Finance-Based Scheduling of Construction Projects Using Integer Programming

Construction scheduling is the process of devising schemes for sequencing activities. A realistic schedule fulfills the real concerns of users, thus minimizing the chances of schedule failure. The minimization of total project duration has been the concept underlying critical-path method/program evaluation and review technique (CPM/PERT) schedules. Subsequently, techniques including resource management and time-cost trade-off analysis were developed to customize CPM/PERT schedules in order to fulfill users’ concerns regarding project resources, cost, and time. However, financing construction activities throughout the course of the project is another crucial concern that must be properly treated otherwise, nonrealistic schedules are to be anticipated. Unless contractors manage to procure adequate cash to keep construction work running according to schedule, the pace of work will definitely be relaxed. Therefore, always keeping scheduled activities in balance with available cash is a potential contribution to producing realistic schedules. This paper introduces an integer-programming finance-based scheduling method to produce financially feasible schedules that balance the financing requirements of activities at any period with the cash available during that same period. The proposed method offers twofold benefits of minimizing total project duration and fulfilling finance availability constraints.     

Critical Path Scheduling under Resource Calendar Constraints

Resource calendars specify nonworking days of driving resources involved in construction projects. As part of the resource availability constraints in critical path method (CPM) scheduling, resource calendars may postpone activity start time, extend activity duration, and hence prolong the total project duration. Ultimately, resource calendars bring about changes to the critical path identification. Research has yet to address how to incorporate the effects of multiple resource calendars on the total float determination. In this research, the popular P3 software is used as a tool for investigating the current practice of CPM scheduling under resource limit and calendar constraints. We assess P3’s advanced resource scheduling functions (including resource leveling and resource calendars) and identify P3’s potential errors in total float determination. Further, we propose a new method based on the forward pass analysis alone for accurately evaluating activity total float subject to resource calendar constraints. The application of the new method is illustrated with an activity-on-node case and a precedence-diagram-method case, with the results compared against those produced from P3. Our research has elucidated on some critical issues of resource-constrained scheduling in the application domain of construction project management. The findings will provide useful input for the vendors and users of the CPM software—which is not limited to P3—to improve the scheduling methodology as well as the accuracy of the resulting project schedules.     

Survey of the Construction Industry Relative to the Use of CPM Scheduling for Construction Projects

While critical-path method (CPM) scheduling has been around since the 1950s, its application in the construction industry has still not received 100% acceptance or consistency in how it is used. Project controls, and CPM scheduling in particular, have gone unchanged in the standards arena with little focus for a common understanding and recognition of what is required for CPM schedule development, implementation, and use. In recent years, little research has been conducted relative to the use of CPM and its benefits. In order to determine how the industry views its applicability and usage, a survey was developed for the stakeholders in the construction industry. This paper summarizes extensive research that was performed of the construction industry relative to the use of CPM scheduling, its applicability and its acceptance in the execution of today’s constructed projects. The research obtained the stakeholders’ views on the use and effectiveness of CPM scheduling; the necessary qualifications of scheduling personnel; and opinions relative to whether standards and/or best practices are necessary. The paper discusses the different views of the stakeholders and recommendations as to how consistency can be obtained in the use of CPM scheduling in order to improve the construction industry.     

Criticism of CPM for Project Planning Analysis

Published criticism in recent years concerning the inadequacy of Critical Path Method (CPM) as a project planning tool is identified and grouped under six major headings with reference to the publications in which the criticism were contained. These are answered from the writer's field experience and from experiences published by other authors. The object of the analysis is to see whether or not CPM as a project planning tool can meet the required functions of planning in construction, including consideration of legal and contractual framework and the complex and interdisciplinary nature of the project environment. The analysis reveals that, despite numerous criticism, project and construction planning should be done using CPM scheduling. Main factors affecting successful planning are realistic estimation of the productivity of crews in the context of expected job‐management efficiency conditions, and inclusion of sufficient time buffers between dissimilar trades. CPM is found to be equally useful as a planning tool for linear or repetitive projects. The limitations of this technique are identified in terms of the defined planning functions in the engineering phase of capital projects. A broad model for management of the engineering phase in revenue‐generating projects is suggested.     

