Scheduling

Why Expert Planning and Scheduling Resources Matter

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Why Expert Planning and Scheduling Resources Matter

At Humphreys & Associates, conducting a requirements analysis of a contractor’s current integrated program management or earned value management (EVM) practices is one of our most frequently requested services. We are also the “911” call that contractors make when they need to quickly solve an Earned Value Management System (EVMS) compliance issue. When we reviewed our findings and observations from the past year, a common issue that stood out was the lack of sufficient scheduling expertise.

As many project managers, project control teams, and control account managers (CAMs) recognize, a well-planned and constructed schedule provides a model of when work will be performed and what resources are required to perform the work. A well-planned and constructed schedule must be realistic, challenging, and achievable, and be based on a well-thought-out execution plan. It also provides an overall view of performance to date and displays the forecast schedule for remaining work.

Equally important, a well-planned and constructed schedule becomes the principal communication tool for the project team. It shows when major events are planned to occur as well as the completion dates for all activities preceding them along with the resources required to support the scheduled activities. Ensuring resources are available to execute the schedule and performing a schedule risk assessment (SRA) also help to ensure the schedule is realistic and achievable.

A well-constructed and maintained schedule facilitates project performance analysis and to assess how changes affect project objectives. It provides an early warning of potential issues for effective and timely management corrective action.

Scheduling Best Practice Guidance

Several industry and government documents discuss scheduling principles and best practices for major projects within the US Federal Government acquisition environment. Two frequently referenced documents include the National Defense Industrial Association (NDIA) Integrated Program Management Division (IPMD) Planning and Scheduling Excellence Guide (PASEG) and the Government Accountability Office (GAO) Schedule Assessment Guide: Best Practices for Project Schedules. These guides define what is considered a “good schedule.”

Some of our recent blogs have highlighted the nuances of producing a well-constructed integrated master schedule (IMS) that reflects the work to be performed and communicates that plan to everyone on the project. This includes Improving Integrated Master Schedule (IMS) Task Duration Estimates, Including Level of Effort (LOE) in the Integrated Master Schedule (IMS), and Establishing Milestones in the Integrated Master Schedule (IMS) Appropriately.

What’s the Problem?

A project’s integrated master schedule (IMS) is only as good as the team that built it and the master planner/scheduler that assembled it. Scheduling is a combination of art, science, and discipline. A master planner/scheduler ensures there is clear communication on what needs to be done when along with defining how to handle day-to-day issues. They translate all of the inputs and organize the puzzle pieces into a coherent road map for the entire project team to understand and to use. The experience and schedule maturity level of the planner/scheduler is a key ingredient.

When our earned value consultants identify issues with the construction or content of an IMS, a common discovery was that the client’s scheduling team needed help with basic scheduling techniques.

Here is a sample of common findings in the past year where the client’s scheduling team and/or the master planner/scheduler, could not provide satisfactory answers to schedules under review. They needed more mature scheduling expertise.

  • Invalid critical path. The team could not display the critical path from “time now” through the end of the project. When asked to push an activity on the critical path by 300 days, they could not explain why the successor activities and end date did not move by the same 300 days.
  • Lacked awareness of the scope of work. During scheduling reviews, we ask the team how they know all requirements have been accounted for in the IMS. A common response is they rely on the individual CAMs to identify their scope of work requirements. In many instances, the entire team did not read the required contractual documents such as the statement of work, systems engineering management plan, CDRL requirements (DIDs), or the program management plan that affects them. Some did not understand the work breakdown structure (WBS) or the purpose of the WBS and how important it is for integration with the cost tool.
  • Improper baseline management. We have found that team members and/or the planner/scheduler simply insert the new baseline dates instead of updating the baseline task by task. A separate baseline IMS file should be maintained monthly and approved baseline changes should be incorporated into the revised baseline IMS, and then updated in the current IMS file.
  • Change management was lacking. The team could not explain or identify the changes incorporated into the IMS. Many planners/schedulers do not realize they are the “historians” for the project. The planner/scheduler should understand the impact of every change order or delay on the schedule. A big part of this is documenting who (customer or project team) caused the delay or whether it was caused by both parties. All changes during a reporting period should be assessed for delays and documented in the monthly schedule status report. If a change order causes a delay, it must be documented in the monthly report. Why is this important? Project records should document what and who caused the delay.
  • Ah-hoc integration of major procurement items and subcontract management. Without a documented approach for how material is incorporated into the IMS, it can be a daunting task to identify impacts when delays occur. The planner/scheduler should understand how purchase order line items are structured and should include tasks for each within the IMS. For subcontracts that have EVM and IMS requirements, it is important that the subcontractor’s schedule is modeled within the IMS at the appropriate level of detail. As a result, delays can be clearly demonstrated.

