Not so long ago, two Project Controls Directors of a client company debated how cumbersome it was to update an extensive construction schedule. One of the directors believed that updating need not be done by their Senior Planning & Scheduling Specialist but by someone their junior.
With a smirk on his face, Tommy Itsimple (not his real name) said,
"Believe me, construction schedules can be updated by an encoder. Easy! Our planning and scheduling specialists spend seventy to eighty percent or higher of their time updating. In a sense, the company pays them too much. They were just encoding information provided by our contractors! No skills needed for that! It is too much waste!"
Wanting to learn some more, I asked,
"What do you mean? Are you saying that regular construction schedule update is but an Encoder routine, not a Planning/Scheduling Specialist responsibility?"
Tommy replied,
"That is what I am saying! Did you get my point? In fact, we should remove the updating function of all construction planners and schedulers so they can concentrate more on schedule analysis and forecasting. These two processes are more important than mere updating! A second-year high school student can do that kind of work."
He added,
"We should give this specific task to someone who can do it cheaper. Let us give it to a remote third party contractor, maybe, from Mexico, India, or Pakistan. We can save a lot on cost as one full-time body there cost a tenth of what we pay here in North America. We do not need subject matter experts to update the schedule! We can save thousands of dollars!"
The other Director was unsure what to say at that time except to express doubt about Tommy's premise. He turned around as if seeking help. He looked me in the eye with a request,
"Why don't we look into it deeper? I'm afraid we might end up shooting ourselves on foot by being too simplistic."
The task of updating the client's construction control schedule by Construction Planners and Schedulers had been the subject of debates for years.
What was the object of concern?
- Construction Planner & Scheduler's task of updating extensive schedules
What is the defect? What actions and behaviors were involved?
- The task takes too much time. It was reported to take away 70 % to 80% of the planner/scheduler's significant work time, which was better spent with analysis and forecast.
Tommy and his group opined that schedule analysis and forecast must be given more time and attention.
Instead of updating, Senior Planners and Schedulers would accomplish more indulging in the latter two processes. Updating to them have less value.
By having more time on analysis, a more reliable forecast is expected. The project becomes more predictable. The action plan becomes more effective. Threats averted and opportunities enhanced. Makes sense...
What was the proposal?
- Tommy wanted to remove the planning/scheduling task of updating the schedule. He wants to take away that function from the project's planners/schedulers and assigning it to others. There were two options:
- Assign the task to encoders (non-specialist personnel)
- Assign the task to cheap specialized labor from other countries via remote updates.
Background
The client control schedule is typically a Level 3 Control Schedule to which the Level 4/5 Contractor's Execution Schedule rolls up to. The lengthy translation of the Level 4/5 actuals from the contractor's schedule to the client control schedule is scrutinized. Some Managers and Directors see it as a waste of time.
The main focus of project controls is around calculations and projections, to use actuals and current information to predict trends and make forecasts. These are the primary expectations in the project control environment.
In this article, the following terms and definitions apply:
Remote encoders (or planners/schedulers) are persons from Mexico, Pakistan, India, and the like, to be hired by the client to provide support to the project team in North America. They will update the client control schedule by taking information from the contractor's schedule.
The Ten Cross-checks to Contracting
1) Concern
The person assigned to update the schedule must have the client's best interest closer to his heart. He shall watch out for any risk during updating and making his concerns known promptly by management.
2) Craft (Specialization)
Tommy can pound the table, saying, "updating a schedule is just an encoder routine," but truth be told, it is not. Updating an extensive construction schedule requires a planning/scheduling specialist who has good project management background, familiar with the business jargon, and well-trained with the tools. It is still foolish to assign a typist (encoder) to progress the schedule regardless of how excellent he/she is at encoding!
Transferring the update function to another person cannot start with "teach me everything, and I'll do it." If the hiring manager succumbs to such a promise, the end objective to lighten the load is lost. Instead, an additional burden is created!
3) Competency (Calibre)
Project managers must have a good feel of the required competency in progress update. What will it entail? Is it manual entry or a combination of some other processes such as imports and scrubbing exercise (cleaning up the data before import and export)?
