contract drawing: Which pictorially shows the works to be built, their dimensions and level, etc. b) Specification Describes in words the work to be built, the quality of materials, workmanship to be used and method of testing etc. ©) Bill of quantities Gives the expected measure of each operation of construction as calculated from the drawings and classified according to trade or location within the proposed works. d) General conditions of Contract Define the liabilities, responsibilities, and powers of the employer, contractor and engineer. ‘And also cover the method of payments, insurance, liability of parties to the contract. e) Tender Tenders the signed financial offer of the contractor to construct the works according with (a, b,c, d) above f) Letters of Explanation They cover the matters which are agreed between the parties of the contract to elucidate their intentions. 8) Legal Agreements Which are signed by parties, owner and contractor, confirming their intentions as defined by all foregoing documents. ‘TYPES OF CONSTRUCTION CONTRACTS COMPETITIVE BID CONTRACTS There is no any standard type of contract for all phase of engineering work. But certain articles can be more or less standardized. All contracts contain: a) Introduction Where stating date of agreement and the parties there to. b) Articles Which may be written in the following order, (most of the time standardized and printed) 1) Consideration of work to be done and price 2) Time (beginning and end of the work)3) Liquidated damages 4) Required security 5) Payment of the contractor 6) Definition of terms 7) Responsibility and right of the owner during the construction 8) Responsibility and right of the contractor during the construction 9) Duties and authority of the engineer 10) Progress and control of the work Insurance, safety and sanitary requirements Provision relating to subcontract Changes in the work Termination of the contract 14) ) Final concluding paragraph Signature of parties and witness. NEGOTIATED CONTRACTS SELECTING THE CONTRACTOR: Here the contractor is an agent of the owner and there is a confidential relation between them. Therefore, the selection of the contractor is very important. Those characteristics must, be observed during the selection of the contractor. a) Previous experience in the particular type of work. 'b) Reputation for fairness and excellence in performance c) Quality and experience of personnel d) Record in management and coordination of the work of subcontracts e) Available working capital 4) Available plant and equipment g) Normal volume of work per year. h) Incomplete work in progress i) Available work capacity TERMS OF CONTRACT 1L Definition of the scope of the work, its estimated cost and the contractor's fee. 2- Time for completion 3- Control of the work, responsibilities of the owner, engineer and the contractor. 4- Definition of the reimbursable direct costs and overhead costs 5- Labor and material 6- Provisions for plant, rental or purchase or maintenance of equipment and the overhaul of the equipment at the end of the job. 7- Subcontractors 8- Method of compensation ‘9- Changes 10- Termination 11- Accounting method and control of costsUNIQUE FEATURES OF CONSTRUCTION MANAGEMENT Construction project managers have a lot of detalls to keep up with—from running meetings to tracking change orders and managing the budget. To help manage large crews and multiple projects without missing a beat, project managers should consider using construction project management software. These tools keep important details organized in one place, so every project can move forward on time and on budget. They also help team members and stakeholders collaborate and communicate along the way. Before you make a purchase, sit down with your buying group and decide what, exactly, you're looking for in a solution. What kinds of projects do you handle, and what features would help your teams work more efficiently? 1. Estimating In most cases, an estimating tool is the number-one feature sought by buyers of construction project management software. That makes sense, considering that operating within a budget is one of the most important success factors of a construction project. At the same time, you want to make money and stay profitable. Look for a platform that helps you deliver higher price bids and back them up with benchmarking and integrated scheduling. Some of these may even integrate with enterprise resource planning (ERP) software, to provide more accurate estimates based on your outfit’s capabilities and timeline. 2. Project Information Modeling Most projects in the construction industry are highly complex, involve numerous stakeholders, and span long periods of time. Over time, the data models and drawings associated with the project pile up. It’s important to have the ability to draw from this expanding repository of data at any point during the project lifecycle and find the insight youneed. That's where project information modeling comes in handy. Some vendors may also refer to this as "design data management.” Look for features that help you easily share models and business information between operations, finance, and leadership, with built-in analytics and reporting 3. Cost Management and Accounting Nearly every construction PM system will offer basic budgeting and benchmarking capabilities. However, a more robust cost management solution will include estimating and forecasting to give you an overall picture of each project's financials. When you can effectively track and manage these details, you minimize the chance of surprises. This is also a must-have feature if your company handles accounting in-house. Excel spreadsheets are great for tracking costs and payroll, but it’s not always easy to access important data from the field or share up-to-date files with other key decision makers. Many construction PM tools include accounting capabilities that let you track budgets, payroll, invoicing, and billing so you can see your cash flow at a glance. Ideally, you'll be able to select different forecast methods based on the type of item, using performance trends and goals stored in the same system. 4, Field Management AAs job sites start to add up, it can be difficult for a project manager to oversee field work at every location. Look for software that offers field management and execution features to help create and communicate daily work plans, keep in touch with crew members, and capture the results of the workday at the end of each shift. Some software can even help you stay compliant by managing inspection forms, and streamlining the process for equipment, safety, and quality inspections. 5, Actionable Data Analytics Most construction PM tools will help you organize your workflow, keep track of client communications, and manage projects. But if you want the most bang for your buck, find a tool that will make it easy to review data in order to improve your processes. Some tools offer reporting features that will give you insight into your productivity and utilization of assets. You may be able to monitor resources and measure earned value by tracking processes on a cost and schedule basis. This can help you increase productivity, improve performance, and enable strategic insight. If you have a labor shortage (a serious problem for most construction projects), you can spot it faster and take action immediately. If you are searching for the best construction project management software, check out our Product Selection Tool or contact one of aur trusted Technology Advisors for free. STAGES AND ASPECTS OF CONSTRUCTION ‘A construction project includes five stages from the time when the decision is made to implement the construction project until the project becomes a reality. The stages of a construction project are: i) Briefing ii) Designingiil) Tendering iv) Constructing v) Commissioning 1. Briefing Stage a) Purpose To enable the client to specify project functions and permissible costs, so that the architects, engineers quantity surveyors and other members of the design team can correctly interpret his wishes and provide cost estimates. b) Activities i) Set up a work plan and appoint designers and specialists ii) Consider user requirements locations and site conditions, planning designing, estimated costs, quality requirements. ili) Ensure the preparation of - Sketches at scale 1/100, 1/1000, 1/3500 - Cost estimates and implications = Aplan for implementation ~The department data programme c) Participants i) Architect ii) Structural, electrical, mechanical engineers ii) Quantity surveyor iv) Specialists such as health or school planner v) User representative 2. Designing Stage a) Purpose To complete the project brief and determine the layout, design, methods of construction and estimate costs, in order to obtain the necessary approvals from the client and authorities involved, To prepare the necessary production information, including working drawings and specifications and to complete all arrangements for obtaining tenders. b) Activities Activities at this stage include i) Developing the project brief to final completion ii) Investigating technical problems iii) Obtaining the client final approval of the brief iv) Preparing ~A scheme design, including cost estimates ~A detail design - working drawings, specifications and schedules - Bill of quantities -Afinal cost estimates - Apreliminary production programme, including time-schedule.) Participants Depending on the nature and the complexity of the project, the design team should include the following: i) Project manager ii) Architect (buildings) iil) Quantity surveyor iv) Structural, mechanical and electrical engineers v} Some specialists such as health and safety officials, organizational planners etc, 3. Tendering Stage a) Purpose To appoint a contractor or a number of contractors who will undertake the site construction works. b) Activities To obtain tenders from contractors: for the construction of the building and to award the contract, Government tendering procedures are particularly closely controlled to ensure that national contracts are awarded in an equitable and uniform way. In many cases tendering is the responsibility of a central Tendering Board which is independent of either the client or the executing agency. Members of the project management team may be required to provide the basic documentation to the central “Tendering Board” and generally to provide technical assistance. ¢) Pre-Qualification To increase the probability that the client will get what is required, it is usual to introduce some procedure to ensure that only experience and competent contractors are allowed to tender. This procedure known as "pre-qualification”, involves an investigation to the potential contractor's financial, managerial and physical resources and of his experience of similar projects and an assessment of the firm's integrity d) Contract Documents The contract itself will be defined in a legal document which describes the duties and responsibilities of the parties to it. For construction work, standard forms of contract have evolved in most countries and it is usual for the central Tender Board to require the use of one of these standard forms with perhaps minor modifications to suit the circumstances of a particular project. Other contract documents are those necessary to define in detail the construction required by the client: drawings, specifications, schedules, bill of quantities, time-scale. These documents will have been prepared during the design stage. The use of standard forms of contract is recommended because: i) Their contents will be well known and understood by the parties involved, ii) Their wording embodies much experience in resolving difficulties of interpretation and enforcement, iii) They will usually have been tested in law, iv) The preparation of new forms of contract is expensive and time-consuminge) Participants In the case of government projects, the project management teams may be expected to give technical support by: i) Providing the necessary contract documents ii) Providing a basis for pre-qualification of tenderers, iil) Checking that the tenders are arithmetically correct and conform to tender requirements. Government Tender Boards usually award the contract to the lowest bidder. In the case of private projects, the final choice of contractor rests with the client, acting on the advice of the project management team. 4, Constructing Stage a) Purpose To construct the structure within the agreed limits of cost and time and to specified quality. b) Activities To plan, co-ordinate and control site operations. Production planning includes the formulation of: i) time-schedules, ii) Site organization, iii) A manpower plan, iv) A plant and equipment plan v) A materials delivery plan Site operations include: i) All temporary and permanent construction works and the supply of all built-in furniture and equipment. ii) The co-ordination of subcontractors, iii) General supervision. ‘The construction stage consists of a number interrelated a activities. The failure of one activity can disrupt the entire production schedule. Therefore, careful production planning is important. d) Participants The main participants are the project management team and the contractor. Normally, direct responsibility rests with the contractor. The project manager and his team must arrange for adequate supervision of the work to ensure requirements. 