March 24, 2011

Week 15_LanreGiwa_Choosing Scheduling Techniques using Multi-Attribute Technique

Problem Recognition / Identification

A schedule is a document that defines what work must be done to accomplish project objectives on time. Certain specific information is required for the development of a schedule; they include Scope of work, defined to the activity level, activity inter-relationships, activity duration, resource requirements and assigned responsibilities.

The problem is statement is that there are numerous techniques and graphical representation to create schedule reports and a group of schedulers want to determine the best tool to use in creating and reporting schedules.

Development of Feasible Alternatives/Solutions

Amongst other options identified such as Bar Chart, Flow Process Chart and combination chart, the group identified three widely used scheduling types (Gantt chart, Line of Balance and Network Diagram) and intend to choose the best of them.

Alternative 1 – Gantt Charts

Alternative 2 – Line of Balance

Alternative 3 – Network Diagrams (Critical Path Method)

Alternative 4 – Do nothing


Possible Outcomes and Cash Flow of Alternatives / Solutions

Alternative 1: This is a very simple form of scheduling and very easy to understand. It requires a minimum time to develop and update, hence, cost of production will be very minimal.

Alternative 2: The second alternative is Line of Balance method of scheduling. It is not difficult to produce other than it is limited to some projects thereby not so cost effective.

Alternative 3: This option is the most advanced scheduling technique. However, it is the most complicated, most difficult to interpret and requires the most training of staff. Put another way, while it is most advanced, it will be most expensive to deploy based on the level of training required for the staff.

Alternative 4: This will be for group of schedulers not choose any of the three options and just mentally schedule the projects for whatever reason.


Selection Criteria / Attributes of best solution

  • Ease of Understanding
  • Level of Information provided
  • Time required to Develop
  • Display of Critical activities and Interdependencies
  • Wide application over many Projects
  • Level of training of staff
  • Ability to analyse resources and Time / costs tradeoffs

Analysis and comparison of the Alternatives/Solutions

The analysis was carried out by wide consultation amongst the schedulers and research on the internet.

Below is a quantitative analysis of the alternatives

The analysis will be carried out using the multi-attribute additive weighting technique. The table 1 below shows a summary Information of attributes and subsequently shows the alternatives available to the company

SUMMARY INFORMATION FOR CHOICE OF A SCHEDULING TYPE

ALTERNATIVES

ATTRIBUTES

ALTERNATIVE A

ALTERNATIVE B

ALTERNATIVE C

DO NOTHING

Ease of Understanding

Excellent

Good

Good

Poor

Level of Information Provided

Poor

Good

Excellent

Poor

Time required to develop

Excellent

Excellent

Good

Poor

Display of Critical activities and Interdependencies

Poor

Poor

Excellent

Poor

Wide application over many Projects

Good

Poor

Excellent

Good

Level of training of staff

Good

Good

Poor

Excellent

Ability to analyse resources and cost/time tradeoffs

Poor

Poor

Excellent

Good





3 LEVEL GRADING SYSTEM

GRADES

DEFINITION

Excellent

3

Having fulfilled or met the inherent attribute between 70% - 100%

Good

2

Having fulfilled or met the inherent attribute between 40% - 79%

Poor

1

Having fulfilled or met the inherent attributes between 0% - 39%

Table 1 – Summary Information of attributes and Project alternatives

From the table above, a 3-level grading system was used to grade the attributes based on the degree of compliance. For the additive weighting technique, it is imperative to convert the grading to dimensionless values, hence the table 2 below shows the attributes converted to dimensionless values.

DIMENSIONLESS VALUES OF THE COST ESTIMATING ALTERNATIVES

ATTRIBUTES

ALTERNATIVE A

ALTERNATIVE B

ALTERNATIVE C

DO NOTHING

Ease of Understanding

1

0.5

0.5

0

Level of Information Provided

0

0.5

1

0

Time required to develop

1

1

0.5

0

Display of Critical activities and Inter-dependencies

0

0

1

0

Wide application over many Projects

0.5

0

1

0.5

Level of training of staff

0.5

0.5

0

1

Ability to analyze resources and cost/time tradeoffs

0

0

1

0.5

Total

3

2.5

5

2

Table 2: Ranking of Attributes

Figure 3 below shows that the ordinal ranking of the attributes have been converted to relative ranking and the relative ranking have all been normalized.