Critical Path Segments Scheduling Technique

While the critical path method (CPM) has been useful for scheduling construction projects, years of practice and research have highlighted serious drawbacks that hinder its use as a decision support tool. This paper argues that many of CPM drawbacks stem from the rough level of detail at which the analysis is conducted, where activities’ durations are considered as continuous blocks of time. The paper thus proposes a new critical path segments (CPS) mechanism with a finer level of granularity by decomposing the duration of each activity into separate time segments. Three cases are used to prove the benefits of using separate time segments in avoiding complex network relationships, accurately identifying all critical path fluctuation, better allocation of limited resources, avoiding multiple-calendar problems, and accurate analysis of project delays. The paper discusses the proposed CPS mechanism and comments on several issues related to its calculation complexity, its impact on existing procedures, and future extensions. This research is more beneficial to researchers and has the potential to revolutionize scheduling computations to resolve CPM drawbacks.     

Non-Unit-Based Planning and Scheduling of Repetitive Construction Projects

Repetitive scheduling methods are more effective than traditional critical path methods in the planning and scheduling of repetitive construction projects. Nevertheless, almost all the repetitive scheduling methods developed so far have been based on the premise that a repetitive project is comprised of many identical production units. In this research a non-unit-based algorithm for the planning and scheduling of repetitive projects is developed. Instead of repetitive production units, repetitive or similar activity groups are identified and employed for scheduling. The algorithm takes into consideration: (1) the logical relationship of activity groups in a repetitive project; (2) the usage of various resource crews in an activity group; (3) the maintaining of resource continuity; and (4) the time and cost for the routing of resource crews. A sample case study and a case study of a sewer system project are conducted to validate the algorithm, as well as to demonstrate its application. Results and findings are reported.     

Phantom Float

This paper presents a resource-constrained critical path method (RCPM) technique that capitalizes on and improves the existing critical path method (CPM) and resource-constrained scheduling (RCS) techniques. A traditional CPM schedule is not realistic, because it assumes unlimited resources, some of which are highly limited in practice. Although traditional RCS techniques can consider resource limitations, they do not provide the correct floats and critical path, as the CPM does. The difference between the theoretical remaining total float and the real remaining total float is referred to as “phantom float” in this study. Work sequence in a resource-constrained schedule could also be considerably changed with a schedule update, resulting in high costs to reorganize it. This is because in addition to technological relationships, a resource-constrained schedule contains resource dependencies between activities that are neglected in traditional RCS techniques. This study proposes a step-by-step RCPM procedure to consider those resource-constrained relationships. Hence, the method can identify real floats and correct critical paths considering both technological and resource relationships, making late start and late finish times more meaningful. In addition, because of identified resource relationships, the RCPM also provides a certain level of stability with a schedule update.     

Linear versus Network Scheduling: A Critical Path Comparison

Linear scheduling methods provide an alternative way of scheduling repetitive projects, to the commonly used network methods. Critical path identification is a major attribute for both methods; therefore, it is very important for practitioners to understand the function of the two methods in this area. The present paper compares the critical path of the recently developed Kallantzis-Lambropoulos repetitive project model against the network scheduling critical path method (CPM), aiming at delving into and pointing out the differences and similarities between them. Initially, the rules for transforming the linear project into an equivalent CPM network are proposed. Then, the rules are applied on a sample linear project. Due to the additional constraint for maintaining resource continuity that the linear method takes into account, the critical paths vary. The constraint is subsequently removed from selected activities and comparison is repeated; the critical paths then coincide. In order to validate the findings and ensure impartiality of results, a random linear project generator is developed. A group of twenty-five random linear projects and their equivalent networks is produced. Their critical paths are analyzed, compared and classified. Conclusions support that the proposed comparison could be beneficial to users of linear scheduling methods, while the random project generator can serve other related research.     

Comparison of Linear Scheduling Model (LSM) and Critical Path Method (CPM)

Due to an increasingly competitive environment, construction companies are becoming more sophisticated, narrowing their focus, and becoming specialists in certain types of construction. This specialization requires more focused scheduling tools that prove to be better for certain type of projects. The critical path method (CPM) is the most utilized scheduling tool in the construction industry. However, for certain types of projects, CPM's usefulness decreases, because it becomes complex and difficult to use and understand. Alternative scheduling tools designed to be used with specific types of projects can prove to be more practical than CPM solutions. This paper provides a comparison of the CPM and a specialized tool, the linear scheduling model, by identifying critical attributes needed by any scheduling tool both at the higher management level and at the project level. Two project examples are scheduled with each method, and differences are discussed. Conclusions support that specialization of scheduling tools could be beneficial for the project manager and the project.     

