Planning Procedure

8/14/2019 Planning Procedure

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Planning Academy

Project Planning is a vital ingredient of the construction process since the success or failure of construction projects - the core activity- depends upon it. At thesame time, there are unique factors in construction, among them the complexity of resourcing, impact of weather conditions and existence of multiplecontractors, making this particularly difficult and time consuming process.

Content

1. Introduction to Planning1.1. Traditional Planning-Biblical Times1.2. Traditional Planning-Early Times

2. History of Critical Path Method (CPM)2.1. PERT (Programme Evaluate & Review Technique)2.2. Advantages of Critical Path Method

2.3. What Network Analysis Does3. Planning in the 21st Century

3.1. Introduction3.2. Objectives3.3. The Planning Hierarchy

4. Life Cycle Planning4.1. Feasibility phase4.2. Pre-construction phase4.3. Construction phase4.4. Fit-out & Occupation phase

5. Other Required Planning & Management5.1. Risk Management

5.2. Resource Scheduling5.3. Progress Monitoring5.4. Earned Value Analysis5.5. What Ifs5.6. Forecasting
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5.7. Evaluating6. Planning Terminologies

6.1. Precedence activity6.2. Activities6.3. Durations6.4. Dependencies6.5. Finish to Start Relationship (FS)6.6. Start to Start Relationship (SS)6.7. Finish to Finish Relationship (FF)6.8. Start to Finish Relationship (SF)6.9. Formalities/Conventions5.10. Critical Path6.11. Total Float6.12. Free Float6.13. Negative Float6.14. Start Float6.15. Finish Float6.16. Most Critical Float6.17. Milestones6.18. Flags6.19. Hammock Activity6.20. Baseline6.21. Lag6.22. Driving Relationship

1.Introduction to Planning
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Project Planning is a vital ingredient of the construction process since the success or failure of construction projects - the core activity- depends upon it. At the

same time, there are unique factors in construction, among them the complexity of resourcing, impact of weather conditions and existence of multiplecontractors, making this particularly difficult and time consuming process.

If businesses are to become more effective and efficient planning must become more rapid, more accurate and more responsive to change.

Provided that the complexity is captured, the ability to draw on best practice within any one organisation and to re-apply knowledge already held within thatorganisation has a major contribution to make.

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1.1 Traditional Planning - Biblical Times

The Egyptians and Romans worked construction miracles in their day. Surviving ruins attest to the brilliance of their architecture, but little is known of theirconstruction planning and scheduling.

It can be supposed that they solved many scheduling programmes by the 'use of a bigger whip philosophy? Project Management has other roots reachingback into the days before the pyramids.

Historical Project Managers included Noah, Solomon and the unknown architect who designed the Tower of Babel. History records much about theconstruction details, but little about the methods of control.
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1.2 Traditional Planning - Early times

In the mid nineteenth century, at least one writer discussed work-versus-time graphical representation very similar to today's bar charts. It remained for HenryL. Gantt and Frederick W Taylor in the early 1900's to popularise their graphical representations of work versus time. The Gantt Charts were the basis oftoday's bar graphs or bar charts.


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Strategic Planning

Historical Project Managers included Noah, Solomon and the unknown architect who designed the Tower of Babel. History records much about theconstruction details, but little about the methods of control.

This could be termed as an "inspired guess" exercise "looking at the forest instead of the trees", otherwise known as the top down approach or strategicplanning.

Simple Bar Charts may well serve a purpose in this role. With a large project the bar graph cannot show intelligently the interrelations and interdependencies,which control the project.

At a later date, even the originator is often hard pressed to explain the plan using the bar graph. In changing the bar chart at a later date, this is so often ajuggling of the original bar graph and is not based upon logical planning.

Moving away from "Strategic Planning"

There is a need to accomplish "Tactical Planning"

(Looking at the trees or bottom up)

This focuses on detail like:

What tasks are required to do the project? How long will each task take? Who will perform these tasks? How much is each task going to cost? Which tasks are more important? How will a change in one task influence others? How will the project deadline be met?

This type of exercise cannot be accomplished using bar graphs. CPM offers the means to resolve all the questions being asked in preparing a tactical plan.


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2. History of Critical Path Method (CPM)

The critical path technique had its origins from 1956 to 1958 in two parallel but different problems of planning and control in projects in the United States.

