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CPM Conference 2017
Scheduling is BACK baby Oracle Construction and Engineering GBU
Garrett E. HarleyDirector, E&C Strategy
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Agenda
• Market Update
• Building Industry Solutions• Innovation – What’s NEW
• Value & Benefits
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Market Update
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Spending up $212 Trillion on E&C by 2030
Source: Oxford Economics Global Construction 2030
6
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Supporting ALL E&C Use Cases
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Commercial Building TypesHealthcareEducationOffice BuildingsGovt. BuildingsHigh Tech RetailHospitalitySports & EntertainmentMulti‐Unit Residential
Infrastructure Building TypesAirportsRoad & BridgeTelecomWater & Waste WaterUtilities
OwnersGeneral Contractors
SubcontractorsSuppliers
212 Trillion
expected growth by 2030
Industrial Building TypesOil & GasIndustrial Mfg ETOAerospace & Defense
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Building Industry Solutions
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Engineering & ConstructionPlan, Build & Operate the World’s Infrastructure
Engineering & ConstructionPlan, Build & Operate the World’s Infrastructure
E&C Purpose Built Solutions
Lead to Contract
Win the right work with
the right customers at
the right margin
Lead to Contract
Win the right work with
the right customers at
the right margin
Project & ConstructionExecution Cloud
Increase delivery effectiveness & project
outcomes
Project & ConstructionExecution Cloud
Increase delivery effectiveness & project
outcomes
Lean
Construction
Cloud
Tightly
coupled lean
delivery.
Predictability
of workflow
& team
commitment
s
Lean
Construction
Cloud
Tightly
coupled lean
delivery.
Predictability
of workflow
& team
commitment
s
BIM
Enabled
Estimation
Visualization
& quantity
take off.
Parametric
intelligence
& smart
assembly
BIM
Enabled
Estimation
Visualization
& quantity
take off.
Parametric
intelligence
& smart
assembly
NEC3
Contract
Management
Cloud
•International
contract
standards &
pre‐
configured
support
NEC3
Contract
Management
Cloud
•International
contract
standards &
pre‐
configured
support
Contract
Management
Cloud
Pre‐
configured
Contract
Management
solution
Contract
Management
Cloud
Pre‐
configured
Contract
Management
solution
Digital Handover
Rich Client Experience andprovide living handover document
for a project soft landing
Digital Handover
Rich Client Experience andprovide living handover document
for a project soft landing
Planning & Scheduling
Cloud
•The most trusted name in scheduling now available on the Oracle Cloud
Planning & Scheduling
Cloud
•The most trusted name in scheduling now available on the Oracle Cloud
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Innovation – What’s NEW
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Scheduling has evolved over time…
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The History of Critical Path Method (CPM) Scheduling
The critical path method (CPM) is a project modeling technique developed in the late
1950s by Morgan R. Walker of DuPont
and James E. Kelley Jr. of Remington Rand.[2]
Kelley
and Walker related their memories of the development of CPM in 1989.[3]
Kelley
attributed the term "critical path" to the developers of the Program Evaluation and
Review Technique
which was developed at about the same time by Booz Allen Hamilton
and the U.S. Navy.[4]
The precursors of what came to be known as Critical Path were
developed and put into practice by DuPont between 1940 and 1943 and contributed to
the success of the Manhattan Project.[5]
CPM is commonly used with all forms of projects, including construction, aerospace and
defense, software development, research projects, product development, engineering,
and plant maintenance, among others. Any project with interdependent activities can
apply this method of mathematical analysis. The term is generally applied to any approach
used to analyze a project network logic diagram.
