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MFA10103 (2012) - SCM - Effective Construction Management (Lect 05

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    MFA10103

    Aftab Hameed Memon

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    Management is art of :

    arranging various activities and group of people in an

    organisation to achieve a common goal

    OR

    getting work done by others through the process of planning

    ,organising, leading , controlling , forecasting, co-ordination ,communicating , and motivating to achieve the goal and

    objectives of an organisation

    MANAGEMENT

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    Construction management may be defined as

    the management in which group of people of different

    categories work together, to execute the project

    economically without affecting quality in a

    well planned and organised manner

    CONSTRUCTION MANAGEMENT

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    Planning Organising

    Staffing

    Controlling

    Directing

    Co-ordinating

    Leading

    Forecasting Communicating

    Motivating

    FUNCTIONS OF MANAGEMENT

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    Inception/ conceptual

    Study and Evaluation

    Design drawings and Estimates.

    Specifications.

    Procurement.

    Construction.

    Testing and Commissioning

    Operation/ Utilization and maintenance.

    PROJECT LIFE CYCLE

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    Cost

    Time Quality

    SUCCESSFUL

    PROJECT

    Cost

    Time Quality

    SUCCESSFUL

    PROJECT

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    Cost management differs from cost control in that it is aproactive process that focuses on the elimination of waste in

    business processes and procedures.

    Cost management, as much, is a strategic process that stresses

    the optimization of efficiency and focuses on the customer andon profitability.

    Cost Management is a philosophy, an attitude and a set of

    techniques to create more value at lower cost.

    Cost Management meets the need of both accurate costs andother relevant information for decision-making. Having accurate

    costs and creating more value at lower cost is vital in the world

    of survival of the fittest.

    CONCEPT OF COST MANAGEMENT

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    Cost management is a philosophy of improvement because itpromotes the idea of continually finding ways to help

    organization make the right decisions to create more customer

    value at lower cost.

    It is a set of reliable techniques. These techniques may be used

    individually to support a specific decision or together to support

    the overall management of the organization.

    A set of cost management techniques that function together to

    support the organizations goals and activities in called a cost

    management system.

    CONCEPT OF COST MANAGEMENT

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    The basis for effective cost management is to understand coststructure and to analyze the costs flowing through that structure.

    Cost management is a strategic process that focuses on the

    customer and on profitability. The six steps to effective cost

    management are: Understand what causes the cost and revenue structure of the

    business

    Understand and reduce interfunctional complexity

    Provide the tools to manage costs Involve employees in decisions

    Increase effectiveness and continuously improve costs

    Measure decisions against the strategic business plan

    EFFECTIVE COST MANAGEMENT

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    Cost management planning and control refers to the capital andfinancial flows of the firm to meet project objectives, firms growth and

    the firms mainly engaged in the owner / manager.

    Cost engineering and quantity surveying encompass a broad variety

    of cost management functions focused on providing independent,

    objective, accurate and reliable capital and operating cost

    assessments usable for investment funding and project control.

    Cost management is considered to be a managerial process, which

    aims to improvement and continuous improvement in the

    organization.

    Cost management systems are understood as being composed of

    two main processes: cost estimating processes and cost planning and

    control processes.

    COST MANAGEMENT IN CONSTRUCTION

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    COST MANAGEMENT PROCESS

    Cost Management Processes

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    Cost management systems are composed of the following costmanagement techniques:

    Cost Planning and Control

    Estimating

    Budgeting

    Cash Flow Forecasting

    Financial Reporting and Cost Reporting

    Cost Code Systems Value Management

    Judgement

    COST MANAGEMENT TECHNIQUES

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    Cost planning can be used effectively to evaluation of projectcost.

    More than 80% of project costs are determined during the initial

    stages of the design.

    Skilful and professional estimating and cost planning add realvalue by enabling informed decision-making from the outset.

