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LECTURE NOTESONCONSTRUCTIONPLANNING AND SCHEDULINGEmad Elbeltagi, Ph.D., P.Eng.,Professor of Construction ManagementStructural Engineering Department,Faculty of Engineering,Mansoura University

Construction Project Management2012Copyright 2012 by the author. All rights reserved. No part of this book may bereproduced or distributed in any form or by any means, or stored in a data base orretrieval system, without the prior written permissions of the author.

PREFACEIn the Name of ALLAH the Most Merciful, the Most CompassionateAll praise is due to ALLAH and blessings and peace be upon His messenger and servant,Muhammad, and upon his family and companions and whoever follows his guidanceuntil the Day of Resurrection.Construction project management is a relatively young field. However, its impact hasbeen quite remarkable. It has become an important practice for improving the efficiencyof construction operations around the world. This book deals with some topics and toolsof the large field of project management.This book is dedicated mainly to undergraduate engineering students, especially CivilEngineering students where most of the applications are presented in the civil engineeringfield. It provides the reader with the main knowledge to manage a construction projectfrom preliminary stages to handover. It includes seven chapters: Chapter 1 provides theplanning stages of a construction project. Chapter 2 is dedicated for presenting differentscheduling techniques along with the schedule representation. Chapter 3 is dedicated todiscuss the scheduling methods on non-deterministic activity durations. Chapter 4 isdealing with both the resource scheduling and smoothing problems. The schedulecompression is, also, presented in chapter 5. Chapter 6 is dedicated for the project financeand cash flow analysis. Finally, chapter 7 is dedicated for project control. Many solvedexamples have been added to enable the students to understand the material presented inthis book. Also, each chapter is followed by exercises for training purposes.Finally, May ALLAH accepts this humble work and I hope it will be beneficial to itsreaders.i

TABLE OF CONTENTSCHAPTER 1: PROJECT PLANNING1.1 Introduction11.2 Project Planning Steps21.2.1 Work Breakdown Structure (WBS)31.2.2 Project Activities71.2.3 Activities Relationships111.2.4 Drawing Project Network171.3 Estimating Activity Duration and Direct Cost241.4 Exercises27CHAPTER 2: PROJECT SCHEDULING2.1 The Critical Path Method342.2 Calculations for the Critical Path Method352.2.1 Activity-On-Arrow Networks Calculations352.2.2 Precedence Diagram Method (PDM)422.3 Time-Scaled Diagrams452.4 Schedule Presentation472.5 Criticisms to Network Techniques482.6 Solved Examples492.6.1 Example 1492.6.2 Example 2502.6.3 Example 3512.6.4 Example 4522.7 Exercises53ii

CHAPTER 3: STOCHASTIC SCHEDULING3.1 Scheduling with Uncertain Durations593.1.1 Program Evaluation and Review Technique613.1.2 Criticism to Program Evaluation and Review Technique683.3 Exercises69CHAPTER 4: RESOURCES MANAGEMENT4.1 Resource Definition724.2 Resource Management734.3 Resource Allocation754.4 Resource Aggregation (Loading)754.5 Resource Leveling (Smoothing)774.5.1 Method of Moments for Resource Smoothing784.5.2 Heuristic Procedure for Resource Smoothing794.6 Scheduling with Limited Resource884.7 Case Study904.8 Exercises97CHAPTER 5: PROJECT TIME-COST TRADE-OFF5.1 Time-Cost Trade-Off1005.2 Activity Time-Cost Relationship1015.3 Project Time-Cost Relationship1055.4 Shortening Project Duration1065.5 Exercises116iii

CHAPTER 6: PROJECT CASH FLOW6.1 Contract Cash Flow1186.1.1 Construction Project Costs1196.1.2 The S-Curve1226.1.3 Project Income (Cash-in)1246.1.4 Calculating Contract Cash Flow1266.1.5 Minimizing Contractor Negative Cash Flow1316.1.6 Cost of Borrowing (Return on Investment)1336.2 Project Cash Flow1386.2.1 Project Profitability Indicators1396.3 Discounted Cash Flow1416.3.1 Present Value1416.3.2 Net Present Value (NPV)1426.3.3 Internal Rate of Return (IRR)1436.4 Exercises144CHAPTER 7: PROJECT CONTROL7.1 Problems that may Arise During Construction1487.2 Schedule Updating1497.3 Earned Value Management1537.4 Exercises157REFERENCES159iv