RANKING AND NORMALIZED WEIGHT OF ATTRIBUTES

ATTRIBUTES

Ordinal Ranking

Relative Ranking

Normalized Weight

Ease of Understanding

4

5

0.14

Level of Information Provided

7

8

0.23

Time required to develop

3

4

0.11

Display of Critical activities and Inter-dependencies

6

7

0.20

Wide application over many Projects

5

6

0.17

Level of training of staff

2

3

0.09

Ability to analyze resources and cost/time tradeoffs

1

2

0.06

Total

35

1.00



NOTES



Ordinal Ranking is ordering of attributes from most preferred to the least preferred

Relative Ranking = Ordinal Ranking + 1



For relative ranking, A rank of 8 is Highest while 1 is Lowest


Normalized Weight = Relative Ranking / Total Relative Ranking

Table 3: Ranking and Normalized weight of Attributes

Kindly note that the ranking of the attributes was done such that relative weights were assigned with higher numbers signifying greater importance. Normalization of these relative ranking was achieved by dividing individual weights by the sum of all the relative weights..

The next table 4 shows the calculation of the best option using the additive weighting compensatory model.












MULTI-ATTRIBUTE DECISION MODEL USING COMPENSATORY ADDITIVE WEIGHTING TECHNIQUE

Calculation of Scores for each alternative

PROJECT A

PROJECT B

PROJECT C

DO NOTHING

ATTRIBUTES

Relative Rank

Normalized Weight

Performance

Weight Value

Performance

Weight Value

Performance

Weight Value

Performance

Weight Value

Ease of Understanding

5

0.14

1

0.14

0.5

0.07

0.5

0.07

0

0.00

Level of Information Provided

8

0.23

0

0.00

0.5

0.11

1

0.23

0

0.00

Time required to develop

4

0.11

1

0.11

1

0.11

0.5

0.06

0

0.00

Display of Critical activities and Inter-dependencies

7

0.20

0

0.00

0

0.00

1

0.20

0

0.00

Wide application over many Projects

6

0.17

0.5

0.09

0

0.00

1

0.17

0.5

0.09

Level of training of staff

3

0.09

0.5

0.04

0.5

0.04

0

0.00

1

0.09

Ability to analyze resources and cost/time tradeoffs

2

0.06

0

0.00

0

0.00

1

0.06

0.5

0.03

Total Score

0.39

0.34

0.79

0.20

BEST CHOICE












Based on Ranking Sheet, Relative Ranking = Ordinal Ranking +1









For relative ranking, A rank of 9 is Highest while 1 is Lowest




















Based on the analysis above, the group of schedulers have come up with the best alternative for the scheduling type that can be endorsed.

Best Alternative to be Selected

Amongst all the options analyzed, the schedulers would recommend option 3 or Alternative C as the best choice to be adopted for scheduling. Put another way, a scheduling type that is very advanced by providing the most detailed status information, provides a method for identifying critical activities, displays relationships and inter-dependencies, facilitates easy trend analysis and provides early warning of likely impacts to the project completion dates is obviously the best option for the schedulers to choose.

Performance Monitoring / Post evaluation

For performance monitoring and post evaluation, the group should periodically review their objectives, set a criteria that meets the objectives and analyse if the current tool meets the set objectives / criteria. This will assist the group on continual improvement. Secondly, customer evaluation forms should be sent to the clients to know if expectations have been met and if their reporting structure is very satisfactory.

References:

  1. Humphreys G.C. (2002). Project Management using earned value. Chapter 6, pp 150-165. Humphrey and Associates. Orange CA, USA.
  2. AACE International. Skills & Knowledge of Cost Engineering, 5th Edition Revised.Chapter-13, pp.13.1-13.7 Edited by Dr. Scott J. Amos, PE. 2010. AACE International. Morgantown, WV, USA.
  1. Sulliven, W. G., Wicks, E.M., Koelling, C. P., et al. (2009). Engineering Economy (14th ed.), Chp 14 pp551 -570. New Jersey: Pearson Education.
  2. Brassard M, Ritter D. The memory Jogger 2. Tools for Continuous Improvement and Effective Planning.2010.

March 23, 2011

WK#13_IDUBAMO MONIGHA_WHAT TO SPEND MY YEAR 2010 PERFORMANCE BONUS ON!

Problem Statement

The year 2010 was a huge success for my firm and as show of gratitude the company paid out performance bonuses to all cadres of workers. Based on my last year’s performance after appraisals, I was awarded the princely sum of $20,000.00

After the joy of seeing the notification early in the year, I was left with several spend options and I needed to take a quick decision of what best to spend it on.

However, the greatest challenge remains which of the options fits the monetary value and its overall benefit to me and my family.

Root Cause Analysis

Never had overseas family vacation.

Deter encroachment into my piece of land.

My car is getting old and needs replacement

The desire to attend AACE annual meeting in United States.

