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A Structured Approach to A Structured Approach to Minimum Cost Recovery Minimum Cost Recovery Scheduling Scheduling Chris Carson, PSP Project Controls Manager Alpha Corporation Norfolk, Virginia Email: [email protected]

Recovery Scheduling

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Page 1: Recovery Scheduling

A Structured Approach to A Structured Approach to Minimum Cost Recovery Minimum Cost Recovery

SchedulingScheduling

Chris Carson, PSPProject Controls Manager

Alpha CorporationNorfolk, Virginia

Email: [email protected]

Page 2: Recovery Scheduling

BackgroundBackground

Project management requiresnimble response to daily occurrences on a projecthundreds of quick decisionsproblems trend to promote crisis management

PM often evolves into a pattern of crisis project management.Three steps to eliminating systematic crisis management:1. Development of a scheduling program – place a company

on a schedule-driven project management program2. Project management recovery system - develop a

structured approach to dealing with delays from a project management perspective

3. Scheduling recovery system – develop a clear prioritized process for analyzing schedules and providing recovery suggestions and solutions.

Page 3: Recovery Scheduling

Step One Step One –– Institute a ScheduleInstitute a Schedule--Driven ProgramDriven Program

If a program has symptoms that include late completion of projectsjust-in-time completion of projects Consistent two-minute warning completionsBudget-busting completions

The company needs to put a schedule-driven program in place. Implementing the new program consists of:

Senior Management buy-in for:Planning and schedulingDedicated schedule developmentElimination of crisis managementGood analytical software

A process of mandated schedule development, updating and analysis, with consistent monitoring

Page 4: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

3. Development of effective and simple reportsa. Senior level management reports

i. At-a-glance styleii. All Projectsiii. Clear, meaningful metrics

b. Project level management reportsi. Predictive informationii. Focus on Critical Path workiii. Clear, meaningful metrics

4. Training the entire PM team in scheduling philosophy5. Selection & training of the primary scheduler6. Implementation of the process, with scheduling taking a

prominent role in PM meetings7. Follow through to ensure the process is adopted8. Assessment of results

Page 5: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

Senior managementlittle recognition of the problems behind visible symptomsuses management “club” to treat those symptoms. management club is used for PM’s to work harder, so all the problems would go away.

Senior management must be convinced stop focusing on the project managers “failings”support dedicating time to planning the projects.

Project managers have so many responsibilities that they cannot control

Invoicing, cost control, budgetingproblem resolution, client communicationsresource managementcommunications & paperwork demands

Scheduling will not be consistently managed. Senior management must mandate a schedule-driven program.

Page 6: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

The scheduling program:Written downExplained step by step

Every project (no matter how small):Have a schedule developedMust be managed by the scheduleHave the project management team in agreement with the planSchedule process must be reported Schedule must be updated weeklySchedule prominent in meeting agenda.

Running meetings by the schedule is the best way to show dedicated schedule planning. Once schedule is updated, results reported.If slippage reported, must involve resolution.

Page 7: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

Developing senior management reports is crucial;

Page 8: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

Senior management must take report when they drive by sites. This provides overview of planned visual progress. Project manager gets a copy of report, so he knows what information is reported.Project manager level reports

single most important report - Critical Pathproject manager understands the usePM walks the job with the report in hand PM verifies that Critical Path is being workedPM also verifies that other “mass volume” work is progressing and not eroding Total Float (or Free Float)

Page 9: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

Best to keep update & report weekly (full metrics monthly)Report should include general status summaries:

Page 10: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

Provide project managers with additional standard reports - Earned Value metrics

Page 11: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

Customized reports – PM - myPrimavera

Page 12: Recovery Scheduling

Step 1 ScheduleStep 1 Schedule--Driven ProgramDriven Program

Customized reports – PM - myPrimavera

Page 13: Recovery Scheduling

Step 2Step 2

Project Management Recovery

Page 14: Recovery Scheduling

Step 2 Project Management RecoveryStep 2 Project Management Recovery

Develop strategy for addressing slippageBrainstorm before needUse Lessons Learned approachDevelop checklist

