21045816

CONSULTING
Client Project Closure & Reflection

Optimization of Project Schedule using

Critical Path Delay Analysis Method

Presented by: Precious Okoro

Client: JMK Construction Limited

Supervised by: Sue Davis

September 2023
Content

• Project Background and Executive Summary

• Recommended Solution (Test Plan, Criteria, Evaluation, Monitoring, Adjustments)

• Data Insights

• Next Steps Recommended to Client

• Client feedback

• Key Lessons Learnt

• Personal Reflection

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Executive Summary
JMK Construction experienced a cumulative average of 127% delay rate and 63% cost overrun across 5 projects.
How can this be mitigated?

Discussion: Main Causes of Project Delay and Cost Overruns Solution: Optimize the project schedule using the Critical
Path Method (CPM)
Over the past decade, JMK Construction has encountered an average delay 85% of project managers use the CPM to optimize project schedules and
rate of 127% and a mean project cost overrun of 63% across five (5) 67% of the construction workers claim that the CPM is very effective in
projects. Subsequent business analysis revealed that the primary reasons optimizing project schedules while 20% claim it is moderately effective.
for these issues were inefficient project scheduling and cost allocation
practices. What solution can they adopt to reduce project delay and Optimizing JMK Construction project schedule through the implementation of the
optimize project cost? CPM could help identify the most critical activities in a project, allowing for better
resource allocation and scheduling.

Fig.1: Delay Rate and Cost Overrun of JMK Construction Fig. 2: Effectiveness of the CPM in Optimizing Project
Projects (2006 to 2022) Schedule
67%
61% Very Effective 67%
50% 53%
42%
30%
20% Moderately Effective 20%
15% 17% 20%

Project 1 Project 2 Project 3 Project 4 Project 5

No Idea 13.33%
2006 2018 2019 2020 2022

Delay Rate Cost Overrun

Source: JMK Construction, 2023 Source: 21045816 Consulting Survey , 2023

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About JMK Construction

JMK Construction is committed to resolving the challenge of project delays and cost overruns

FOUNDED LOCATION

JMK Construction was incorporated on 6th It has its head office in FCT Abuja, Nigeria.
January 2000. Branches across different parts of Nigeria
including Akwa Ibom, Kwara, Abia, and
Rivers States.

AREA OF SPECIALIZATION COMPANY SIZE

The company specializes in road, bridge, The is estimated to be worth ₦20 Billion
and drainage systems construction. (~£21 Million) and employs over 600 people
nationwide

CURRENT STATE KEY CHALLENGES

• Poor Data Management • Project Delays and

• Manual Documentation • Cost Overruns
• Outdated Scheduling System

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Tasks Carried Out

Scope Definition
1 A comprehensive assessment of the client’s need was conducted
focusing on project delay and cost optimization

Business Analysis & Literature Review

2 A current state analysis of the business revealed inefficient project
scheduling and cost allocation practices as the primary cause of
project delay.

Solution Recommendation and Testing

3 Based on research of industry best practices, CPM scheduling was
recommended, and its viability was tested through a survey

Next Steps
4 strategic recommendations were provided for JMK Construction
implementation.

7 Months

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Key Insights
Fig.3: Delay and Cost Overrun by Project Size from 2018 to Fig.4: Sample Cost Allocation for a 14km Road Project in
2022 2020
35 80%
1090
30
30 70%
67%
61% 60%
25
53%
50%
20 53% of JMK
42% Construction
40% project cost is 578.00
15 13.6 allocated to
12 30% Public relations
10
10
20% 20%
17%
5 10%
8%
46.80 50.40 54.54 57.60
0 0% 0%
01/01/2018 01/01/2019 01/01/2020 01/01/2021 01/01/2022
Labourers Artisans Manchine Project Public Relations Total
Project Size (Km) % Delay of Project % Cost Overrun Operators Supervisors

Source: JMK Construction, 2023 Source: JMK Construction, 2023

67% In 2019, the company

recorded a 67% delay and
#4 Four of the company’s
projects concurrently running
are experiencing delay and
53%
Project
53% of the company cost
per project was allocated
Delay No of
a cost overrun of 53%. cost overrun cost
to Public relations.
Ratio projects

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Recommended Solution
Optimization of JMK Construction Project Schedule using Critical Path Method

Define (D) Measure (M) Analyze (A) Improve (I) Control (C)

What problem would you What is the magnitude of What is causing the How will the root causes How do you sustain the
like to fix? the problem? problem? of the problem be fixed? improvement?

