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Scheduling Riskmanagement CPM

The document discusses scheduling and the critical path method (CPM) for project management. It provides background on the history and development of scheduling, noting that CPM was developed by DuPont in the 1950s to manage complex projects. The document defines key aspects of CPM, including specifying activities, sequencing them, estimating durations, and identifying the critical path to determine the earliest project completion date. It also describes important CPM terms like early/late start and finish dates, and float, which is slack time that does not extend the project end date.
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0% found this document useful (0 votes)
62 views27 pages

Scheduling Riskmanagement CPM

The document discusses scheduling and the critical path method (CPM) for project management. It provides background on the history and development of scheduling, noting that CPM was developed by DuPont in the 1950s to manage complex projects. The document defines key aspects of CPM, including specifying activities, sequencing them, estimating durations, and identifying the critical path to determine the earliest project completion date. It also describes important CPM terms like early/late start and finish dates, and float, which is slack time that does not extend the project end date.
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We take content rights seriously. If you suspect this is your content, claim it here.
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SCHEDULING

SCHEDULING
• The process of listing a number of duties or events in
the sequence that they will occur.
• It is a timetable, and it identifies the activities that
must be accomplished to reach a certain goal or
objective.
SCHEDULING
• Schedules are essential to the successful execution of
any project. They are not unique to construction, as
they are used in many industries-business,
manufacturing, publishing, and so on.
• Anytime that people, equipment, materials, and
organizations are brought together and directed
toward a common goal, a schedule is developed.
HISTORY OF SCHEDULING
• The use of schedules goes back to ancient times, and the
formalized use of the bar chart schedules is associated with
manufacturing production in the early part of the twentieth
century, but the scientific use of schedules came into
existence in the 1950s.
HISTORY OF SCHEDULING
• In 1956, the E. I. duPont de
Nemours Company, using a
UNIVAC computer, developed a
Critical Path Method (CPM)
schedule for a $10-million
chemical plant in Louisville,
Kentucky.
HISTORY OF SCHEDULING
• At about the same time, the U.S.
Navy used a Performance
Evaluation and Review
Technique (PERT) network
schedule to manage the
development of the Polaris
missile.
HISTORY OF SCHEDULING
• PERT and CPM, both network-
based scheduling systems, were
also used throughout the 1960s
by the U.S. Army Corps of
Engineers, the National
Aeronautics and Space
Administration (NASA), the
Atomic Energy Commission, RCA,
General Electric, the Apollo
Space Program, the Veterans
Administration, and the General
Services Administration.
HISTORY OF SCHEDULING
• Conflicts can occur over many issues during the course of a
construction project that’s why Network-based schedules are
considered acceptable evidence in court when arguments occur over
project completion dates, delivery dates, or the formal coordination
of project participants.
WHEN TO SCHEDULE

PRE-CONSTRUCTION STAGE
• Scheduling is an important activity during the preconstruction stage
of a project. Owners need to know up front if the project can be
completed on time. Owners, to secure project financing, must
establish firm commitments with the end user of the finished project.
WHEN TO SCHEDULE
PRE-CONSTRUCTION STAGE
• Montreal's Olympic Stadium was not
finished in time for the 1976 Olympics
• William Zechendorf, Jr., the developer,
had signed a contract with this tenant
early in the project. When the project
was delayed, the space was not
delivered per contract, obligating
Zechendorf to damages (for lost rent
plus damages) at the rate of $300,000
(P15M)+ per week.
WHEN TO SCHEDULE
PRE-CONSTRUCTION STAGE
• Montreal's Olympic Stadium was not
finished in time for the 1976 Olympics
• William Zechendorf, Jr., the developer,
had signed a contract with this tenant
early in the project. When the project
was delayed, the space was not
delivered per contract, obligating
Zechendorf to damages (for lost rent
plus damages) at the rate of $300,000
(P15M)+ per week.
WHEN TO SCHEDULE