5. Commissioning Stage a) Purpose To ensure that the building (structure) has been completed as specified in the contract documents, and that all the facilities work properly. To provide a record of the actual construction, together with operating instructions. To train staff in the use of the facilities provided. b) Records During construction, difficulties may arise which result in changes to the original design. Records of these changes will be kept during construction, mainly for financial reasons.c) Activities i) prepare "as built” records, ii) Inspect the construction thoroughly and have defects remedied, ii) Start up, test and adjust all services, iv) Prepare operating instructions and maintenance manuals v) Train staff 4) Participants i) Project management team ii) Operating staff ill) Designers and specifications, iv) Building services supplier's staff v) The contractor PHASES OF A PROJECT Over the past five or six years, we've published a number of articles discussing the different types of construction projects that exist in the United States Generally speaking, however, you can separate construction project types into three categories: (i) Private construction; (ii) State construction; and (ii) Federal Construction. Before getting into these three categories more specifically you may find some helpful information on this topic by reviewing these two articles: Wikivedia’s Entry for “Construction:” Section 1 contains a discussion of the “types of construction projects,” and contains great detail about the different construction types. Their entry's perspective is a bit different from mine, because it discusses a “type” of construction by the character of the actual facility being constructed and not the party underwriting the costs. Their different types, therefore, are simply residential building construction, industrial construction, commercial building construction and heavy civil construction. This is okay and a good reference, but | disagree with the framework. ‘An Ezine article titled “Types of Construction Projects” is also pretty useful, despite being an SEO ploy. Again, however, this article stays with Wikipedia’s framework of classifying the construction type by the character of the building itself. 1) PRIVATE CONSTRUCTION PROJECTS The first type of construction project is the Private Construction Project. Put simply, private projects are projects of every type that are owned, controlled or commissioned by a private party. Private parties include individuals, homeowners, corporations, other business entities, non-profit associations, privately funded schools, hospitals, publicly traded companies, etc. Anything, in other words, that is not the government. Private construction projects come in all different shapes and sizes, and this is when it’s useful to look at the character of the workperformed to segment private construction into different subcategories. These subcategories would include: Residential Construction Whenever construction work is being performed to a single-family residence or a residential facility with (usually) less than 3 or 4 units. If you are working on an apartment complex this would more likely be considered a commercial project instead of a residential project. Similarly, if you are working at a condominium, the work would be residential if upon a single Unit, but if on the entire complex or the common elements, the work would more likely be considered commercial. Commercial Construction Commercial construction is the construction of any buildings or similar structures for commercial purposes. Commercial construction includes a huge variety of projects including building restaurants, grocery stores, skyscrapers, shopping centers, sports facilities, hospitals, private schools and universities, ete. Industrial Construction This is a relatively small segment of the construction industry. These projects include power plants, manufacturing plants, solar wind farms, refineries, etc. While termed “industrial construction,” itis pretty interchangeable with “commercial construction 2) STATE CONSTRUCTION PROJECTS ‘Some people get confused by the term “state” when talking about state construction projects because the term “state” can refer to projects commissioned by a county, city, municipality, government board, public school board or any other state-funded entity. The term “state construction” means, therefore, any government funded construction that is not “federal” ~ which is discussed in the next section. State construction projects can take a variety of forms. They can be pretty traditional projects like the construction of a public school or government building (like a court room). These projects can also be pretty sophisticated, such as the construction of a bridge, sewer line, highways, ete. 3) FEDERAL CONSTRUCTION PROJECTS Federal construction projects are very similar to state projects. Just like state projects they can take on a variety of forms: very simple and traditional, and very complex. And the stuff being constructed can be pretty similar to the stuff constructed by state authority: courthouses, government buildings, flood control projects, etc. Major Types of Construction Projects In planning for various types of construction, the methods of procuring professional services, awarding construction contracts, and financing the constructed facility can be quite different. The broad spectrum of constructed facilities may be classified into four major categories, each with its own characteristics. Residential Housing ConstructionResidential housing construction includes houses and highrise apartments. During the development and construction of such projects, the developers usually serve as surrogate owners and take charge, making necessary contractual agreements for design and construction, and arranging the financing and sale of the completed structures. Residential housing designs are usually performed by architects and engineers, and the construction executed by builders who hire subcontractors for the structural, mechanical, electrical and other specialty work, Level of influence vs. project duration The residential housing market is heavily affected by general economic conditions. Often, a slight increase in total demand will cause a substantial investment in construction, since many housing projects can be started at different locations by different individuals and developers at the same time. Because of the relative ease of entry, many new builders are attracted to the residential housing construction. Hence, this market is highly competitive, with potentially high risks as well as high rewards. Institutional and Commercial Building Construction Institutional and commercial building encompasses a great variety of project types and sizes, such as schools and universities, medical centers and hospitals, sports facilities, shopping centers, warehouses and light manufacturing plants, and skyscrapers for offices and hotels. The owners of such buildings may or may not be familiar with construction industry practices, but they usually are able to select competent professional consultants and arrange the financing of the constructed facilities themselves. Specialty architects and engineers are often engaged for designing a specific type of building, while the builders or general contractors undertaking such projects may also be specialized in only that type of building. Because of the higher costs and greater, sophistication of institutional and commercial buildings in comparison with residential housing, this market segment is shared by fewer competitors. Since the construction of some of these buildings is a long process which once started will take some time to proceed until completion, the demand is less sensitive to general economic conditions than that for housing construction. Specialized Industrial Construction Specialized industrial construction usually involves very large scale projects with a high degree of technological complexity, such as oil refineries, steel mills, chemical processing plants and coal-fired or nuclear power plants. The owners usually are deeply involved in the development of a project, and prefer to work with designers-builders such that the total time for the completion of the project can be shortened, They also want to pick a team of designers and builders with whom the owner has developed good working relations over the years. Although the initiation of such projectsis also affected by the state of the economy, long range demand forecasting is the most important factor since such projects are capital intensive and require considerable amount of planning and construction time. Governmental regulation such as environmental protection can also influence decisions on these projects.Infrastructure and Heavy Construction Infrastructure and heavy construction includes projects such as highways, tunnels, bridges, pipelines, drainage systems and sewage treatment plants. Most of these projects are publicly owned and therefore financed either through bonds or taxes. This category of construction is characterized by a high degree of mechanization, which has gradually replaced some labor intensive operations. The engineers and builders engaged in infrastructure construction are usually highly specialized since each segment of the market requires different types of skills. However, demands for different segments of infrastructure and heavy construction may shift with saturation in some segments. For example, as the available highway construction projects are declining, some heavy construction contractors quickly move their work force and equipment into the field of mining where jobs are available. The Construction Process is composed of six distinct stages, which are: * Concept. * Contracts and Bid Documents. * Bidding. * Construction. * Construction Payments. * Completion. CONSTRUCTION PROJECT PLANNING As a construction manager, you've got a million things to do and a whole crew of people relying on you to get things right. If you want to be successful on a project, you've got to be a master planner. But what exactly is construction planning and what does a successful construction planning process look like With an assist from the latest construction software and a five-step process, you can radically transform your business into a well-oiled machine that consistently finishes projects on time and on budget We've taken the well-known five phases of project management—concept and initiation, planning, execution, performance/monitoring, and project close—and adapted them to fit you as a construction manager. Let’s go through them and find out what you can do to make your next construction project a planning master class by adopting best practices and using construction software to help implement them CONSTRUCTION PROJECT PLANNING Project planning is a crucial stage that comes right after initiation in project management phases. Through proper planning, you streamline the entire project into a series of steps and ensure the availability of all the resources on time. Project constraints such as time, scope, and costs are discussed in the project planning process, and mitigation plans are developed after the identification of potential risks. By comparing the actual progress with the project plan, you can also monitor the performance of your team andtake the necessary steps to improve it. Check out the 7 areas where project planning is important for successful projects. Components of the project management plan At its basic level, an example of a project plan consists of three components. Creating a list of all these components to help inform your project management plan. Activities What are the things your team will need to do in order to get the project done? Activities in your project plan include things like ‘© measuring progress delegating tasks allocating resources project time tracking spent on tasks Communicating effectively. Tasks For any task management, the project is broken down into tasks. These are smaller jobs that, make up the bigger picture of