    Advantages of cost planning include:

    tender sum is more likely to equate with the approved budget

    less possibility of addendum in BOQ or re-costing

    Cost-effectiveness and a value-for-money can be achieved

    A balanced distribution of expenditure can produce rational design

    Cost planning provides a sound basis for comparing different projects

    COST PLANNING AND CONTROL

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    COST PLANNING AND CONTROL

    Cost planning during the design and construction phases

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    In Cost Planning and Control Process, The first phase is establishment of a realistic first estimate

    The second is plans how this estimates should be spent among

    the various parts or elements of a project.

    The final stage is a checking process to ensure that the actualdesign details for the various elements can be constructed within

    the cost plan.

    Controlling cost is a project team endeavor. Project cost control

    effectiveness will be impacted by how well the basic projectmanagement practices are implemented on the project, including

    the definition of such items as governance, owner organization

    and rosters, roles and responsibilities, project execution

    strategies, reporting and communications.

    COST PLANNING AND CONTROL

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    The estimating technique is usually used in construction at pre-tender stage to provide an indication of the probable cost of

    construction.

    This will be an important factor to consider in the clients overall

    strategy of the decision to build. The estimate will also providethe basis for his budgeting and control of the construction cost.

    During the projects development and construction phases this

    estimate may be reviewed and revised many times.

    An early price estimate which is too high may discourage theclient from proceeding further with the scheme, and so the

    potential commission is lost. Alternatively if the estimate is too

    low, it may result in an abortive design, dissatisfaction on the

    part of the client or even litigation.

    ESTIMATING

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    The purpose of producing a pre-tender estimate can be used for: Budgeting this decides whether the project should proceed as

    envisaged

    Controlling this uses the estimate as a control mechanism

    throughout the design process Comparing this uses the estimate as a basic for the evaluation

    of different design solutions

    Estimating is to work from first principles by assessing the

    quantities of the various resources of labor, plant, materials andsubcontractors, etc that will be required and the duration of time

    involved, obtaining up-to-date quotations from suppliers and

    subcontractors and calculating and assessing the cost on an

    impartial and objective basis.

    ESTIMATING

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    A budget is a financial evaluation of the future courses of action set out in abusiness plan. It is prepared in advance and reflects the financialconsequences of the agreed strategies that are necessary to achievecorporate objectives.

    The budgetary process fits into the overall planning process, it evaluates the

    financial consequences of the plan and provides financial feedback so thatplans can be monitored and revised.

    The purpose of a budget system is to serve the needs of management inrespect of the judgments and decisions it is required to make and to providea basis for the management functions of planning and control.

    It is a detailed plan which sets out, in money terms, the plans for incomeand expenditure in respect of a future period of time. It is prepared inadvance of that time period and is based on the agreed objectives for theperiod of time, together with the strategy planned to achieve thoseobjectives.

    BUDGETING

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    Budget Planning

    and Relationship

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    Actual cash flows is: Cash Flow = Cash inflows to the enterprise Cash outflows from

    the enterprise

    Most construction projects are individual profit centers, each with

    its own cash cycle based on the costs of activities related to theproject and on payments from a client, both of which are

    prescribed by a contract.

    Typical cash flow on a construction project consists of: cash out

    such as bid costs, preconstruction costs engineering, design,mobilization, materials and supplies, equipment and equipment

    rentals, payments of subcontracts, labor and overhead; and

    cash in such as billings less retentions, retentions, claims and

    change orders.

    CASH FLOW FORECASTING

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    The factors that affect cash flows are the duration of the project,the retention conditions, the times for receiving payments from

    the client, credit arrangement with suppliers or vendors,

    equipment rentals, and times of payments to subcontractors, etc.

    Cash flow at the project level consists of a complete history of allcash disbursement and all earnings received as a result of

    project execution. Many construction projects have negative net

    cash flows until the very end of construction when the final

    payment is received or advanced payment is received beforestarting the project. This is a typical situation when the final

    payment consists of retention money and the retention

    percentage is greater than the profit percentage of the project.