Problem: Project Exploratory Manual

Optimize JMK
delays and Cost Analysis of the scheduling
Construction
overrun primary data process.
Project Schedule
Business Case: revealed an Develop a
to enable
Improve average delay Hypothesis: Monitoring Plan to
identification of
productivity rate of 127% and poor scheduling track the success
critical tasks and
Goal: Reduce an average causes delays
delay prediction
delay rate and project cost and cost
to aid planning.
optimize cost overrun of 63% overruns.

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Recommended Solution cont’d
Optimization of JMK Construction Project Schedule using Critical Path Method

How the Solution Addresses the Issue at JMK Construction:

❑ The issue presented is project delays leading to cost overruns.

❑ To mitigate project delays, it is best to identify activities that

could cause potential delays

❑ The CPM utilizes a defined algorithm to categorize activities of

the project as critical and non-critical determining the earliest
and latest time when each activity can be started without
delaying a project. (Shobirin, 2021).

❑ This solution will help JMK Construction identify potential delays

in advance to take proactive measures to address them
(Aboelmagd, 2020; Rezakhani, 2022)

Fig. 5: Critical Path Diagram showing the earliest and latest start time (Seth,
2020)

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Solution Testing Plan

❑ Survey
Test Tool

❑ Determine the Effectiveness of the Critical Path Model (CPM) Scheduling on Timely
Objective
Delivery of Construction Projects

Test Steps Survey Data Cleaning

Insight and
Pilot Test Distribution recommendati
Formulation and Analysis
on

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Survey Insights

Fig.6: Possible Solutions to Construction Delays

Applying project optimization techniques (such as

Critical Path Model, CPM, Simulation-Model) 86%

Scheduling contractors in advance 83%

Assigning clear and comprehensive roles and

responsibilities from the start of the project 82% From the six (6) possible
solutions investigated in the
Using construction project management software to survey, Applying project
streamline project plans 81%
optimization techniques ranked
the highest with a score of 86%
Establishing clear and consistent communication
among all parties 78%

Ensuring the early purchase are done to address

material price appreciation/increase 77%

Source: 21045816 Consulting Survey , 2023

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Survey Insights
Fig.7: Effectiveness of the CPM in Optimizing Project Fig.8: Percentage Utilization of CPM
Schedule
88.89%

Very Effective 67%

Moderately Effective 20%

No Idea 13.33% 5.56% 5.56%

Maybe No Yes
Source: 21045816 Consulting Survey , 2023 Source: 21045816 Consulting Survey , 2023

67% of the construction workers claim that the CPM 88.9% of respondents confirmed that they apply
is very effective in optimizing project schedules project optimization techniques during the planning
while 20% claim it is moderately effective. phase

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Solution Selection Matrix
Required Decision: Selecting a Project Scheduling Optimization Technique/Model.

Rank each 5 4 3 2 1
technique with a
score out of 5 Ideal offerings, exceeds Above-Average offerings, Acceptable Offerings, meets Below-average offerings, fail Unacceptable offerings, fails
criteria exceeds criteria criteria to meet criteria to meet criteria

SIMULATION
Weighted Decision Matrix MODEL
CCPM PERT CPM

CRITERIA WEIGHTAGE RATING TOTAL RATING TOTAL RATING TOTAL RATING TOTAL

IDENTIFICATION OF DELAY-CAUSING TASKS 5 1 1.25 2 2.50 5 6.25 5 6.25

COST EFFECTIVENESS 4 3 3.00 1 1.00 2 2.00 4 4.00
TIME TO IMPLEMENT 3 2 1.50 1 0.75 2 1.50 3 2.25
EASY TO MAINTAIN 4 1 1.00 3 3.00 2 2.00 3 3.00
EASE OF USE 3 1 0.75 4 3.00 3 2.25 3 2.25
EFFECTIVENESS IN RECOMMENDING
4 2 2.00 1 1.00 3 3.00 4 4.00
CORRECTIVE ACTION

TOTAL TOTAL TOTAL TOTAL

MILESTONE
max GANTT CHART PERT CPM
CHART

23.00 9.50 11.25 17.00 21.75

Outcome: CPM is the scheduling technique that best accommodates all the required criteria with strong scores in the identification of delay-causing tasks and
cost-effectiveness. It will be selected as the solution to integrate with the client business

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Solution Evaluation and Monitoring

Solution Goal Evaluation Monitoring

• Was the model able to
• Predicting project predict the minimum
outcomes in terms of expected duration and
project completion cost of the project?
time and cost • Was it successful for me ▪ Real-time tracking
to identify the critical
▪ Integrate CPM in the of progress
• Identification of Delay- activities using the CPM
Project Scheduling
Causing Tasks model? ▪ Regular Reporting
• Was the delay rate of ▪ Feedback system
• Minimize delay and the project significantly
Efficient Resource minimized using the
Allocation CPM and cost allocated
efficiently?

