1. SCHEDULE COMPRESSION In real practice – how would you compress your Schedule?

2. 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

3. 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

4. SCHEDULE COMPRESSION How to compress your Schedule?  Collaborative Effort  Almost always less efficient and more expensive Activity Time-Cost Curve Project Time-Cost Curve

5. Activity Time-Cost Curve

6. 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

7. SCHEDULE COMPRESSION Project Costs/Duration Relationship  Looks the same as Activity Cost Curve  What does this Graph Represent?

8. 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)

9. SCHEDULE COMPRESSION Project Costs/Duration Relationship  What are Market Profit Losses?

10. 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

11. SCHEDULE COMPRESSION Project Costs/Duration Relationship  What do the Indirect Costs represent?

12. 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

13. SCHEDULE COMPRESSION Project Costs/Duration Relationship  What would be the opposite of an Indirect Cost?

14. SCHEDULE COMPRESSION Project Costs/Duration Relationship  What would be the opposite of an Indirect Cost?  An incentive bonus for finishing early.

15. SCHEDULE COMPRESSION Project Costs/Duration Relationship  What are the Direct Costs and why are those costs parabolic rather than linear?

16. SCHEDULE COMPRESSION Project Costs/Duration Relationship  What are the Direct Costs?  The Actual costs of getting the Job done – labor, equipment, materials, and supplies

17. 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)

18. SCHEDULE COMPRESSION Project Costs/Duration Relationship  When you sum the Direct + Indirect + LDs/MPLs (- Bonuses) = Total Project Cost

19. SCHEDULE COMPRESSION Project Costs/Duration Relationship  What is the Total Project Cost curve stating when you analyze it?

20. 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