    CASH FLOW FORECASTING

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    Financial report and cost report is to record all the financialtransactions, payments in and out, together with amounts owed

    and owing. This kind of information is essential for the top

    management in decision making and also for the financing of the

    project. It helps to know:

    financial performance to date

    anticipated financial performance of current year

    anticipated financial performance at the end of the project

    FINANCIAL REPORTING AND COST REPORTING

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    An adequate coding system simplifies the data-handling facilityand also provides economy of storage in the case of a computer.

    A good and adequate system of coding is one that simplifies that

    task of referring to the items to be coded.

    The purpose of the cost code system is to enable huge of costdata to be identified and coded for the most efficient application

    of cost management throughout the contract period.

    COST CODE SYSTEMS

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    Value Management is a multi-disciplinary, team orientated, structured,

    analytical process and systematic analysis of function which seeks best

    value via the design and construction process to meet the needs in

    proactive, creative, problem-solving service

    The VM procedure also encourages the development of a value culture

    within the organization which eases the path to accomplishing desirablechange.

    Understanding the VM concept is important as it is not just consider the

    cost but it considers the relationship between value, function, quality and

    cost in a wider perspective, whereby it eliminated the unnecessary costwhich does not contribute to the projects value, system and facilities

    VM has not yet become widely practiced in the Malaysia, hence actions

    should now be taken to exert its full potential to improve value for money

    for the clients of the industry

    VALUE MANAGEMNET

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    None of the cost management techniques can be used withoutthe application of judgment by the users.

    The relationship can be summarized as follows:

    [technique] + [judgment] = [advice]

    The good price forecasting technique is include both historicaltrend based data and competent judgment based on

    construction experience and knowledge

    JUDGEMENT

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    Various factors affect the cost management.

    One of the most important factor is cost overrun and its source

    Cost is a major problem both in developed and developing countries.The trend is more severe in developing countries where these

    overruns sometimes exceeds 100% of the anticipated cost of the

    project.

    FACTORS AFFECTING COST MANAGEMENT

    CONSTRUCTION COST OVERRUN

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    CONSTRUCTION COST OVERRUN

    United Kingdom (UK) : nearly 1/3 of the clients complaints that their

    projects generally experienced budget overrun. In Nigeria : A minimum average percentage escalation cost of projects

    was 14%.

    In Slovenia : 51 % projects faced price overrun

    In Croatia : 81% projects faced cost overrun In Bosnia and Herzegovina : 41.23% of the projects faced cost overrun.

    In Uganda : (Northern-by-pass project in Kampala) the cost overrun was

    more than 100% of the contract price.

    Worldwide research in transportation projects : 9 out of 10 projects facecost overrun. The common overruns are between 50 to 100%.

    In Malaysia : only 46.8% and 37.2% of public and private sectors

    projects completed within the budget respectively.

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    For the effectiveness of the cost management, factors that

    affected cost overrun should be identified to avoid the

    occurrence of cost overrun in a construction project.

    Material Related Factors

    Labour Related Issues

    Owner Responsibility

    Contractor Responsibility

    Financial Related Factors

    Consultant Responsibility

    External Factors

    COST OVERRUN CAUSES

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    Fluctuation of prices of materials : It has a significant impact on cost increase of construction materials.

    Often the contractor estimates prices of the tender according to the

    present prices at local markets. However, it is known that the tendering

    phase is quite long, thus there is a higher chance of price fluctuation. In

    case of high prices, the contractor would face the problem of cost

    overruns at the execution phase.

    Some of the construction materials are in high demand in other sectors

    of the respective industry. If the demand far exceeds supply, material

    merchants create artificial scarcity of materials, which in turn leads to

    escalation of cost of Materials.

    In most cases, price fluctuation is rather difficult to predict because it is

    objective. It is principally the results of the high inflationary trend in

    developing countries or the speculation of suppliers. It should be

    prepared and approved in such a mechanism in which benefit of parties

    must be guaranteed and fair.