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Solution Adjustments, Amendments & Recommendation

ADJUSTMENTS / AMENDMENTS

❖ Tasks Segmentation
❖ Estimated Project Completion Time
❖ Budget/Cost Allocation

RECOMMENDATIONS

❖ Segment tasks into phases for ease of computation

❖ Adjust the project schedule by including a buffer (thirty to sixty days) to accommodate
any unforeseen delays (Anderson et al, 2012).
❖ Adjust the budget to reflect all project costs in order not to run at a financial loss.

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Next Steps Recommended to Client

Integrate Critical Path Model in Project Schedule

01
• To identify the most critical activities, allowing for better resource allocation and scheduling.

Invest in Project Management Software tools such as Primevera

02
• For efficient communication, to track progress, identify bottlenecks, and manage resources efficiently.

Training
03
• Consider training key staff in CPM principles to effectively apply them in project planning and execution

Streamline processes
04 • Streamline processes such as approval and testing processes by working
closely with local authorities to expedite some tasks.

Integrate contingency planning

05 Develop contingency plans for critical tasks and have predefined
actions ready to mitigate delays in case they materialize.

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Conclusion

The problem of project delays in JMK Construction

can be overcome by using the Critical Path Method
(CPM) as it allows for facilitating time estimation and
cost optimization.

Additionally, the implementation of the Critical Path

Method (CPM) will improve project scheduling and
resource allocation, contributing to overall efficiency
and profitability.

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Client feedback

I was fascinated by the insights provided by the

business analysis that showed how much we
spend on Public Relations. Additionally, the
consultant was extremely professional and
communicated efficiently. She understood the
needs of the company and proffered practicable
solutions to mitigate project delays and
enhance efficiency.

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Key Lessons Learnt

Effective Data Time Industry

planning Management Management Knowledge

The level of planning It is crucial to compile, organize, Staying up-to-date on trends

It is essential to manage time
determines the outcome. and store data in a single folder and developments in your field
effectively in order to complete
Create a detailed plan and for ease of reference. Backing is crucial for offering clients the
tasks within the given timeframe.
ensure tasks are executed up data is also important. best guidance.
accordingly

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Personal Reflection

I started this project confused, not knowing exactly

what to do…
While the first blog post was relatively
straightforward, the subsequent one required
more specialized knowledge and skills.

UNIVERSITY OF HERTFORDSHIRE | Thursday, 07 September 2023 | 19

References
• Ahmed, F., (2018) Impact of Critical Path Method (CPM) Of Scheduling on On-Time Completion Of Transportation Projects
(Doctoral dissertation, University of South Carolina). [Online] Available at:
https://scholarcommons.sc.edu/cgi/viewcontent.cgi?article=5579&context=etd [Accessed: 03 July 2023].
• Al-Keim, A., (2017). Strategies to reduce cost overruns and schedule delays in construction projects (Doctoral dissertation,
Walden University). [Online] Available at:
https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?article=5866&context=dissertations [Accessed: 03 September
2023].
• Anderson, D.R. (D.R. et al. (2017) An introduction to management science: quantitative approaches to decision making.
Third. Andover: Cengage Learning.
• GoLeanSixSigma (2023) DMAIC – The 5 Phases of Lean Six Sigma [Online] Available at:
https://goleansixsigma.com/dmaic-five-basic-phases-of-lean-six-sigma/ [Accessed: 03 September 2023].
• JMK Construction (2023) Email from Deputy Manager. 15 February 2023.
• Seth, A., (2020) What is Critical Path Method? [Online] Available at: https://pmtips.xyz/2020/06/28/what-is-critical-path-
method/ [Accessed: 03 September 2023].
• Syahputri, K., Mukhlidani, P., Sari, R.M. and Rizkya, I. (2020) ‘Optimization of Sei Wampu Dam Project Schedule Using
Critical Path Method’, IOP Conference Series: Materials Science and Engineering, 851(1), p. 12054. [Online] Available at:
https://go.exlibris.link/bF6BPbG6 [Accessed: 03 September 2023].

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