Quality is the biggest risk in Construction Project Management
What if you have carefully planned a project, and skillfully designed its construction, but your contractor does not have the capability to perform the work in a quality manner? That is a risk to your project. The PMI diagram only used to refer to the elements of time, cost and scope. However, as of late, quality has also been included in the triangle.
In an IT project, poor quality usually manifests itself in the software crashing or producing unreliable output. In construction, the project creates a physical object – a building, a bridge, or a subway tunnel – so the risk posed by low quality is much greater than in projects that create intangibles, such as business process transformation or software. When construction fails, people may die. On the news, we hear about developing countries where buildings collapse and hundreds or thousands die, but construction quality problems resulting in loss of life are not limited to the developing world. I’ve been involved in the aftermath of two fatal construction quality problems during my career, and both were well-funded, professional construction projects in the United States. While no devastating consequences come close to death and injury in terms of quality problems, there is at least one other that has devastating impacts on both cost and schedule: re-work. Read More
Organizational Risk Tolerance in Project Management
As project managers, one of the important roles we have is assessing and managing risk for our projects. But risk assessment cannot be performed in a vacuum. The organization, customer, or end user needs to have a voice in how much risk should be tolerated.
Take, for instance, the NASA-manned space flight. It involves risks to human life which can’t be completely mitigated. On the other hand, many construction and engineering firms take a zero risk approach to human life and safety on their jobs. Jacobs Engineering goes “beyond zero” in their approach to safety risks.
It’s interesting to think about the potential for conflicting safety standards within a project. What if a beyond zero safety organization is performing project management for a firm that does not consider safety to be a priority? The customer may see the money being spent to ensure safety as an unwanted cost, while the project management firm will consider these costs essential to their ability to perform work for their client.
Let’s move from health and safety risk to schedule risk. In this case, the same potential for conflict arises if the owner and the PM don’t agree on what is tolerable schedule risk for the project. But in this case, it is possible to use statistical modeling and forecasting to examine the probability of certain completion dates.
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Advantages of GPM Planning
The development of the graphical path method (GPM®) created new paradigms for schedulers and planners. These new models allowed planners more flexibility around designing and optimizing networks of activities, especially when compared to the models used in critical path method (CPM) projects. In addition, GPM also helped planners to solve previously intractable resource optimization problems.
When it was first launched in 1957, CPM was the premier tool for schedule optimization. But as the planning and scheduling process evolved over time and adapted to new technologies such as personal computers, the focus of the CPM process shifted from planning to scheduling. Advances in technology have allowed schedules to grow exponentially to contain more than 50,000 activities. These massive schedules are inputted directly into a CPM software tool – all too often without the first critical step of planning the project. While some organizations continue to use full-wall planning, GPM was developed in part to reintroduce planning back into the scheduling process.
Flexible Planning
GPM also introduced users to a more flexible way to schedule. When planning with CPM, schedulers are often handicapped by its total float calculations, which do not allow for flexibility and adjustments between project start and finish dates. Instead of calculating total float as the late date minus the early date, GPM uses the planned date to calculate float, drift (how many days back can we move without impacting start date) and total float (drift plus float). The GPM algorithm frees the planner from the false framework of early start dates. Which creates a flexible dynamic modeling tool which more accurately reflects the real world realities of planning and scheduling.
This way, schedulers are able to more easily allocate and adjust resources and shift activities or activity chains as needed throughout the schedule.
GPM’s use of the logical diagramming method (LDM), which combines the best of ADM and PDM, creates a graphically represented network. This allows schedulers to set benchmark or fixed events with zero total float along a schedule. LDM relies on embedded nodes to model PDM logic, and recognizes fixed events or benchmarks, which do not shift from their inputted dates.
The combination of GPM’s planning elements brings flexibility to schedulers and stakeholders, and, simply put, makes the process easier to understand. This is turn helps people to create and execute a successful plan.
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GPM & The Future of Project Planning
With the advent of personal computers in the mid-1980s, people enthusiastically embraced computer and software-based planning and scheduling practices. At this point, planning and scheduling began to shift away from traditional graphical and planning-centric methods. New, data-driven methods replaced graphical representations with sophisticated software scheduling engines, reversing the long-time credo of scheduling from “Logic rules, dates serve,” to “Dates rule, logic serves.”
In this new mindset, schedulers became more focused on hitting each deadline or milestone, and logic quickly became a secondary thought. Schedules were software-driven and riddled with anomalies that would normally have been adjusted and fixed through traditional graphic planning.
Finally, the shine of the new technology started to wear off. Stakeholders took notice of the changes in scheduling and started to reminisce about days of graphical planning.
The development of the Graphical Planning Method (GPM) and its interactive visual components allowed schedulers and stakeholders to embrace the technological advances (and still move away from sticky-note wall planning) while still incorporating graphical and time-scaled schedule representation. Instead of relying on databases and inline CPM scheduling engines, GPM software applications rely on graphical objects, encapsulating rules and computational algorithms that interact with continuous real-time process flows and an interactive graphics display.