2.1 PERT (Programme Evaluate & Review Technique)

In one case, the US Navy was concerned with the control of contracts for its Polaris Missile programme. The contracts comprised research and developmentwork as well as the manufacture of component parts not previously made. Hence neither cost nor time could be accurately estimated, and completion timestherefore had to be based upon probability.

Contractors were asked to estimate their operational time requirements on three bases: optimistic, pessimistic and most likely dates (See paper on RiskAnalysis)

These estimates were then mathematically assessed to determine the probable completion date for each contract, and this procedure was referred to as"Programme Evaluation and Review Technique", abbreviated to PERT.

PERT reduced the development time for the Polaris missile by over two years, a reduction of some 45%.


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Parallel Programme

The development of Critical Path Method (CPM) was enhanced by the Du-Pont company based in Newark, Delaware, who set up a group to study thepossible application of new management techniques to the Company's engineering functions. One of the first areas considered was the planning andscheduling of construction projects.

The group had a UNIVAC 1 computer at its disposal and decided to evaluate the potential of computers in scheduling construction work. Mathematiciansworked out a general approach, theorizing that if the computer was fed information on the sequence of work and the length of each activity, it could generatea schedule of work.

In early 1957 with the help of UNIVAC 1 Applications Research Centre, the original conceptual work was revised and the resulting routines become the basicCPM. No fundamental changes have been made in this first work.

In December 1957, a test group was set up to apply the new technique, then called the Kelly-Walker method. The assignment was to plan the construction ofa $10 million chemical plant in Louisville, Kentucky.

The network diagram for the project was restricted to include only the construction steps. The project was analyzed starting at the completion of its preliminary


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design. The entire project was subdivided into major areas of scope, and each of these areas was analyzed and broken down into the individual workactivities. These activities were diagrammed into a network of more than 800 activities.

The method was hailed as a success and Du Pont invested heavily in CPM for another project in July 1958 valued at $20 million.

This project required that both time and cost be estimated and thus became a more definitive approach than that used by US Navy.

Summary

The objectives of CPM can be described as follows:

"The fostering of increased orderliness and consistency in the planning and evaluating of all areas in the project"

The basis for the CPM network approach remains essentially unchanged from its earliest formulation, and has survived every test, extension, improvement,change in format, and manipulation it has undergone.

Although network techniques are basic and logical, assimilation of the concept does take time and experience.

The principle danger in the continuing extension of and experimentation on network techniques is that the basic framework (the network) might be obscuredor lost. Thus far, the semanticists have not been able to accomplish this, nor have they deliberately tried. On the contrary, the strength and effectiveness ofthe network approach have tended to delay the development of extensions. Extensions by the very nature of their complexity tend to run headlong into thelaw of diminishing returns.

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2.2 Advantages of Critical Path Method

A fully developed critical path network is a logical mathematical model of the project, based upon the optimum time required for each work processand making the most economical use of available resources (labour, plant, materials).

It has therefore been tuned to the individual problems of the particular project, and may be detailed as desired to suit the anticipated conditions and


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hazards. During execution of the project it permits systematic reviewing of current situations as they arise, so that allowance can be made for the effects of

uncertainties in the original planning, as well as enabling a revaluation of future uncertainties to be made, and remedial measures initiated for thoseoperations - and only for those activities - that require correction or acceleration. It is indeed significant that where the critical path method has been introduced, considerable reduction of project times and costs have resulted.

Research in the United States shows that's its use in the construction industry has led to decreases of up to 20% in project times over similar projectsnot employing CPM as a management tool.

2.3 What Network Analysis Does

Network Analysis techniques achieve their purpose in three broad steps.

They present in diagrammatic form a picture of all the activities to be done and their dependency on one and another. The way in which this is done is

to construct what is known as a "network diagram" in which each job is represented by a box. The way in which the boxes are linked indicates the dependencies of the jobs on each other. They consider the limitations imposed by the availability of labour, plant and materials and, in view of these, estimate the time required to do each job. They apply the estimated duration to the network diagram, and then analyse the network. Analysis in this case means the calculation of the total

length of time in each path through the network.