your project. Having incremental goals makes measuring success and addressing bottlenecks easier, and identifying these tasks is essential to crafting your project management plan. Resources What are you working with? Your resources include your budget, of course. It’s also important to understand your human and material resource requirements. How many people will need to work on this project and will you need to hire temporary workers or subcontractors? What physical or digital materials are required and where will those things come from? Steps on How To Create A Project Plan Online IFyou’re thinking, “well, that sounds really formal and serious, don’t be intimidated OMe a teas ese eeu]Follow these nine project management steps, and you're well on your way not just on how to plan a project online but to execute your project successfully Step 1: Identify all stakeholders Your project has several stakeholders, and not all of them will be involved in every detail of the project. Project stakeholders include * your customer, * the end-users of the product, the company and its leaders, * And the team working directly on the project. Depending on the nature of the project, stakeholders may also include outside organizations or individual community members that will be affected by the project Step 2: Define roles and responsibilities Once you've identified your stakeholders, you need to determine the core project management skills and competencies required for the project. When you have that list, you can define roles and assign responsibilities to individual stakeholders. Remember that a role is not the same as a person. * In some cases, one person can fill multiple roles, such as having a designated emergency contact, a role that adds few additional work hours to a person’ schedule. * In other cases, multiple people may hold identical roles, as when your project requires multiple software engineers. Typical roles include * project sponsor, * project manager, * And project team members. The different project team member roles will vary depending on your project, but be sure to include a vendor relations role and a customer relations role. Step 3: Hold a kickoff meeting The kickoff meeting is 2 © chance to bring all stakeholders together, * asta vision for the project that everyone can get behind, * And an opportunity to make introductions and establish good working relationships. At this stage, the specific details of the project haven't been determined, so you should include a discussion on the project scope, budget, timeline, and goals in your meeting agenda. This is, also when roles are announced and a communication plan is explained. The kickoff meeting sets the tone for the working relationship among stakeholders for the duration of the project. Step 4: Define project scope, budget, and timeline After the official kickoff, it’s time to define three important concepts: © the project scope, * budget, * and timeline of your project.Each of these items is worthy of its own in-depth explanation, so we'll just define them briefly here. a. Scope: Project scope tells you what are we going to do (and not do}? Given the requests of the customer and the vision discussed by the team, what are the objectives of this project? b. Budget: Taking into account the scope and the resources required to meet the project objectives, what is the expected financial cost of the project Timeline: The project timeline itemizes the phases of your project and the length of time you can reasonably expect them to be completed. Step 5: Set and prioritize goals Once your team understands the objectives of the project and you've identified the phases to meeting those objectives, * break down the big picture objectives of your project into individual goals and tasks, * prioritize tasks according to importance and dependencies, * And put a system in place to ensure corrective actions when goals aren't met on time. Step 6: Define deliverables A deliverable, as defined by the Project Management Institute, is “any unique and verifiable product, result, or capability to perform a service that is produced to complete a process, phase, or project”. In other words, a deliverable could be, * a product, * result, * or capability. Project deliverables are determined by the project objectives and are an essential part of the project plan. If the customer's objective is for end-users to manage their own content, for example, the deliverables might be a piece of software that enables users to manage content as well as training materials for employees and end-users on how to use the newly created software. Step 7: Create a project schedule A project schedule is a document that details * The project timeline, © The organizational resources required to complete each task, * And any other information critical to the team Needless to say, it must be comprehensive and easy to understand, To create a project schedule, * further, divide the phases of your project into individual tasks and activities, * determine dependencies, * sequence the activities, * and estimate the required resources and duration of each taskThe information you compile in this process may reveal necessary adjustments in your roles, timeline, and/or budget. This is an important step in writing a simple project plan and a beneficial part of the process. It’s much better to make these adjustments before the project has begun than weeks or months later Step 8: Do a risk assessment A tisk is a problem that may or may not arise over the course of your project. It’s important to identify project risks and mitigate them at the project planning phase rather than be caught off guard later. Hold a meeting or ask for insight from all team members about the risks you should consider. Areas of risk include: * Project Scope * Resources (personnel, financial, and physical] * Project delays * and Failures of Technology or Communication There’s no way to control for all potential risks, but thinking through them ahead of time can save your project from failure Step 9: Communicate the project plan Once you've compiled your project plan, make sure to communicate it clearly to the team and all other stakeholders. You may have created a project communication plan when you put together your project schedule. If not, do it now! Establishing solid communications channels and expectations for project communication is crucial. As a project manager, be sure to model the kind of communication you expect from all stakeholders PROJECT PLANNING SOFTWARE Asuccessful project management plan involves effectively organizing all the activities, tasks, and resources that make up your project. Trying to do all this with a collection of spreadsheets which is terribleand shared documents or worse with notebooks, pens, and sticky notes is overwhelming and inefficient. Project management software can simplify your project planning from start to finish, giving you the tools and transparency in the project you need to not only create an excellent project management plan but to actually manage your project well. Good project management software allows you to perform administrative tasks more quickly and efficiently, freeing up time to focus on the actual project. Project management software can also facilitate effective communication within and among ‘teams, help you track key performance factors, store all project data in a central location, and allow you to generate reports on your project along the way. Many of your project management challenges, particularly with planning, can be overcome with a capable and efficient project management tool kissflow Project can be the solution for youKissflow Project * is simple and intuitive to use, * frees you from constantly tracking teammates, * offers multiple views to visualize projects * provides “Done”, “In-Progress”, and “On Hold” states for clarity on status, * gives you access to powerful reports to make data-driven decisions, and * Reminds you when tasks near their deadlines. STAGES OF PROJECT PLANNING Construction planning is the specific process construction managers use to lay out how they will manage and execute a construction project, from designing the structure to ordering materials to deploying workers and subcontractors to complete various tasks. A construction plan lists out each step that it will take to achieve the desired result ‘5 STEPS TO THE PERFECT CONSTRUCTION PLANNING PROCESS Step 1: Create the project Every construction project, no matter how big or small, needs to start with a business case that lays out the feasibility of the project and what it’s going to take to get the job done. Start by creating a Project Initiation Document (PID), which describes the following in general—not technical—terms (the technical part comes later) People: Number of workers needed, as well as subcontractors such as plumbers and electricians, Resources: Necessary materials for this project. Budget: Total cost of the project including labor, materials, equipment, fees, and permits. The purpose of this document is to outline the resources you'll need to complete the project, both for your stakeholders and your crew. Construction software features that can help with this: Most options in Software Advice’s construction software directory offer basic project management tools that should allow you to sketch out a plan. Make sure you demo any software product you're considering to ensure it suits your project management needs. Step 2: Draft an initial plan Now comes the point where you need to turn the PID into a more concrete plan by setting goals that are S.M.A.RT. and C.LE.A.R. You'll take the specific resources you listed in the Previous step and use that to inform a broader strategy that will guide how you actually execute the project. Let's start with S.M.A\ goals for your project such as deadlines for key milestones.Measurable: Agree on how you will measure success for goals. For example, is it good enough that you have started laying concrete by the deadline you set, or should it be completely set by that date? Attainable: You need to have a plan in place for how you're going to achieve these goals. For example, does your project depend on a specific material that might not be available at the quantity you need when you need it? If so, you need to make adjustments. Realistic: Your goals need to be within your abilities as a construction manager. For example, if your project includes plans to get the electrical work done within three months when you've never done it in less than six months for a project of this size, you're setting yourself up for failure. Timely: Lay out a specific time frame in which you can expect—realistically—that you can achieve these goals. Now let’s take a look at C.LE.A.R., a slight variation on this strategy. Collaborative: Get everyone on board. Hold a meeting before the project begins with the entire team to lay out what is expected and have them help you identify any possible obstacles. Limited: Limit these goals both in terms of scope and time frame to not get overwhelmed. Emotional: Ensure that your goals will get your employees fired up and on board. Appreciable: Break up big goals into achievable tasks so you don’t overwhelm your workers. Refinable: Count on having to be flexible, because you can never predict what will happen on a job site. Construction software features that can help with this: Again, you want construction software with a good project management focus, but in this case you need to get much more detailed with budgets and timelines, so you need software that has project management as well as Accounting, materials tracking, and document management. Step 3: Execute the plan It’s time to execute your plan. Start by calling a team meeting to go over the plan and start assigning responsibilities. This meeting is critical for your plan’s success. Without buy-in from your crew, you will fail to achieve your objectives. Talk with each person on your crew individually, if possible, to discuss expectations and give them an opportunity to ask questions about anything they're confused about. Is your backhoe operator supposed to be in daily communication with your engineering team because they'llbe working in the same area at similar times? They need to know that and what the expectations are as to how they will communicate and when. You will also need to assign project managers to oversee your teams. If you're a very small business, you may be the only project manager, but you need to have a schedule drawn-up of what you will be checking and when. Construction software features that can help with this: A team management feature will be very helpful for this step. This feature allows you to monitor job status, team activities, and track time. Step 4: