EIABC

CONSTRUCTION TECHNOLOGY AND

MANAGEMENT PROGRAMME

CONSTRUCTION PLANNING AND

SCHEDULING

BY
SISAY A.

MAY 2015
Resource Planning

 Lecture Content
A. Planning construction
Manpower
B. Planning construction materials
C. Planning construction
equipments
D. Planning construction costs
A. Planning construction
Manpower
 The project construction manpower
planning is primarily concerned with
estimating the workers’ productivity,
scheduling manpower employment, and
structuring it into workers’ teams and
work groups, with a view to economically
match manpower supply with the task
requirements.
Cont….
 Project planning team: typical manpower planning
functions
 Determining expected labor productivity
 Estimating workers requirements for each work
package
 Scheduling date-wise, category-wise, project
direct labor
 Establishing construction teams
 Organizing task forces
Cont..
 Allocating labor during execution stage
 Monitoring workers productivity at site
 Recording productivity data
 Costing and controlling manpower cost
 Controlling manpower mobilization, distribution
and demobilization.
 Defined job requirements for key executive and
staff appointments.
Cont..
 Assist in recruitment of personnel
 Assist in controlling manpower costs.
 Assist in controlling manpower costs
 Assist in training and induction of manpower.
3.1.1 Establishing workers’ productivity standard

 Workers required
=(Work quantity X Workers’ productivity
standard)/(Completion period)
t=Q/(n*p)
 Workers’ productivity standard

=worker output norms X production efficiency factor

Where
Cont..
 Workers’ productivity standard is defined as the effort in man-
days or man-hours needed for accomplishing a unit quantity
of work, while working efficiency but allowing for normal
delays and wastage.
 Work quantity of the activity involved is expressed in standard
work units
 Completion period is taken as working days or hours planned
or earmarked to accomplish the task.
 Workers’ production norms are expressed in man-days or
man-hours, category-wise, required for accomplishing the unit
work.
 Production efficiency factor is the multiplier used to convert
production norms into productivity standards expected under
Cont…

Identifying requisite skills

 Construction involves multi-skill technology for its
wide range of related activities.
 These skills varies with the nature of job, type of
project and corporate policy of the contractor
 The first step towards determining productivity
standard is to identify the trade workers needed for
execution of the project.
 (Refer local standards)!!!
3.1.3 Worker’s production planning Norms

 example
 A task involving 160m2 of fixing timber formwork
for the roof slab of a single story building. The time
earmarked for completion is four days, working eight
hours per day. If workers’ team consisting of two
skilled workers and an skilled worker can be install
the formwork at the rate of 1.25m2/hr,
 Efferent Required=(Formwork quantity)/(Out per
team)
Cont…
 160m2/(1.25 m2 per team-hours) =128 team-hour
 Teams required=Team-hours/(Completion period)
 =128/(4*8) = 4
 Workers required=4(2 skilled +1 unskilled) =8
skilled + 4 unskilled
Cont..
 Experienced estimators and planners compile the
workers’ production planning norms for estimating
the manpower requirements. In the absence of such
planning data, appropriate norms can be evolved
using one or a combination of the following
methods:
 Analyzing the past performance data
 Abstracting data from published norms
 Works-studying the actual work process
3.1.4 Analyzing past performance data

 Drawbacks of the methods

 No two projects are exactly alike, and therefore the past performance data
of various projects have two be carefully examined for their suitability
while determining the norms for a given projects
 The construction production output is constantly improving over time
because of induction of better techniques and latest equipment. The
statistical analysis of past performance therefore my not conform to the
state-of-the-art/ high-tech.
 Analysis of the past data is useful only if the data available is reliable. The
degree or reliability of such data needs to the ascertained prior to analysis.
 Statistical analysis must not blindly compound the inefficiencies or
problems of the past. The actual context in which the past performance
data was recorded should be studied, and the data of inefficient or
problematic working periods should be discarded prior to processing.
3.1.5 Selecting published production norms