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3. Planning in the 21 Century

3.1 Introduction

Planning a Project from feasibility through to defects completion is fundamental to the success of a Project. It not only creates a framework within which allactivities are organised but also provides systematic progress feedback to enable slippages in programmes to be identified at an early stage. This in turnpermits effective management action to be taken to mitigate the effects of any slippage.

Progress control is covered in detail under separate headings, as this subject is as equally important as the preparation of programmes.


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A detailed narrative on construction methodology is also included. This has been written in a form that is applicable to Field Manager, Designers, andQuantity Surveyors as well as Planners and Project Managers.

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3.2 Objectives

To create an integrates suite of programmes, charts, and drawings which through their production, logically analyses the Project sequencing andtiming in order to fully pre-engineer the project.

This pre-engineering philosophy is of paramount importance, in that the work undertaken during the Pre-Construction period is all about properly andprofessionally setting up the project so that the construction stage is simply about undertaking the already agreed plans and strategies. This pre-engineering work is fundamental in order that a "nothing is left to chance" environment prevails.

The process of planning a Project is about teamwork and must not be seen as the sole jurisdiction of a single individual. It is vital that the wholeProject. Team contributes to, and agrees, to the planning of each stage of the Project, be they Owner, Designer, Manager, Contractor or Sub-Contractor.

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3.3 The Planning Hierarchy

On any Project a comprehensive suite of programmes has to be established as soon as the Project commences. This should be achieved as early aspossible in the Pre-Construction Phase to achieve optimum programme and progress control throughout the duration of the Project.

The Planning Hierarchy denotes the varying levels that programmes are produced and also shows that information that accompanies each level ofprogramme such as method statements, drawings etc.
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Level 1

Overall strategic programme showing summary activities for the Key disciplines of Client briefing, design, cost planning, procurement, Construction,commissioning, handover and occupation. This Programme will also identify key Project milestones.

Level 2

Summary Programmes for Design (all disciplines), Procurement and Construction.

Level 3

Working Programmes showing individual detailed programmes for each discipline, elemental construction programmes and contract programmes.

Level 4

Detailed construction programmes prepared by the Contractor(s) covering all aspects of work for each element of construction (Design, procurement andinstallation).

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4. Life Cycle Planning

Project Planning, in common with Cost Management, is a subject the touches all of the boundaries of a Project. No decision should be made, or action carriedout without an understanding of both cost and programmed implications. Planning therefore involves everybody on the Project.

This section deals specifically with planning tasks that are the Project Manager and his Planner's areas of responsibility of each of the four main phases.


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These are the Feasibility Phase, the Pre-Construction Phase, the Construction Phase and the Occupation Phase.

4.1FEASIBILITY 4.2PRE-CONSTRUCTION 4.3CONSTRUCTION 4.4OCCUPATION

DEFINE/REVIEW

Project Objectives

Acquisition Consultants

Planning/Legal Consultants

Procurement Strategy.

Outline Design Periods

Phasing Requirements

Project Scope

DEFINE / ACHIEVE

Procurement Options

Project Brief

Project Cost Plan

Programme Strategy

Contract Documentation

Tender Appraisal

Contractors Selection

End user Requirements

Strategic Direction

Planning Considerations

IMPLEMENT

Cost Control Procedures

Change control Procedures

Progress control Procedures

Quality Management Procedures

Integration of End user Needs

Integration of Contractors Drawings

DEFINE

Operator Critical Path Considerations

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4.1 Feasibility Phase

This was a alrge scale Feasibility study

VIETNAM - FEASIBILITY STUDY FOR HANOI TRAMWAY, PHASE 2

Following an initial contract won in 2004 to carry out a feasibility study for a pilot tramway line in the Vietnamese capital, in April 2005 SYSTRA wasselected by the People's Committee of Hanoi and the French authorities to conduct further investigations into certain aspects of the 2004 study. The aim ofthis work is to enable the launch of a project which can be implemented by 2010, the date of the 1000th anniversary of the founding of Hanoi city.


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On the basis of the route defined in December 2004, linking the western suburbs with the city centre, the study aims to provide a cost comparison of the

various options for installation and systems (tramway or light metro) and to provide additional details about the geological feasibility of underground works,the design of transport hubs connecting the various public transport projects which are eventually planned, and to provide an in-depth analysis of the waythe project will be financed. This information should enable the Vietnamese and French authorities to specify their level of financial participation in autumn2005.