CHAPTER 1PROJECT PLANNINGThis chapter deals with preparing projects plans in terms of defining: work breakdownstructure, activities, logical relations, durations and activities direct cost. Terminology ofproject planning will be presented and discussed. Project network representation usingdifferent graphical methods including: activity on arrow and activity on node arepresented.1.1IntroductionPlanning is a general term that sets a clear road map that should be followed to reach adestination. The term, therefore, has been used at different levels to mean differentthings. Planning involves the breakdown of the project into definable, measurable, andidentifiable tasks/activities, and then establishes the logical interdependences amongthem. Generally, planning answers three main questions:What is to be done?How to do it?Who does it?In construction, for example, plans may exist at several levels: corporate strategic plans,pre-tender plans, pre-contract plans, short-term construction plans, and long-termconstruction plans. These plans are different from each other; however, all these plansinvolve four main steps:Planning & Scheduling1Dr. Emad Elbeltagi

- Performing breakdown of work items involved in the project into activities.- Identifying the proper sequence by which the activities should be executed.- Activities representation.- Estimating the resources, time, and cost of individual activities.Detailed planning for tendering purposes and the preparation of construction needs to beconducted through brainstorming sessions among the planning team. The inputs andoutputs of the planning process are shown in Figure 1.1.Contract informationActivitiesRelationships among activitiesSpecificationsAvailable resourcesBills of quantitiesMethod statementPLANNINGSite reportsResponsibilityReporting levelsProject network diagramOrganizational dataOUTPUTSINPUTSDrawingsActivities durationConstruction methodsActivities costFigure 1.1: Planning inputs and outputsPlanning requires a rigorous effort by the planning team. A planner should know thedifferent categories of work and be familiar with the terminology and knowledge used ingeneral practice. Also, the planning tem should seek the opinion of experts includingactual construction experience. This helps produce a realistic plan and avoids problemslater on site.1.2Project Planning StepsThe following steps may be used as a guideline, or checklist to develop a project plan:1. Define the scope of work, method statement, and sequence of work.2. Generate the work breakdown structure (WBS) to produce a complete list ofactivities.3. Develop the organization breakdown structure (OBS) and link it with workbreakdown structure o identify responsibilities.Planning & Scheduling2Dr. Emad Elbeltagi

4. Determine the relationship between activities.5. Estimate activities time duration, cost expenditure, and resource requirement.6. Develop the project network.1.2.1Work Breakdown Structure (WBS)The WBS is described as a hierarchical structure which is designed to logically subdivide all the work-elements of the project into a graphical presentation. The full scope ofwork for the project is placed at the top of the diagram, and then sub-divided smallerelements of work at each lower level of the breakdown. At the lowest level of the WBSthe elements of work is called a work package. A list of project’s activities is developedfrom the work packages.Effective use of the WBS will outline the scope of the project and the responsibility foreach work package. There is not necessarily a right or wrong structure because what maybe an excellent fit for one discipline may be an awkward burden for another. To visualizethe WBS, consider Figure 1.2 which shows a house construction ls/RoofPipingH/C WaterWiringFittingsFigure 1.2: WBS and their descriptionAs shown in Figure 1.2, level 1 represents the full scope of work for the house. In level 2,the project is sub-divided into its three main trades, and in level 3 each trade is subdivided to specific work packages. Figure 1.3 shows another example for more detailedWBS, in which the project WBS is divided into five levels:Planning & Scheduling3Dr. Emad Elbeltagi

Level 1Gas development projectLevel 2Recovery unit 300Level 3Train 2Level 4InstrumentationProcess unit 400Train 1Gas treatingStructural steelCivilSeparation and stabilizationPipingPipingfabricationLevel 5Figure 1.3: Five levels WBSLevel 1: The entire project.Level 2: Independent areas.Level 3: Physically identifiable sections fully contained in a level 2 area, reflectconstruction strategy.Level 4: Disciplines set up schedule.Level 5: Master schedule activities, quantity, duration.Example 1.1:The WBS for a warehouse is as follow:For more details, another two levels (third and fourth levels) can be added as shownbelow:Planning & Scheduling4Dr. Emad Elbeltagi

Accordingly, a complete WBS for the warehouse project can be shown as follow(Figure 1.4):Figure 1.4: Warehouse project WBSPlanning & Scheduling5Dr. Emad Elbeltagi

