Introduction To Project Planning - Bus Stop Case Study

Ian Flood, 2009. Section II: BASIC PLANNING.
Chapter 3: Introduction to Project Level Planning - Bus Stop Case Study
Chapter 3
Introduction to Project Planning - Bus Stop Case Study
Overview: The aim of this chapter is to demonstrate, using a simple yet comprehensive case study,
the planning and control procedure that must be followed to ensure the effective execution of a
project from its inception through to its completion. The planning and control procedure described
must be adopted irrespective of the type of tool(s) being used from the Critical Path Method
(Chapter 5) to linear Scheduling (Chapter 8).
Key concepts: planning procedure, plan development, plan application, preliminary plan, base
plan, plan objectives, objective variables, scope of work, work decomposition, resource allocation,
constraint application, constraint satisfaction, optimization of objectives, actual progress, planned
progress, projected progress, communication of plan, deviation from plan, monitoring progress,
plan modification.
3.1 Overview of the Planning and Control Procedure
The full potential of construction project planning and control can only be realized if the planner follows
a rigorous procedure for its implementation. Unfortunately, steps in this procedure are often skipped or
are not applied with sufficient diligence. Consequently, many construction operational problems are
identified too late to be corrected efficiently and many opportunities for improving the performance of
work are missed. This chapter provides a thorough introduction to the planning and control procedure,
using a bus stop construction project as a simple example. The procedure is first presented from the
perspective of the general contractor operating in a traditional design-bid-construct project delivery
environment with the contract being awarded to the lowest qualified bidder. Differences in the
procedure for other parties to a project, and for other project delivery systems and contract award
methods, will be considered later in the chapter.
Figure 3.1 summarizes the main steps a contractor must follow when planning and controlling a
construction project within a design-bid-build project delivery environment. As indicated, there are two
distinct stages to this procedure:
Plan Development: This occurs largely before construction starts, and is where the contractor
determines a realistic approach to executing the work that will satisfy all the project objectives
and constraints. The plan development stage starts with the production of a preliminary plan in
the bidding phase of the project, and then progresses (if the contractor is awarded the contract)
to the production of a more detailed base plan.
Plan Application: This occurs mainly during the construction phase, and is where the base plan
is used to manage the project to ensure that work progresses as planned. Inevitably, there will
be a need to maintain the plan during this stage to account for changing circumstances and more
accurate information that becomes available as work progresses on site.
The preliminary plan is used by the contractor in the bidding phase to help determine a basic approach
for completing the work that is feasible and competitive in terms of price and project duration.
Contractors are often required to submit a preliminary plan as part of their bid proposal package to
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Ian Flood, 2009. Section II: BASIC PLANNING. Chapter 3: Introduction to Project Level Planning - Bus Stop Case Study
demonstrate they have a viable strategy for completing the work. In this case, the call for bids may
stipulate the format (including the type of planning software to use) and the amount of detail to be
included in the preliminary plan. Furthermore, the contract may also stipulate that the contractor use
this plan during the construction phase of the project as a baseline for reporting actual progress.
The base plan, in comparison, is typically more detailed than the preliminary plan. It is used by the
contractor to determine a detailed approach to performing the work that will satisfy the project objectives
and constraints, and will act as the basis for managing the project during the construction phase. As far
as possible, the base plan should be completed before the start of the construction phase, and indeed
aspects of it may be used before work begins on site, such as to identify equipment and/or components
that need to be ordered early.
Project Bidding Phase:

Project Construction Phase:
A. Develop Preliminary Plan: B. Develop Base Plan: C. Implement Base Plan:
1. Establish objectives. 1. Review & revise 1. Communicate the plan.
2. Identify scope of work. objectives, as 2. Use plan to direct work.
3. Breakdown project into necessary.
discrete work units. 2. Further breakdown D. Update Base Plan:
4. Apply resources & project into discrete 3. Measure actual progress &
constraints to the work work units. project the future progress.
units to produce a 1st 3. Update resources & 4. Review & revise objectives as
approximation for the constraints to produce necessary.
preliminary plan. an approximate base 5. Update constraints &
5. Adjust preliminary plan plan. resources to produce an
to satisfy objectives & 4. Adjust base plan to approximate residual plan.
any unresolved satisfy objectives & any 6. Adjust residual plan to satisfy
constraints. unresolved constraints. objectives & any unresolved
constraints.
7. Repeat from step 1.
Figure 3.1: The Planning Procedure - Contractors Perspective for a Design-Bid-Construct project
There are two distinct functions performed in the application of the base plan during the construction
phase:
Implement Base Plan: Here the base plan is used to communicate to relevant personnel the work
to be performed, its timing, and the resources involved. This information is used by procurement
staff to obtain the necessary resources, site managers to direct the work, and planners to monitor
and control the progress of work.
Update Base Plan: Here the actual progress of work on site is measured and compared to the
base plan. This allows the planner to identify any deviations in progress from the base plan. These
deviations are then extrapolated to determine what can be expected to happen if the project is
allowed to follow its current course. If the deviations in progress represent a worse than expected
performance (resulting from, for example, delays, reduced productivity, or a need to perform
extra work) then the plan may need to be modified to ensure that the project objectives are still
met as effectively as possible. In some circumstances, the project objectives may no longer be
fully attainable and may therefore have to be revised. It is, however, a common mistake to think
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that updating the plan is solely concerned with correcting problems; often, sections of a project
will perform better than expected providing the planner with an opportunity to better meet the
project objectives. In these situations, the plan should be reviewed to see how it may be modified
to fully exploit this advantage.
The application of the plan is a cyclical process, often being repeated every month, or more frequently if
greater control is required such as when the risk of significant problems is higher.
The detailed steps in the procedure (listed in Figure 3.1) will be demonstrated in the following sections
using the practical example of the Bus Stop project illustrated in Figure 3.2. The project involves the
demolition of an existing curb and sidewalk, and the construction of a shelter with seating and lighting, a
new sidewalk and standing area, a bus bay, and a landscaped area. This example has been chosen for
ease of understanding, and while planning to the detail described here is probably overkill for such a small
project, these principles extend to any project of any size operating within a design-bid-construct
environment.
Cantilever Beam
Light
Seat
Sidewalk
Curb & Gutter
Spread Footing
Pavement (Bus Bay) & Plinth
PLAN SIDE ELEVATION
Figure 3.2: Schematic Plan and Side Elevation for a Bus Stop Construction Project
3.2 Develop the Preliminary Plan
Establish the Objectives of the Plan
The first step in developing the preliminary plan (see Figure 3.1) is to establish its objectives. The
objectives of the plan should not be confused with its purpose. Its purpose is to help the contractor
determine (during the bidding phase) an approach for completing the work that is feasible, competitive
and, if requested, that demonstrates to the owner that the contractor has a viable strategy for completing
the project satisfactorily. The objectives of the preliminary plan, on the other hand, are the specific goals
set for the key project performance parameters (the objective variables) such as cost, duration, and
quality. Example objectives for the Bus Stop project may be to seek a way of doing the work that can be
priced less than $25,000 (perhaps the contract amount for a similar project recently awarded in the
locality) and to complete the work before the completion date specified in the call for bids. The objectives
40
are thus specific to each project and tend to be quantitative although they are often expressed in relative
terms such as less than a given value or greater than a given value.
Almost every project will have more than one objective to satisfy. A problem is that these objectives are
interdependent in that adjusting the plan to satisfy one often limits our ability to satisfy the others. Thus,
it is not possible to find an approach for completing the work that is optimal for all objective variables.
The objectives must be specified in a way that recognizes this reality. There are many ways this can be
done (as discussed in detail in Chapter #), though a simple yet effective approach is to allow for one
objective variable to be optimized while the others are assigned specific values that must be satisfied.
For the Bus Stop project, the objective might therefore be to determine the least expensive approach that
gets the project finished before the completion date specified in the contract. In this case, the project
cost (the primary objective variable) is optimized while the project duration (a secondary objective
variable) is assigned a specific value to be satisfied.
Other commonly considered objectives include assuring that work is conducted in a way that meets
specified quality standards or that minimizes the risk of accidents. Again, these objectives may be
interdependent with other objectives. For example, increasing the quality of work may require the use of
more time consuming procedures that make it more difficult to complete work on time. Similarly,
removing safety hazards may require some sections of work to be scheduled later to ensure that
personnel and heavy equipment are not working in proximity, which in turn may delay the completion of
work.
Regrettably, most plan development exercises focus solely on the project schedule. The objective then
becomes to satisfy deadlines, and the resultant plan is used simply to identify when resources will be
required on site and which items of work are most likely to lead to delays. Other objectives, such as
minimizing project cost, are too often dealt with informally outside of the main plan. This is unfortunate
since these objectives are often equally as important as meeting deadlines and, in any case, will affect the
project schedule. The objectives must be satisfied together within a single plan; if they are dealt with
independently of each other we will end-up with multiple plans that are likely to be incompatible.
It is important that the objectives be determined at the outset of the planning procedure to guide the
development of the plan. Once established, the rest of the plan development will be concerned with
determining an approach that will satisfy these objectives.
Identify the Scope of Work
The second step in developing the preliminary plan (see Figure 3.1) is to identify the scope of work of the
project. The plan must ultimately provide an approach for completing all relevant work. For a design-bid-
construct project delivery system, the contractor will only be concerned with planning construction work.
Identifying the work, is a relatively clear-cut task that requires the planner to examine the design
documents, such as the working drawings (see Figure 3.2 for the Bus Stop project) and specifications and,
when necessary, to consult with the designers and potential component manufacturers. The type of
information being sort is the extent of the project, its constituent components, and their size, form, and
assembly; indeed any information necessary to establish the types and quantities of work to be performed
and the resources required to achieve this end.
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For design-bid-construct delivery systems, most if not all design information will be available at the start
of the bidding phase. However, there are occasions when either part of the design, or the amount of
effort required to complete a section of work, cannot be fully determined until that work is being
performed. For example, the depth to which friction piles must be sunk to achieve the required load
resistance might have to be determined during the pile sinking process if the properties of the soil are
uncertain. In such situations the planner will have to make a reasonable estimate of the amount of work.
If there is significant risk associated with the uncertainty (if, for example, it could result in long delays or
significantly higher costs) then the planner should consider using a planning tool designed to handle
uncertainty. Such tools are the subject of Chapter #.
Breakdown the Project into Discrete Work Units
A plan is in effect a model of the construction process. There are many types of model that can be used
for this purpose, each with its own point of view. However, one thing they all have in common is that
they decompose each project into a set of discrete work units which act as the main building blocks of the
model. Examples for the Bus Stop project may include work units such as Roof Deck, Sidewalk, and
Planting. Decomposition of the work into discrete units is the third step in developing the preliminary
plan (see Figure 3.1). This step provides the main components from which the plan will be constructed
and so decisions made here will have a profound impact on its integrity and usefulness.
Decomposing a project into an appropriate set of work units can be a daunting task for the inexperienced
planner and for planners dealing with unfamiliar types of work. Fortunately, there is a simple yet very
effective approach that helps overcome this problem, that of the Work Breakdown Structure (WBS). The
WBS method is sufficiently versatile and powerful that it should really be used to help develop all but the
simplest of project plans, although in reality it is often omitted. The method eases the task of
decomposing a project into an appropriate set of work units, while helping to ensure the integrity and
enhance the readability of the resultant plan.
A detailed explanation and demonstration of WBSs is provided in Chapter #, although the following
provides an overview sufficient for following this chapter. The WBS method uses a top-down approach
to decomposing a project that produces a hierarchical representation of the work. Figure 3.4(a) shows,
in a tree format, the result of applying this method to the decomposition of the Bus Stop project. Each
box in the tree represents a discrete work unit in the project, while each branch shows the decomposition
of a work unit into a set of more specific constituent units. For example, the work unit Shelter is made-
up from the constituent work units Fixtures, Paint, Roof Deck and Structural System. The further a
box is to the left of the tree then the broader is its scope of work. The box furthest to the left represents
the entire project.
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Bus Stop
Light Shelter
Fixtures
Fixtures
Light
Seat
Seat
Paint
Paint
Roof Deck
Shelter Roof Deck Cross Beams
Structural System
Cantilever Frame
Frame
Beams Cross Beams
Structural System Columns Cantilever Beams
Columns
Spread Footing
& Plinth
Spread Footing & Plinth
Bus Stop
Sod
Landscape Sitework
Landscape
Planting
Sod
Planting
Sidewalk
Sitework Site Improvements
Site Pavement Sidewalk
Improvements
Pavement
Curb & Gutter
Curb & Gutter
Underground
Electrical Underground Electrical
Site Preparation
Excavation
Site Excavation
Preparation Demolition & Demolition & Clear
Clear
(a) Tree format (b) Nested format