The study is financed from FASEP funds at a cost of ?600 K and will last 6 months. The work will be carried out by a multidisciplinary team made up of 10experts from different departments of SYSTRA (PLT, GCOA, and EST). For the financial part of the study, SYSTRA has teamed up with Dexia Bank, whichspecializes in organizing investment for transport projects in developing countries. The findings of the study will be presented at the end of September2005 at a Franco-Vietnamese conference. This should enable the tender for the construction contract to be launched during the course of 2006.

Various programmes options will be prepared using available information including concept drawings and sketches prepared by designers and historicknowledge of previous projects. This will result in the production of a feasibility programme that will define the outline time frame of the Project and mayinclude the following activities: -

Various option studies VM/VE Workshops Employing designers Design periods Procurement Construction Work

Planning submissions/approvals

Objectives

Define/Review:


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Project Objectives

Acquisition Constraints Planning/Legal Constraints Procurement Strategy Outline Design Periods Outline Construction Periods Phasing Requirements

Deliverables

Statements of Need (Scope Document) Statement of Viability Function Brief Resources Planning Feasibility Programme

During the feasibility stage of a Project, planning is used as a fundamental management tool to assist in establishing the feasibility of the project.

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4.2 Pre-Construction Phase

The Pre-Construction Phase of the Project is where the majority of the planning work will be carried out and control and reporting procedures established.This phase covers all aspects of project management from the Client decision to precede, up to commencement of all construction Contracts includingthose for fit out works. The degree of detail that is prepared at this level will vary from project to project; however, programmes must recognise thefollowing.


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Project Methodology

Economic Construction Design Construction Programme/Construction Methodology Planning issues/Project Constraints Procurement VE/VM exercises Owner/Tenant Requirements

On all Projects it will be necessary to understand all site constraints and logistical problems. It will be necessary to recognise these issues including:

The Planning Strategy and Determine Method of Construction Site Access/Boundaries Cranage and Hoisting Strategy

Enabling Works Method Statements Risk & Uncertainty

During this phase the level 1, 2 and 3 hierarchy of programmes as outlined in the objectives should be produced.

4.2.1 Strategic Programming

The Strategic Programme is the top level (level 1) overall executive control programme showing a summary of all key disciplines of Client briefing, design,approvals, cost planning, procurement, construction, commissioning, handover and occupancy.

All other programmes at level 2 (Master Programme); level 3 (detailed programmes) and level 4 (contractors' programmes) will contribute to the overall

iterative planning framework that reports into the strategic programme.

Initially the Strategic Programme is prepared in draft form and is finalised when sufficient input from level 2 and 3 programmes confirm the overall logic ofthe Project Strategy.


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The Strategic Programme should identify:

Designer appointments Design/tender/Construction interfaces VE/VM Workshops Qualitative Risk Analysis Workshops Specialist Contractor input Key approval milestones Construction trade packages and milestones Occupation Post construction milestones The Master List


The Planning Strategy and Determine Method of Construction Site Access/Boundaries Cranage and Hoisting Strategy Enabling Works Method Statements Risk & Uncertainty

With up to 50 activities the Strategic Programme should be concise and demonstrate key points only. The procedures and framework for the StrategicProgramme should be agreed at a strategy meeting attended by all parties involved in the Project. The Client/Owner takes a leading role together with theProject Manager in the preparation of this Programme. The overall progress of the development will be monitored against this strategic programme.

Value engineering

In the early stages of the project Value Engineering and qualitative risk analysis are examined. Value Engineering is questioning the part of the cost, which


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does not contribute to function. Value Engineering offers a fundamentally different approach to cost control during the design stage. The objective is toeliminate those costs which not contribute to the required functional performance, in other words the unnecessary costs.

Qualitative risk analysis

This process has two aims: risk identification and initial risk assessment. In assessing qualitative risk three techniques may come into play in compiling arisk register.

Check lists compiled from previous experience Interviews with key project participants Brainstorming with the project team

This process provokes change and rethought sometimes resulting in substantial cost savings. Cost savings can be brought about by revealing the need toredesign, more detailed design, further site investigations, a different packaging of the work content, the use of alternative contract strategies or different

methods of construction.4.2.2 Master Programme

This level 2 programme is a summary of all the level 3 programmes and is the key tool used to monitor and control the Project. This programme shouldcontain the following: This level of programme can only be achieved when all packages have been awarded.