    MATERIAL RELATED FACTORS

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    High cost of labour

    Most of the cases, labour cost increased due to environment

    restriction

    Shortage of site workers

    Inadequate planning of construction activities includes inaccurateestimation of manpower production rates.

    contractors may not easily assess the capacity of construction

    craftsmen. Such errors in estimating may subsequently cause

    delays in overall construction works resulting in cost overrun

    LABOUR RELATED FACTORS

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    Change in the scope of the project

    Scope changes are due largely to inadequate planning and

    feasibility studies. If importance is paid at the right time scope

    changes and additional works can be considerably reduced

    Scope changes normally occasioned by inadequate pre-contract

    study and changes arising from redesign and extensive variation

    occasioned by change in brief

    It may happened due to the clients need (e.g. when they think

    that something has been omitted from the existing design), or

    they may be due to poor original designs, which turn out to be

    difficult to build.

    OWNER RELATED FACTORS

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    Additional works

    Additional work is related to design changes, which is due to lack

    of detailed briefing on the functional and technical requirements

    of the project by the clients. it is important that careful

    consideration be given to issues such as site and environmental

    conditions, design specifications, methods of construction andavailability of labor at the preliminary stages.

    Bureaucracy in tendering method

    OWNER RELATED FACTORS

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    Inadequate planning and scheduling

    Waste on site

    Mistakes during construction

    Lack of experience

    Poor site management and supervision

    CONTRACTOR RELATED FACTORS

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    Financial difficulties of owner

    Poor financial control on site

    FINANCIAL RELATED FACTORS

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    Inaccurate quantity take-off

    Inaccurate site investigation

    Frequent design changes

    Mistakes and errors in design

    CONSULTANT RESPONSIBILITY

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    Effect of weather

    Unforeseen ground condition

    EXTERNAL FACTORS

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    Bespoke/in-house systems

    Microsoft Project

    Project Costing System (PCS)

    Asta Power Project

    Primavera Sure Trak

    Microsoft Excel

    COINS

    WinQS

    COST MANAGEMENT AND CONTROL SOFTWARE

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    Concentrate on work planning and scheduling

    Operational plan and a detailed calendar schedule being prepared tomeet project objective

    Also consider project shortening & resource leveling identifiable prior

    to the start of construction

    Settle with planning, shift to implementing the plan & establish aprogress monitoring and information feedback procedure

    Continuously, evaluation of field performance as compared with the

    establish schedule must be done

    considerable time & effort are required to check and analyze the timeprogress of work planned implementation

    Do correction, either bring the work back on schedule or to modify the

    schedule to reflect changed job condition.

    Monitor & rescheduling as required

    TIME MANAGEMENT

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    ASPECTS OF TIME MANAGEMENT

    Establish operational

    schedule

    Determine effect oncompletion

    Plan and implementcorrective action

    Update operationalschedule

    Measure and report

    progress

    Compare actual

    achievement with that

    planned

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    TIME MANAGEMENT IS NO

    BETTER THAN THE QUALITY

    OF THE INPUT

    INFORMATION

    EVALUATION AND PROGRESS REPORT

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    Depends on the degree of time control perceived to be desirable and

    feasible for the particular work involved Balance between the cost and effort involved and the management

    benefit gained

    Cycle time for Cost management & Time Management must be

    matched Fast paced project may demand daily progress reports

    Large scale job e.g. earth dams may use monthly basis progress or

    even longer

    However, critical operations may need to be tracked with a quicker &less formal form of cost & production control & more frequent basis

    Need to establish a standard procedure for collecting & transmitting

    the weekly progress data.

    EVALUATION AND PROGRESS REPORT

    EVALUATION AND PROGRESS REPORT

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    Compare progress measurement received from site with latest project

    schedule. The format?

    Tabular listing not suitable for making a comprehensive evaluation of

    the current time status of construction operations

    Graphic display effective & convenient for the day-to-day timemanagement of a project

    Bar Chart excellent medium for recording progress information and

    portraying the current time status of individual activities or other project

    segment. But it is not a proper tools for evaluating the overall time

    status of the project or for planning corrective measures when the workfalls behind schedule.