Figure 3.3: Work Breakdown Structure (WBS) for the Bus Stop Project
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The depth to which a WBS should break down a project into work units depends on the extent of the
analysis and control of the project required by the contractor, and the time and resources available to
develop, implement, and maintain the plan. The preliminary plan may not go to the same depth as the
base plan since there is less time available for its development and, from a risk-analysis perspective, there
is a significant chance that the time and money invested in its production will not be compensated by an
award of the contract. The WBS must cover all work in the project, though care must be taken to make
sure that nothing is represented more than once. In addition, each work unit must represent a well-
defined product. Concrete Work would not normally be considered a well-defined product since it may
involve components situated at different locations on site, performed at different points in time, and
undertaken by different crews or even different subcontractors. Structural System or Curb & Gutter
are, on the other hand, good examples of well-defined products. That said, this is not an exact science
and there are few examples in construction of perfectly-defined products. The better defined they are,
the less complex, more insightful, and easier to use will be the resultant plan.
It is helpful when developing a WBS to arrange the work units in the order in which they are likely to start
on site. This has been done already for the Bus Stop WBS shown in Figure 3.3, with start time increasing
notionally from bottom to top. For example, Sitework is expected to start before Shelter; similarly, Site
Preparation is expected to start before Underground Electrical, Site Improvements and Landscape.
The order does not have to be exact, but setting the WBS out in this way adds to its readability and will
help with the next stage in developing the preliminary plan, that of adding the constraints and resources.
Apply Resources and their Constraints
The fourth step in developing the preliminary plan (see Figure 3.1) is to add the resources and the
constraints on their usage. Resources are the items required to execute the work such as materials,
prefabricated components, equipment, labor, supervisors, space, time, design documents, permits, and
money. They are included within the plan for two reasons:
1. To monitor their usage and the progress of work.
2. To ensure the plan avoids conflicts and irregularities in the usage of resources.
Constraints are restrictions placed on the resources to avoid conflicts and irregularities in their usage.
The plan must determine an approach to completing the work that satisfies these constraints.
Common examples of constraints are:
1. Restrictions on the order in which work must be performed. Example: to complete the
construction of the foundations before starting erection of the steel frame.
2. Limits on the times at which resources can be used or processed. Examples: to have crews
work a five day week; to not seed a lawn until the fall.
3. Limits on the quantity of a resource available at any time. Examples: to keep the
differential between payments made and payments received within a line of credit; to
keep the demand for excavators at or below the maximum number available.
4. Minimizing fluctuations in the demand for a resource over time. Example: to ensure a
smooth demand for general laborers required on site (large and frequent fluctuations in
demand will result in portions of the labor force spending time idle).
There are many resources involved in the execution of a project although, fortunately, just a few of these
need to be monitored or are likely to lead to conflicts in use that will impede the progress of work. Only
these key resources should be included explicitly within the plan. This will help reduce the time required
to develop the plan and prevent overloading its users with irrelevant information. This is especially
important for the preliminary plan since the time available for its development is often very limited.
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The addition of the resources and their constraints provides a first estimate of the likely performance and
demands of the project such as its duration, the schedule for key resources, and the elements of the plan
that may need changing in order to meet the project objectives. It should be emphasized, however, that
the plan produced at this step is only a first approximation and will likely have to be modified to satisfy all
the objectives and any unresolved constraints.
The order in which the resources and their constraints are added to the plan does not, in principle, matter
since the plan cannot be applied until they have all been included. That said, most planning software tools
allow the plan to be updated on-the-fly, as resources and their constraints are added, in which case it can
be helpful to start with those that are likely to have the greatest impact on the performance of the project.
This way, the planner can get a better feel for the viability of the plan earlier in the development process.
For CPM (the Critical Path Method - the most widely used planning tool in construction and the subject of
Chapter #), the most significant constraints are the dependencies. These are the main factor determining
the relative timing of work in a project, and typically require that a specified unit of work be completed
before another can start. In this sense, they constrain the timing of all resources employed by the work
units. An example pair of dependencies for the Bus Stop project is that neither Sidewalk nor Pavement
can start until Curb & Gutter has finished. This is illustrated in Figure 3.4 where the tasks are represented
by the boxes and their dependencies are indicated by the arrows, with time shown to be advancing to the
right.
Sidewalk
Curb &
Gutter time
Pavement
Figure 3.4: Example of Dependencies for the Bus Stop Project
A powerful approach to developing a CPM-based plan, albeit unconventional, is to add the dependencies
directly to the plans WBS. For this purpose, the WBS should be represented in a nested format rather
than a tree format, as shown in Figure 3.3 (b) for the Bus Stop project. In the nested format, each box
represents a work unit (just as for the tree format) but its constituent work units are now grouped inside
it rather than out on a branch to its right. Chapter # provides a detailed description of the rules and
procedures that must be followed when adding dependencies to a plan, although it should be noted here