All key workshops (VM/VE, Quantitative Risk Analysis.) Key decisions Concept, Scheme and Detailed Design periods Key procurement issues Enabling work Construction trade packages and milestones

Commissioning and handover Post construction milestones

The Master programme is the main progress reporting document. Progress is marked up as a "time now" line on the Master Programme on a monthly


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basis for inclusion in the Monthly Executive Report. Although progress is similarly marked on to the Strategic Programme this merely confirms the overallstrategic direction of the Project. The Master Programme, however, contains more detail than the Strategic Programme enabling reasons for change inoverall Project progress to be identified.


The aspects looked at in applying quantitative risk analysis is:

Estimates of uncertainty in predicting the cost and duration of activities. Probalistic combination of individual uncertainties.

This risk driven approach during the project life cycle enables understanding, confidence and certitude.

Quantitave Risk Analysis

Risk Simulation Results


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(The above graphic suggests that the simulation will give a 90% confidence that the finish date will be before 21 March 2003, with just 10% of results fallingoutside this date).

Level 3 programmes, which feed into the Master Programme, include:

Design Programme Procurement Programme Pre-Construction Programme Construction Programme Fit out and handover programmes

Summary


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This is essentially a programme that forms a summary of key activities carried out in the vitality important Pre-Construction Phase of a project including.

Key activities from the design programme Key activities from the procurement programme VM/VE workshops Design workshops Risk management workshops Local Authority/Building Control approvals Cost reporting milestones Client "feedback" and "sign-offs'

4.2.1 Strategic Programming

The Strategic Programme is the top level (level 1) overall executive control programme showing a summary of all key disciplines of Client briefing, design,approvals, cost planning, procurement, construction, commissioning, handover and occupancy.

All other programmes at level 2 (Master Programme); level 3 (detailed programmes) and level 4 (contractors' programmes) will contribute to the overalliterative planning framework that reports into the strategic programme.

Initially the Strategic Programme is prepared in draft form and is finalised when sufficient input from level 2 and 3 programmes confirm the overall logic ofthe Project Strategy.

The Strategic Programme should identify:

Designer appointments

Design/tender/Construction interfaces VE/VM Workshops Qualitative Risk Analysis Workshops Specialist Contractor input Key approval milestones


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Construction trade packages and milestones Occupation Post construction milestones The Master List


The Planning Strategy and Determine Method of Construction Site Access/Boundaries Cranage and Hoisting Strategy Enabling Works Method Statements Risk & Uncertainty

With up to 50 activities the Strategic Programme should be concise and demonstrate key points only. The procedures and framework for the StrategicProgramme should be agreed at a strategy meeting attended by all parties involved in the Project. The Client/Owner takes a leading role together with theProject Manager in the preparation of this Programme. The overall progress of the development will be monitored against this strategic programme.

Value engineering

In the early stages of the project Value Engineering and qualitative risk analysis are examined. Value Engineering is questioning the part of the cost, whichdoes not contribute to function. Value Engineering offers a fundamentally different approach to cost control during the design stage. The objective is toeliminate those costs which not contribute to the required functional performance, in other words the unnecessary costs.


This process has two aims: risk identification and initial risk assessment. In assessing qualitative risk three techniques may come into play in compiling arisk register.

Check lists compiled from previous experience


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Interviews with key project participants Brainstorming with the project team

This process provokes change and rethought sometimes resulting in substantial cost savings. Cost savings can be brought about by revealing the need toredesign, more detailed design, further site investigations, a different packaging of the work content, the use of alternative contract strategies or differentmethods of construction.

4.2.3 Construction Programme

The construction programme is the main driving force of the whole project and therefore has to be prepared with appropriate diligence and input by allparties. The Construction programme determines the dates that the construction Contracts should be signed and the Tender Event Schedule used to drivethe Design programme. It cannot be prepared in isolation but must be prepared proactively by:

Active involvement in VM/VE studies

Active involvement in Risk Management studies Determining optimum sequence of activities Working closely with Designers on build ability issues Obtaining expert Specialist Contractor input where needed Identifying and working with Designers to simplify key interfaces Determining realistic time periods for various activities by:

1. Understanding complexity2. Assessing availability of skills in the market place3. Using historic data of similar activities and projects4. Using input from experienced Managers

Working closely with Designers to design out: Bottle necks on site

Slow speed activities Trades with poor skills availability Tight tolerance interfaces etc.

