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SCHEDULE COMPRESSION

SCHEDULE COMPRESSION. In real practice – how would you compress your Schedule?. SCHEDULE COMPRESSION. How to compress your Schedule? Identify significant critical and near critical Activities remaining to be completed

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SCHEDULE COMPRESSION

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  1. SCHEDULE COMPRESSION In real practice – how would you compress your Schedule?

  2. SCHEDULE COMPRESSION How to compress your Schedule? • Identify significant critical and near critical Activities remaining to be completed • Meet with Superintendent, Foremen, Subs to discuss Schedule compression options

  3. SCHEDULE COMPRESSION How to compress your Schedule? • Target critical Activities for acceleration that will shorten Schedule • Authorize OT or extra shifts and additional $$$ expenditures • Intensively manage the targeted Activities

  4. SCHEDULE COMPRESSION How to compress your Schedule? • Collaborative Effort • Almost always less efficient and more expensive Activity Time-Cost Curve Project Time-Cost Curve

  5. Activity Time-Cost Curve

  6. SCHEDULE COMPRESSION Project Time-Cost Curve • Crashing the Schedule • Step-by-Step Process – One Activity at a Time • Shorten Total Project Duration until you achieve the new allotted time

  7. SCHEDULE COMPRESSION Project Costs/Duration Relationship • Looks the same as Activity Cost Curve • What does this Graph Represent?

  8. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What does this Graph Represent? • There is an optimum Total Project Cost – that is a summation of: 1. Direct Costs 2. Indirect Costs 3. Market Profit Losses (Owner)

  9. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What are Market Profit Losses?

  10. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What are Market Profit Losses? • Income (Revenues) that the Owner does not earn since the facility is not available for their use. • Hospital can be > $1 million/day • Walmart store > $100,000/day • Reflected in contract as LDs

  11. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What do the Indirect Costs represent?

  12. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What do Indirect Costs represent? 1. Field Office Overhead (FOOH) 2. Home Office Overhead (HOOH) 3. Liquidated Damages (LD’s) • If you can shorten the Job – these costs reduce linearly

  13. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What would be the opposite of an Indirect Cost?

  14. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What would be the opposite of an Indirect Cost? • An incentive bonus for finishing early.

  15. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What are the Direct Costs and why are those costs parabolic rather than linear?

  16. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What are the Direct Costs? • The Actual costs of getting the Job done – labor, equipment, materials, and supplies

  17. SCHEDULE COMPRESSION Project Costs/Duration Relationship • Why are the Direct Costs parabolic rather than linear? • The Project Direct Costs are the summation of all the individual Activity Costs (which are parabolic shaped curves)

  18. SCHEDULE COMPRESSION Project Costs/Duration Relationship • When you sum the Direct + Indirect + LDs/MPLs (- Bonuses) = Total Project Cost

  19. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What is the Total Project Costcurve stating when you analyze it?

  20. SCHEDULE COMPRESSION Project Costs/Duration Relationship • What is the Total Project Costcurve stating when you analyze it? • There is an optimum point-in-time when you can complete the project at a minimum cost

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