    Project Network can evaluate the overall time status of the project or

    plan corrective measures when the work falls behind schedule

    EVALUATION AND PROGRESS REPORT

    PROGRESS ANALYSIS

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    Determine the effect of the latest information on the project

    completion date and any intermediate time goals that have beenestablished.

    Concerned essentially with determining the present length and

    location of applicable critical path since the critical path determines

    the time required to reach a given network event.

    First, check the critical activities

    Next, check the possibility that a new critical path has been formed.

    Last, check the use of total float values.

    PROGRESS ANALYSIS

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    EFFECTIVE TIME

    MANAGEMENT HIGHLY

    DEPENDS ON PROPER

    PROJECT PLANNING AND

    SCHEDULING

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    If you do not plan for the project,

    you are planning for failure

    Plans act as road map of complicated process

    to manage project

    5-P rule

    Proper Planning Prevents Poor Performance

    FOCUS OF PLANNING

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    Determining the future objectives and appropriate

    means to achieve it

    Answers the basic questions:

    What must be done ?

    How it should be done ?

    Who should do it ?

    When it must be done ?

    How much it will cost?

    FOCUS OF PLANNING

    CONSTRUCTION PLANNING

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    A rational, sequential and appropriate way ofdirecting the construction activities

    An administrative process which translatethe policy into method of achieving the

    directed goal

    CONSTRUCTION PLANNING

    PROJECT SCHEDULING

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    It is a process for setting various operations of a

    construction projects in sequential orderProject Scheduling addresses issues in time

    planning/management

    It is graphical representation of work packageProcess for setting activities in sequential order by fixing

    start & completion date in such manner that whole project

    should be done in orderly and systematic way

    It helps to understand project objectives & eliminate any

    uncertainties

    It provides a basis for monitoring and controlling the work

    PROJECT SCHEDULING

    ADVANTAGES OF PLANNING AND SCHEDULE

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    Alternative methods of construction can be examined at the

    planning stage so that a most economical method can beidentified and chosen.

    At the time of starting each activity is known, there fore prior

    and adequate arrangement for provision of resources of

    construction, such as type and quantity of material, man,

    machines and finance (money) required at each stage of

    construction, can be made.

    Scheduling also indicates the quantities of work and duration

    of various operations for which plant or equipment cab be

    arranged in due time to avoid un necessary expenditure for

    keeping the plant idle for dates an which it will not be required.

    ADVANTAGES OF PLANNING AND SCHEDULE

    ADVANTAGES OF PLANNING AND SCHEDULE

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    It will help in arranging labour both skilled and un skilled

    regarding the quality and period for which they required.

    The total time for the completion of project can be known.

    With the help of actual progress charts it is known that

    whether the work is lagging behind or not. If the progress

    is slow it can be made fast by speeding up the activities.

    Resource illustration is optimised and available resources

    can be directed towards various activities with advantages.

    ADVANTAGES OF PLANNING AND SCHEDULE

    ADVANTAGES OF PLANNING AND SCHEDULE

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    Any changes or modification made in original plans due to

    detection of errors in productivity, delay due to weatherconditions and geological conditions can be properly

    evaluated and programme can be suitable amended.

    Knowing the inter relation ship of various activities andrelative importance of each activity at any stage of

    construction will help in fixing their priorities properly.

    The ultimate advantages of scheduling is the execution of

    construction work in efficient manner without wastage of

    the inputs. This will result in gaining maximum possible

    construction economy.

    ADVANTAGES OF PLANNING AND SCHEDULE

    IMPORTANCE OF PLANNING AND SCHEDULE

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    To give confidence to the client.

    To eliminate any uncertainties.

    To improve the efficiency of the operation through efficientuse of resources and cost control.

    To better understand of the project objectives.

    To provide a basis for monitoring and controlling of the

    work.