that where possible work should be allowed to occur concurrently. The more concurrency in the plan
then generally the sooner work will be completed. Figure 3.5 shows the result of adding the dependencies
to the nested WBS of the Bus Stop project (a detailed discussion of these dependencies is provided in
Chapter #).
The next most significant constraints in a CPM-based plan are the durations required to complete each
work unit. Typically these are measured to the nearest day. Figure 3.6 shows the result of adding the
durations to the work units of the Bus Stop project. The figure shows the project in its WBS format but
now with time scaled along the horizontal axis. The boxes still represent the work units, but their lengths
represent their duration, their left edges are positioned at their planned start time and their right edges
are positioned at their planned finish time. Curb & Gutter, for example, is scheduled to start on Monday
June 1st and finish on Thursday June 4th (a 4 day period). Usually, it is the durations of the lowest level
work units that need to be specified (such as U/G Electrical, Planting and Seat in Figure 3.5) with the
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durations of higher level work units (such as Sitework and Structural System) being defined implicitly by
their constituent work units. Determining the duration for a work unit is the subject of Section #, but is
typically calculated based on three parameters: the amount of work to be performed; the number of
crews available to complete the work; and the production rate of those crews.
The periods of time when work can and cannot proceed represent another set of important constraints
on a plan. Working and non-working periods need only be measured to the smallest unit of time
considered by the plan. For most CPM studies this will normally be the day. It is often the case that
different crews work to different daily schedules. For example, some may follow a five day working week
while others (perhaps performing more time critical tasks) may follow a six day working week. Figure 3.7
shows the result of applying a six day working week for all crews to the Bus Stop project plan, with Sunday
being the non-working day. In this case, the completion of the project is pushed back 5 days.
The last type of constraint that will be considered here is a limit on the quantity of a resource available at
any time. If Demolition & Clear, Excavation, and Underground Electrical in the Bus Stop project require
1 excavator each, then according to the schedule shown in Figure 3.7 the resultant demand for excavators
over time would be as plotted in Figure 3.8(a). According to this plot, the demand for excavators peaks
at 2 between May 29th and June 2nd. Given that there are up to 2 excavators available until June 6th the
constraint is satisfied. As a second example, consider the problem of ensuring that neither Shelter Seat
nor Light occur at the same time as Roof Deck for safety reasons (we would not want to risk the roofing
crew dropping materials or tools on the electrician working below). This constraint can be imposed by
specifying each of these work units requires a notional permit for access to this space and limiting the
availability of this permit to 1 at any time. Figure 3.8(b) plots the resulting demand for the space permit,
showing a peak demand on June 23rd and 24th that violates the availability constraint. This violation could
be removed by either delaying Roof Deck or Light. However, adjusting the plan to satisfy this constraint
should not be attempted until all resources and constraints have been added; satisfaction of all constraints
along with the plans objectives is something that must be done simultaneously to ensure that the best
overall solution is found, as discussed later.
Not all resources are added to a plan to ensure satisfaction of a constraint on their usage. Some are added
simply to allow monitoring of their usage and/or because they provide a good indicator of overall progress
in the project. For the preliminary plan in a design-bid-construct environment, project costs (representing
the resource type money) are of interest since they are in part dependent on the schedule and are
fundamental to determining the price the contractor should bid for the project. Cost is a good variable to
include in the plan in any case since it provides a universal means of measuring work. Figure 3.9 shows
the result of adding direct costs to the plan. The direct costs are those associated with actually performing
the work such as the costs of materials, equipment, labor, and supervision. Indirect costs could also have
been added to the plan to cover items such as administrative overheads, contingencies, profit, and late
completion penalties, and indeed should be added if time-cost optimization is required (this is a topic that
will be returned to in Chapter #). In Figure 3.9, costs are represented by the vertical axis and are shown
to accumulate within the higher level work units. For example, the height of the box representing Frame
is $5,000 and is the sum of the direct costs of its constituent work units Columns, Cantilever Beams and
Cross Beams, while the direct costs for the entire project add up to $23,500.
A popular alternative means of representing costs is to plot them as cumulative curves, showing how they
add-up over time. Cumulative cost curves provide a powerful device for understanding the projected
progress of work. Figures 3.10(a) to 3.10(d) show the cumulative cost curves for the Bus Stop project.
The first of these shows the cumulative costs at the highest level in the WBS. This would be useful for
46
understanding the expected overall progress in the project and, given that these curves deal with costs,
to help in determining an appropriate line of credit to secure for financing the project. Subsequent figures
in this group show the cumulative progress at lower levels within the WBS, each providing insight to the
expected progress of work at its respective level. Figure 3.10(b), for example, shows the cumulative costs
separately for Sitework and Shelter.
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Bus Stop
Shelter
Fixtures
Seat Light
Structural System
Frame
Spread Foot- Cantilever
Columns Cross Beams Roof Deck Paint
ing & Plinth Beams
Sitework
Underground
Electrical Site Improvements Landscape
Site Preparation
Sidewalk Sod
Demolition & Curb &
Excavation
Clear Gutter
Pavement Planting
Figure 3.5: Addition of Dependencies to the Bus Stop WBS
48
Bus Stop Shelter Fixtures Light