Let me not to the marriage of true minds Admit impediments.
William Shakespeare had it right in 1609. And although the rest of this sonnet is somewhat less germane to planning and scheduling, this first line says it all. If you want your project to go well, its stakeholders must have a marriage of true minds.
I’m an optimist. I think most people who work on projects want them to go well, and it’s our responsibility as project managers to create situations that allow the well-intended to contribute, and to generate a transparent plan that manifests the team’s vision for the project.
In the past, visualizing interdependencies between functional areas (“swim lanes”) in a network diagram, on a timescale was not just hard, it was impossible. But the patented technology in NetPoint® supports this type of collaboration.
Combining Expertise in Schedule Creation
A schedule that is easily understandable and measurable by all project stakeholders is crucial to a successful project. Yet there is often a disconnect between the key players who create the schedules. While schedulers and project managers (PMs) may be experts in their own fields, they typically don’t understand the needs and requirements of their counterparts’ roles.
Schedulers are experts in dealing with scheduling software, and PMs are experts in developing a project plan, but often these don’t intersect as well as you’d expect, or create the most useful project schedule. Instead, two schedules are usually created: the schedulers create one to meet the contractual requirements, and the PMs make one that includes the working details needed to complete the project. And rarely do these schedules align – except at major contractual milestones.
Both schedulers and PMs need to have a big picture understanding. This is crucial to developing a tight, useful and successful schedule for everyone involved. Combining contractual requirements like critical milestones with detailed project tasks allows everyone involved – from leadership and reviewers to ground-level workers and schedulers – to better understand the project’s scope and its progress. Read More
The Other
We at PMA sometimes get a bit myopic about scheduling. If it does not involve permits, excavation, and foundations, then it must not be a schedule. However, there is a big, bold world of non-construction-related schedules and scheduling applications out there, being used every day. In the past, I’ve worked extensively with production scheduling applications for the job shop environment. I presented a paper on this topic at the PMI Global Congress a couple of years back, entitled Job-Shop Scheduling Can Assist in Improving Manufacturing Budget Control. Should you ever find yourself sleepless and completely out of Ambien, I would highly suggest that you download this paper for immediate relief.
One of the more fascinating subcategories of scheduling can be found in the aerospace and defense industry. When a fighter jet or commercial airliner is built, the outer limits of project management, product management, configuration management, and project controls are tested. Most likely, the issue of quality management is top of the list! An ill-fitting window in a building is a nuisance, but in a plane…?
One of the premier scheduling tools used in the A&D market is Deltek Open Plan. Deltek is an organization that has mastered the art of producing compliant output for working with the federal government. Within their scheduling tool, you can develop some of the most intense schedules in the world, including hundreds of thousands of activities.
Adoption of Microsoft Project in IT Versus Construction: Different Animals, Same Cage?
The application of Microsoft Project as a scheduling tool within the construction industry is limited, although it is growing. Historically, Primavera (now Oracle Primavera) has dominated the construction scheduling industry, while Microsoft Project has gained much greater acceptance in the IT and Product Development marketplace.
I wonder about the difference in adoption rates between these two dominant software tools for project controls and scheduling. I was told by a senior Microsoft Executive that MS Project is a billion-dollar-a-year business for Microsoft, with over 40,000,000 copies in circulation. I also wonder what percentage of these licenses are accessed on a regular basis, and about the underlying quality of schedules developed using MS Project.
In both IT and construction, there’s a body of knowledge describing the proper methods to use when planning a project and creating a schedule. However, while it is common practice in the construction industry to create a detailed baseline critical path schedule, it is not common practice in IT. In all of my interviews, I found the application of critical path scheduling to be minimal in IT projects and ubiquitous in construction projects. Scheduling seems to be one of the areas of project controls which differs greatly between the two industries, which begs a deeper analysis. Why is a tool which is considered essential in planning and reporting progress on construction projects virtually unused in managing IT projects?
A Comprehensive Standard in Project Planning – Theory of Constraints
Project planning presents the first opportunity to identify and address bottlenecks and constraints. We have to be a little careful in using the term “constraints” in the construction and planning industry, because this is also a term of art in the world of scheduling. When creating a schedule, the scheduler or planner can set a time constraint on an activity. For instance, a SNE constraint requires that an activity can “Start No Earlier” than the date specified by the scheduler. Because of the algorithmic limitations of CPM, constraints must be used to hold a date later than the calculated early start date. While each of these constraints should be considered in light of a TOC project evaluation, they are only one small aspect of the application of TOC in construction projects.
Goldratt’s theory is comprehensive – it holds the overall project to a higher standard. In TOC, the ultimate measure of system effectiveness is throughput. What is throughput? It depends on the organization’s goals. For a manufacturing company, throughput is how efficiently product has been designed, produced, and sold and paid for, and at what cost. For a professional services firm, the equation is a little different, because in the world of professional services, the work cannot be produced and sold, but the consultants are inventory (a very costly asset when not productive, or, more cruelly, meat with an expiration date at the butcher counter).