    IMPORTANCE OF PLANNING AND SCHEDULE

    TIME MANAGEMENT AND CONTROL TECHNIQUES

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    Gantt Bar Chart

    Critical Path Networks/Method (CPM)

    Program Evaluation and Review Technique (PERT)

    Elemental Trend Analysis/Line of Balance (LOB)

    Milestone Date

    Programming Technique

    Precedence Network Diagram (PND)

    Simulation

    TIME MANAGEMENT AND CONTROL TECHNIQUES

    GANTT CHART OR BAR CHART

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    Bar Chart was developed by Henry Gantt in 1917

    It is a graphical representation of work activitiesActs as planning-scheduling model and reporting-control model

    The length of bar represents duration of activity

    GANTT CHART OR BAR CHART

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    ADVANTAGES OF GANTT CHART OR BAR CHART

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    Ability to clearly and quickly present the states of project.

    To convey often to upper management, the over all statusof a project.

    No extensive training is required to learn hw to extract in

    formation from them.The period required for execution of each activity or

    operation can be observed.

    Up date progress of each activity.Resource aggregation.

    Lagging of activities can be noticed to manage work.

    ADVANTAGES OF GANTT CHART OR BAR CHART

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    Bar Chart for Concrete Gravity-Arch Dam

    No. Description Month

    1 2 3 4 5 6 7 8 9 10

    1 Mobilization

    2 Foundation Excavation

    3 Diversion Stage

    4 Foundation Grouting

    5 Dam Concrete

    6 Install Outlet Gates

    7 Install Trash Racks

    8 Prestress

    9 Radial Gates

    10 Spillway Bridge

    11 Curtain Grout

    12 Dismantle Plant, Clean Up

    Original Schedule

    Actual progress

    LIMITATIONS OF GANTT CHART OR BAR CHART

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    Complicated inter- dependencies of various item of work can not be

    depicted

    The critical activities can not be shown by bar charts.

    Bars on chart do not show the actual progress because these only

    represent the time elapsed in a particular activity. Hence it is not

    possible to detect till the allotted is over and work remains in

    complete as the rate of progress is not shown separately.

    It is very difficult to find out the alternative courses of action theymight be taken and effect of each on project completion is exercised

    in case of variation of the construction programme from the planned

    programme. The length and position can not be adjusted.

    LIMITATIONS OF GANTT CHART OR BAR CHART

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    PERT

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    Three time estimates are required to compute the parameters of an activitysduration distribution:

    pessimistic time (tb ) - the time the activity would take if things did not go well

    most likely time (tm ) - the consensus best estimate of the activitys duration

    optimistic time (ta ) - the time the activity would take if things did go well

    Mean (expected time): te =ta + 4 tm + tb

    6

    Variance: Vt =2 =

    tb - ta

    6

    2

    Where,tbis the expected duration

    Tb is the most optimistic duration estimate

    tm is the most likely duration estimate

    Ta is the most pessimistic duration estimate

    PERT

    PERT

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    PERT

    PERT ANALYSIS

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    Draw the network

    Use PERT formula to calculate the expected duration for eachactivity of the project

    Analyze the paths through the network and find the critical path

    The length of the critical path is the mean of the project duration

    probability distribution, It follows a normal distribution

    The standard deviation of the project duration probability

    distribution is computed by adding the variances of the critical

    activities (all of the activities that make up the critical path) andtaking the square root of that sum

    Probability computations can now be made using the normal

    distribution

    PERT ANALYSIS

    Benefits of CPM/PERT

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    Useful at many stages of project management

    Mathematically simple

    Give critical path and slack time

    Provide project documentation

    Useful in monitoring costs

    How long will the entire project take to be completed? What are

    the risks involved?

    Which are the critical activities or tasks in the project which could

    delay the entire project if they were not completed on time?Is the project on schedule, behind schedule or ahead of

    schedule?

    If the project has to be finished earlier than planned, what is the

    best way to do this at the least cost?

    CPM/PERT can answer the following important questions:

    Limitations to PERT

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    PERT assumes statistically independence between

    activities. This may not be appropriate

    PERT consistently underestimates the expected project

    completion time due to alternate paths becoming

    critical. The principal cause of this underestimation is a

    condition known as merge event bias PERT results are too optimistic

    To overcome the limitation, Monte Carlo simulations can

    be performed on the network to eliminate the optimistic

    bias

    GANTT CHART V/S PERT CHART

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    GANTT CHART V/S PERT CHART

    GANTT CHART V/S PERT CHART

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    GANTT chart visually shows the duration of Tasks whereas a PERT

    chart visually shows the sequence dependencies between tasks.