Is it a straight forward update or an update following specific rules of credit? Is the updated schedule part of a significant project portfolio governed by an interface that touches several other sub-projects? Is there a sequence to update calculation?
4) Continuity
Removing an activity in the network chain of near related activities can be a disaster in the making. It can negatively affect the quality of the deliverables, i.e., if it can still be delivered. Disrupting a function inherent to the planner/scheduler might do more harm than good.
5) Complexity
Have you set-up the schedule in such a way that data sources are well-align with what needs updating? Does the Level 4/5 contractor schedule grouping, sorting, and coding the same as the schedule to be updated? It might not be as simple as this. The general rule of thumb to check is, "As the size of the project increases, complexity increases."
6) Confidentiality
Is the schedule unusually unique that it is declared strictly confidential? One must examine the confidentiality nature of the project schedule. If it is something that is best to maintain in-house, then it should stay in the house.
7) Central
Updating a standalone schedule is one thing compared to an integrated schedule portfolio. Updating can be a PC Central responsibility. The required knowledge surrounding the integrative work element makes the standard encoder or a remote uninterested planner/scheduler less likely to successfully complete the task.
8) Control
Ensure that the responsible construction project planners and schedulers do not lose control of the schedule deliverables when the updating task is given to remote encoders or farmed elsewhere. Expecting that updating is all it is can lead to ineffective schedule management, if not project failure.
9) Collaboration (Communication)
Note that collaboration between client representatives and his remote counterpart can be less effective than work done locally.
10) Connection
There is no perfect update when the source of information is not fully understood. Connection with contractors is most important when the progress of certain work items need to be clarified.
The more directly connected the person updating the schedule is to the contractor, the higher the chance of a reliable update.
An accurate update is vital, for it contributes to more effective communication. Pages of procedures governing schedule updates had been written to prevent misunderstanding and disputes between contracting parties. In this sense alone, updating is clearly not a simple matter.
Concluding Statement
Schedule updates must be timely, fair, appropriate, and a proper reflection of what's in the contract. It constitutes adequate notification for project status. Any project person must remember that when the client requires the contractor to submit his schedule update, the project owner has a responsibility to review and comment on that submittal promptly. In addition to this, there are governing protocols for how feedback and inputs are processed. If the task is to be transferred elsewhere, it is recommended to have the governing guidelines accompany the contract.
The decision to separate the updating function of planning and scheduling should not be taken lightly. To be blunt, it is generally not a good idea for a large complex project. What is good with the project saving tens of thousands on labor rates but loses tens of millions worth of opportunities on other fronts?
One must not discount regular schedule updates because they are more than meet the eye. They are essential in improving achievability and timely project completion.
Planners and schedulers spending so much time updating might be demonstrating that the task is not simple at all.
Continuation…
Read the detailed article about the “The Ten Cross-checks to Contracting”
Rufran C. Frago, PMP, P. Eng., PMI-RMP, CCP, Author (013117)
About the Author
Rufran C. Frago is the Founder of PM Solution Pro, a Calgary consulting, product, and training services firm focusing on project and business management solutions. He is passionate providing advice, mentorship, education and training through consultation, collaboration, and what he uniquely calls, student-led training.
BOOKS AUTHORED BY RUFRAN FRAGO
- Risk-based Management in the World of Threats and Opportunities: A Project Controls Perspective.ISBN 978-0-9947608-0-7.Canada
- Plan to Schedule, Schedule to Plan.ISBN 978-0-9947608-2-1.Canada
- How to Create a Good Quality P50 Risk-based Baseline Schedule.ISBN 978-0-9947608-1-4.Canada
- Schedule Quantitative Risk Analysis (Traditional Method).ISBN 978-0-9947608-3-8.Canada
- RISK, What are you? The Risk Management Poem: Children's Book for all Professionals.ISBN 978-0-9947608-4-5 (Canada)
Relevant Sites:
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- Rufran Frago in the Global Risk Community Site