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Source: https://en.wikipedia.org/wiki/Critical_path_method
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CPM’s evolution
into the modern age of computing
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Roots of CPM: DuPont
in the early the 1940’s
leverages methods to
aid in delivery of the
Manhattan Project
In the 1950’s, Morgan
Walker & James Kelly
Jr. formalize CPM
method
Through the early
1980’s, creating
schedules required a
mini or mainframe
computer or you drew
out the network by
hand
Primavera releases its
first versions of CPM
tools for Windows in
the mid 1990’s and
secures a dominant
position in the
computing age
Back to the Future:
The 21st
Century
enters the
“Enterprise”
era,
Cloud computing, Big
Data & Business
AnalyticsSource: http://www.mosaicprojects.com.au/PDF_Papers/P042_History%20of%20Scheduing.pdf
May 1983 Joel
Koppelman, Dick Faris
& Les Seskin, found
Primavera, based on
the “mainstream”
DOS
Operating System
Today’s typical
CPM Schedule is
25X larger than it
was in 1985
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The dawn of Lean
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Roots of CPM: DuPont
in the early the 1940’s
leverages methods to
aid in delivery of the
Manhattan Project
In the 1950’s, Morgan
Walker & James Kelly
Jr. formalize CPM
method
Through the early
1980’s, creating
schedules required a
mini or mainframe
computer or you drew
out the network by
hand
May 1983 Joel
Koppelman, Dick Faris
& Les Seskin, found
Primavera, based on
the “mainstream”
DOS
Operating System
Primavera releases its
first versions of CPM
tools for Windows in
the mid 1990’s and
secures a dominant
position in the
computing age
Back to the Future:
The 21st
Century
enters the
“Enterprise”
era,
Cloud computing, Big
Data & Business
AnalyticsSource: Director Industry Strategy for E&C, Garrett E. Harley
Lean Construction
Roots take hold
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The History of Lean Construction
Confidential – Oracle Internal/Restricted/Highly Restricted 15
Lean construction
is a combination of operational research and
practical development in design and construction with an adaption of
lean manufacturing
principles and practices to the end‐to‐end design
and construction process. Unlike manufacturing, construction is a
project‐based production process. Lean construction is concerned with
the alignment and holistic pursuit of concurrent and continuous
improvements in all dimensions of the built and natural environment:
design, construction, activation, maintenance, salvaging, and recycling
(Abdelhamid 2007, Abdelhamid et al. 2008). This approach tries to
manage and improve construction processes with minimum cost and
maximum value by considering customer needs (Koskela et al. 2002[1]).The term lean construction
was coined by the International Group for
Lean Construction
in its first meeting in 1993 (Gleeson et al. 2007).
Construction
in Lean Construction
refers to the entire industry and not
the phase during which construction takes place. Thus, Lean
Construction is for owners, architects, designers, engineering,
constructors, suppliers & end users.
Source: https://en.wikipedia.org/wiki/Lean_construction
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Lean’s evolution
into the modern age of computingLauri Koskela
challenges
Construction
Management
community about
time‐cost‐quality
trade‐off model in
1992
International Group
for Lean Construction
formed in 1993
Ballard & Howell
analysis of project
plan failures uncovers
that only 50% of
weekly work plan
tasks are completed
by the end of the
planning week, 1994
Koskela argues
mismatch between
conceptual and
observable production
models. Develops new
production paradigm
based on Toyota
Production System,
2000
Koskela & Howell
present new
production
management theory
around planning,
execution & control
paradigm, 2002
Forward thinking E&C
companies begin to
leverage computer
aided Lean tools, Mid
2000’s
Source: https://en.wikipedia.org/wiki/Lean_construction
Mark Jenkins, Director Product Strategy
blends Lean with CPM at DPR Construction
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• For years this image well described the
reality between “scheduling camps”
as
traditional CPM advocates held firmly to
the opinion that its means and methods
were the “right way”
to build and
maintain a proper schedule. While Lean
advocates planted just as firmly their
position that CPM networks were never
intended to manage the level of detail
that a Lean schedule targeted to properly
execute the fields production work.
Blending
CPM & Lean Methods
Our view on the matter: Why not BOTH!!!