Track your performance It’s essential that you accurately track the performance of your team on this construction project and ensure they are meeting the parameters you've set. And in the event of an unsuccessful project, it ensures you have data that you can dive into to figure out why you failed so it doesn’t happen again. Successful construction managers typically use key performance indicators (KPIs) to monitor the performance of a project. Some typical KPIs you can track include: Project objectives: Are you on schedule and on budget? Project performance: Is the project proceeding smoothly, or are you running into some obstacles you weren't expecting? Quality: Sure, the crew is hitting their milestones—but is the work up to the qu: want at this stage? Construction software features that can help with this: Many construction software options offer tracking tools, such as materials management or equipment tracking, not to mention the team-tracking options mentioned above. Use as many tracking tools as makes sense: More data is better than less. that you Step 5: Close out and evaluate the project Just because the project is over doesn’t mean you're done with the planning process. In fact, in some ways the work is just beginning—this project will go a long way toward informing how you approach the next project. Thanks to the fact that you had a clearly-defined construction project plan and a way to track performance and obstacles, you're well-equipped to conduct an even more successful construction planning process the next time around. You'll know where the obstacles are, what mistakes were made, and therefore how you can tweak the next plan in order to maximize success. But this shouldn’t be a process that takes place just in your own head. Call a final meeting with your crew to discuss how you performed. Conduct a brainstorming session to get ideas on what you could have done better, and take extensive notes. They're your eyes and ears, so don’t lose the opportunity to collect their valuable insight. To formally close this project out, create a final project budget and contrast it with the original, budget, and then draft a final project report that you share with key stakeholders.Construction software features that can help with this: A good construction software option should have custom reporting tools that allow you to process the data you have and create reports that you can examine after the project to spot where you can make improvements. PROJECT PLANNING Once a project is selected for execution, the structural project planning approach prescribes that the project get planned in detail prior to the actual start of the project. Project planning consists of two main stages: Risk Management and Project Scheduling. © The goal of the risk management stage is to identify project risks and take the necessary precautions. © The goal of project scheduling is to make a detailed schedule of all the tasks that need to performed, with specific time frames and resource allocations, 1 Risk Management In projects, there is always some uncertainty about the schedule, the costs and the quality of the end product. Project management is to some extent risk management which tries to systematically manage this uncertainty in order to increase the likelihood of meeting project objectives Risk management deals with uncertainty, which comes in two flavours: Known unknowns: Identified potential problems. One doesn’t know exactly what will happen, but one is aware of the risks and their potential to damage the project. One can prepare for these risks. Unknown unknowns: These relate to problems that arrive unexpectedly and cannot be anticipated. However, good project managers still expect these to happen. All project management activities can be considered as managing risk, but the risk management process is a specific set of activities performed consciously to identify and manage risks on the project. There is a difference between project risk and business risk, Business risk relates to creating the right project output. Business ri responsibility of the project manager, but rather of the project owner. Project risk relates to making sure the project produces the promised results within budget and on time. This is the responsibility of the project manager. is seldom the Risk Management Framework ° A possible risk management framework consists of 5 main steps: Identify Risks: Find all the factors that threaten project objectives. Analyse and prioritize: Assess each risk in terms of its possible damage and likelihood of occurrence. Develop a response: Create strategies for reducing the possible damage and/or probability the risk will occur. Establish reserves: Set aside additional funding for the project that will be used for known risks and unknown risks. Continuous risk management: Implement strategies and monitor the effects of these changes on the project.Step one: Identify the risks Organize brainstorm sessions with stakeholders to gather potential risks. Generate a list as big as possible with potential risks. Once you have a list of potential risks, organize them by combining similar risks and order this list by magnitude and probability of the risk. Another approach to identify risks is by means of interviews, which is a more structured approach than brainstorming. To support the identification of project risks, one could use a risk profile. This is a list of questions that address traditional areas of uncertainty on projects. Creating such a risk profile should be an ongoing process, such that the end of the project, what has been learned will incorporated into the profile, Another source of risk identification is the other main activity during project planning, i.e. the process of estimating schedules and budgets. Activities and tasks which are hard to estimate often imply a substantial amount of uncertainty. Identifying the cause of this uncertainty will most likely reveal project risks. Note that the goal of this step is NOT (yet) to identify ways to minimize or eliminate risks. The goal is only to identify risks. Step two: Analyze and prioritize the risks To identify the importance of risks, one has to take two dimensions into account, i.e. the likelihood of occurrence and the impact if the risks becomes reality. After creating an initial list of potential risks, a first step is to quickly eliminate risks from your list which are not worth worrying. Next, one should sort the remaining risks in order of importance. This step should be performed quickly and based on intuition. ‘A next step could be to concisely describe and analyse the remaining risks by clearly formulating the condition which causes the uncertainty as well as the consequence of this situation in terms of the possible negative outcomes. Once the risks are defined, the consequences in terms of cost, schedule and damage to the project must be described as well. Finally, each risk must also receive an estimate of the probability that the risk will actually occur. Providing an exact estimate of both the impact and the probability of occurrence is often difficult. This should never be an excuse to skip this step. Instead, when exact estimates are difficult to obtain, one could switch to an ordinal scale with e.g. three categories (from 1 to 3, representing respectively a low, medium or high impact/probability) Step three: Develop Response Plans A first step is to identify those risks that are within the control of the project team and those that are not. There are five ways to deal with identified risks: Accept the risks. This implies that you understand the risk and decide to do nothing about it. This is a common strategy when the impact or the probability are low. Avoid the risk. You can try to avoid a risk by choosing not do to specific parts of the project or by selecting a lower-risk option for meeting the project goals. Contingency plans. When you cannot ignore, nor avoid the risk and have no impact on the probability, you can try to reduce the negative impact and have a fall-back plan in place when the risk becomes reality. Note that contingency plans require a continuousmonitoring of the risks, such that you can activate the continuous plans on time. This implies that this strategy can only be efficient if there is a way to detect the risk on time. © Transfer the risk. This strategy typically boils down to paying for insurance. Another approach is setting up a fixed-price contract that will get the work done on time for a fixed price. Note that this could however introduce new risks as more external parties get involved. © Mitigate the risk. This strategy tries to reduce the risk and more particularly the probability that the risk occurs. This often implies taking extra actions. Step four: Establish Contingency and Reserve Funds © Once the strategies are determined, (financial) reserves must be set aside to allow the strategies to be implemented. Such contingency and reserve funds serve the purpose to account for known un-knowns. * Unknown unknowns are never accounted for by such reserves. Instead, management reserves must be used for risks that cannot be anticipated. Risk management only deals with anticipated risks Step five: Continuous Risk Management ‘©The initial risk plan is based on all known information at the start of the project. However, as the project progresses, more information is gained, also on potential risks. Therefore, risk management should be a continuous effort. This includes: © Monitoring known risks. © Checking for new risks. © Repeating the risk management framework for newly identified risks PROJECT SCHEDULING A second element of the project planning stage is the development of a detailed project schedule The classical approach of project management relies heavily on upfront planning. We first plan everything prior to execution. Developing a project schedule can be broken down in following steps: ° Develop a work breakdown structure. Identify task relationships. ° Estimate work packages. ° Calculate initial schedule. ° Assign and level resources. Work Breakdown Structure A first step is to break down the work into smaller pieces of work which make it easier to accurately estimate the required time and resources. This is typically achieved by developing the Work Breakdown Structure (W8S) of a project, which is a tool for breaking down a project into its component parts. The work breakdown structure identifies all the tasks/deliverables in a project and can be set up graphically or as an textual outline. Traditionally, a WBS focussed on tasks, more recently there has been a shift towards deliverables. Building a WBS helps to: © Provide a detailed illustration of project scope,© Monitor progress. The tasks on the WBS become the basis for monitoring progress, because each is a measurable unit of work © Create accurate cost and schedule estimates. © Build project teams as it provides clear work assignments to the team members and provides an overview how his or her work fit into the overall effort. ‘AWS breaks all the work into separate tasks of which two types exist ° Summary tasks. A summary tasks includes several subordinate tasks and is, not actually executed. Its purpose is to summarize more detailed tasks, called work packages, ° Work packages. These are the tasks that actually require execution. ° E.g. Creating manual can be the summary tasks which consists of the work packages writing content, setting layout, proofreading and printing manual. Developing a WBS typically follows three steps: ° List the major deliverables or high-level tasks. Name all the tasks required to produce deliverables. ° Organize the WBS. WBS Step One: Start from the top ‘AWBS is typically developed in a top-down approach. You can start from the deliverables mentioned in the statement-of-work and turn them into the major summary tasks. WBS Step Two: Identify all tasks required to produce deliverables The next step is to break down each task into lower-level, more detailed tasks required to produce the deliverable. This is often the most difficult step in the planning process and requires a good understanding of how to produce the project outcome. Give each task (work package and summary task) a name that describes an activity which produces some specific output. Therefore, the naming of activities typically follow the “verb-noun” format. Try to avoid open-ended tasks such as “read literature” as these could go on indefinitely. Try to avoid tasks that don’t clearly describe the action which is required, such as e.g. “literature”. To ensure that the work packages are the correct size, following rules can be applied as rule of thumb. No task should be smaller than 8 labour hours or larger than 80. (These limits might need adjustment depending on the kind of project and availability of non-stop working time) No task should be longer than the time between two reporting meetings. Break work packages down to smaller tasks if: It makes the task easier to estimate. It makes the task easier to assign. It makes the task easier to track. WBS Step Three: Organize the WBS. Once alll the work packages are identified, rearrange them in the most appropriate way. In this step, one often creates new summary tasks and put work packages in new/other summary packages.