Meeting the Challenge

Planning and scheduling are critical to the success of all projects. Having a strategy to develop competent planners/schedulers ensures you have the resources with the necessary creative talent, skill set, discipline, and communication skills needed to produce quality schedules. Strategies to help scheduling personnel to improve their level of expertise include:

  • Establishing a corporate training program for planners/schedulers. This could be an internal set of courses or public training courses could be leveraged as part of that training program. The goal is to ensure the planners/schedulers and other project team members have the knowledge base to successfully develop and maintain schedules for your business environment. H&A offers a range of project scheduling training workshops that can help schedulers to implement industry best practices in an EVM environment tailored to common tools such as Microsoft Project (MSP) or Primavera P6. These workshops include hands-on exercises that help the students learn how to apply what they are learning in a real-world environment.
  • Hands-on mentoring. Our clients are often aware of the limitations of their scheduling personnel particularly when it comes to incorporating more advanced scheduling techniques such as SRAs. H&A provides planning/scheduling and risk management subject matter experts (SMEs) to help clients establish a repeatable process as well as to conduct a series of hands-on workshops with the client’s project planners/schedulers. These workshops help them to gain the experience they need to routinely conduct SRAs, to use the schedule and risk tool outputs wisely, and to use that information to produce more realistic schedules.
  • Producing schedule procedures or guidance to ensure the scheduling team is following a consistent repeatable process. Consistency helps to ensure that project personnel have the necessary knowledge base to develop and maintain an IMS in an EVM environment. This includes integrating the IMS with the cost tool as well as other systems such as an M/ERP system in production environments or integrating subcontractor scheduling data.

In situations where it is necessary to bring in outside scheduling personnel to supplement a project team, it is important to verify the scheduler’s skill set and level of expertise in an EVM environment. Just because someone states they know how to use a given scheduling tool it doesn’t mean they know how to plan and schedule. The company you choose to support you matters.

H&A routinely provides expert scheduling staff augmentation services for clients that need to fill short or long term planning/scheduling resource needs. Some clients need surge support to develop a baseline schedule for a new contract award and/or to get them through the initial work definition and planning process. H&A planners/schedulers frequently help project teams to establish and execute the weekly or monthly business rhythm until the client’s project control team is ready to take over.

Another common request is for H&A master planner/scheduler hands-on expertise to resolve a variety of schedule issues. H&A planners/schedulers often provide one-on-one mentoring to client project personnel to work through perceived or identified deficiencies. This can range from helping to configure the scheduling tool appropriately, teaching how to use the software effectively, and showing how to fix schedule construction issues as well as establishing a disciplined process that improves the quality of the schedule.

We know the planning/scheduling resources we provide to clients have the necessary level of planning, scheduling, and EVM expertise. The people we hire are required to complete a scheduling exam to verify their knowledge level; they are also known resources that other H&A consultants have worked with.

Interested in learning more? 

Whether you need training, hands-on mentoring, or staff augmentation, H&A has the support services and solutions to fit your needs. Call us today at (714) 685-1730 to get started.

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Using Schedule Margin to Increase the Accuracy of Forecast Completion Dates

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Header Image with geometric background that says Schedule Margin - Increase the Accuracy of Forecast Completion Dates

As part of our project scheduling workshops, hands-on Oracle Primavera P6 or Microsoft Project (MSP) workshops, or scheduling support assignments, we often assist clients with establishing their scheduling best practices. One of the techniques we cover in our EVM training workshops or help incorporate into our client’s scheduling process and procedures is the use of schedule margin as a means to handle schedule risks on a project. The proper use of schedule margin as well as making it a part of a project’s risk and opportunity management process can help to increase the accuracy of an integrated master schedule (IMS) to forecast milestone or project completion dates. 

What is Schedule Margin?

The NDIA Planning and Scheduling Excellence Guide (PASEG) Version 4.0 dated August 2019, defines schedule margin as “an optional technique used for insight and management of schedule risks.” Schedule margin is a period of time that is identified in the project’s plan for risk mitigation where an internal target date is set prior to a commitment date such a major project milestone or deliverable. Schedule margin is a defined task in the integrated master schedule (IMS) with logic ties (the immediate predecessor task) to a project finish milestone or intermediate decision point/milestone.

The placement and duration of the schedule margin task is based on a risk management assessment that may include a probabilistic three-point Schedule Risk Assessment (SRA). It may also be driven by schedule incentives, stakeholders needs, subcontractor interfaces, customer provided inputs, tightening of range estimates to single point estimates, or other influences.  