 A planner can derive production norms for a project by

relating them with the published production norms of
professional institutions or that prepared by the concerned
government bodies.
 The workers productivity norms vary from area to area.
Workers coming from different areas, even when employed
on a similar job, have different productivity. This
difference is due to a blend of many ethnic and
environmental factors
 this resulted in the introduction of different relative
productivity index for different location.
3.1.6 Work studying construction process

 work-study, using the method study and time study

techniques, aims at finding the optimum method of production
with specified resources and the time required to perform the
production tasks, so as to establish production norms of
workers and production capacity of machine.
 Method study- aims to find an optimum method of executing
of work by minimizing all waste.
 Purpose of the study is defined
 The method of execution is recorded
 The sequence of work and resources employed are critically
examined, and
 Areas of inefficiency are identified with the aim of reducing wastage
Cont..
 The various study of construction activity
show that a workmen devotes only 40-60% of
his time in the actual execution of works, with
the rest spent on wasteful and unproductive
activities like waiting, travelling, and personal
breaks.
Cont…
 Example
 Consider a project with the production cost of $100 million, having 20,000
man-months as direct labor, of which 60% is non-productive time. If 15%
of the wastage resulting from non-productive time is eliminated by using
improved methods then the resulting saving in labor cost would be:
 Labor cost=20% of the project cost (estimated while tendering)
 =0.2*100 million=20 million
 Non-productive labor time at 60% of labor cost, 0.6*20=12 M
 Saving in cost by reduction of 15% of non-productive time=0.15*12
M=$1.8M
 Saving as percentage of productive work value=($1.8M*100)/(40% of 20
M)=22.5%(1.8/8)
Cont…
 After the method study has established the
methodology for accomplishing the work,
time study establishes the time needed by a
qualified worker to carry out the specified
work at a defined level of performance.
Factor Affecting production Efficiency

 The computation of production efficiency factors

depends upon numerous variable which affect
workers’ productivity in actual job conditions at the
project site. These variables vary from project to
project, and over place and time. Some of the
typical factors affecting the workers’ production
efficiency are;
Cont…
 Work complexity
 Repetition of work
 Quality control ( stringent quality control )
 Equipment intensive tasks – less susceptible to
productivity changes than the labor-intensive ones
 Supervision – an effective and efficient supervisor
can get a higher productivity from workers
 Climate and weather change
 Labor availability
3.1.7 Scheduling Site Workers

 Direct and indirect workers –for ease of

estimating, planning, accounting and controlling!
 Direct Manpower- these are the construction site
workers who can be identified with execution of
the client’s permanent works such as those listed in
the bill of quantity. The direct manpower
constitutes 75-90% of the total manpower
employed at the project site.
Cont..
 The direct construction workers include foremen
and tradesmen, skilled in various engineering
trades, in addition to the semi skilled and unskilled
manpower. The trades men include carpenters, bar
benders, masons, plumbers, electricians, painters
and decorators…
 Generally the wages of construction site workers
are accounted on a daily or hourly basis, and their
activity-wise requirement is computed using the
workers’ productivity standards!
Cont..
 Indirect manpower- the indirect manpower covers all
supervisors, staff and workers other than those in the
direct manpower. It is required to support the direct
manpower, both technically and administratively. It
generally consists of the project management and
administration group.
 The indirect manpower is generally accounted on
monthly basis! Most of the indirect manpower can be
assessed while formulating organizations of work and
can be estimated using thumb-rules based on experience
Cont…
 The workers’ scheduling methodology involves
1. Scheduling direct construction site workers
2. Adding indirect construction site workers
1. Scheduling direct workers

 The direct manpower schedule indicates, data-wise as well as category-

wise, the worker strength required to accomplish the scheduled work.
 The past performance data is invaluable for conceptualizing manpower

forecasts!
 The bar chart of construction work schedule with its date of

commencement and completion of each activity of work-item forms the

basis for developing the direct workers schedule. Since activity has a
specified duration, work content, and manpower required for its
accomplishment, the daily average manpower required for each
scheduled activity can be assessed as:
 =(quantity of work X labor productivity standard in man-days)/

duration in days
Cont..
 The ratio of skilled and unskilled workers in a
construction team depends upon their characteristics
and the nature of work!!
 The date-wise aggregation of manpower required for

the scheduled activities (or work items) indicates the

daily strength of manpower, category-wise, required to
accomplish the scheduled work as per the project plan.
 Daily manpower required for scheduled work:

 = sum of manpower of construction of scheduled

activity on date
2. Adding indirect construction site workers

 Adjusting for daily manpower requirements

 The daily forecast of manpower can best be considered an
approximate estimate of the work force required under the
normal operating condition.
 The factors such as learning process, weather condition,
labor turnover, strikes, absenteeism, sickness and the
overtime working policy affect the day-to-day aggregated
manpower requirement. Though it is difficult to quantify
such variables, for planning purposes the aggregated
manpower in each category may be increased by 5% or so
to cater to these factor.
Cont…
 On the other hand, it is possible to decrease manpower. Though it is
difficult to replace skilled manpower by machines, the overall
strength of the work force can be reduced by increasing productivity
as:
 Replacing unskilled labor by machines, wherever feasible, in jobs
like loading, unloading, bar-cutting etc.
 Using appropriate and efficient tools as equipments
 Constantly improving the methods of production
 Increasing productivity through improved working conditions and
incentives
 Implementing the job-oriented financial incentive schemes
 Training workers to overcome the initial learning period
Cont..
 In particular, overtime working based on job-
oriented financial incentives schemes, if
properly implemented, can cut down the daily
manpower requirement by a substantial
amount, say 10-15%
3.1.8 Project manpower grouping