+ Different ways of organizing work packages emphasizes different aspects of a project. + Make sure that summary tasks are meaningful as their sole purpose is for communication or visibility. These summary tasks communicate what your project is about. + Also make sure that the work packages underneath the summary task add up to the summary task. When one has completed all the work packages, the result automatically be that the summary task is completed. IDENTIFY TASK RELATIONSHIPS * The sequence in which detailed tasks - work packages - are performe relationship between the tasks. ‘+ Any time a series of tasks is performed, there will be sequence constraints, i.e. some tasks need to be performed before others. + To visualize these constraints, tasks and sequential constraints can be visualized as a graph. When doing so, two basic rules are important: © Task relationships (arrows) should only be shown between work packages (and not summary tasks). © Task relationships should only reflect sequence constraints between work packages, not resource constraints. ‘+ When visualizing task relationships in a graph, it can be useful to identify significant events in the project, as known as milestones. Such milestones are events and have no duration. They serve following purpose Milestones are useful anchors. They provide a quick overview how the project progresses. © Milestones can be used to mark input from one party to another. It illustrates when the project delivers something to its stakeholders. © Milestone allows visualization of events that aren’t represented by a work package or summary task + The sequential constraints between tasks, visualized by graphs, can further be separated into different categories Finish-to-start relationship. The subsequent activity can only start when then preceding activity finished. © Start-to-start relationship. The subsequent activity can already/only start when the preceding activity started. © Finish-to-finish relationship. The subsequent activity can start independently of its predecessor, but cannot finish before the predecessor finishes. deterr ed by the Calculate an Initial Schedule ‘+ Now that the work packages and their duration and interdependencies are identified, one can start estimating the duration of the project. + The first step is to perform a forward pass. This will allow you to determine the earliest starting point (ES) and finish time (EF). The EF of a task equals the ES plus its duration. The ES of a task equals the latest EF of all its direct predecessors. The forward pass starts with the first task, whose ES equals the starting time of the project. ‘+ The next step is to perform a backward pass. This allows one to determine the latest start time (LS) and latest finish time (LF) of each task. The LS time equals the LF minus its duration. The LF of a task equals the earliest LS of all its direct successors. The backward pass starts with the last task, whose LF equals the project deadline. + Next, it is important to calculate the float of each task. The float of an activity is the difference between its ES and LS (or EF and LF) and represents to what extent the start of an activity can be postponed in relation to its ES. Float provides flexibility in a schedule.© The set of tasks which zero or negative float is the critical path. Any delay in the critical path will automatically result in a delay in the project (unless corrective actions are taken).UNIT II TECHNIQUES OF PLANNING INTRODUCTION The project management techniques helps the project manager to complete the project activities successfully and effectively and achieve the project goal and objectives within the assigned time period and budget. Broadly project management techniques are two types: i) Bar Charts ii) Networks Bar Chart Bar Charts are the pictorial representation of various tasks required to be performed for accomplishment of the project objectives. The bar charts are of two types: (i) Gantt Chart and (ii) Milestone Chart i) Gantt Chart Henry L Gantt in 1917 developed a system of bar charts for scheduling and reporting of a project. These charts, latter were known as Gantt Charts. It is a pictorial representation specifying the start and finish time for various tasks to be performed in a project on a horizontal time sale. The Gantt chart as a tool is used * To plan time seale of a project # To estimate resources required for a project Project Management + For graphical illustration of schedule of tasks to be completed * Helps to plan coordinate and track specific tasks for project * Good for small projects when the number of tasks or activities is small and not complex i.e. ‘good for simple projects ‘Task and Time Line of a Gantt Chart ‘Task | Table Time 1. | Planning of survey 1-3 Months 2._| Designing of Questionnaire 1-3 Months 3.__|_ Hiring of Personne! 1-3 Months 4 ‘Training of Personnel 1-4 Months 5._ | Collection of Data 2-6 Months 6. | DataEnuy 3-10 months 7._| Data Analysis/Interpretation 3-10 Months 8. | Report Writing ' 11° Months. ii) Milestone Chart Milestone Chart is an improvisation over the Gantt Chart by introducing milestones. The milestone represents a circle over a taste in the bar chart which indicates completion of a specific phase of the task. This was used because by drawing a simple bar chart one can not monitor the progress of a particular task. In a milestone chart a task is broken down in tospecific activities and after accomplishment of the specific activity a milestone is reached or in other words an event occurs. Graph on Milestone oo 5) foo c Co D [ToDo] In this bar chart, milestones are represented in circle. For example in Task A, the milestone two cannot be reached until the mile stone one is crossed and the activity between milestone one and two is over. For example in a socio-economic survey in an urban slum, the survey cannot be possible unless questionnaires are prepared. Some of the weaknesses of the milestone chart are: i) It does not show interdependence between tasks. ii) It does not indicate critical activities. iii) It does not consider the uncertainties associated with accomplishment of a certain task. if) It will be always cumbersome to draw the chart for large projects. Bar graphs Bar graphs are the pictorial representation of data (generally grouped), in the form of vertical or horizontal rectangular bars, where the length of bars are proportional to the measure of data. They are also known as bar charts. Bar graphs are one of the means of data handling in statistics, The collection, presentation, analysis, organization, and interpretation of observations of data are known as statistics. The statistical data can be represented by various methods such as tables, bar graphs, pie charts, histograms, frequency polygons, etc. In this article, let us discuss what is a bar chart, different types of bar graphs, uses, and solved examples Bar Graph Definition The pictorial representation of a grouped data, in the form of vertical or horizontal rectangular bars, where the lengths of the bars are equivalent to the measure of data, are known as bar graphs or bar charts. The bars drawn are of uniform width, and the variable quantity is represented on one of the axes. Also, the measure of the variable is depicted on the other axes. The heights or the lengths of the bars denote the value of the variable, and these graphs are also used to compare certain quantities. The frequency distribution tables can be easily represented using bar charts which simplify the calculations and understanding of data The three major attributes of bar graphs are:‘+ The bar graph helps to compare the different sets of data among different groups easily. ‘+ Itshows the relationship using two axes, in which the categories on one axis and the discrete values on the other axis. ‘+The graph shows the major changes in data over time. Types of Bar Charts The bar graphs can be vertical or horizontal. The primary feature of any bar graph is its length or height. If the length of the bar graph is more, then the values are greater than any given data Bar graphs normally show categorical and numeric variables arranged in class intervals. They consist of an axis and a series of labelled horizontal or vertical bars. The bars represent frequencies of distinctive values of a variable or commonly the distinct values themselves. The number of values on the x-axis of a bar graph or the y-axis of a column graph is called the scale. The types of bar charts are as follows: 1. Vertical bar chart 2. Horizontal bar chart Even though the graph can be plotted using horizontally or vertically, the most usual type of bar graph used is the vertical bar graph. The orientation of the x-axis and y-axis are changed depending on the type of vertical and horizontal bar chart. Apart from the vertical and horizontal bar graph, the two different types of bar charts are: + Grouped Bar Graph + Stacked Bar Graph Now, let us discuss the four different types of bar graphs Vertical Bar Graphs When the grouped data are represented vertically in a graph or chart with the help of bars, where the bars denote the measure of data, such graphs are called vertical bar graphs. The data is represented along the y-axis of the graph, and the height of the bars shows the values. Horizontal Bar Graphs When the grouped data are represented horizontally in a chart with the help of bars, then such graphs are called horizontal bar graphs, where the bars show the measure of data. The data is depicted here along the x-axis of the graph, and the length of the bars denote the values. Grouped Bar Graph The grouped bar graph is also called the clustered bar graph, which is used to represent the discrete value for more than one object that shares the same category. In this type of bar chart, the total number of instances are combined into a single bar. In other words, a grouped bar graph is a type of bar graph in which different sets of data items are compared. Here, a single colour is used to represent the specific series across the set. The grouped bar graph canbe represented using both vertical and horizontal bar charts. Stacked Bar Graph The stacked bar graph is also called the composite bar chart, which divides the aggregate into different parts. In this type of bar graph, each part can be represented using different colours, which helps to easily identify the different categories. The stacked bar chart requires specific labelling to show the different parts of the bar. In a stacked bar graph, each bar represents the whole and each segment represents the different parts of the whole. Properties of Bar Graph Some of the important properties of a bar graph are as follows: + Allthe bars should have a common base. + Each column in the bar graph should have equal width. ‘© The height of the bar should correspond to the data value. * The distance between each bar should be the same. Uses of Bar Graphs Bar graphs are used to match things between different groups or to trace changes over time. Yet, when trying to estimate change over time, bar graphs are most suitable when the changes are bigger. Bar charts possess a discrete domain of divisions and are normally scaled so that all the data can fit on the graph. When there is no regular order of the divisions being matched, bars on the chart may be organized in any order. Bar charts organized from the highest to the lowest Number are called Pareto charts. Advantages and Disadvantages of Bar Chart Advantages © Bar graph summarizes the large set of data in simple visual form. It displays each category of data in the frequency distribution. * It clarifies the trend of data better than the table, + Ithelps in estimating the key values at a glance. Disadvantages ‘+ Sometimes, the bar graph fails to reveal the patterns, cause, effects, etc. + Itcan be easily manipulated to yield fake information. DEVELOPMENT OF PERT NETWORK Introduction Network is a technique used for planning and scheduling of large projects in the fields of construction, maintenance, fabrication, purchasing, computer system instantiation, research and development planning etc. There is multitude of operations research situations that can be modeled and solved as network. Some recent surveys reports that as much as 70% of the real-world