MANAGING RISK OF DELAY – Critical Path and Earned Value Management (Part 6)

This post is the sixth in a series of discussions regarding various aspects of time management as it relates to the risk of delay.  More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management.  This post addresses some ideas regarding the integrated nature of time management using critical path and earned value management.

The challenge associated with managing all (critical and non-critical path) work is common to virtually all Lump Sum Turn Key (LSTK), Engineer Procure Construct (EPC) and other similarly executed projects.  In addition to the normal issues associated with bulk progress, actions or inactions by the owner can add considerable complexity to this challenge.  Over the past seven years, M&M has program/project managed five projects exceeding $100 million (USD) in investment value (total installed cost).  Thus, practical/practioner experience is engendered in this discussion/post. [Read more…]

Labor Productivity and Disruption – Managerial Considerations

This is the seventh posting regarding labor productivity and disruption. The Subject Series can be viewed here.  In large and complex projects, a prime contractor may or may not direct hire the field labor.  Often, the field labor is hired by major subcontractors (contractors hired by prime contractor).  Examples are civil, structural steel, mechanical, piping, electrical and controls.

For the prime contractor [or similarly for Owner/Employer], subcontractor productivity is seemingly not important or relevant.  This is particularly true if the subcontractor in question is on a fixed price or fixed unit price contract.  However, events that are created by Owner/Employer or Contractor that impact the subcontractor’s productivity create potential liabilities.  Further, once the subcontractor discovers the loss, a claim is likely to emerge.

Consequently, positive action is needed.  There is a legitimate need for the Owner/Employer and Contractor to be informed.  Managerial overlay, visibility and attention are components in the overall project management challenge. [Read more…]

PROGRESS REPORT – TAKING STOCK

This post is a progress or status report as McLaughlin and McLaughlin (M&M) assesses the status and progress of this Project Professionals blog.

Project Professionals commenced operations in late January 2011.  The initial posts were on January 24, 2011.  The blog and blogging were new to M&M and there was an expected learning curve.  The rate of learning was substantially improved by advice and assistance from several key advisors.  We wish to express our sincere thanks to all for the help.

The first full month of blogging was February 2011.  As April comes to a close, we find the visitor rate (sometimes referred to as the analytics) to be very encouraging.  The analytics for April reveal that visitors and page views have more than doubled since February.  Visits have come from over 40 countries.  As April draws to a close, we see the visitor activity continuing to increase. [Read more…]

Construction Field Labor Productivity Improvement – Plan the Work Well

This is the sixth post regarding productivity in engineering and construction projects.  To review an index and links to the entire series, please visit Subject Series  page in this blog.  This post discusses planning the work and the related impact on construction field labor productivity.

Any discussion of construction field labor (worker) productivity must, of necessity, eventually involve the idea of planning the work.  Virtually every major project employs the expertise of several planners and schedulers to work the Primavera® scheduling program or some other comparable software.  Great effort is placed on getting just the right schedule assembled and in place – with the right number of activities and leveled manpower, etc.  However, all too often the schedule has been constructed in a near vacuum with little or no input or review from those who have to make it work in the field. [Read more…]

Managing Risk Of Delay – Earned Value Management (Part 5)

This post is the fifth in a series of discussions regarding various aspects of time management.  More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management.  This post addresses some ideas regarding preparation and maintenance of time management related to overall bulk progress.  Some might refer to this as Earned Value Management.

The challenge associated with managing all (critical and non-critical path) work is common to virtually all Lump Sum Turn Key (LSTK), Engineer Procure Construct (EPC) and other similarly executed projects.  In addition to the normal issues associated with bulk progress, actions or inactions by the owner can add considerable complexity to this challenge.  Owner/Employer delays can be masked among the myriad of activities that are the responsibility of other (than the Owner/Employer) stakeholders.  Even when detected or disclosed, these variances to plan are often dismissed as simply consuming available float.  Hence, the Owner/Employer (or other stakeholder) may rationalize these variations as having no impact.  Of course, the reality is that these sorts of departures may (or may not) add risk or disruption to the project execution.  Further, they may delay forecasted completion.  The managerial challenge becomes detection, assessment and quantification (should it be appropriate to compensate the contractor for the impacts). [Read more…]

Managing Risk Of Delay – Schedule Preparation and Maintenance (Part 4)

This post is the fourth in a series of discussions regarding various aspects of time management.  More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management.  This post addresses some ideas regarding preparation and maintenance of the time management baseline.  Some might refer to this baseline and As-Planned Schedule or Approved Programme.