    GANTT visually shows the Time overlap of Tasks whereas a Network

    does not show time overlap but does show which tasks could be

    done in parallel.

    Some form of GANTT chart can visually show Slack Time available

    within an Earliest Start and Latest finish time.

    Most Project Managers find PERT very helpful for scheduling,

    monitoring and controlling Projects.

    PERT is recommended for Large Projects with high inter-task

    dependencies and the GANTT chart for simpler Projects.

    Most Project Management Case Tools nowadays (eg. MS-Project,

    Primavera ) allow the best feature of PERT to be incorporated into

    GANTT Charts.

    GANTT CHART V/S PERT CHART

    LINE OF BALANCE METHOD (LOB)

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    A graphical method for production control integrating bar chart and

    production curve concepts.

    This is most suited and efficient forlinear constructions and

    repetitive activities

    LOB focuses on the planned versus actual progress for individual

    activities and provides a visual display depicting their difference.

    LOB enables management to provide accurate control by prioritizing

    reallocation of resources. This assumes resources are

    interchangeable

    LINE OF BALANCE METHOD (LOB)

    LINEAR CONSTRUCTION OPERATIONS

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    Often construction sites have linear properties that influence the

    production sequence.A road job may be subdivided into many sections.

    A set of work processes need to be completed in a particular sequence

    before a section is completed:

    (1) rough grading, (2) finish grading, (3) aggregate base installation, (4)

    5-in.concrete pavement, (5) 9-in. concrete pavement, and (6) curb

    installation.

    LINEAR CONSTRUCTION OPERATIONS

    LINEAR CONSTRUCTION OPERATIONS

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    Each of the 14 sections can be thought of as being processed by crews

    and equipment representing each of the six work processes.Work is proceeded from section 1, section 2, , to section 14. The six

    work processes are carried out in sequence.

    There are work activity overlaps such that several operations are in

    progress simultaneously during the middle of the job.

    LINEAR CONSTRUCTION OPERATIONS

    LINEAR CONSTRUCTION OPERATIONS

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    Many types of projects exhibit a kind of rigid work sequence and have atrain effect.

    High-rise building

    Each floor has to pass a set of operations: erect formwork, installreinforcing steel and pure concrete.

    Tunnel

    Drill, blast, remove muck, and advance drilling shield..

    LINEAR CONSTRUCTION OPERATIONS

    ELEMENTS OF LOB

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    There are four Elements of

    LOB1. The objective chart

    2. The program chart

    3. The progress chart

    4. The comparison

    Objective chart

    A segmental curveshowing cumulative end

    products to be produced

    over a calendar time

    period. Objective chart

    S O O

    Program Chart

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    It is a flow process chart of all major activities, illustrating their planned,

    sequenced interrelationships on a lead-time basis.

    Three Aspects to Consider in Developing Program Chart

    (1) Operations to be performed

    (2) Sequence of operations

    (3) Processing and assembly lead time

    Progress Chart

    P h t i di t th l ti t t f t l f

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    Progress chart indicates the cumulative progress or status of actual performance

    at each monitoring point.

    Comparison of Actual Progress and Expected Progress

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    Comparison of Actual Progress and Expected Progress

    LOB APPLIED TO CONSTRUCTION

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    A road project has 40 same sections and each section has 8 activities. Suppose

    they are balance production. Each week has 40 working hours. The production

    curve and the lead time are shown as follows. Calculate the LOB values (completedsections) of each control points at the beginning of fifth week.