mathematical programming problems can be represented by network relatedmodels. Network analysis is known by many names _PERT (Programme Evaluation and Review Technique), CPM (Critical Path Method), PEP (Programme Evaluation Procedure), LCES (Least Cost Estimating and Scheduling), SCANS (Scheduling and Control by Automated Network System), ete 1, PERT & CPM 2, Shortest- route algorithms 3, Maximum-flow algorithms The Basic Terminology Network Itis a graphical representation of logical and sequentially connected activities and events of a project. Network is also called arrow diagram. PERT (Programme Evolution Review Technique) and (Critical Path Method) are the two most widely applied techniques. Project Management Process Network analysis is the general name given to certain specific techniques which can be used for the planning, management and control of projects Activity Any individual operation, which utilizes resources and has an end and a beginning, is called activity. * Atask or a certain amount of work required in the project * Requires time to complete * Represented by an arrow These are usually classified into four categories: * Predecessor activity # Successor activity * Concurrent activity + Dummy activity Dummy Activity It Indicates only precedence relationships and does not require any time of effort PERT (Program Evaluation and Review Technique) is a method to analyze the involved tasks in completing a given project, especially the time needed to complete each task, and identifying the minimum time needed to complete the total project.PERT is based on the assumption that an activity’s duration follows a probability distribution Instead of being a single value Three time estimates are required to compute the parameters of an activity’s duration distribution: 1, Pessimistic time (tp ) - the time the activity would take if things did not go well 2. Most likely time (tm ) - the consensus best estimate of the activity’s duration 3. Optimistic time (to ) - the time the activity would take if things did go well. Cyt +4) Mean (expected time) = 6 Variance (0 2)= Probability computation: Determine probability that project is completed within specified time z-Ac# o Where t= project mean time roject standard mean time proposed) specified time Float: Float of an activity represents the excess of available time over its duration. Total Float (Ft) The amount of time by which the completion of an activity could be delay beyond the earliest, expected completion time without affecting the overall project duration. i.e, Tf= (Latest start-Earliest start) for activity (i-j), or,(TAi=(LS)ji-(ES)i) Free Float (Ff) The time by which the completion of an activity can be delayed beyond the earliest finish time without affecting the earliest start of a subsequent (succeeding) activities. ‘STEPS IN NETWORK DEVELOPMENT 1. Amust finish before either B or C can start B —« ¢ 2. Both A and B must finish before C can start A ee 3, Both A and C must finish before either of B or D can startB D 4, Amust finish before B can start both A and C must finish before D can start ‘ . ‘Dummy ‘ e r WORK BREAKDOWN STRUCTURE ‘A Work Breakdown Structure (W8S) is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. A WBS is the cornerstone of effective project planning, execution, controlling, monitoring, and reporting. All the work contained within the WBS is to be identified, estimated, scheduled, and budgeted. Work Breakdown Structure Diagram The Work Breakdown Structure (WBS) is developed to establish a common understanding of project scope. It is a hierarchical description of the work that must be done to complete the deliverables of a project. Each descending level in the WBS represents an increasingly detailed description of the project deliverables. The first two levels of the WBS (the root node and Level 2) define a set of planned outcomes that collectively and exclusively represent 100% of the project scope. At each subsequent level, the children of a parent node collectively and exclusively represent 100% of the scope of their parent node. Here is a Work Breakdown Structure example:QUALITY OF A WORK BREAKDOWN STRUCTURES: ‘A well-designed WBS describes planned outcomes instead of planned actions. Outcomes are the desired ends of the project, such as a product, result, or service, and can be predicted accurately. Actions, on the other hand, may be difficult to predict accurately. A well-designed WBS makes it easy to assign elements of the WBS to any project activity. A good WBS should exhibit the following characteristics: + Definable—can be described and easily understood by project participants. + Manageable—a meaningful unit of work where specific responsibility and authority can be assigned to a responsible individual. «Estimate able—duration can be estimated in time required to complete, and cost can be estimated in resources required to complete. + Independent—minimum interface with or dependence on other ongoing elements (ie,, assignable to a single control account, and clearly distinguishable from other work packages).‘+ Integra table—integrates with other project work elements and with higher level cost estimates and schedules to include the entire project. ‘+ Measurable—can be used to measure progress; has start and completion dates and measurable interim milestones. ‘+ Adaptable—sufficiently flexible so the addition/elimination of work scope can be readily accommodated in the WBS framework. GUIDELINES FOR DEVELOPING WORK BREAKDOWN STRUCTURE The development of Work Breakdown Structure involves subdividing the major project activities or sub-activities into smaller, more manageable activities until the activities are defined in sufficient detail to support the management and development of project works. The items at the lowest level of a branch are known as work packages. Here are some tips in developing a Work Breakdown Structure that can express works effectively: 1. Always express Work Breakdown Structure activities at the lowest levels of granularity in verb form. 2. Review the Work Breakdown Structure. Make sure all deliverables have been fully covered by the works defined in the Work Breakdown Structure. 3. Ensure that testing and training have been taken into account. Ensure that non-IT work packages are also included such as, documentation and review acti ies are included in the structure. 5. Ensure that other supporting activities such as, product/service launch and implementation activities are planned. 6. Ensure that delivery approval cycles are taken into account. 7. Include project management deliverables on the project as well (e.g. production of Project Plan). Include any deliverables that must be met or delivered by the customer or any external parties. Check the Work Breakdown Structure against the project approach specified in Project Charter for any activities that needs to be included in the Work Breakdown Structure DIFFERENT FORMS OF WORK BREAKDOWN STRUCTURE Generally speaking, there are three typical ways in structuring works with a Work Breakdown Structure (WBS). They includes phase-based structures, deliverable-based structures and responsibility-based structures. Phase-based structures Define and structure project activities based on the project phases.Project Phases Deliverable-based structures Define and structure project activities based on the deliverables agreed to deliver Responsibility-based structure Define and structure project activities based on the organization units that will work on the projectResource Breakdown Structure Resource Breakdown Structure (RBS) is a project management tool that provides a hierarchical decomposition of resources, either structured by resource category, types or by IT/business function that has resource needs. Here is a Resource Breakdown Structure exampleRisk Breakdown Structure Risks are everything in any IT project. The existence of risk causes negative impact on project schedule, costs and quality. In project management, Project Manager is responsible for managing risks and to ensure that the project will be delivered on time, within project and up to the standard user expected. One of the popular risk management tool is the Risk Breakdown Structure. Risk breakdown Structure is the hierarchical decomposition of risks, starting from the root node element that represents the project, and going down to the various risk categories, and then finer level risks. Besides presenting project risks in a Risk Breakdown Structure, it is possible to combine the use of Color Legend in representing the impact of risk. Take a look at the Risk Breakdown Structure example below, a legend of Impact with five items has been setup, representing the five levels of impacts that risks may have on the project with five distinct color code.Here is a Risk Breakdown Structure example 1 vary Management System =|] fel be = a 2. ees = :--- Es Nevieninees Organizational Breakdown Structure Organizational Breakdown Structure, or sometimes known as Organization Chart, is a widely used project management tool for representing project orgai ation. It typically begins with the project sponsor, and with all key stakeholders included. In presenting the organization structure, consider the organization or group that is requesting the project and the level of their sponsorship and authority. Here is an Organizational Breakdown Structure example := Ln ———_UNIT III PERT PERT (PROJECT EVALUATION AND REVIEW TECHNIQUE) PERT was devised in 1958 for the POLARIS missile program by the Program Evaluation Branch of the Special Projects office of the U.S.Navy, helped by the Lockheed Missile Systems division and the Consultant firm of Booz-Allen & Hamilton. The calculations were so arranged so that they could be carried out on the IBM Naval Ordinance Research Computer (NORC) at Dahleren, Virginia. The methods are essentially network-oriented techniques using the same principle. PERT and CPM are basically time-oriented methods in the sense that they both lead to determination of a time schedule for the project. The significant difference between two approaches is that the time estimates for the different activities in CPM were assumed to be deterministic while in PERT these are described probabilistically. These techniques are referred as project scheduling techniques. In the CPM model, scheduling times of various activities, the critical path, and the project length were all determined on the basis of activity times which were assumed to be known and constant. But according to PERT originators, any given activity delineated in a network is unlikely to be completed on time. Sometimes all aspects of a job may be easier to complete than expected, while at other times, unexpected snags may occur, causing unplanned delays. This method uses three time estimates for an activity, rather than a single estimate. DETERMINING THREE-TIME ESTIMATES This method uses three time estimates for an activity, rather than a single estimate. They are: a Optimistic time (a)- optimistic time is the duration of any activity when everything goes on well during the project. b. Most likely time (m)- it is duration of an activity when some things go on well and some things go wrong while doing a project c. Pessimistic time (b)- itis duration of an activity when almost everything goes against our will and lot of difficulties are faced while doing a project. USE AND APPLICATIONS OF CPM / PERT These methods have been applied to a wide variety of problems in industries and have found acceptance even in government organizations. These include * Construction of a dam or a canal system in a region * Construction of a building or highway * Maintenance or overhaul of airplanes or oil refinery * Space flight * Cost control of a project using PERT / COST © Designing a prototype of a machine * Development of supersonic planes The Framework for PERT and CPMEssentially, there are six steps which are common to both the techniques. The procedure is listed below: |. Define the Project and all of its significant activities or tasks. The Project (made up of several tasks) should have only a single start activity and a single finish activity. Il, Develop the relationships among the acti which must follow others. ss. Decide which ac ities must precede and Ill, Draw the "Network" connecting all the activities. Each Activity should have unique event numbers. Dummy arrows are used where required to avoid giving the same numbering to two activities. IV. Assign time and/or cost estimates to each activity V. Compute the longest time path through the network. This is called the critical path. VI. Use the Network to help plan, schedule, and monitor and control the project. The Key Concept used by CPM/PERT is that a small set of activities, which make up the longest, path through the activity network control the entire project. if these “critical” activities could be identified and assigned to responsible persons, management resources could be optimally used by concentrating on the few activities which determine the fate of the entire project. Non-critical activities can be replanned, rescheduled and resources for them can be reallocated flexibly, without affecting the whole project. Five useful questions to ask when preparing an activity network are: Is this a Start Activity? Is this a Finish Activity? © What Activity Precedes this? © What Activity Follows this? © What Activity is Concurrent with this? Network Diagram Representation Ina network representation of a project certain definitions are used 1. ACTIVITY Any individual operation which utilizes resources and has an end and a beginning is called activity. An arrow is commonly used to represent an activity with its head indicating the direction of progress in the project. These are classified into four categories 1, Predecessor activity — Activities that must be completed immediately prior to the start of another activity are called predecessor activities. 