Some have described schedule margin as management reserve for time. A simple example would be scheduling your drive to work. Should you easily get through the traffic lights and there are no issues, you can usually make it in 30 minutes. However, because of the “risks” associated with hitting more red lights and other issues, coupled with the penalty of being late, you might plan for the trip to take 45 minutes. Those additional 15 minutes are your schedule margin.

Note however, schedule margin is not a space filler to hide positive float, a schedule stash to cover slippage, or a method used to hold an event’s date. It is a way to incorporate risk into the schedule and improve the forecast accuracy. Some government customers have refined the definition and usage of schedule margin which can impact how you incorporate schedule margin in a given project’s IMS. We will address a couple of specific government customer requirements below.

Applying the Schedule Margin Technique

The customer and contractor project manager both have a vested interest in establishing and using schedule margin. During the development of the project’s requirements definition and planning, the customer will establish need dates. Based on these need dates, target dates for key decision points/milestones are established based on an assessment of risks and constraints. Depending on the complexity, life cycle phase, and risk, the targets may be stated as a single date or range of dates. These targets are provided in the request for proposal or as guidance to the internal project team. The contractor creates a plan and estimate based on their proposal process that includes a risk management assessment. The risks that impact the ability to achieve the target dates are included in the assessment and schedule margin tasks are identified as needed.

Upon award, the contractor creates a baseline IMS with defined schedule margin tasks. These schedule margin tasks are identified as schedule visibility tasks (SVTs) within the IMS. These SVTs are usually placed immediately prior to the decision point/milestone or project finish milestone. The schedule margin SVTs do not have associated resources, they represent a time reserve. Each SVT should be clearly labeled as Schedule Margin and defined. There should be linkage and traceability between the schedule margin SVTs and the risk management plan. The customer may also identify additional schedule margin beyond the contractor’s project target dates to reflect risk to the customer need dates.

As work progresses on the project, the assessment of risks and impact to schedule margin are evaluated. Performance is measured against the baseline targets and forecasts are provided. The risk management plan is also assessed, and mitigations adjusted as needed. These assessments provide input into determining whether the schedule margin requires an updated forecast. Any changes or consumption of the schedule margin should be documented and communicated.

Specific Contracting Requirements

Know your customer’s requirements! Customers may have specific requirements related to the creation, management, and reporting of the IMS. Within the IMS requirements, the customer may have included specific guidance for the use of schedule margin. Be sure you have considered all contract clauses, data item descriptions, and statement of work requirements when planning the project. Views into the Department of Defense (DoD) and Department of Energy (DOE) schedule margin requirements are provided below. Note: we are focusing on schedule margin for this discussion and purposely avoiding other IMS related topics.

Use of Schedule Margin on DoD Contracts

Schedule margin is an optional technique used for insight and management of schedule risks. It is represented by a task or tasks within the IMS with no assigned resources and is established as part of the baseline. In a DoD contractual environment, schedule margin:

  • Resides in both the baseline and forecast schedules.
  • Should be under the control of the contractor’s project manager.
  • Is only placed as the last task before key contractual events, significant logical integration/test milestones, end item deliverables, or contract completion.
  • Is associated with schedule risk as part of a formal risk management plan.

The duration of the schedule margin task should be based on risk in subsequent events and traceable to the risk management plan. Schedule margin may be directly or indirectly connected to discrete predecessor and successor activities and fall on critical paths. All schedule margin tasks should be clearly and consistently identifiable. Schedule margin tasks should be excluded (zero duration) when performing a Schedule Risk Assessment (SRA).

Significant changes to the status of schedule margin tasks and impacts to the project’s primary critical path, if any, should be discussed in the Integrated Program Management Report (IPMR) Format 5 or the Integrated Program Management Data and Analysis (IPMDAR) Performance Narrative Report.

Figure 1 is a conceptual diagram of applying a schedule margin task before the Preliminary Design Review (PDR) milestone.

Example of a Schedule Margin Task Before a Major Milestone
Figure 1: Example of a Schedule Margin Task Before a Major Milestone

Use of Schedule Margin on DOE Contracts

The DOE has provided more specific definitions for schedule margin. They have also defined the use of DOE owned schedule contingency to buffer the schedule against unforeseen events that could cause a delay. This is documented in the DOE Guide 413.3-24 for Planning and Scheduling.

The contractor is responsible for managing their schedule margin. It resides as a single task just prior to the contractor’s project completion milestone. The DOE program office is responsible for managing schedule contingency. Schedule contingency resides after the contractor’s project completion milestone and just prior to the Critical Decision (CD) 4 milestone (Approve Start of Operations or Project Completion).