Adequate time and resources must be allocated to the preparation of the Construction Programme. Due to the critical reliance of pre construction activities


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on the construction programme it must be realistic.

Detailed Project Method Statements should be prepared in parallel with the Construction Programme to demonstrate the methods and logic used in thepreparation of the programme. The Project Method Statement will also enable the Designers and Cost Managers to focus preparation of their detaileddesigns and cost plans respectively.

4.2.4 Design Management(To be added at a later date)

4.2.5 Procurement planning(To be added at a later date)

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4.3 Construction Phase

Strict monitoring of the Trade Contractor's contractual planning obligations is essential throughout the construction phase.

It is desirable that the Trade Contractor be selected through a tender process which takes into account his professionalism and ability to prepare methodstatements and programmes, as well as on price ground.

Normally the rule applies that some agreement should be reached within three weeks of award of a contract. The Project Manager and his team will beseeking to satisfy clauses in the contract specification which typically request the following from all successful tenderers:

A suitably linked detailed bar chart of construction activities with supporting logic network Resource loadings Earliest and latest finish dates for each activity Float times for all none critical activities


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Continuously traceable critical path

All programmes should be issued in hard & soft copy and on disk using software as specified in the tender documents.

The Planner plays a key role throughout the duration of the project in advising the Project Manager on suitability of Contractor submissions, as well asowning responsibility for all planning and progress monitoring issues.

It is vitally important that the planner takes cognisance of all level 4 Contractors programmes and feeds any key issues upwards into the level 3 detailedProject Programmes and Level 2 Master Programme. Critical issues that could have an effect on the Strategic Programme will therefore be recorded in anyprogress reporting.

4.3.1 Trade Contractor's Baseline ProgrammeOnce the above items have been addressed the Project Manager and his team will agree a Baseline Programme with the Trade Contractor. TheBaseline Programme becomes the 'benchmark' to measure the project's progress with 'Cause and Effect' being established as the projectproceeds.

4.3.2 Services and Commissioning ProgrammesNormally within 12 weeks of commencement of a Project the successful M&E Contractor may submit a detailed activity breakdown of all M.E. & Pand Commissioning activities for agreement by the Project Manager. This programme is of vital importance to the overall scheme of things as itsactivities will be a predominant feature on the Critical Path. There should be a clear interface between Building and civil Engineering works. Thisprogramme should be in the range of 50/75 activities.

Detailed Project Method Statements should be prepared in parallel with all Construction Programmes to demonstrate the methods and logic used in thepreparation of the programme. The Project Method Statement will also enable the Designers and Cost Managers to focus preparation of their detaileddesigns and cost plans respectively.

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4.4 Fit-out & Occupation Phase

4.4.1 Fit-out


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A fit out programme should be agreed with the Contractor as soon as the scope of the fit out works is known. It is essential that a c learunderstanding of the Contractors fit out logic be gained. This will assist the Project Manager in achieving a seamless interface between the mainContractor(s) on site and the fit out Contractor(s).

4.4.2 Occupation PhaseAt the outset the decision needs to be taken whether external migration coordination is required to assist in the migration management process

Migration coordination activities should commence at least nine months prior to occupation although the safety of the move should be consideredas soon as possible to insure that the IT and telecomm requirements are fully coordinated into the scope of works.

Migration Planning Checklist

Migration Overview

Operational considerations Functional considerations Planning considerations Move execution Post occupation

Considerations

Task list of each activity Allocate responsibility for each activity Establish procedures to define department requirements Produce Outline Migration Programme Refine into countdown programme Produce detailed migration programme Refine into countdown programme Produce detailed migration programme Establish move group to oversee physical move Countdown programme


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Identify and procure external resources Obtain approval for expenditure /monitor costs

Implement move

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5. Other Required Planning & management

Effective 'Planning Management' requires not only planning the project and tracking progress, but also directing the effort towards the objective. Setting up theplan is only the first step. Pre-engineer/planning the project is the first step. To capitalise on your input to date the real value will be achieved by adopting:

Risk Management Resource Scheduling Progress Monitoring (to capture actual start, actual finish, actual duration based on activity day count.) Earned Value Analysis What Ifs Forecasting

Evaluating

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5.1 Risk Management


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This part of the process involves the formulation of management responses to main risks. It may start during the qualitative analysis phase, as the need torespond to some risks may be urgent and the solution fairly obvious. Interaction between the risk analysis and management phases is common.