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CPM Scheduler
Subcontractor Foreman(LastPlanner®)
Subcontractor Foreman(LastPlanner®)
Project Executive Owner
Subcontractor Foreman(LastPlanner®)
Extending Value
GC Foreman(LastPlanner®)
Superintendent
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Integrated CPM
& Lean
Scheduling Processes
Orac
le 20
DefinePhaseswithWBS
Monitor
PerformanceLastPlanners®
breakdown
Activitiesinto smaller
Tasks
Define
Activities,
Durations,
Relationships
LastPlanners
Commit toDue Dates,
Complete
Tasks
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Work Breakdown Structure
Confidential – Oracle Internal
Create the “Big Picture”
schedule by organizing project into manageable
phases using the WBS (Work Breakdown Structure)
Easily model the project schedule. The WBS defines project phases and creates a framework that effectively represents the overall plan.
Simple to Create
Leverage Templates
Indent/Outdent
Cut/Copy/Paste
Grid or Gantt
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Activities, Durations, Relationships
Confidential – Oracle Internal
Create logical relationships between Activities in the CPM network
Traditional CPM scheduling defines activities, durations and relationships. This determines the critical path, project duration, and project completion date.
Add Activities Define Durations
Sequence Activities using
Relationships
Connect Activities between
WBS elements to reflect
transitions between phases Calculate the schedule
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LastPlanners®
Breakdown Activities
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LastPlanners®
breakdown Activities, identify Tasks durations, sequences &
due dates in facilitated production meetings
LastPlanners® breakdown Activities into smaller Tasks, collaboratively plan their due dates, and commit to complete them as planned.
The Hopper‐
Unplanned Tasks‐
Activity Optional‐
Collapse/Expand
Tasks get durations,
sequences, and due dates
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LastPlanners®
Commit & Complete
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The LastPlanners®
commit to Due Dates on the Planning Board, complete
when done, and re‐commit if not completed
The planning board is where field disciplines commit to Task due dates. Each field discipline has a different Task color assignment on the Planning Board.
Digital Planning Board vs.
Trailer Wall Planned Tasks Committed Tasks Completed Tasks Overdue Tasks Reference Activities Collapse/Expand
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Monitor Performance
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Monitor Planned Percent Complete (PPC) & Reasons for missed
commitments per Lean Construction Institute’s best practices (17.2)
With the field executing, it’s now about capturing completions. If commitments are missed, reason codes are assigned, and new commitments are made. Tasks alert the CPM network for incompatible dates or status.
Project PPC
Company PPC
(Inherited Colors)
Reasons for Missed
Commitments One Time Frame, All Charts
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Value & Benefits
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Coordination
Reduce the need for larger,
complex master
schedules which were
never intended to micro‐
manage the level of detail
required for field
execution teams. Placing
the right coordination
tool in the hands of the
right stakeholder
eliminates costly re‐work,
drives accountability and
reduces risk.
Commitment Community
The benefits of our solution
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Coordination
Reduce the need for larger,
complex master
schedules which were
never intended to micro‐
manage the level of detail
required for field
execution teams. Placing
the right coordination
tool in the hands of the
right stakeholder
eliminates costly re‐work,
drives accountability and
reduces risk.
Commitment
Blending CPM and Lean
methods drives
performance right down
to the workface based on
commitments of field
disciplines. Flexible Task
sequences focus on short
interval timelines that
inform the master
schedule activity network,
giving a comprehensive
view of overall
performance.
Community
The benefits of our solution
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Copyright © 2016, Oracle and/or its affiliates. All rights reserved. |
Coordination
Reduce the need for larger,
complex master
schedules which were
never intended to micro‐
manage the level of detail
required for field
execution teams. Placing
the right coordination
tool in the hands of the
right stakeholder
eliminates costly re‐work,
drives accountability and
reduces risk.
Commitment
Blending CPM and Lean
methods drives
performance right down
to the workface based on
commitments of field
disciplines. Flexible Task
sequences focus on short
interval timelines that
inform the master
schedule activity network,
giving a comprehensive
view of overall
performance.
Community
Aligning stakeholder
incentives with shared
knowledge and common
goals creates a unique
and differentiated
offering in the market
where the best of CPM
and Lean means and
methods are truly
blended to drive
community engagement
and successful business
outcomes.
The benefits of our solution
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We blend the proven methods of CPM
and
Lean
into a single solution for engineering and
construction projects, programs and
enterprises.
Scheduling is BACK…
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