NATURE OF GROUPS
The project manpower organization depicts the hierarchy of

organizational groups of people.

The number of organizational groups depend upon the magnitude

and complexity of a project-a simple project may have only a few

while a large, complex one may have many.
The project manpower groups can be broadly divided into the

following function units.

Command and Control groups: to manage the project and to

provide necessary logistic support,

Construction task forces: to execute the construction works

Resource/ Support centers: to provide men, materials, and

machinery support to the construction task force

FORECASTING INDIRECT MANPOWER

 Indirect manpower requirement is related to

the management functions. In construction
projects, these functions can broadly be
grouped as;
 Project office management
 Design and drawing management
 Estimation and contracts management
 Planning and monitoring management
 Project administration and personnel management
Cont…
 Cost and finance management
 Materials management
 Plant and equipment management
 Quality management
 Construction supervision management
 Supporting service management
Cont…
 The extent of indirect manpower needed to perform
the project functions depends upon the type and
size of the project
Structuring Site Organization

 The structuring of work groups into construction

task forces and direct support service centers is
accomplished by applying the three classic
principles of designing formal organizations:
 Unity of Command
 Scalar Principle
 Span of Control
Designing workers financial incentive scheme

 The project management team aims at achieving objectives

economically. It employs motivational tools to increase
production and productivity. The art of motivating lies in
creating environment, developing systems, and directing
efforts in such away that they meet the organizational goals
as well as the needs of those participating in the process,
with everyone working enthusiastically as one team under
the relationship of the project manager.
 The motivational approach, can be divided into behavioral
approach and financial incentive schemes. In a construction
project;
Cont..
 The financial incentive scheme may vary with the type of
the project, nature of the task and employment teams of
workers.
 Time related schemes  overtime work will be paid in

proportion to the basic hourly wages

 Job-related schemes according to the measurable job

completed
 Lump-sum work payment  time saved from standard

time fixed for completing the job, lump-sum amount paid

for completing the fixed quantity of a specified job.
 Profit sharing bonus  these can be paid as bonus after a

predetermined time, say, quarterly, half-yearly or yearly.

Cont..
 The behavioral motivational approach create
healthy working environment
 Financial incentive scheme  benefits the
participants by;
 Increase production and productivity, without any
appreciable increase in estimated cost
 It helps workers in increasing their earnings and
gaining job satisfaction without affecting the
estimated cost of the project.
3.2 Planning construction materials

 Construction materials cover all types of materials used in

construction including electrical and mechanical fittings
fixture, devices and instruments that are incorporated during
the construction of permanent works and temporary
supporting works at site.
 Efficient materials management in project environments calls
for an integrated approach covering numerous functions such
as materials planning, purchasing, inventory control, store-
keeping and warehousing, handling and transportation,
codification and standardization, and the disposal of the
surplus.
Materials planning
 * Materials planning, which is the key
function of materials management, is closely
linked with project planning and control set-
up.
 Aim to develop a plan for procurement and

stocking of construction materials so as to

provide at the site materials of the right
quality in right quantity at the right prices
from the right sources at the right time.
 ABC Classification of construction Materials

 The primary concept purpose of classifying

materials is to control quality, cost and timely
supply. There are many factors that need
consideration while classifying materials.
These include storage space, shelf life, supply
reliability, inventory costs, ease of
identification, construction sequence,
transportation requirement, price, procurement
time, procurement source and project life.
Cont..
 Some of the general categories are;
bulky, one –time purchase, repetitive use, and
minor materials
Vital, essential and desirable materials
Indigenous and imported materials
High price, medium price and low price
materials
High usage value, medium usage value and
low-usage value materials
Cont..
 The most commonly used method for
classifying construction materials is to group
them into high-value, medium-value and low-
value materials. * this classification is
achieved using the ABC analysis. The
prerequisite for applying the ABC analysis
technique is that the project should have a
standardized bill of materials listing the
physical quantities (including standard usage),
unit rate and total cost for each item.
Cont..
 BILL OF MATERIALS
1. S.No.
2. Item of materials
3. Unit
4. Quantity
5. Rate
6. Amount
Cont..

