Dissertation Paper

PROGRAM LEVEL SCHEDULING

Guenther Preuhs 8th June 2005 Introduction The implementation of multi-billion dollar construction programs comprised of a large number of individual projects requires the application of specific management methods and control systems. As an integrated part of the programs controls system, program-level scheduling - documents the past, - monitors the present - and forecasts the future of construction programs. The term scheduling is generally associated with detailed, project-level, construction scheduling. The specifications of a Program require a different scheduling approach enabling management of the Business Plan, Development Programs and Operations (see graphic 1). These three interrelated business components are forming the center of the Clients organization. Summary, program-level, implementation scheduling provides decision makers with executive level information not limited to individual projects but of their entire organization.

Graphic 1: As part of Program Controls Program Scheduling is situated in the center of the Clients Organization

Why Program Level Scheduling? Program level scheduling serves the following four main purposes: o Construction Planning Project-to-project relationships are defined by the planning team as a critical part of the Program Definition Phase. The programming of these inter-project relationships results in a program-level critical path schedule. This Program Implementation Schedule forms the basis for all program-level constructability analyses during all implementation phases of the program starting during program definition throughout construction. Financial Planning The Program Implementation Schedule is critical to the development of the Clients Business Plan. Changes to the Clients Business Plan and their resulting impacts are analyzed using the Program Implementation Schedule. Resource Planning and Management The Program Implementation Schedule provides the Client and the Program Manager organizations with the required information to properly conduct their resource planning and management. Operational Planning The implementation of construction programs usually impacts the on-going operations of an organization. The Program Implementation Schedule is used to analyze possible impacts and enable pro-active planning of effective measures that minimize the negative impacts for the on-going operations.

Differences between Program and Project Level Scheduling As part of defining the term Program-level scheduling it is important to point out the differences to the generally known term Project-level scheduling. o Multiple vs. single source of information Construction Programs usually consist of multiple project teams led by Project Managers and Construction Managers. The individual project teams include various consultants (e.g. architects, engineers) and other stakeholders in the project (e.g. utility companies, general public, agencies). It is one of the biggest challenges for the Programs Controls Team to make the information flow between all the parties involved by providing them with the appropriate information at the right point in time. The Program Management Team needs to prepare detailed scheduling procedures and standards in order to incorporate consultants/contractors schedules in the Program Summary Schedule. Design consultants and construction contractors providing schedule information need to follow these standards set by the Program Management Team. Examples of standardization issues are listed below: - Working hours per day - Working days per week - Activity coding - Reporting layouts - Due dates for schedule updates Inter-project vs. intra-project relationships Program-level dependencies define the implementation relationship between two or more projects (e.g. an existing facility can be demolished after the new/replacement facility has been completed). Project-level dependencies define the implementation relationship between individual tasks of a project (e.g. building excavation precedes erection of superstructure).

Long-term vs. short-term implementation timeframe The extensive timeframe between a programs inception and its completion creates three unique challenges for the Program Management Team: - A program often has to be built over and around existing operating facilities, requiring complex construction and operational phasing. - The dynamic economic environment forces parameters under which the program was launched to be altered, sometimes considerably, until the time the Program is finished. - In order to speed-up the construction process, fast tracking is usually chosen, requiring an efficient decision-making process and close collaboration between Client, Designer and Contractor. Thousands vs. hundreds of schedule activities Detailed schedules of complex construction projects can include thousands of tasks/activities that describe the implementation timeline of the projects construction process in great detail. Program level scheduling summarizes the detailed project-level schedule information for each individual project allowing executive level reporting to decision makers. Summary vs. detailed reporting One of the most significant challenges of program-level scheduling is to capture the enormous amount of raw project-level data and reorganize it to conduct program-level summary analyses. The results of the various analyses are than depicted in specific schedule layouts.

Fundamentals of Program Level Scheduling The initial Program Summary schedule needs to be developed during Program Definition phase of a construction program. Due to its early development the initial indicative schedule is generally based on planning concepts only and is completed well before any designer or contractors are under contract. One of the outcomes of this early program scheduling is the definition of timewindows for the implementation of the individual projects based on the Programs constraints. The Work Breakdown Structure (WBS) the index of all work that needs to be done to complete the Program forms the basis of the reporting and coding structure for all components of the Program Controls System including the Program Summary Schedule, Budget,/Cost, Document Control, etc. The schedules coding structure and grouping follows the levels defined in the WBS. Identification of the major Program Elements (e.g. Relocation Projects, Utilities, Earthwork) and their individual projects leads to the definition of inter-project relationships based on their predecessor and successor dependencies. Typically the development of the Program Summary Schedule starts by scheduling the summary construction activities only. After the construction schedule is completed the pre-construction activities (e.g. Planning, A/E Selection, Design, Permitting, Contractor Procurement) are added to the beginning of the Program Summary Schedule. The phasing/sequencing of the Program is impacted by constraints caused by on-going and future operations, the Clients Plan of Finance, the Clients Business Plan, development site and construction planning considerations. The Preliminary Program Summary schedule can either be tied to defined calendar dates for program milestones (e.g. NTP for earliest construction) or be scheduled independent of calendar time starting with Day 1 Year 1.

