Simple Network

Figure 3-4 illustrates a simple network of an arrow diagram. There are three activities A, B and C. They can be defined as follows A is the beginning activity B follows A but cannot begin until A is complete and C is the final activity following the completion of B. As shown, there is a logical sequence of work starting from left to right. Project Management for Engineering and Construction Figure 3-3. CPM Drawing Methods > LOGICAL SEQUENCE CR PLAN CF WORK In order to develop a network, the...

S

Project Management for Engineering and Construction Figure 10-5. Work Breakdown Structure. SHUTDOWN CRITICAL PATH SCHEDULE MANHQURS LIST OF ACTIVITIES 1. ' Install blinds blocks and gas-free'' -unit . BR GF (55) 2. Initial align and grout pumps IA PP (400) 3. Install e lee t f ica 1 ins t injmen t a t ion for vessels pumps (45) 4. Install pipe supports (incl. grouting) . . P.S. (2S0) 5. Construct foundations (pipe supports (2000) 6. Install piping for towers (incl. hydro-test)TWR PIPE (75) 1....

Logic Ties

In a given network, it is common to encounter logic ties with no durations. These are called dummy activities and are added to the network to portray all predecessor relationships in a graphical form. As well as being called dummies, these can be referred to as restraints. Normally, Activity G would begin with Activity E's completion, however, the activities have been defined to restrain Activity G's start until both B and E are completed, as illustrated in Figure 3-7. Figure 3-7. Dummy...

Depreciation And Taxes Depreciation

Depreciation affects the accounting procedure for determining profits and losses and the income tax of a company. In other words, for tax purposes the expenditure for an asset such as a pump or motor cannot be fully expensed in its first year. The original investment must be charged off for tax purposes over the useful life of the asset. A company usually wishes to expense an item as quickly as possible. The Internal Revenue Service allows several methods for determining the annual depreciation...

Worked Example Trapezoidaldensity Method

Figure 3-28 illustrates a worked example of the trapezoidal density method for a Refinery FCC unit. As noted in the figure, a selected density level of 250 sq. ft. man, was too optimistic for such a complex unit as an FCC plant. The first step in the calculation process is to properly assess the manhour scope. As shown, allowances have been made for indirect labor working in the same area as direct labor and also, for an estimating allowance. An allowance for better subcontract productivity has...

Uniform Series Compound AmountUSCA

The USCA factor is used to determine the amount S that an equal annual payment R will accumulate to inn years at i percent interest. If R (uniform annual payment) is known, and S (the future worth of these payments) is required, then Equation 9-6 is used. Figure 9-3. Uniform series compound amount (USCA). Figure 9-3. Uniform series compound amount (USCA). Uniform Series Present Worth -(USPW) The USPW factor is used to determine the present amount P that can be paid by equal payments of R...

Free Float Definition Calculation

The other type of float found in a network is called Free Float. Free Float is defined as the spare time available to an activity when all activities in the chain are started as early as possible. Thus, an activity may be delayed to the extent of its Free Float. Free Float for a given activity is calculated as Free Float (FF) ES (following activity) EF (activity being calculated) Apply this definition to Figure 3-15 and calculate Free Float for each activity of the network. Examination of...

Calculations For Early Start Es

In analyzing a network, the first item to be evaluated is the Early Start (ES) of each activity. This is accomplished by taking what is called a Forward Pass through the diagram. A Forward Pass is exactly what is implied. Starting with the first event or at day 0, then following the direction of the arrows and adding the durations of each activity defines the ES of the following activity. In network analysis, this number can be enclosed in a square above the Event (Node). Figure 3-9. Network...

Arrow Diagrams Vs Precedence Drawings Vs Timescaled Diagrams

Figure 3-3 shows three methods of drawing CPM diagrams. Each has its pros and cons. Arrow Diagramming, at present, seems to be the most popular method. This probably stems from the fact that it was the first method to be developed and computerized. It is also easier to associate with time and flow of job activities. A major difficulty to arrow diagramming is the dummy activity. Learning the significance and proper usage of dummies requires time and experience. The arrow diagram is also...

Detailed Estimate

BENEFITS ALLOWANCES) CONSTRUCTION STAFF - 10120 LABOR RATE (EARTHMOVING HIGH COST- INSULATION LOW COST) OVERHEAD fr PROFIT 20 I I ALL IM LABOR COST- 70 120 I I JUDGEMENT IS REQUIRED TO ASSESS SPECIFIC PERCENTAGES FROM ABOVE RANGES. SIZE, WORK TYPE AND JOB CONDS. ARE SIGNIFICANT ELEMENTS. Figure 6-21. Typical Data Points - Construction The following are typical data points for evaluating estimating levels or monitoring project performance. This data applies to large U.S....

Tax Considerations

Tax-deductible expenses such as maintenance, energy, operating costs, insurance, and property taxes reduce the income subject to taxes. For the after tax life cycle cost analysis and payback analysis the actual incurred and annual savings is given as follows. AS is the yearly annual after tax savings (excluding effect of tax credit) E is the yearly annual energy savings (difference between original expenses and expenses after modification) D is the annual depreciation rate I is the income tax...

Effective Trending System Small Projects

As it is not cost effective to apply a full trending program to small projects, the following monthly trend analysis report is recommended. The purpose of this report is to identify the cost impact of the following a) Key cost items deviations (from the report) Project Management for Engineering and Construction Figure 7-7. Summary Schedule - Small Projects. c) Project conditions changes (schedule site estimating) factors, etc. Figure 7-8 illustrates a series of typical trend curves. This...