Alternatives:

A. Overseas vacation with family

B. Commence Substructure of Residential Development in PH

C. Buy a New Car

Analysis of Alternatives:

Alternative A: Overseas vacation with family – This involves travelling with entire family to Anaheim, California to visit Disneyland and attend AACE annual meeting.

Alternative B: Commence Substructure of Residential Development in Port Harcourt, Nigeria – This involves the start of construction of my private residential development. This is coming after the approval of estate layout by the government only this week.

Alternative C: Buy a new car – This involve the sale of my old car (3yrs old) and purchasing a new one in its place.

Comparison of Alternatives

Alternative A

Cost

Flight Return ticket local x 5 persons - $1300.00

Flight Return ticket international x 5 persons - $8500.00

Transportation local (to and fro airport) - $70.00

Transportation international (to and fro airport) - $100.00

Hotel accommodation 2 nights Lagos – $600.00

Hotel Accommodation 12 nights Anaheim – $1500.00

AACE registration for annual meeting - $1100.00

Family outings to Disneyland and other areas in interest in California State - $2000

Feeding for 12days (BF exclusive) - $2000.00

Shopping - $2500.00

Total - $19,670.00

Schedule

18 days

Merits

Work/Life balance.

New experience for family.

Competence development as a result of AACE annual meeting attendance.

Good healthy living

Demerits

Lack of rest

Unnecessary shopping spree

Lack of concentration in meeting

Possible nagging from wife for leaving kids with her alone all day

Too much outings in the evening with family

Little or no physical proof of spend after holiday

Alternative B

Cost

Substructure works as per detailed design from BOQ.

Total - $22,000.00

Schedule

25 days

Merits

Additional wealth created in family.

Provision of own shelter to family

Control spending to complete building.

Family and spouse happy about own home

Practical Competence Development with experiential learning.

Good healthy living

Respect by society.

Physical evidence of expenditure

Save annual rent/service charge of circa $10,000 when completed.

Demerits

Initial grumbling from family

So much attention and little to other activities

Security exposure due to new developing neighbourhood

Cut down of expenditure on other essential needs of family

Little use rest time as a result of site visits and procurement activities

Indebtedness (May be tempted to borrow funds to continue after substructure and jettisoning initial phases development).

Alternative C

Cost

Buy a new car to replace old one. Car dealer quote of preferred choice

Total - $27,000.00

Schedule

14 days Delivery upon payment

Merits

Additional wealth created in family.

Provision of own transportation mode

Initial happiness by family.

Respect by society (status).

Physical evidence of expenditure

Demerits

Increased maintenance cost

Security exposure due to incessant kidnap of flashy car’s occupants

Increased Insurance cost

Additional fuelling cost

Indebtedness (May be tempted to borrow funds to complete shortfall in car price).

No addition to career development

Cannot be quantified as Collateral for funds by banks.

SELECTION CRITERIA

Using Decision Matrix

Criterion

Weight (order of Importance)

Alternative A

Alternative B

Alternative C

Duration under four weeks

2

5 x (2) = 10

5 x (2) = 10

5 x (2) = 10

Cost < $20,000.00

3

5 x (3) = 15

3 x (3) = 9

1 x (3) = 3

Professional development

4

5 x (4) = 20

5 x (4) = 20

1 x (4) = 4

Wealth creation

5

1 x (5) = 5

5 x (5) = 25

3 x (5) = 15

No borrowing of funds

3

5 x (3) = 15

3 x (3) = 9

1 x (3) = 3

Family satisfaction

3

5 x (3) = 15

5 x (3) = 15

3 x (3) = 15

Total Rating

80

88

50

Scoring:

High

5

Medium

3

Low

1

Selection of Preferred Alternative.

Based on the Criterion and Decision Matrix above. Alternative B ranked highest in score therefore is the preferred alternative.

Performance monitoring and post-evaluation

Use annual vacation days for critical activity to reduce lack of focus on other activities.

Own home in choice area of PH.

Perfect collateral in place for funds to sponsor family biz expansion.

Serious commitment to project and practical use as core project management competence development .

Borrow $2000 from spouse and colleagues and spread repayment coming months over salary. (To eliminate interest and bank charges).

As a financially up to date AACEI member; I’ll download all AACEI 2011 annual meeting transactions and prepare for 2012 annual meeting.

To create a monthly savings from this month end to cater for overseas vacation next summer.

References:

The memory jogger 2 ‘Tool for continuous improvement and effective planning by Michael Brassard and Diane Ritter – Second Edition 2010.

http://www.mindtools.com/

http://web2.concordia.ca/Quality/tools/10decision.pdf