When the subject of time management in larger and more complex projects is discussed, a common observation is that the industry lacks adequate structure and standards.  The notion can be expressed as frustration with the lack of some grand rules or laws that somehow reduce managerial challenges to simple procedures for widespread adherence.

Perhaps I will queue up the subject with a LinkedIn discussion skillfully initiated by L.H. Chin.  Mr. Chin is the source of frequent thoughtful discussions regarding contract-related risks and challenges in planning and managing large and complex projects.  Mr. Chin poses this challenge [Contract Risks Management Group – Construction Industry] [Read more…]

Managing Risk Of Delay – As-Planned Schedule / Accepted Programme (Part 3)

This post is the third in a series of discussions regarding various aspects of time management.  More specifically, we have titled the series MANAGING RISK OF DELAY, since we focus heavily on the managerial aspects of program / project management.  This post addresses some ideas regarding the time management baseline.

Introduction

A Critical Path Management (CPM) plan and schedule (programme) is one of the most fundamental managerial tools used in professional project management.  It reflects (hopefully) the intention of the lead or prime contractor regarding project execution.  Further, it reflects (again, hopefully) the intentions of all key stakeholders, including the owner (owner, developer, employer).

Ideally, this meeting of the managerial minds can be achieved and documented through a schedule approval process.  Again ideally, the detailed schedule would be developed in a timely fashion and submitted to the owner.  Once revisions and improvements have been achieved, the owner would approve this tool.  Once approved, this baseline schedule would form the as-planned schedule (or accepted programme, as termed in United Kingdom). [Read more…]

Construction Field Labor Productivity Improvement Productivity Evaluation

The proper evaluation of worker productivity is one very important measure in the determination of project status.  To have a complete picture of the status of any project there must be some sort of measure of the productivity of the work force.  Certainly, one would be interested in the physical progress, the amount of money expended, the amount committed, absenteeism and turnover rates, safety incident rate, supervision to worker ratio, craft distribution, worker density, manpower history, etc. to properly evaluate the status of a project.  But one key factor in evaluation of status is worker productivity.  There must be some consistent measure of the productivity of the workers on a project in order to frame the complete picture of project status.

Generally, productivity evaluation is focused on the construction craft workers.  However, no less important is the productivity of the office design and engineering staff.  Having said that, this article is focused on the field construction staff and evaluation of productivity in the field. [Read more…]

Managing Risk Of Delay – Time-Management Strategy (Part 2)

This post addresses the general topic of time management and the relationship to managing the risk of delay.  More specifically, this post addresses time management strategy issues.

Keith Pickavance is a prominent leader, speaker, expert and author in the construction industry.  His authoritative reference book, Delay and Disruption in Construction Contracts, is noted in our Resource Center.

Mr. Pickavance is President of The Chartered Institute of Building (CIOB).  As a member of Time-Management Working Group, Mr. Pickavance and the group authored and have published Guide to Good Practice in the Management of Time in Complex Projects.  This publication is noted in our Resource Center.

This work (hereinafter called “The Guide”) addresses, among other aspects, time-management strategy as viewed by CIOB.  The Guide is an important contribution to many time-related topics including managing risk of delay.

The topics addressed under the heading of Strategy are: [Read more…]

Productivity and Leadership

This post discusses the some leadership concepts and the relationship to field labor (or home office labor) productivity.

Recently, my friend and colleague, Dick Troell authored an excellent post regarding field labor productivity.  Dick’s discussion drips with ideas that show his experience and understanding of the men and women that perform construction in the field.

First, I wish to clarify my background and experience.  I have many years of experience in the field and on projects throughout the world.  However, I have never welded a diameter inch of pipe, placed a cubic centimeter of concrete, erected an ounce of steel, and so forth.  I am not a product of the trades; rather, from the managerial ranks.

There is a leadership component of the managerial challenge.  Leadership can have several positive influences on the labor component of the job.  In exhibiting this leadership, my experience suggests several beneficial effects result. [Read more…]