Appendix A Sample Schedules

This appendix includes schedules based on actual engineering and construction of various facilities. Included are the following Schedule of an Energy Cost Reduction Project A-2 Schedule of a Solid Waste to Energy Facility A-3 Schedule of a Simple Cycle Combustion Turbine Cogenera-tion Project A-l Project Schedule for an Energy Cost Reduction Facility Based upon the information provided to engineering construc-firms regarding execution approach and preliminary assessment of the size and duration...

Forms Of Contract

There are three principle types of contracts reimbursable, measured (unit price), and lump sum. The following forms of contract are typical of these types . Cost Reimbursable (Time & Material) Cost Reimbursable with Percentage Fee . Cost Reimbursable Plus Cost Schedule Bonus Penalties . Measured Unit Price (Mostly Construction) The objectives of cost, time, quality, risks, and liabilities must be analyzed and prioritized, since trade-offs will probably be necessary in deciding the type of...

Coordination Procedures

In order to keep a project on schedule it is important to develop document and action schedules which define every drawing, specification and equipment purchase and indicate time for client approval and status of activity. Typical guidelines for developing procedures and controls for drawings and equipment are illustrated in Figures 1-6 through 1-7. Chapter 7 includes additional controls such as Figure 7-2, Engineers Drawing Status Report. These documents should form a basis for weekly review...

Timely Cost Accountingreporting

An accounting procedure is an integral part of cost control, as it specifies levels of approval, billing and payment procedures, banking arrangements, accounts numbering systems, and all functions necessary for financial reporting of the project. The key function for cost control is the collection and timely reporting of commitments and expenditures. This information is necessary to track the status and progress of cost objectives and also provide a base for developing cost predictions. An...

Contents

Chapter 2 Organizing an Effective Engineering Team 23 Chapter 3 Fundamentals of Chapter 4 Computer Methods for Chapter 5 Managing Cogeneration Chapter 6 Cost Estimating Conceptual and Detailed 131 Chapter 7 Keeping a Project On Time and Within Budget 187 Chapter 8 Contract Planning Chapter 9 Economic Decision Chapter 10 Case Studies and Chapter 11 Personal Performance. Company Culture. and Project Leadership for the 1990's 297 Appendix A Sample Appendix B Cost Estimating A Project can be...

Critical Path Evaluation

The critical path or the duration of a project is determined by calculating the longest logical path through the network. This path is determined by going through the following stages 1) Calculating the forward pass. 2) Calculating the backward pass. 3) Calculating the activity float and determining the critical path of the project. Each of the above stages will be examined in detail and the calculations applied to the network illustrated in Figure 3-20. Forward Pass Calculation of early start...

Engineeringhome Office Estimating

A) overall project breakdown(*pie-chart) 2. ENGINEERING HOURS PER EQUIPMENT ITEM a) approx. 1000 - 1500 3 engineering hours per discipline item a) pipelines item tons c.y. ft.etc. 4 manhours per drawingidocument a) see typical estimate sheet(sub total c) PRODUCTIVITY LOSS FOR EXTENDED WORKWEEK There are occasions when a project is placed on extended overtime to shorten the schedule. In many cases, under normal economic conditions, productivity will be reduced and costs will increase. If this...

A Home Office Engineering Curve

Standard Epc Curves

Figure 7-9 illustrates cumulative planned and actual profiles of a home office manhour rate. This rate represents total home office costs divided by total manhours. Significant deviation of actual to planned can indicate a potential overrun. Rate overruns can occur because of a different mix of salary levels, unantici- OVERALL PROJECT COMMITMENT CURVE Historical Standard AND INDIVIDUAL EPC CURVES Percent of Project Time NOTE The specific commitment trend curve(s) for individual project _should...

Keeping a Project On Time and Within Budget

A) Project Manager Responsibility b) Establishing Project Cost Consciousness b) Business Analysis Information Project Control Program Services 192 b) Intermediate Large Projects Techniques d) Potential Techniques (Supplementary) f) Feasibility Studies R& D Projects Techniques b) Schedule Development Operations Project Control Specification for Major Contracts 195 Timely Cost Accounting Reporting 196 b) Owner Versus Contractor Trending System Accurate Cost and Schedule Forecasts 198...

Engineering Progressproductivity

A) Engineering Progress and Productivity Report Figure 7-1 shows a typical format of an engineering progress and productivity report. The following is a brief explanation of this report 1) Column A, physical completion (engineering only) evaluation of physical completion of drawings and documents, by engineering discipline and or department, where work in progress is evaluated as per the following guide. 2) Column 5, weighted factor based on budgeted hours for each discipline or department....

Fudging The Detailed Estimate

Many companies have a policy that requires a detailed 10 estimate before the project appropriation will be approved. These same organizations, typically manufacturing companies, also require that the project be started yesterday. Manufacturing and plant management are able to insist on these conflicting objectives. These two objectives are incompatible. In most cases, the practical resolution of this management inconsistency is for the estimate to be fudged. This is to say, the estimate shows a...

Determination Of Duration

On most projects, there are two types of critical paths. The first, and most generally recognized form, is a logical sequence of activities which, when the durations are added up, will give the longest time or path on the project. The critical path method (CPM) was developed to provide analysis of logical sequences of work so as to determine the longest chain or critical path of a schedule. A CPM schedule is usually referred to as a network. The second type of critical path is the dependency of...