Seat
Paint
Roof Deck
Structural Frame Cross Beams

Ctlvr. Beams
Columns
Sitework Landscape
Sod
Planting
Site Improve- Sidewalk

ments
Pavement
Curb & Gutter
U/G Electrical
Site Preparation Excavation

Demol. & Clear
Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
Figure 3.6: Addition of Durations to the Work Units of the Bus Stop Plan
49

Seat
Paint
Roof Deck
Structural Frame Cross Beams
Ctlvr. Beams
Columns
Sitework
Sod Landscape
Planting
Site Improvements Sidewalk

Pavement
Curb & Gutter
U/G Electrical
Demol. & Clear
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
Figure 3.7: Addition of Non-Working Days to the Bus Stop Plan
50
Excavators Peak demand

2 Maximum constraint
U/G Electrical
1
Demol. & Clear Excavation
0
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
(a) Excavators
Shelter Space Permits

Roof Deck and Light cause a
2 Maximum constraint violation of the constraint
Light
1
Seat Roof Deck
0
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
(b) Shelter Space Permits Showing Violation of the Maximum Demand Constraint
Shelter Space Permits

Delaying Light
2 Maximum constraint
satisfies the constraint
1
Seat Roof Deck Light
0
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
(c) Shelter Space Permits if Light Starts Three Days Later

Figure 3.8: Demand Plots for Resources Added to the Bus Stop Project
51
Direct Costs ($)

25,000
Light
Bus Stop Shelter Seat Fixtures
Paint
Roof Deck
20,000 Cross Beams
Structural Frame
Ctlvr. Beams
Columns
15,000
Sitework Sod Landscape
Planting
10,000

Pavement
Curb & Gutter
5,000
U/G Electrical
Site Preparation
Excavation
Demol. & Clear