Risk Management may involve:

Identifying preventative measures to avoid a risk or to reduce its effect. Proceeding with a project stage -by-stage, initiating further investigation to reduce uncertainty through better information. Considering risk transfer in contract strategy, with attention to the motivational effects and the control of risk allocation. Considering risk transfer to insurers. Setting and managing risk allowance in cost estimates, programmes and specifications. Establishing contingency plans to deal with risk if they occur. Risk management will not remove all risk from projects; its principal aim is to ensure that risks are managed most efficiently

Risk Management has major benefits for any enterprise. It is more than just a way of helping to get projects completed on time and to budget. Forexample it can:1. Enable decision making to be more systematic and less subjective.2. Allow comparison of the robustness of projects to specific uncertainties.3. Make the relative importance of each risk immediately apparent.4. Give an improved understanding of the project through identifying the risks and thinking through response scenarios.5. Have powerful impact on management by facing a realisation that there is a range of possible outcomes for a project.6. Improve corporate experience and communication.

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5.2 Resource Scheduling

"Track who did what and how much it cost so that you can improve future estimates."

Resource Scheduling is the most effective way of assessing the logistical problems that may be facing a confined site in the heart of a major city or town.


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In wanting to achieve the end date we often assume that throwing resources at the problem will meet this requirement. This may be achievable on paper butin practical terms it will be unworkable.

A Resource is someone or something that performs a task as is needed for a task to occur. A resource can be an employee, funds, plant, materials,consultants, department or business.

Planning means balancing funds, time and resources, when one of these three factors is restricted, the other two become more critical to finishing the project.The most difficult problems can now be resolved using a recognised software package. The software will identify work hours, hourly rate, associated costfields, time allocation and so on.

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5.3 Progress Monitoring

The phasing of the activities, the control of resources, plant and materials constitute the progressing of the works. The method of ensuring that an accuratecheck is kept upon progress is obviously important, depending as it does upon frequent comparisons between achievement and benchmarked programme.Such comparisons can be made to throw into prominence any divergence between the two, by plotting the progress on the charted programme.

Without the reliability of this procedure reporting is subject to abuse and misrepresentation. The method for recording physical progress should be establishedand agreed between all parties at a very early stage of the project

Different organisations have their own preference for recording progress, some of the methods may include:

Envelope Management - 'S' Curves, measuring Actual against Early Start, Late Start. This method is particularly powerful in a project where there are severalhundred/thousand activities. It is pictorial representation of-

Where the project is Where it has been


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Where it is going

Percentage Progress - Blocking out the part of the activity completed measured against 'time now'. For example if the activity is 50% complete 50% of theoverall bar is blocked in. When plotted against' time now' this method will create a 'jagged line' through the project throwing into prominence those activitiesahead or behind schedule.

Remaining Duration - This method highlights progress from the actual start date of the activity to the point at which the remaining work is scheduled to begin.

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5.4 Earned Value Analysis

You can determine performance using earned value - the calculated value of work satisfactorily completed based on a target plan.

Measuring earned value involves three key indicators: planned value (or budgeted cost for work scheduled-BCWS, earned value (or budgeted cost for workperformed-BCWP), and actual cost for work performed (ACWP).

Tracking these values over time, you can determine the past spending and schedule trends for the project, together with a forecast of future costs.

Measuring performance using earned value is more effective if the exercise is undertaken as a fully integrated planning and cost exercise.


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5.5 What Ifs

What if a prolonged strike takes place? What if a there is a prolonged period when the design information is not forthcoming? Whatever the delays, this willimpact on the programme. What can be done to make up lost time? How will increased labour impact the cost of the project? If the contract is in conflict over


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resources, how will that affect the long term results. These and many more questions can be answered effectively and efficiently by applying against a robustbaseline programme. The end result can be 'Mitigation' thus avoiding conflict and damaging claims.

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5.6 Forecasting

As the project is progressed actual data is entered thus allowing a review of future effects. With this kind of information available, project conditions can beadjusted as needed.