The preliminary schedule is then subject to constant refinement throughout the Program Definition Phase (preliminary engineering studies) leading to the development of a baseline version of the Program Summary Schedule at completion of the Program Definition Phase and start of the Program Implementation Phase. During the Program Implementation Phase the Program Summary Schedule is subject to constant updating and revision based on input provided by design consultants and construction contractors on a project-by-project basis. Additional revisions may be caused by changes in program-level inter-project relationships e.g. based on the Clients revised Business Plan. Program Level Reports/Analyses One of program controls primary tasks is communication which includes forecasting as well as reporting of data. Reporting is not limited to the current status of the program only, it also forecasts where it is likely to end up, based on the progress and productivity to date and the amount of remaining work. Summarizing and reorganizing of project-level information results in three levels of program-level reporting: Level 1 Executive/Program Summary Information: On this level each project included in the Program Summary Schedule is represented by one summary bar only. The individual implementation phases (e.g. Planning, A/E Selection, Design, Permitting, Contractor Procurement) are represented as color coded sections of each projects summary bar. Level 2 Program Element Summary Information: On this level each projects implementation phase (e.g. Planning, A/E Selection, Design, Permitting, Contractor Procurement) is represented by one summary bar. Therefore each construction project is represented by six to eight summary bars (see graphic 2). Level 3 - Detailed Project Summary Information: On this level each projects implementation phase is represented by multiple summary bars resulting in every project being represented by 20 to 30 project summary bars.

Activity Description

Orig Dur

Early Start

Early Finish

Total Float

Q1

2000 Q2 Q3

Q4

Q1

2001 Q2 Q3

Q4

Q1

2002 Q2 Q3

Q4

Q1

2003 Q2 Q3

Q4

Q1

2004 Q2

Runway 13L-31R Development Program

PNR493 - Construction of New Airport Hotel
Detailed Design Bid / Award Construction of New Airport Hotel 60 90 604
235* 320
111* 60 227* 120 330*
394 60 276
460 160 430
93 540
59* 10 652* 91 341
51 218* 110

11.30.98A 03.19.01A 08.31.01A

08.24.01A 12.12.01
01.10.01A 04.01.01A 05.01.01A 01.13.02 05.13.02
06.01.00A 06.11.02 08.10.02
01.02.01A 05.15.02 11.01.02
05.02.02 11.26.02
03.01.00A 05.16.00A 11.21.00A 09.04.02 12.10.02
04.01.01A 07.20.01A 05.02.02

10.31.00A 08.01.01A 06.07.03

04.15.02 10.27.02
04.30.01A 04.30.01A 12.13.01 05.12.02 04.07.03
06.10.02 08.09.02 05.12.03
05.14.02 10.21.02 01.04.04
08.02.02 05.18.04
04.28.00A 07.24.00A 09.03.02 12.03.02 11.15.03
05.21.01A 02.22.02 08.19.02

518
84 69

PNR407 - Construction of New Training Facility

Detailed Re-Design Construct New Training Facility

PNR408 - Relocation of GSE Storage Area

Planning A/E Selection Detailed Design Bid / Award Cycle Relocation of GSE Storage Area

720 720 720

540 540 540
408 408 422
1,162 1,134

PNR030 - Realignment of Airport Access Road

Detailed Design Bid / Award Cycle Construction of Realignment Airport Access Road

PNR030 - Construction of New Railroad

Preliminary Engineering Detailed Design Construction of New Railroad - Phase 1

PNR232 - Construction of New Post Office

Bid / Award Cycle Construction of New Post Office

PNR544 - Construction of New Parking Structure

Planning A/E Selection Detailed Design Bid / Award Cycle Construction of New Parking Structure

-57 -57 -57

PNR288 - Relocate Gas Lines to Hangar Area

A/E Selection Detailed Design Bid/Evaluate/Award Cycle
43 43
Legend Project Initation Planning A/E Selection Design Permitting Bid/Award/Permit Cycle Construction Project Closeout Procurement of Material

Start Date Finish Date Data Date Run Date

Primavera Systems, Inc.