0
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
Figure 3.9: Plot of Direct Costs vs. Time for the Bus Stop Project
52
Direct Costs ($)

25,000
Bus Stop
KEY: Planned progress

20,000
(1st level)
15,000
10,000
5,000
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
(a) 1st Level Work Unit (overall project)

Figure 3.10: Plot of Cumulative Direct Cost Curves for the Bus Stop Project
53
Direct Costs ($)

25,000
Bus Stop Shelter

20,000
(2nd level)
15,000
Sitework
10,000
5,000
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
(b) 2nd Level Work Units

54
Direct Costs ($)

25,000
Bus Stop Shelter Fixtures

Paint
KEY: Planned progress Roof Deck
20,000
(3rd level)
Structural
15,000
Sitework Landscape
10,000
Site Improvements
5,000 U/G Electrical
Site Preparation
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
(c) 3rd Level Work Units

55
Direct Costs ($)

25,000
Light
Paint
Roof Deck
(4th level)
20,000
Structural Frame
15,000
Planting
10,000

Pavement
Curb & Gutter
5,000
U/G Electrical
Site Preparation
Excavation
Demol. & Clear

0
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
(d) 4th Level Work Units

56
Direct Costs ($)

25,000
Light
Paint
Roof Deck
(lowest level)
20,000 Cross Beams
Structural Frame
Ctlvr. Beams
Columns
15,000
Planting
10,000

Pavement
Curb & Gutter
5,000
U/G Electrical
Site Preparation
Excavation
Demol. & Clear

0
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
(e) Lowest Level Work Units

57
As a final point, a review of the objectives of the plan should be made when assigning the resources and
constraints to make sure that the plan includes the necessary information to satisfy them. For example,
if one of the objectives is to minimize costs then all costs (direct and indirect) should be included so that
it can be seen how they respond to changes in the plan. If safety is an explicit objective, then the
necessary constraints should be included that ensure that, for example, only essential personnel operate
in the proximity of dangerous equipment or hazardous materials. Needless to say, once all resources and
constraints have been added, the planner should go back and check that all key resources and constraints
have been added, and done so correctly. While this is a time consuming task, it is essential to the validity
of the plan since errors and omissions are almost inevitable on a first attempt.
Satisfy all Objectives and Constraints
The final step in developing the preliminary plan (see Figure 3.1) is to adjust it to ensure that all constraints
and objectives are satisfied. There may be many ways of completing the work that are viable and so the
goal becomes to find the best within the choices available. Consider for example, a situation where the
objectives of the Bus Stop project are: (i) to complete the work by Saturday July 27th; and (ii) to complete
the work at the lowest total cost possible (direct cost plus indirect cost). The plan as shown in Figure 3.9
satisfies the completion date, but there may be a way of achieving this at a lower total cost as indicated
in Figure 3.11. In any case, the plan as shown Figure 3.9 does not satisfy the constraint on the availability
of Shelter Space Permits (see Figure 3.8).
Total Project Cost ($) =

Direct Costs + Indirect Costs
$24,500
Lowest attainable
project cost
Project Completion Date

July July July
20th 23rd 27th
Shortest attainable Contract latest
project duration completion date
Optimum solution
Figure 3.11: Relationship between Total Project Cost and Project Completion Date
Satisfying the constraint on the availability of the Shelter Space Permits can be achieved by either delaying
Light or Roof Deck so that they do not overlap in time. Delaying Light by three days, as shown in
Figure 3.12, would appear to be the better option since it does not delay the project completion date.
However, for more complicated projects with many constraints that must be resolved simultaneously, all
potentially impacting each other, the best solution may not be so obvious. More powerful CPM software
implementations will be able to perform this type of constraint satisfaction automatically.
58
Satisfying the objective of minimizing the total cost is not so straightforward. Chapter # is dedicated to
this topic, but essentially the procedure requires a range of project durations to be tested to see how this
impacts total cost. Reducing the project duration requires the addition of more resources and/or higher
performing resources to critical work units, with the intent of reducing their duration. The critical work
units are those that determine the duration of the entire project so reducing their duration tends to
reduce the project duration (this is the subject of Chapter #). The sequence of critical work units (the
critical path) for the Bus Stop project is shown in Figure 3.13. On the down side, reducing the duration of
a work unit tends to reduce its efficiency and thus increases the direct costs. On the plus side, reducing
the project duration tends to reduce the indirect costs for the project. The net effect is a total cost curve
that looks something like that shown in Figure 3.11. From this figure it can be seen that the project
duration that gets work completed by July 23rd both satisfies the contract completion date and minimizes
the total costs for the project, thereby satisfying the objectives for the project.
Fixtures Light Light
Paint
Roof Deck
Cross Beams
Ctlvr. Beams
Landscape
Mo Tu We Th Fr Sa Su Mo Tu We Th Fr
15 Sa16 17 18 19 20 21 22 23 24 25 26 27
Figure 3.12: Delaying the Work Unit Light to Remove its Space Conflict with Roof Deck
Although there may not be sufficient time available in the bidding phase to complete the development of
the preliminary plan as thoroughly as described here, the planner should nevertheless do the best job
possible. The more thoroughly this step is completed then the more opportunity there is for producing a
bid that is both competitive and realistic.
59