WBS and organizational breakdown structure (OBS)The WBS elements at various levels can be related to the ),whichdefinesthedifferentresponsibility levels and their appropriate reporting needs as shown in Figure 1.5.The figure, also, shows that work packages are tied to the company unified code ofaccounts. The unified code of accounts allows cataloging, sorting, and summarizingof all information. As such, the activity of installing columns formwork of area 2,for example, which is the responsibility of the general contractor’s formworkforeman, has a unique code that represents all its data.WBS codingA project code system provides the framework for project planning and control inwhich each work package in a WBS is given a unique code that is used in projectplanning and control. The coding system provides a comprehensive checklist of allitems of work that can be found in a specific type of construction. Also, it providesuniformity, transfer & comparison of information among projects. An example ofthis coding system is the MasterFormat (Figure 1.6) which was developed through ajoint effort of 8 industry & professional associations including: ConstructionSpecifications Institute (CSI); and Construction Specifications Canada (CSC).Figure 1.7 shows an example of the coding system using a standardize system as theMasterFormat. The Master format is divided into 16 divisions as follows:1)General Requirements.2)Site work.3)Concrete.4)Masonry.5)Metals.6)Woods & Plastics.7)Thermal & Moisture Protection.8)Doors & Windows.9)Finishes.Planning & Scheduling6Dr. Emad Elbeltagi

10) Specialties.11) Equipment12) Furnishings.13) Special Construction.14) Conveying Systems.15) Mechanical.16) Electrical.WBS (Work elements)Area 1Area 2Area 3 BeamsColumnsSlabs FormworkforemanConcreteforemanFormwork Reinforcement Concreting Control chanicalsuperintendent ntractorAProject managerOBS (Responsibility & reporting)ProjectFigure 1.5: WBS linked to the OBS1.2.2Project ActivitiesThe building block (the smallest unit) of a WBS is the activity, which is a unique unit ofthe project that has a specified duration. An activity is defined as any function or decisionin the project that: consumes time, resources, and cost. Activities are classified to threetypes:Planning & Scheduling7Dr. Emad Elbeltagi

Figure 1.6: MasterFormat coding systemPlanning & Scheduling8Dr. Emad Elbeltagi

Production activities: activities that involve the use of resources such as labor,equipment, material, or subcontractor. This type of activities can be easilyidentified by reading the project’s drawings and specifications. Examples are:excavation, formwork, reinforcement, concreting, etc. each production activitycan have a certain quantity of work, resource needs, costs, and duration.Procurement activities: activities that specify the time for procuring materials orequipment that are needed for a production activity. Examples are: brickprocurement, boiler manufacturing and delivery, etc.Management activities: activities that are related to management decisions suchas approvals, vacations, etc.An activity can be as small as “steel fixing of first floor columns” or as large as“construct first floor columns”. This level of details depends on the purpose of preparingthe project plan. In the pre construction stages, less detailed activities can be utilized,however, in the construction stages, detailed activities are required. Accordingly, level ofdetails depends on: planning stage, size of the project, complexity of the work,management expertise.Figure 1.7: An example of an activity coding systemPlanning & Scheduling9Dr. Emad Elbeltagi

Example 1.2:Figure 1.8 shows a double-span bridge. Break the construction works of the bridge intoactivities. The plan will be used for bidding purposes.Hand railRoad base leftRoad base rightDeck slabPrecast beamsFigure 1.8: Double span bridgeA list of the double-span bridge activities is shown in Table 1.1Table 1.1: Activities of the double-span bridgeActivity 5160170180190200Planning & SchedulingSet-up siteProcure reinforcementProcure precast beamsExcavate left abutmentExcavate right abutmentExcavate central pierFoundation left abutmentFoundation right abutmentFoundation central pierConstruct left abutmentConstruct right abutmentConstruct central pierErect left precast beamsErect right precast beamsFill left embankmentFill right embankmentConstruct deck slabLeft road baseRight road baseRoad surfaceBridge railingClear site10Dr. Emad Elbeltagi

Detailed planning for tendering purposes and the preparation of construction needs to be conducted through brainstorming sessions among the planning team. The inputs and outputs of the planning process are shown in Figure 1.1. Figure 1.1: Planning inputs and outputs Planning requires a rigorous effort by the planning team.

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