2. Successor activity ~ Activities that cannot be started until one or more of other activities are completed but immediately succeed them are called successor activities.3. Concurrent activity ~ Activities which can be accomplished concurrently are known as concurrent activities. it may be noted that an activity can be a predecessor or a successor to an event or it may be concurrent with one or more of other activities. 4, Dummy activity - An activity which does not consume any kind of resource but merely depicts the technological dependence is called a dummy activity The dummy activity is inserted in the network to clarify the activity pattern in the following ‘two situations * To make activities with common starting and finishing points distinguishable '* To identify and maintain the proper precedence relationship between acti not connected by events. For example, consider a situation where A and 8 are concurrent activities. C is dependent on ‘and D is dependent on A and B both. Such a situation can be handled by using a dummy activity as shown in the figure. D +) 2. EVENT ‘An event represents a point in time signifying the completion of some activities and the beginning of new ones. This is usually represented by a circle in a network which is also called anode or connector. The events are classified in to three categories 1, Merge event - When more than one activity comes and joins an event such an event is known, as merge event. 2, Burst event ~ When more than one activity leaves an event such an event is known as burst event. 3. Merge and Burst event ~ An activity may be merge and burst event at the same time as with respect to some activities it can be a merge event and with respect to some other activities it may be a burst event. — Merge event Burst event Merge and Burst event3. Sequencing The first prerequisite in the development of network is to maintain the precedence relationships. In order to make a network, the following points should be taken into considerations © What job or jobs precede it? ‘What job or jobs could run concurrently? What job or jobs follow it? ‘What controls the start and finish of a job? Since all further calculations are based on the network, it is necessary that a network be Drawa with full care. Rules for Drawing Network Diagram Rule 1 Each activity is represented by one and only one arrow in the network a Rule 2 No two activities can be identified by the same end events \ Rule 3 In order to ensure the correct precedence relationship in the arrow diagram, following questions must be checked whenever any activity is added to the network What activity must be completed immediately before this activity can start? What activities must follow this activity? What activities must occur simultaneously with this activity? In case of large network, itis essential that certain good habits be practiced to draw an easy to follow network * Try to avoid arrows which cross each other * Use straight arrows * Do not attempt to represent duration of activity by its arrow length * Use arrows from left to right. Avoid mixing two directions, vertical and standing arrows may be used if necessary. * Use dummies fieely in rough draft but final network should not have any redundant dummies. The network has only one entry point called start event and one point of emergence called the end event.PERT Analysis Definition: PERT or Project Evaluation and Review Technique can be understood as a tool for handling programmes and projects which involve a series of activities. It supports the analysis of these actions and their sequential arrangement, along with determining the proposed duration required for completing each of these tasks with the help of drafting a critical path, is termed as PERT analysis. Content: PERT Analysis 1. PERT in Project Management 2, PERT Chart / Project Network 3. Formulae + Estimated Duration + Variance © Critical Path Evaluation PERT in Project Management PERT is commonly used for research projects or the programs which have not been executed earlier. This means that, when an organization does not have any experience of implementing a program or working on a specific project, PERT proves to be an appropriate statistical tool. When the organization undertakes a new project, it becomes difficult to determine the time within which the project has to be completed. Therefore, to provide the deadline for every task involved in the project and guide them on the sequence of al the activities, PERT analysis is considered to be the most suitable method. It is also a handy tool for budgeting such a project. This is because having an idea of the estimated duration will help the management to ascertain the need for financial and human resources; and their acquisition. PERT Chart / Project Network The project network helps the management to pen down their time estimation of completing @ project. It also provides an idea of the series in which the various acti the proposed time taken to complete each task. PERT Chart / Project Network ea) Actiyity \e- & Le ee ¢ < ~S2@ ies are to be carried out and +, Critical Path aIn the above network diagram, we can quickly identify the following elements: 1. Event: An event can be understood as the node at which an activity starts or ends. 2. Activity: It refers to the actions taken or the task to be accomplished as a part of the whole project execution process. In brackets, the estimated time required for performing the particular task is mentioned. It can be in hours, days, weeks or months. 3. Critical Path: The path which passes through all those essential activities which are carried out in a sequence and links the first event to the last event. PERT Analysis Formulae PERT seems to be a complicated method; however, it is not so if we have a basic understanding of the formulae used in this technique. Let us what all we need to compute under PERT analysi Estimated Duration The duration which is supposedly required to accomplish a specific task is termed as an estimated duration. It is calculated through the following formula to+(4xtm)+tp te= 6 Components for Determining Estimated Duration: In the above method, the following elements play a significant role: Optimistic Time Estimate (t_o): Having a highly positive attitude, this is the least possible time within which a particular activity can be completed. Most Likely Time Estimate (t_m): It is a balanced approach, estimating the most appropriate time for completion of any activity. Pessimistic Time Estimate (t_p): Considering all the negative aspects, itis the highest possible time estimation for carrying out a particular activity. Variance The level of volatility of the time required to carry an activity from the average time is termed as variance in PERT analysis. The given formula is used to determine the variance of each activity in project management: (2 -t, a oS (ae tm Critical Path Evaluation The critical path is the most extended way of the PERT Chart connecting those nodes which fulfil all the four conditions. ‘Also, the related activities should be in a series right from the first event to the last eventThe following conditions must be fulfilled to find out the critical path by using PERT in a given project network: Earliest Start Time: Itis a forward pass which begins with event 1. Formula: ES; max; (ES; te Di) + ESjis the Earliest Start Time of Ending Node; ‘+ ES;is the Earliest Start Time of Starting Node and; * Djs the Estimated Duration of Concerned Activity. ‘* Also, max_idenotes that when an ending node consists of more than one starting nodes, the highest ES) out of all the values is considered Latest Completion Time: Itis a backward pass which starts in the reverse order from the last node or event. Formula LC; = minj(LC — Diy) Where, * LGis the Latest Completion Time of Starting Node; + LGis the Latest Completion Time of Ending Node and; © Dyis the Estimated Duration of Concerned Activity. Also, min_j signifies that in case of two or more ending nodes for a particular starting node, the least LC) value is taken into consideration. (CPM (Critical Path Method) Itwas the discovery of M.R.Walker of E.l.Du Pont de Nemours & Co. and J.£.Kelly of Remington Rand, circa 1957. The computation was designed for the UNIVAC-| computer. The first test was made in 1958, when CPM was applied to the construction of a new chemical plant. In March 1959, the method was applied to maintenance shut-down at the Du Pont works in Louisville, Kentucky. Unproductive time was reduced from 125 to 93 hours. In CPM activities are shown as a network of precedence relationships using activity-on node network construction = Single estimate of activity time — Deterministic activity times It is the path which takes the longest duration of time to reach the objective event. If it is required to complete the project in less time, the duration of the activities lying in the critical path will have to be shortened. Time for an activity can be reduced by employing more resources or by using improved technology Float/ Slacks (S) Since the critical path is defined as the longest path in time from the starting event to the objective event, all other events and activities in the network nmust lie on paths which are shorter. This means that along these paths there is a slack, or time to spare. These paths arereferred to as slack paths and are the areas where surplus resources of men, facilities, or time are to be found. The difference between the earliest expected and the latest allowable time is called slack or floats. Early Start (ES) The early start of a job in a project is the earliest possible time that the job can begin Early Finish (EF) The early finish of a job is its early start time plus the time needed to complete the job. Late Start (LS) Late start of an activity is the latest time it ean take to begin without pushing the finish date of the project further into the future. Late Finish (LF) The latest finish of an activity is its late start time plus its duration Predecessor Activity Is the activity which precedes another activity. Without the completion of the predecessor activity the work on successor activity cannot be started. Calculation of critical path (s) and floats(s) i) Determining the critical Path It is the longest path through the network and it determines the shortest time in which the project can be completed. The critical path in a network passes through all the critical events and critical activities. If any activity on the critical path is delayed, the whole duration of completion of project is delayed. Determination of critical activities and critical path helps management to concentrate on critical activities at the time of executing the project to obviate delays. A tabular procedure for critical path computation such as earliest occurrence time, earliest finish time, latest occurrence time, latest finish time, free slack, total slack, and critical activities have been mentioned. However, it cannot be that efficient as hand computations made directly on the network. This is only one aspect of the PERT technique which aims at controlling the overall duration for completion of the project. But this technique is equally applicable for resource allocation and cost control. This relates to four factors such as time, cost, resource and performance. Being out of the domain of the KVK work, other aspects of PERT have not been dealt with in this book. ii) Slack/ Float Two types of slacks in a network are of most value that they are called total activity slack/ float or simply total slack and activity free slack/ float or simply free slack/float. ii) Total