Evaluation of the Resource-Constrained Critical Path Method Algorithms

This study evaluates the resource-constrained critical path method (RCPM), which the writers have recently proposed. RCPM establishes a critical path method (CPM)-like, resource-constrained schedule by resource-dependent activity relationships (or resource links) that the five-step RCPM technique identifies. With its CPM-like feature, RCPM provides the critical path and float data that are not available in traditional resource-constrained scheduling techniques. In addition, RCPM provides more flexibility to the schedule through identified alternative schedules, which allow certain activities to be executed beyond their late finish times without delaying the project completion. This paper evaluates the RCPM’s performance by comparing it with five related previous studies. A brief review of each study is also included in this paper. This comparison shows that RCPM performs well in identifying resource links and alternative schedules, compared to other methods. This study is of interest to academics because it highlights the advantages and disadvantages of different algorithms that have attempted to overcome present problems in traditional resource-constrained scheduling techniques.     

Construction Scheduling and Progress Control Using Geographical Information Systems

Traditional scheduling and progress control techniques such as bar charts and the critical path method (CPM) fail to provide information pertaining to the spatial aspects of a construction project. A system called PMS-GIS (Progress Monitoring System with Geographical Information Systems) was developed to represent construction progress not only in terms of a CPM schedule but also in terms of a graphical representation of the construction that is synchronized with the work schedule. In PMS-GIS, the architectural design is executed using a computer-aided drafting (CAD) program (AutoCAD), the work schedule is generated using a project management software (P3), the design and schedule information (including percent complete information) are plugged into a GIS package (ArcViewGIS), and for every update, the system produces a CPM-generated bar chart alongside a 3D rendering of the project marked for progress. The GIS-based system developed in this study helps to effectively communicate the schedule∕progress information to the parties involved in the project, because they will be able to see in detail the spatial aspects of the project alongside the schedule.     

Reliability Buffering for Construction Projects

Buffering is a common practice in project planning. Project managers or schedulers have used a time contingency to guarantee the completion time of either an activity or a project. This traditional buffering, however, often fails to protect the project schedule performance, resulting in an unnecessary resource idle time. To deal with this problem, reliability buffering, a simulation-based buffering strategy, is presented. Reliability buffering aims to generate a robust construction plan that protects against uncertainties by reducing the potential impact of construction changes. The effectiveness of reliability buffering is examined by simulating a dynamic project model that integrates the simulation approach with the network scheduling approach. The research results indicate that reliability buffering can help achieve a shorter project duration without driving up costs by pooling, resizing, relocating, and recharacterizing contingency buffers. A case study of bridge construction projects also demonstrates how construction projects can benefit from reliability buffering in real world settings. Although further validation is needed, reliability buffering can potentially impact the planning and control of construction projects by improving the consideration of construction feedbacks and characteristics in buffering, and serving as an input to a dynamic project model.     

Simplified Spreadsheet Solutions.?II: Overall Schedule Optimization

Overall schedule optimization, considering time, cost, and resource constraints is a difficult task due to the inherent complexity of projects, the difficulties associated with modeling all aspects combined, and the inability of traditional optimization tools to solve this large-size problem. In this paper, a practical approach is presented for the modeling and optimization of overall construction schedules. To simplify modeling, a spreadsheet-based model is developed to be easily usable by practitioners. The spreadsheet model integrates critical-path network scheduling with time-cost trade-off analysis, resource allocation, resource leveling, and cash flow management. The model uses the total project cost as the objective function to be minimized. To facilitate this large-size optimization, a nontraditional optimization technique, genetic algorithms, is used to locate the globally optimal solution, considering all aspects simultaneously. Details of the proposed model are described, and a hypothetical case study was used to experiment with it. Integration of the model with a simple information system is described to automate the development of optimal construction schedules.     

Resource Optimization Using Combined Simulation and Genetic Algorithms

This paper presents a new approach for resource optimization by combining a flow-chart based simulation tool with a powerful genetic optimization procedure. The proposed approach determines the least costly, and most productive, amount of resources that achieve the highest benefit/cost ratio in individual construction operations. To further incorporate resource optimization into construction planning, various genetic algorithms (GA)-optimized simulation models are integrated with commonly used project management software. Accordingly, these models are activated from within the scheduling software to optimize the plan. The result is a hierarchical work-breakdown-structure tied to GA-optimized simulation models. Various optimization experiments with a prototype system on two case studies revealed its ability to optimize resources within the real-life constraints set in the simulation models. The prototype is easy to use and can be used on large size projects. Based on this research, computer simulation and genetic algorithms can be an effective combination with great potential for improving productivity and saving construction time and cost.     