01.03.00 06.26.07 10.26.01 05.24.04 11:11

RUNWAY 13L-31R Program Summary Schedule

Graphic 2: Sample Program Summary Schedule Level 2

To conduct the various schedule analyses feeding into different segments of the Clients organization the program controls team uses schedule reports created by applying customized filters and groupings to the overall schedule data. The schedule analyses feed into different segments of the Clients organization: Construction Planning Financial Planning Resource Planning Operational Planning

Construction Planning Comparison analyses This type of analysis is conducted to identify schedule changes/updates in two or three versions of a schedule (e.g. baseline schedule, previous update, current schedule). Critical Path Analyses Conducted to focus decision-makers on critical items in the schedule by applying customized filters to display critical (and near critical) path activities only. Construction Impact Analyses Construction-zone analyses support the assessment of construction intensity and the impacts caused by the simultaneous implementation of various construction projects. The schedule information must be sorted by earliest construction start (waterfall effect) and grouped by construction zone. Construction Equipment Analyses Construction equipment utilization schedules are required for construction impact analysis during the environmental permitting process.

Financial Planning Cash-flow projections - Generating of cash-flow reports based on cost-loaded schedule information using the scheduling software - Mid-points of construction data from schedule used as input for cash-flow analysis conducted using cost-analysis software. Resource Planning 30 / 90 / 180 - Day Look-Ahead Schedules to support the Clients and the Program Management Organizations resource planning. Operational Planning Identification and quantification of the need for support facilities (e.g. on-site parking, field offices, contractor staging areas, storage, etc.) during construction. Resource loaded schedules help identify support facility needs based on estimated total number of workers and number of equipment. Impacts on on-going operations Identification of temporary infrastructure support (e.g. roadways, access gates, utilities) during construction. To analyze restrictions of construction working hours and/or types of construction during main business hours (e.g. to limit noise or dust) Schedule Risk Management The schedule risk management is focused on identifying and quantifying potential risks at the earliest time over the duration of the Program. Schedule risk management is a principal component of the QA/QC plan enabling reporting of program milestone completion dates with specified probability of success. The risk management plan is based on a four-step iterative process including: Risk management strategy/planning Risk identification Risk analysis (qualitative and quantitative) Risk response planning

Program schedule requirements: To use risk management effectively on a program-level the schedule information should neither be developed in such great detail that requires too much information nor on a summary level that hides the important sequencing of the Program. Every activity must be scheduled to start as early as possible and all activities (except first activity to start & last activity to finish) must have at least one predecessor and at least one successor. Finish-finish relationships with negative lag time and constraint dates must be avoided. The successful application of this approach minimizes the probability of events adverse to project objectives and enables such factors to be reflected in cost and schedule contingencies. It provides the means to: Realistically set reasonable schedule contingencies Estimate the probability of schedule delays Estimate the probability that the sanctioned schedule will be achieved Ensure that the project team identifies risks and implements plan to mitigate them

Identify the real critical path in a program schedule

Challenges Focus team on Program-Level thinking It requires some educating/training of the Project Managers to understand that the success of their project itself does not necessarily mean success of the entire Program. For example the allocation of available funds by prioritizing on the program-level or dependencies between projects of a program. Develop and Implement Schedule Procedures Clear procedures need to be developed early in the implementation process to structure the information flow in Program Management Organization, the Clients organization, other consultants and other stakeholders in the Program. It is a critical part of the quality control process to set clear guidelines for all team members. Define Reports/Layouts to meet all Parties Needs Define the format of the reports and schedule layouts early on to avoid later changes and resulting confusions for the Program Team. Provide all team members with the appropriate information at the right time. Presentation of Technical Information to Non-Technical Decision Makers The information included in schedule reports is usually only as good as it is presented. Very technical schedule data must be translated into easy-to-read reports. Graphics are often used to convey the message to non-technically-trained decision makers. Document Schedule Changes & Maintain Critical Issues Log As part of the information management the history of the schedule must be available on file. Historic schedule data is used for target scheduling and for validation of decisions made in the past. Ensure Pro-Active Program Management The schedule information available to the Program Management Team must always be as current as possible to allow pro-activeness in the making of decisions. Red flags should emerge before it is too late to take measures to avoid them. Schedule is only a Snapshot in Time It Will Change A program schedule is an estimate of the durations, sequencing and phasing of the implementation of a construction program. Numerous potential impacts (weather conditions, funding, strike, scope changes, etc.) change this estimate on a continuous bases. Risk Management helps setting realistic and reasonable schedule contingencies. Conclusion The successful implementation of construction programs depends on a controls approach that integrates the project and program-level information of all aspects of the Program. This approach ensures that the three main areas of a Clients Organization the Business Plan, the Development Programs and the Operations are integrated with each other and feeding of each others information. An effective program scheduling approach provides all team members with the appropriate information at the right time in an easy-to-read format.

Guenther Preuhs