Group Total Inventory

Class Items Costs
A 10% 70%

B 20% 20%

C 70% 10%
Methodology
 Identifying materials required and estimate quantity
of each material.
 Obtaining the approximate unit rate for each item.
 Assessing the requirement during the period under
consideration, i.e. yearly or project completion
basis.
 Determine the usage value of each type by
multiplying the quantity required with the
corresponding unit rate.
Do you know Pareto Rule?
Materials Usage Standard
 Some wastage is inevitable in actual work.
This wastage in materials is generally
expressed as a percentages of materials
calculated theoretically from the quantities of
the work involved, and are termed as
‘standard wastage'. The total quantity of
materials to be provisioned should cater for
the standard wastage by increasing the
theoretical quantity, proportionally.
Cont..
 Materials to be provisioned;
 = Theoretical quantity of materials X

[{100+standard Wastage (%)}/100]

 It may be noted that standard wastage caters for

wastage during utilization only for causes

considered beyond control at the site. In addition to
the controllable wastage, there is wastage which
falls in the category of controllable wastage.
Cont…
 main cause of controllable wastage are;
1. Wastage on account of designers specifying non-
standard materials having unattainable specifications.
2. Wastage due to incorrect purchasing resulting in over
buying, wrong buying, unnecessary buying and
untimely buying.
3. Wastage in transpiration and handling including
breakage and pilferage.
4. Wastage during storage resulting from deterioration,
improper storage, breakage, obsolescence and theft.
 Materials provisioning process

 A material planning considers materials in the order

of requirements at the site.
 The materials selection process for each item
generally, follows the sequence outlined below;
a) Identification of materials Package
b) Materials quantity estimation
c) Scheduling Materials requirement
d) Materials procurement Enquiries
e) Finalization of materials Procurement
Planning materials Inventory
 The term ‘Inventory’ implies the cost of materials
in stock at a given time.
 . A balanced inventory act as a cushion between
supply and site requirement till supplies are
received.
 Costs of inventory
 The effective management of inventory involves a tradeoff
between having too little and also too much inventory.
 Inventory costs:
 Ordering Costs: requisitioning, preparation of purchase
order, expediting, transport and receiving and placing in
storage, set-up costs
 Carrying Costs: interest on capital locked up in inventory,
storage and handling costs, insurance, depreciation, and
property taxes.
 Shortage Costs: arise when inventories are short of
requirement for meeting the needs of production or the
demand of customers.
Inventory Management – Minimizing Costs

 The goal of effective inventory management is to

minimize the total costs that are associated with
ordering and holding inventories.
 Choose the level of inventory with the lowest total cost
after estimating the different expenses with varying
inventory levels.
 Order Quantity
Economic Order Quantity (EOQ)
 ii) Order Level
Economic Order Quantity (EOQ)
Cont…
Cont…
 The Economic Order Quantity refers to the
order size that will result in the lowest total of
order and carrying costs for an item of
inventory.
 Order costs increase as number of orders

increase
 Carrying costs increase as large stocks are

kept
Cont…

2DS
Q
H
Cont…
 D = Annual demand
 S = Order cost

 H = Annual holding cost

 Example: Given the following for a company:

D = Annual Demand = 20,000 Units

S = Cost to place an order= Birr 2,000
H = Holding cost=Birr1200
Cont..
 We also need a reorder point to tell us as what
inventory level we need to place an order. If the
usage rate of materials and lead time for
procurement are known with certainty then;
 The ordering level = Lead time in days for
procurement X Average daily usage
R=L x d_
 L=Lead time, Average daily usage= d
Machinery Planning
 The main issue in machinery planning is
corresponding or matching equipments with the
required work according to time plan or schedule
with a sense of optimized equipment utilization.
 Proper planning and deployment of equipments
saves considerable amount of money. It also
contributes positively to timely completion of
construction works and workers moral.
Cash flow (money) Planning
 Cash flow (money) Planning is covered
in financial management course. What is
basic is relating work schedule with
respective required resource on monetary
bases and planning the cash deficit from
where to finance.
YOUR ATTENDANCE
IS TAKEN SERIOUSLY
IN THIS SEMESTER!
 Please Remind These
CLASS END-JUNE-05

GROUP WORK FINAL

DAY-LAST PLANNING
CLASS (YOU MAY
LEFT-10DAYS)