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5.7 Evaluating

Evaluating a project is important to establish:

How long it took Compare actual performance against actual plans. How much it cost Where the difficulties arose Reviewing appropriateness and effectiveness of the decisions taken during the project life cycle.

Reviewing the past leads to improvement in the future, it will help to focus your efforts next time round. For instance:

Was there a better way to resolve a conflict? Did re-designing the project really pay dividends? Were there hidden factors you could have taken into account during the Planning phase?


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These and lots more questions can be resolved during the evaluation phase.

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6. Planning Terminology

6.1 Precedence activity

There are two basic formats of network on which various methods are based:

Activity on Arrow

Activity on Node (Precedence)

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6.2 Activities

An activity is the basic building block of a project network. It produces a means by which an extensive and complex sequence of events may be broken downinto more manageable components

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6.3 Durations

The estimate of the time required to perform an activity is known as its duration. This is written within the node and may be in any time unit.

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6.4 Dependencies

A network is built by linking together a number of interconnected activities to produce a model of a particular process or project. The most common types oflinks are:

Finish to Start (FS) Start to Start (SS) Finish to Finish (FF) Start to Finish (SF) - Uncommon

These links may have durations attached to them, which indicate periods of time that must occur between the points connected by the link. This is known as alogic delay.

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6.5 Finish to start (FS) relationship

A relationship in which, the start of a successor activity depends on the completion of its predecessor activity.

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6.6 Start to start (SS) relationship

A relationship between activities in which, the start of a successor activity depends on the start of its predecessor.

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6.7 Finish to finish (FF) relationship

A relationship in which, the finish of a successor activity depends on the finish of its predecessor activity.

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`

6.8 Start to finish (SF) relationship (Seldom used in the Construction Industry)

A relationship between activities in which, a successor activity cannot complete until its predecessor activity starts.

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6.9 Formalities/Conventions

When using computer-aided techniques it is advisable and necessary to draw the initial network manually. There are basically only two formalities of logic to

be considered when drawing a precedence network.

Logic from left to right
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Preceding activities have lower reference numbers than succeeding activities.

This may appear to be a statement of the obvious but when a large network has been drawn and subsequently changed, with activities being amended ordeleted, it is common for these formalities to be varied. This is not to say that the network is, as a result, incorrect, but care must be taken to ensure that theclarity of the network is not lost.

From the point of view of computer analysis, deviation from these conventions has no effect on the results obtained. Adherence is recommended purely as anaid to communication and avoidance of errors.

Some of the more familiar terms associated with precedence networks are as follows:

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6.10 Critical path

This is the longest path through the project and the shortest time that the project can be built.

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6.11 Total float

This is the amount of time an activity can be delayed before affecting the critical path.

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6.12 Free float

This is the amount of time within an activity that can be delayed before it affects another activity.
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6.13 Negative float

This is the difference between a must finish date and the scheduled finish.

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6.14 Start Float

It is the difference between the early and late start dates.

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6.15 Finish Float

It is the difference between the early and late finish dates

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6.16 Most Critical Float

It is the least (most critical) of the start or finish floats.

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6.17 Milestones

Indicate the beginning or end of a major event or phase, or any other important point in your project.

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6.18 Flags

Signal the start or finish of an activity or group of activities. Milestones and flags have no original or remaining duration. You must assign actual dates tomilestones.

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6.19 Hammock activity

Use hammocks to monitor the elapsed beginning-to-end duration of a group of activities. Hammock duration is the number of days between the beginning ofthe first activity and the end of the last one in the group--not the sum of the activities' durations. If several hammocked activities overlap, the hammock'sduration will be smaller than the combined durations; if large gaps exist between the activities in the hammock, its duration may be longer.

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6.20 Baseline

After you establish an acceptable project plan, you copy it as a baseline. As the project progresses, use this baseline as a benchmark to compare dates,resources, and costs to the current schedule. Use this method to measure project status as well as performance. Using target plans enables you to reviewdelayed activities relative to the original plan.
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6.21 Lag

Lag is time delay from a preceding activity to its successor and lags can be positive or negative.

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6.22 Driving relationship

A relationship between two activities in which, the completion of the predecessor activity determines the early dates for the successor activity. A predecessorwith zero free float is a driving predecessor.
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Documents

Planning Procedure