Divide strategy into source categoriesDesign clarity

Incomplete, inaccurate documents

PlanningSlow buy-out, poor schedules

Project ManagementResource problems, Critical Path monitoring

Change ManagementUnforeseen conditions, owner requests

Page 15: Recovery Scheduling

Step 2 PM RecoveryStep 2 PM Recovery

Design Source Slippage RecoveryUse RFI system

Monitor & documentWatch for patterns of response delay

String dimensions & identify problems earlyGet answers prior to shop drawings

Constructability reviewSubmit RFI’s for all issuesUse results in planning

Document substandard plans & specsMonitor quality of reissued drawings

Prepare TIA’s for all changes

Page 16: Recovery Scheduling

Step 2 PM RecoveryStep 2 PM Recovery

Design Clarity Source RecoveryUse standard scope of work forms

Ensure no scope holesIdentify unclear scopeUse bid process to assign all scope

Page 17: Recovery Scheduling

Step 2 PM RecoveryStep 2 PM Recovery

Planning Source Slippage RecoverySchedule the buyout process

Include all procurement itemsIncorporate into schedule delivery/install

Prioritize the buyoutDo not allow convenience buyoutMonitor open buyout in schedule

Provide clear Area Designation PlanMirror the contract documentsSubs and foremen must understand it

Schedule the submittal processMonitor delivery itemsWatch submittal/approval cyclesSequence the shop drawings

Page 18: Recovery Scheduling

Step 2 PM RecoveryStep 2 PM Recovery

Project Management SourceReview & include admin process in scheduleSchedule ALL Owner responsibilitiesFocus on historically weak subcontractorsKeep resources at forefront of planning

Resource load scheduleGet commitment about crew sizes from subsReact immediately to under-staffingWork to minimize substitution of good workers

Involve responsible subs in recovery discussionsStress working the Critical PathTreat dry-in as major milestone & monitorCreate and evaluate lay-down area

(cont.)

Page 19: Recovery Scheduling

Step 2 PM RecoveryStep 2 PM Recovery

Project Management Source RecoveryEmphasize sequenced materials storageMandate site organization for efficiencyConsider use of materials distribution crewMandate helper/labor use as appropriateGive access priority to CP tradesCreate & maintain travel corridorsKeep interior halls clean & lightedClean, clean, clean – entire siteWatch stair traffic flow and accommodateLabel floors & columns clearlyRestrict moisture from building, close openings

(cont.)

Page 20: Recovery Scheduling

Step 2 PM RecoveryStep 2 PM Recovery

Project Management Source RecoveryDevelop & use tower crane schedule

Assign time block to each major tradeTrade has priority in their time block

Look at pre-assembly component opportunityPrefab on groundPrefab as per schedule sequencingSet up bad weather assembly locations

Monitor delivery sequencing to meet scheduleEnsure QC is continuous (use completion lists)Consider worker cash bonuses for productionUse additional workers rather than overtime

(cont.)

Page 21: Recovery Scheduling

Step 2 PM RecoveryStep 2 PM Recovery

Change Management Source RecoveryUse formal change management procedure

Institute itFollow it

Clean up change ramificationsDo it every updateuse TIA methodology for all change

Ensure PM team understands contract scopeClose out changes with schedule updates

Incorporate changes into scheduleSubmit CO & time extension requestsDo it timely

Page 22: Recovery Scheduling

Step 3Step 3

Schedule Recovery

Page 23: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Scheduling Lessons Learned ideasHuge opportunityIncorporates legal ramificationsProvides risk managementBe prepared to use historical data to suggest recovery strategiesPlan for good schedule maintenance

Identifies source of delays/slippagesAnalysis can identify constructive accelerationProvides ability to supply timely notificationInvolve responsible party in recovery

OwnerTrade contractor

Incorporate risk management planning in schedule developmentDevelop good checklist (during development)

Page 24: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Checklist ideas when recovery requiredClean up issues and schedule

Clean up outstanding claims/time impactsDetermine causal activities for delayIdentify responsibilityNotify responsible partiesInvolve responsible parties in recoveryBe careful if responsible party is weak player

Review efficiency of workSolicit contractor identification of disruptionInvolve foremen and superintendentsDiscuss practical crew sizes, materials flowIsolate potential delay problems

(cont.)

Page 25: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Checklist ideas when recovery requiredReview efficiency of work (continued)

Identify disruption issues between tradesWatch sub jumping into open space out of sequenceMonitor slipped start dates

Identify reasonSubcontractor mobilizationSuperintendent coordination

Verify WORK THE SCHEDULELook for potential parallel Critical Path work

Actual concurrent work opportunities

(cont.)

Page 26: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Checklist ideas when recovery requiredReview durations

Calculate OD / Path Duration Days / Total Float (TF+1)“Importance Ratio” (IR)Sort by IR, smallest to largestSmallest IR activities = best recovery opportunityUses TF as a path value

Identify historical trades with AD < ODChase these areas for recoveryUse “Tipper” (TPR) report, TPR = AD/ODLow TPR trades have contingency time availableWatch for high TPR values – monitor those trades

Review logicIdentify all out-of-sequence workSeparate hard logic from soft logic

(cont.)

