SCHEDULE COMPRESSION

In real practice – how would you compress your Schedule?

SCHEDULE COMPRESSION

How to compress your Schedule?

1. Identify significant critical and near critical Activities remaining to be completed

2. Meet with Superintendent, Foremen, Subs to discuss Schedule compression options

SCHEDULE COMPRESSION

How to compress your Schedule?3. Target critical Activities for

acceleration that will shorten Schedule

4. Authorize OT or extra shifts and additional $$$ expenditures

5. Intensively manage the targeted Activities

SCHEDULE COMPRESSION

How to compress your Schedule? Collaborative Effort Almost always less efficient and

more expensive

Activity Time-Cost Curve

Project Time-Cost Curve

Activity Time-Cost Curve

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

SCHEDULE COMPRESSION

Project Costs/Duration Relationship Looks the same as Activity Cost

Curve What does this Graph Represent?

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)

SCHEDULE COMPRESSION

Project Costs/Duration Relationship What are Market Profit Losses?

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

SCHEDULE COMPRESSION

Project Costs/Duration Relationship What do the Indirect Costs

represent?

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

SCHEDULE COMPRESSION

Project Costs/Duration Relationship What would be the opposite of an

Indirect Cost?

SCHEDULE COMPRESSION

Project Costs/Duration Relationship What would be the opposite of an

Indirect Cost? An incentive bonus for finishing

early.

SCHEDULE COMPRESSION

Project Costs/Duration Relationship What are the Direct Costs and why

are those costs parabolic rather than linear?

SCHEDULE COMPRESSION

Project Costs/Duration Relationship What are the Direct Costs? The Actual costs of getting the Job

done – labor, equipment, materials, and supplies

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)

SCHEDULE COMPRESSION

Project Costs/Duration Relationship When you sum the Direct + Indirect

+ LDs/MPLs (- Bonuses) = Total Project Cost

SCHEDULE COMPRESSION

Project Costs/Duration Relationship What is the Total Project Cost

curve stating when you analyze it?

SCHEDULE COMPRESSION

Project Costs/Duration Relationship What is the Total Project Cost

curve stating when you analyze it? There is an optimum point-in-time

when you can complete the project at a minimum cost