    8hr8hr2hr16hr6hr4hr14hr2hr

    9

    60

    8

    58

    7

    44

    6

    40

    5

    34

    4

    18

    3

    16

    2

    8

    1

    0

    A B C D E F G H

    40

    30

    20

    10

    0

    Sections

    12

    28

    40 80

    21

    120

    3

    160

    4

    200

    5

    240

    6

    280

    7

    Hours

    Weeks0

    0

    Lead time

    Production curve

    40

    Planned Progress Chart

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    Section

    40

    30

    20

    10

    0ActivityHGFEDCBA

    Answer:

    LOB(1)= 0.1340+0.2140 = 20 sections

    LOB(2)= 20+0.28 = 21.6 sections

    LOB(3)= 21.6+0.28 = 23.2 sections

    LOB(4)= 23.2+0.22 = 23.6 sections

    LOB(5)= 23.6+0.216 = 26.8 sectionsLOB(6)= 26.8+0.26 = 28 sections

    LOB(7)= 28+0.154 = 28.6 sections

    LOB(8)= 28.6+0.1514 = 30.7 sections

    LOB(9)= 30.7+0.152 = 31 sections

    A B C D E F G H0

    10

    20

    30

    Activity

    g

    Comparative Progress Chart

    TIME MANAGEMENT AND CONTROL SOFTWARE

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    Microsoft Project (Microsoft Corp.)

    Mac Project (Claris Corp.)

    Power Project (ASTA Development Inc.)

    Primavera Project Planner (Primavera)Project Scheduler (Scitor Corp.)

    Project Workbench (ABT Corp.)

    Project Commander

    Deltek Open Plan

    COMMON FEATURES OF MANAGEMENT SOFTWRE

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    Create lists of tasks with their estimated durations

    Establish interdependencies among tasks

    Work with a variety of time scales, including hours, days, weeks, months, and

    years

    Handle certain constrains

    Track team members, including their pay rates, hours worked thus far on project

    and upcoming vacation dates

    Incorporate company holidays, weekends, and team members vacation days into

    calendaring systems

    Handle shifts of workers (day, evening, night)

    Monitor and forecast budgets

    COMMON FEATURES OF MANAGEMENT SOFTWRE

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    Look for conflicts; for example, resource over allocated and time conflicts

    Generate a wide variety of reports

    Interface with other software packages such as spread sheets and database

    Sort information in a variety of ways; for example, by project, by team member, or

    by work package

    Handle multiple projects

    Work on-line and respond quickly to changes in schedule, budget, or personnel

    Compare actual costs with budgeted costs

    Display data in a variety of ways, including both Gantt charts and network

    diagrams

    BENEFITS OF USING MANAGEMENT SOFTWRE

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    Organizing the plan and thinking through the details of what must be done

    Scheduling deadlines that must be met

    Scheduling the tasks in the appropriate sequence

    Assigning resources and costs to tasks and scheduling tasks around

    resource availability

    Fine-turning the plan to satisfy time and budget constraint or to

    accommodate changes

    Preparing professional looking reports to explain the project to owners, top

    management, supervisors, workers, subcontractors and the public.

    LIMITATIONS OF USING MANAGEMENT SOFTWRE

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    Although scheduling software packages have supported resource-

    loading activities for sometime, they still require manual input of

    resource information and do not represent the reasons behind the

    selection of a particular crew and crew size

    In most cases, computer programs give adequate solutions;

    however, when resource requirements exceed the resources

    available, the computer programs do not provide the optimum

    scheduling solutions.

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    INEFFECTIVE TIME

    PLANNING LEADS A

    SIGNIFICANT AMOUNT OFTIME OVERRUN

    CONSTRUCTION TIME OVERRUN

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    Worldwide problem : seldom projects completed on time.

    In Nigeria : 50% projects experienced time overrun with an averagepercentage escalation period up to 188%.

    In Bosnia and Herzegovina : 51.40% project experienced time overrun

    In Jordan : 82% of projects are delayed

    In Saudi Arabia and Ghana : 70% of projects were delayed In Malaysia : 18.2% of the public sector projects and 29.45% of private

    sector projects only are completed on time.

    Time Delay can be resulted of one or more reasons including problems of

    financing and payment for completed works poor contract, changes in site,shortage of materials, design changes, weather condition andothers.

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