Seat
KEY:
Paint
Critical work unit
Roof Deck
Non-Critical work unit Structural Frame Cross Beams
Ctlvr. Beams
Columns
Planting
Pavement
Curb & Gutter
U/G Electrical
Demol. & Clear
24 25 26 27 28 29 30 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
MAY JUNE
Figure 3.13: Critical Path through Lowest Level Work Units
60
3.3 Develop the Base Plan
Assuming the contractor is awarded the contract, the next step will be to develop the base plan. The
purpose of the base plan is to establish a detailed approach to completing the work that is feasible and
optimal in terms of the project objectives, and to provide the basis for managing the project during the
construction phase. In particular, it will be used to determine when key resources will be required on site
(to help avoid delays in their procurement), identify work that is susceptible to delays and thus will require
close supervision (such as work that is critical or has limited float), and act as a template against which
the actual progress of work on site can be measured and projected. Ideally, the base plan should be
completed before the start of construction, and early enough to arrange for the timely delivery of
resources that are required early yet may have a long lead time between ordering and delivery.
The steps involved in developing the base plan are shown in Figure 3.1. The first of these is to review and
revise the objectives of the plan in the light of any new information that may have arisen since
development of the preliminary plan. The objectives may, in any case, be extended at this point given
that there will be more time available to modify and adjust the plan to satisfy them.
The second step in developing the base plan is to break down the work identified in the preliminary plan
into more detail. This is not always necessary, but could happen because there is additional time available
to make a more in-depth analysis of the problem. It is also often the case that the demands of the base
plan are such that it requires more detail. If, for example, the risks on the project are such that tight
control is necessary, then the base plan will have to be broken down into greater detail.
The third step in the development of the base plan is concerned with updating the resources and
constraints. This may be necessary to account for any new information that becomes available about the
project, such as, more accurate performance or cost data for labor, equipment, or materials. It may also
be required to account for any additional objectives added to the project since development of the
preliminary plan. Consider, for example, the Bus Stop plan shown in Figure 3.10; if it were determined
that Spread footing & Plinth should be completed by Jun 10th because the subcontractors performing the
succeeding work Frame need to be on site by June 11th, then a constraint would have to be added to the
plan stipulating this requirement.
The final step in developing the base plan is to adjust it to satisfy all objectives and unresolved constraints.
The process followed for this is exactly the same as that adopted for finalizing the preliminary plan. Once
3.4 Implement the Plan
Communicate the Plan
Once completed, the Base Plan will be used as a tool to help manage the construction of the project. An
essential component of this implementation process is to communicate the plan, or the relevant parts
thereof, to the personnel who will use it to execute the work (see Figure 3.1). This may include the
purchasing department, project managers, and site-level managers, indeed anyone responsible for
organizing the timely delivery and provision of all resources, managing the work, and assessing its
performance.
Most groups involved in implementing the plan will only be concerned with part of the information it
provides. While it is important to make sure that each group receives all information relevant to their
61
responsibilities, they should receive no more than this. Burdening personnel with volumes of irrelevant
information increases the likelihood that they will miss what is important to them or even ignore the plan.
Just as importantly, the information presented to a group should be in a format that best suits their needs.
For example, more senior management may require plots of cumulative progress for the entire project,
whereas a foreman may need a bar chart schedule and list of resources required to complete a specific
section of the project termed a short interval schedule.
The short interval schedule, discussed in detail in Chapter #, is designed to help manage the day to day
activities on a construction site. Each short interval schedule will focus on a specific operation, will only
project a few weeks into the future, and may summarize the last week of work. These would typically be
produced at the end of each week in preparation for the next week. Each company will have its own
format for this type of information although Figure 3.14 shows a typical example for the structural
component of the Bus Stop project. Each work unit is shown twice, once representing the previous version
of the plan, and the second showing the latest plan. Progress is also indicated by shading of the bars. In
this example, work has been progressing better than originally expected and so the latest plan is one day
ahead of the previous plan. As is fairly typical, this short interval schedule also identifies the major
resources required to complete the work, including drawings.
Use Plan to Direct Work
Once the plan has been distributed to the relevant personnel, every endeavor should be made to ensure
that they use it to help direct the work; this is the second step in implementing the base plan (see Figure
3.1). An extremely important task here is to make sure that all resources are available when required on
site. If resources are delivered too late then they may lead to delays to the completion of the work, or
use up contingency time thereby making the project more vulnerable to delays by other causes. Such
occurrences may require expensive procedures to be adopted to get the project back on schedule. In
particular, some components may involve a lengthy prefabrication process and so may need to be ordered
early to ensure that they are delivered in a timely manner. On the other hand, if resources such as
materials, components, or equipment arrive on site too early they will be more susceptible to damage
and theft, and may occupy valuable space that could be used more effectively for other purposes.
Likewise, the productive resources (such as equipment, labor, and site managers) should be scheduled to
be available only for the periods of time they are required on site. If these resources arrive too early
and/or are reserved longer than required, they will end up spending time idle and consequently will add
unnecessarily to the cost of construction. The ordering and reservation of resources must be made as
soon as possible, and should be based upon the predicted start and finish times of the relevant work units
that make-up the base plan. The short interval schedules (see for example Figure 3.14) should be used by
site-level management to complement this by ensuring the acquisition and deployment of all necessary
resources for specific operations, close to the time they are required.
It should be noted that the timing of work cannot usually be determined precisely, and indeed there are
many factors in construction that add a considerable amount of uncertainty to these estimates. When
this is sufficient to cause the risk of significant delays or additional costs, the planner should make use of
planning tools designed to manage uncertainty, such as the Monte Carlo method. Effective planning in
an uncertain project environment is the subject of Chapter #.
62
KEY:
Completed work Remaining work ~ Revised plan showing progress
Previous plan ~ Plan from previous planning cycle
TIME NOW
COMMENT:
Structural Cross Beams
Equipment X. Labor Y. Drawings Z.
Cross Beams
Ctlvr. Beams
Equipment X. Labor Y. Drawings Z.
Ctlvr. Beams
Columns Completed
Columns
Completed
We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo Tu We Th Fr Sa Su Mo
3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
JUNE
Figure 3.14: Short Interval Schedule for the Structural System Crew
63
Managers should also use the base plan to identify the sections of work that require closest attention.
Generally, a project is most vulnerable to delays from work that is critical or close to critical since the
smallest delays here will impact the overall progress of the project. Critical work requires close monitoring
to allow early detection of problems, and careful supervision to try to alleviate or prevent those problems
from occurring in the first place. Figure 3.13 identifies the work units that are critical in the Bus Stop
project. Notice that these form a contiguous path from the start to the finish of the project, with Paint
and Light forming concurrent branches towards the end of the path. These work units should certainly
be a focus of attention, although other work may be close to critical and should also be of concern. How
close work is to being critical is measured by what is termed its total float, a topic that will be discussed
in detail in Chapter #. Total float should not be considered on its own as a measure of criticality, but rather
looked at within the context of other attributes of the work such as its overall duration and its vulnerability
to delays.
3.5 Update the Residual Plan
Measure Actual Progress and Project Future Progress
Review and Revise Objectives
Update Resources and Constraints
Satisfy all Objectives and Constraints
3.6 Alternative Parties and Project Delivery Systems
64