CONSTRUCTION STAGE
• Project schedules are not only useful duri.ng the preconstruction
stage; they are essential to the successful coordination of the day-to-
day activities of a project during construction. Material deliveries and
the utilization of equipment and people are all orchestrated through
the schedule. As a project progresses, delays inevitably occur. The
project manager's job is to deal effectively with these delays and to
anticipate them as much as is humanly possible.
WHEN TO SCHEDULE

POST-CONSTRUCTION STAGE
• Most projects require testing and acceptance of equipment, the
training of the people who will operate and maintain the equipment,
and the correction of deficiencies, also called a punchlist. All these
need to be coordinated and controlled to occur smoothly.
RISK ANALYSIS
RISK ANALYSIS
• Construction projects occur for the purpose of satisfying a
particular objective, accomplished outdoors, and carried out
by a large variety of people with no certainty of the precise
outcome of the project.

• The nature of projects, in general, is risky.


RISK ANALYSIS
Risks may come in many forms:
THE WORK ENVIRONMENT
• Country
• Location
• Neighbors
• Regulatory environment
• Job site conditions
• Economic/market conditions
RISK ANALYSIS
Risks may come in many forms:
TECHNICAL COMPLEXITY
• Planned technologies
• Product availability
• Degree of finishes
• Materials
• Mechanical/electrical systems
RISK ANALYSIS
Risks may come in many forms:
THE PROCESS
• Project funding
• Timetable
• Currency
• Preconstruction information
• Project unknowns
RISK ANALYSIS
Risks may come in many forms:
OWNER ORGANIZATION
• Sophistication
• Organizational structure
• Decision making
RISK ANALYSIS

• Generally, industrial projects are characterized as higher risks than


residential projects.

• The process that is followed to complete a project can also carry with it
a certain level of risk.

• In many ways, risk is a factor of the unknown.

• Risks affects the costs, schedules, and performance of the project, but
with proper planning, these risks can be managed.
CRITICAL PATH METHOD
(CPM)
CRITICAL PATH METHOD
• The Critical Path Method (CPM) was developed by
DuPont, Inc., during the 1950s. CPM was designed for
construction projects and has been generally
embraced by the construction industry.
• CPM uses deterministic activity time estimates and
was designed to control both the time and cost
aspects of a project, in particular, time/cost trade-offs.
CRITICAL PATH METHOD
• In 2005, the Project
Management Institute (PMI)
renamed CPM as PDM
(Precedence Diagram Method)
• In general, we will simply refer
the method as a “network,” but
if we wish to refer specifically
CPM (PDM) network activities
are shown as nodes, we will call
it an AON (activity-on-node)
CRITICAL PATH METHOD
• In CPM, activities can be “crashed” (expedited) at
extra cost to speed up the completion time. Both
techniques identified a project critical path with
activities that could not be delayed, and also indicated
activities with slack (or float) that could be somewhat
delayed without lengthening the project completion
time
CRITICAL PATH SCHEDULE
• Specify each activity
• Sequence the activities
• Draw the Network Diagram
• Estimate Activity Durations
• Identify the Critical Path
CRITICAL PATH METHOD
SCHEDULE CALCULATION
• These define how long the project will take, when each activity can
specifically start and finish, and which activities can slip and for how
long without affecting the completion date of the project.
IMPORTANT TERMS
• Early start (ES). The early start time of an activity is the
earliest possible time that an activity can start based on the
logic and durations identified on the network.
• Early finish (EF). The early finish time for an activity is the
earliest possible time that an activity can finish based on the
logic and durations identified on the network.
Early finish= Early start + Duration.
• Late finish (LF). The late finish time for an activity is the latest
possible time that an activity can finish based on the logic
and durations identified on the network without extending
the completion date of the project.
• Late start (LS). The late start time for an activity is the latest
possible time that an activity can start based on the logic and
durations identified on the network without extending the
completion date of the project.
Late start = Late finish - Duration.
• Float. The additional time that an activity can use beyond its
normal duration and not extend the completion date of the
project.
Float = Late finish - Early finish, or Float = Late start - Early start.

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