Slack Total activity slack is equal to the latest allowable time of the activity’s successor event minus the earliest finish time of the activity in question; S = TL— EF. It is equal to the amount of time that the activity completion time can be delayed without affecting the earliest start of occurrence time of any activity or event on the network critical path. in general, we can say that the total slack is the time by which the actual activity completion time can exceed its earliest expected time of any event on the critical path. Any activity for which the total slackis zero is said to have exercised a critical control over the overall duration of the project. They have no flexibility in time with them and a delay in any one of them will delay the completion of the project and viee versa iv) Free Slack Merge point activities which lie along slack paths has what is called free slack. Activity free slack is equal to earliest expected time to the activity’s successor event minus the earliest finish time for the activity in question, SF = TE- EF. It is equal to the amount of time that the activity or event in the network, may be critical or non-critical. The free slack measures the amount of time by which an activity can be delayed without of the earliest start time of any other activity in the network whether critical or non-critical. CPM ANALYSIS After the network is drawn each event circle is divided into 3 segments as shown below:Left semi-circle carries the event number. Right top segment contains earliest starting time (EST). Right bottom segment contains the latest starting time (LST) for an event. The network is first solved from start to finish or forward pass. The rules are as follows: 1. EST for the start event is assumed to be zero. 2. Each activity starts as soon as the event at which its start is realized. The earlier finishing time for an activity is equal to EST to the event from which it starts plus the duration of that activity. 3. EST of an event is equal to the largest of the earliest finishing times of the activity merging on the event. Network is analyzed in the same way working backward from finish to start or backward pass. The rules are as follows. 1. LST of the finish event is equated to its EST. 2. The latest finishing time for an activity is equal to the LST of its successor event. The latest starting time for an activity is its latest finishing time minus duration. 3. LST for an event is smallest of the latest starting time for the activities emerging from the event. Time/cost trade-offs The critical path method assumes that the duration of an activity depends on the amount of resources assigned to it, and incorporates a trade-off between its duration and the cost of the assigned resources. More precisely, the more resources have been assigned to the activity, leading to an overall increase in the cost, the lower the expected duration of the activity. This time/cost trade-off is given in figure 1. The CPM assumes four pieces of information for each project activity, as follows: Normal duration: The maximum duration of the activity. Crash duration: The minimum duration of the activity. Normal cost: The cost associated with the normal duration. Crash cost: The cost associated with the crash duration.Activity Cost Activity Mode Crash © Cost Activity Crashing e e Normal Cost Activity duration Crash Normal Duration Duration The normal duration is equal to the minimal expected duration when the activity is performed with the lowest possible amount of resources, leading to the lowest total activity cost (normal cost. The crash duration is the shortest activity duration, when the maximum amount of resources has been assigned to the activity, leading to the highest activity cost (crash cost). Each dot in figure 1 represents a so-called activity mode to represent the list of time/cost combinations for this activity. The aim of the critical path method is to schedule the project under a pre-defined scheduling objective, ie. the choice of an activity mode for each activity to optimize a scheduling objective. A decrease in an activity’s duration and the corresponding increase in the activity cost is known as activity crashing. Scheduling objectives Scheduling a project requires a scheduling objective in order to optimize the project schedule according to the wishes and needs of the project manager (see “Resource constrained project scheduling: What is my scheduling objective?”). The CPM has a dual view on the project schedule, i.e. a time or cost point-of-view, resulting in two possible scheduling objectives. Figure 2 illustrates the time/cost profile on the project level as a result of selected time/cost combinations (i.e. modes) for each project activity. The two scheduling objectives are given along the following lines Deadline objective The objective is to determine the activity durations and to schedule the activities in order to minimize the project duration, given a predefined total budget restriction. Budget objective The objective is to determine the activity durations and to schedule the activities in order to inimize the project costs, given a predefined project deadiine restriction.Project cost budget restriction Project duration deadline restriction Optimization through C.P.M. 1, Project Crashing Crashing of the project means to reduce the project completion time by adding extra resources to it. The project can be crashed by reducing the normal! Completion time of critical activities which is called crashing of activities. This can be obtained by increasing the resources to perform them. Addition of resources means addition of extra cost for project completion. The addition of extra cost and so resources is justified only up-to certain limit that can be determined by project time-cost made off. Crashed Time ‘Normal Time Time —> Fig 3.2 Fig, 23.19 shows relationship between cost of project completion and project completion time. The relationship is represented by a hyperbolic curve. The curve is found almost parallel to time axis beyond point ‘C showing that no reduction in cost evens a increase In time.The point ‘C appears corresponding to normal time and normal cost. At the other end of curve it is found almost parallel to cost axis beyond point ‘D’ indicating steep line in cost without any appreciable reduction in completion time Point ‘D’ appears corresponding to crash cost and crash time. The curve helps in computing the crash cost per unit reduction in time. We are interested in reducing the time from point ‘C to point ‘D’ beyond these two points it seems uneconomical. Slope of the joining C and ‘D’ can be calculated as under and same is the crash cost per unit reduction in time. Crashed Cost — Normal Cost Normal Time — Crashed Time Optimization of Project Cost with Time (Time Cost Trade off) The following steps are to be followed to optimize the project cost with respect to time by crashing the activities up-to the largest extent: |. Find the critical path, normal project completion time using the normal execution time for each activity. Also find the normal total cost as per the given data. ||. Find the crash cost slope for each critical activity and select the activity of least crash cost slope to crash it first. If two or more critical activities found have the lowest but equal costs then select the activity as: (i) Where another path in network may become critical by reducing its total time (ii) The activity that can be crashed by more unit of time. lL. After crashing the critical activities according to rule Il, check whether there are new critical path(s) or not. If there are, identify all critical activities and crash them according to rule II IV. After crashing all critical activities up-to their lowest possible time, stop the procedure and determine total project cost for all durations like normal duration and crashed durations. Select the project duration as optimum for which total cost is observed minimumUNIT V CONSTRUCTION EQUIPMENT AND SAFETY EXCAVATORS, Excavators are an essential piece of heavy equipment for most construction projects. Often referred to as diggers, excavators are used for all kinds of jobs like material handling, landscaping, demolition, mining projects, river dredging and construction ‘The Makeup of an Excavator ‘An excavator is made up of a boom, dipper (or stick) and bucket. These pieces connect toa cab that sits on a rotating house. Most houses can rotate a full 360 degrees. Excavators are available with either tracks or wheels depending on the manufacturer and what the nature of a project is. Excavators are available in a variety of sizes and can weigh up to 180,000 Ibs. There are many other attachments for excavators that can take the place of the digging bucket to diversify the machine. By swapping out the bucket for an auger, drill, ripper or rake the excavator can be used for many different jobs.Choosing the Right Excavator for the Job The best way to choose what excavator rental is needed for your project is to assess what exactly you need the machine to do. Identifying the right size of excavator, what attachments are needed and how long you need the rental for will help you determine the best machine for your job. It is more efficient for a job to rent the right size equipment for what is needed instead of trying to make one piece fit for a variety of jobs. Different Types of Excavators ‘An excavator is often used for earthmoving projects. That being said, the variety of sizes and attachments available for this machine make it useful in excavation projects of all sizes. From a landscape project to the construction of a completely new high-rise skyscraper, you can expect to see an excavator on almost any construction project. The variation in size allows them to be used in big construction projects and small backyard renovations, Wheeled excavators are popular in Europe and are used for working in urban areas since their wheels are kinder to finished roads and pavement than the traditional metal track.The 7 Kinds of Excavators There are six key types of excavators available on the market: Crawler, Dragline, Suction, Skid Steer, Long Reach, Mini Excavator and Wheeled Excavator. 1, Crawler Excavators: The most commonly recognized excavator used for mining, trench digging and landscape grading the crawler excavator is what most people picture when they hear the word “excavator”. This kind of excavator is available on wheels instead of a track 2. Dragline Excavators: A larger kind of excavator that uses a hoist rope and dragline system to clear earth for underwater projects, pile driving or road excavations3, Suction Excavators Uses water jets and a high-pressure vacuum to clear dirt, soil, and debris. Operated out of a wheeled vehicle the suction excavator is used for underground applications, debris clean up and other delicate excavation projects 4, Long Reach Excavators: With arms that extend up to 100 feet with attachments, the excavator is good for heavy-duty digging and industrial demo projects‘Acompact, smaller version of a crawler excavator, mini excavators ~ often referred to as mini diggers — are useful in narrow job sites, job sites with obstacles, and jobs with delicate terrain like landscaping. Mini excavators have zero tail-wing capability and are ideal for small jobs 6, Wheeled Excavator: The wheeled excavator is the same as a regular excavator but is fitted on wheels instead of tracks. Growing in recognition for their use in city projects, wheeled excavators are becoming more and more popular CRANES Cranes have a long history of being a staple in construction that reaches back thousands of years. Records indicate the ancient Greeks invented the first cranes and used them as early as 515 BC. Some reports indicate cranes were used for water irrigation in ancient Mesopotamia, thousands of years earlier. In fact, many ancient structures, if built today, would need to use some sort of crane. It was during the Industrial Revolution that cranes became integral to the modernization of the world, replacing the manual pulley system with an engine and an operator that preceded them. Today, different types of cranes can be found on almost any construction project, each one specializing in its own specific task. There is a downside to this variety, however: because there are so many cranes available, it can be challenging to know which one does what. Due to the specificity, each crane provides, getting the wrong type can cause delays and budget issues. Understanding the differences between each crane can help you figure out which one to use on your project, so you can rent the right crane at the right price. To help you choose the right machine, we've broken down the different types of cranes (mobile and fixed) and their uses below.