WorkPlan: Constraint-Based Database for Work Package Scheduling

A database program called WorkPlan has been created to systematically develop weekly work plans. Such work plans are used by crew foremen in scheduling work packages and allocating available labor and equipment resources. WorkPlan adopts the Last Planner methodology, which implements several lean construction techniques. A week prior to conducting work, WorkPlan guides the user step by step through the process of spelling out work packages, identifying constraints, checking constraint satisfaction, releasing work packages, and allocating resources; then at the end of the week, collecting field progress data and reasons for plan failure. This systematic approach helps the user create quality work plans and learn from understanding reasons for failure. The lean planning philosophy underlying WorkPlan and the functionality of the computer program implementation are detailed in this paper. Various ways of displaying work package data are illustrated. WorkPlan's job-shop scheduling view complements the view traditionally adopted by project management, as is reflected in scheduling tools using the critical-path method.     

Project Management Practices and Information Technology Research

Corporations of varying sizes and operations within the construction industry acclaim the contribution of project management applications that assist in business and operational practices. An integrated intelligent construction management application that enables process modeling and algorithmic analysis of construction process planning, interacts with a mainframe-based automated relational database system, and drives the project sequencing, scheduling, decision making and change management processes can introduce dramatic speed, simplicity, accuracy, and collaboration into existing project planning practices. Several research organizations and academic fraternities in concert with industry participation are focusing on the development of such futuristic tools as described above. However, evidence of such computing applications being used by the industry is minimal and a number of reasons have been cited by researchers for this. This study, through a review of the genesis, evolution, and future of computing applications in construction followed by an industry-wide survey, aims to study whether or not concurrent research agendas in construction information technology are truly sustainable from the industry’s perspective.     

Improvement Algorithm for Limited Space Scheduling

Selecting construction methods, scheduling activities, and planning the use of site space are key to constructing a project efficiently. Site layout and activity scheduling have been tackled as independent problems. Their interdependence is often ignored at the planning stage and may be dealt with—if at all—when construction is underway. Problems that may have had easy solutions if dealt with earlier, may then be expensive to remedy. This paper addresses the combined problem termed “space scheduling” and presents an algorithmic time-space trade-off model for adjusting activity durations and start dates to decrease the need for space over congested time periods. The model characterizes resource space requirements over time and establishes a time-space relationship for each activity in the schedule, based on alternative resource levels. An example illustrates the presented algorithm that generates a feasible space schedule.     

Automated Statistical Analysis in Stochastic Project Scheduling Simulation

This paper describes a stochastic simulation-based scheduling system (S3) that: (1) integrates the deterministic critical path method (CPM), the probabilistic program evaluation and review technique (PERT), and the stochastic discrete event simulation (DES) approaches into a single system and lets the scheduler make an informed decision as to which method is better suited to the company’s risk-taking culture; (2) automatically determines the minimum number of simulation runs in DES mode and therefore optimizes the simulation process; and (3) provides a terminal method that tests the statistical significance of the differences between simulations, hence eliminating outliers and therefore increasing the accuracy of the DES process. The system is based on an earlier version of the system called stochastic project scheduling simulation and makes use of all the capabilities of this system. The study is of value to practitioners because S3 produces a realistic prediction of the probability of completing a project in a specified time. The study is also of relevance to researchers in that it allows researchers to compare the outcome of CPM, PERT, and DES under different conditions such as different variability or skewness in the activity duration data, the configuration of the network, or the distribution of the activity durations.     

Challenges in Line-of-Balance Scheduling

The line-of-balance (LOB) method of scheduling is well suited to projects that are composed of activities of a linear and repetitive nature. The objective of this study is to set down the basic principles that can be used in the development of a computerized LOB scheduling system that overcomes the problems associated with existing systems and creates solutions to problems encountered in the implementation of repetitive-unit construction. The challenges associated with LOB scheduling include developing an algorithm that handles project acceleration efficiently and accurately, recognizing time and space dependencies, calculating LOB quantities, dealing with resource and milestone constraints, incorporating the occasional nonlinear and discrete activities, defining a radically new concept of criticalness, including the effect of the learning curve, developing an optimal strategy to reduce project duration by increasing the rate of production of selected activities, performing cost optimization, and improving the visual presentation of LOB diagrams.