Page 27: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Review Time Performance Ratio per trade (AD/OD)In chart below Electrical contractor shows poor opportunity forrecovery help, Mechanical contractor would be better choice

Time Performance Ratio

0.02.0

4.06.08.0

10.012.0

Admin

Sitework

Concre

teMas

onry

Metals

Carpen

tryRoo

fing

Doors/

Wind

ows

Finish

esEqu

ipmen

tFurn

ishing

sElev

ators

Mecha

nical

Electric

al

Type of Work

TPR

Page 28: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Relative Total Float of Area Completion Milestones

-50

0

50

100

150

200

BLKN08

KN09KN10KN11

KN12KN13

KN14KN15

KN16KN17KN18

KN19KN20

KN21 SI22SS23

KN24KN25

Rel

ativ

e To

tal F

loat

SCAC

MCAC/CCAC

Utility Bldg

MSGQ

NOB

Subst Comp

Watch erosion of float, do not let it continuePrint by trade when assessing available resources

Page 29: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Checklist ideas when recovery requiredReview logic (continued)

Hard logic cannot be changed easilySoft logic is good target for recovery

Resource restraintsIdentify historical better performanceIncrease resourcesAdditional crewsRemove resource logic if satisfied

Preferential restraintsDiscuss with subcontractorsUse historical out-of-sequence work as basis

Space restraintsOrganize by areaLook for light workload in areasVerify against CP & move crew work

(cont.)

Page 30: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Checklist ideas when recovery requiredResource Loading - Review Resources

Run resource comparison reports Look for built-in contingency time

Filter by AreasLook at Resource TableConsider worker count in areasReview CP in areasReallocate resources by CP by area

Load activities with CrewsReview Resource Table for 3 week look-aheadManually level crews to eliminate slippageDiscuss additional crews when stacked CP activitiesTarget areas and crews, don’t just man-up

(cont.)

Page 31: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Checklist ideas when recovery requiredResources

Look at repetitive tasks portion of workGo to modified linear scheduling

Set up crews to follow each otherPromote competitionTake advantage of learning curve

Scheduling actionsVerify requirements for Substantial Completion

Revise logic if necessary (go to minimum)

Review CP (near critical)Start at Data DateReview every relationshipLook at concurrent work opportunitiesFocus on dissimilar trades to avoid ramp-up

(cont.)

Page 32: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Checklist ideas when recovery requiredScheduling actions

Compare out-of-sequence work with soft logicSee if this caused changes to the planned workIf this worked, duplicate the out-of-sequence work by removing the soft logic in future work

If this is done with FS changes to SS or FS with lagsReview carefullyAdd FF relationships to control completion

See if critical trades can bring in additional resources to add another workday or shiftIf trade has performed, look at overtime option

Last choiceRemember risks & inefficiencies of overtime

(cont.)

Page 33: Recovery Scheduling

Step 3 Schedule RecoveryStep 3 Schedule Recovery

Checklist ideas when recovery requiredScheduling actions

Print schedule with Free Float column exposedPush contractors to work within FF values

Eliminate disruptionEliminate slippage and delay to other trades

Provide interim milestones for important eventsCelebrate achievement of every milestone

Review all CalendarsAssess non-work timeVerify appropriatenessReview weather calendars, look for contingencyReduce non-work weather days if reasonable

Page 34: Recovery Scheduling

SummarySummary

Every project runs into problemsA Schedule-Driven Program is the most cost effective way to minimize slippageA proactive Project Management Recovery plan to deal with delays & slippage will improve responseA proactive Schedule Recovery plan to deal with delay will improve responseBrainstorming for Lessons Learned takes advantage of PM team experienceDeveloping checklists allows LL to be applied to future problemsApplying the three stages will ensure the ability to recover from almost any problems

Page 35: Recovery Scheduling

ConclusionConclusion

“Project Management is what you are forced to do when you don’t

Schedule!”(Chris Carson, ~1986)

Questions?Suggestions?Comments?War Stories?

Page 36: Recovery Scheduling

A Structured Approach to A Structured Approach to Minimum Cost Recovery Minimum Cost Recovery

SchedulingScheduling

Chris Carson, PSPProject Controls Manager

Alpha CorporationNorfolk, Virginia

Email: [email protected]