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Ian Flood, 2009. Section II: BASIC PLANNING.

Chapter 3: Introduction to Project Level Planning - Bus Stop Case Study

Introduction to Project Planning - Bus Stop Case Study

3.1 Overview of the Planning and Control Procedure

Project Bidding Phase:

3.2 Develop the Preliminary Plan

Establish the Objectives of the Plan

Identify the Scope of Work

Breakdown the Project into Discrete Work Units

(a) Tree format (b) Nested format

Apply Resources and their Constraints

Figure 3.4: Example of Dependencies for the Bus Stop Project

Figure 3.5: Addition of Dependencies to the Bus Stop WBS

Bus Stop Shelter Fixtures Light

Structural Frame Cross Beams

Spread Footing & Plinth

Site Improve- Sidewalk

Curb & Gutter

Site Preparation Excavation

Bus Stop Shelter Fixtures Light

Spread Footing & Plinth

Site Improvements Sidewalk

Figure 3.7: Addition of Non-Working Days to the Bus Stop Plan

Excavators Peak demand

Shelter Space Permits

Shelter Space Permits

(c) Shelter Space Permits if Light Starts Three Days Later

Direct Costs ($)

Site Improvements Sidewalk

Demol. & Clear

Direct Costs ($)

KEY: Planned progress

(a) 1st Level Work Unit (overall project)

Direct Costs ($)

Bus Stop Shelter

KEY: Planned progress

(b) 2nd Level Work Units

Direct Costs ($)

Bus Stop Shelter Fixtures

5,000 U/G Electrical

(c) 3rd Level Work Units

Direct Costs ($)

Site Improvements Sidewalk

Demol. & Clear

(d) 4th Level Work Units

Direct Costs ($)

Site Improvements Sidewalk

Demol. & Clear

(e) Lowest Level Work Units

Satisfy all Objectives and Constraints

Total Project Cost ($) =

Project Completion Date

Fixtures Light Light

Bus Stop Shelter Fixtures Light

Figure 3.13: Critical Path through Lowest Level Work Units

3.3 Develop the Base Plan

3.4 Implement the Plan

Communicate the Plan

Use Plan to Direct Work

3.5 Update the Residual Plan

Measure Actual Progress and Project Future Progress

Review and Revise Objectives

Update Resources and Constraints