The contractor’s schedule margin and the DOE schedule contingency are both established in conjunction with CD-2 (Approve Performance Baseline), but updates may occur in conjunction with changes. The schedule margin is set commensurate with the schedule risk calculated at a probability level typically between 70 and 90 percent. The SRA accounts for risk events assigned to the contractor and contractor activity duration uncertainty. Activity duration uncertainty is determined either through a three-point duration estimate or by confidence level (high, medium, or low).

Similar to schedule margin, the DOE owned schedule contingency is set commensurate with the schedule risk calculated at a probability level typically between 70 and 90 percent. This SRA accounts for risk events assigned to DOE and DOE activity duration uncertainty.

The IMS may depict these activities as SVTs. Figure 2 is a conceptual diagram that shows the application of the schedule margin task before the contractor’s completion milestone and the DOE schedule contingency before the project finish milestone.

Example of a Schedule Margin Task and DOE Schedule Contingency Task
Figure 2: Example of a Schedule Margin Task and DOE Schedule Contingency Task

Interested in incorporating the schedule margin technique into your scheduling best practices? Call us today at (714) 685-1730. We have experienced master schedulers familiar with a variety of scheduling tools that can help you incorporate industry best practices into your scheduling process and procedures. They also well versed in applying schedule risk analysis techniques that complements incorporating schedule margin tasks into an IMS.

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Risk Analysis and Selective Controls

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This chapter looks at how risk is evaluated when developing an Earned Value Management System.

Video Contents

You can use the links below to jump to a specific part of the video.
0:00 – A Closer Look at Risk
0:25 – Risk Drives Other Concerns
0:59 – Types of Risk
1:19 – Risk Opportunities
1:38 – Risk Analysis and Selective Controls
1:54 – Balance Cost with Benefit

More EVMS Training

If you liked this video you can purchase the entire course below. This video is an excerpt from the Department of Defense (DOD) version of this eLearning module. We also offer the same course customized for the Department of Energy’s (DOE) specific Earned Value Management (EVM) implementation/requirements, as well as a version of the course customized for NASA’s EVM implementation/requirements.  

— Purchase This Course —
EVMS DOD Virtual Learning Lab

— Purchase the DOE Version of this Course —
EVMS DOE Virtual Learning Lab

— Purchase the NASA Version of this Course —
EVMS NASA Virtual Learning Lab

EVMS Document Matrix

Not sure what the different requirements are between the DOE and NASA? Can’t remember if Cost and Software Data Reporting (CSDR) is required for an NSA contract? Check out our easy to read Earned Value Management Systems Document Matrix

All Online Courses

All Online Courses Available from Humphreys & Associates

Earned Value Training

Other Posts in this Series

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Video Release – Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 2 of 2

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The conclusion of our review of the foundational elements of performing a schedule risk assessment (SRA) using Acumen Risk 6.1

0:17 – Risk Exposure Chart
1:03 – Tornado Chart
2:14 – Parting Thoughts

Read the blog post at:

Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 2 of 2

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Video Release – Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 1 of 2

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How confident are you that your project will finish on time? Review the foundational elements of performing a schedule risk assessment (SRA) using Acumen Risk 6.1

2:22 – Schedule Health Diagnostics
4:55 – Duration Uncertainty
6:35 – Risk Events
8:20 – Simulation Process
 
Read the blog post at:

Assessing Schedule Risk Using Deltek’s Acumen Risk 6.1 | Part 1 of 2

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Project Management: Earned Value Consulting; Could You Use Some?

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Failed Projects

A recent article discussed the results of a survey on the reasons that projects failed. The definition of failure was that the project was abandoned. Abandonment does not occur frequently in the world of government projects; especially defense projects where there should be strong “must have” needs driving the project. These projects tend to persist until completed even though the outcomes are not satisfactory. But there is a lot to learn from the list of reasons for failure.

Of the sixteen reasons listed, the top four had to do with changes to the environment that had given rise to the project. For example, changes in the company priorities was the most often cited reason for abandonment. In that same vein were issues with changing objectives and inaccurate definition of requirements. These types of failures are not topics for this blog since they do not immediately involve execution of the project.

Execution Problems

Lower on the list of those environment related reasons for failure were the ones more related to execution problems. These are of significant interest to a project management using an earned value consulting company such as Humphreys & Associates (H&A). These reasons related more to issues of poor project management that could have been corrected. In this area were reasons like “poor change management,” “inaccurate cost estimates,” “inaccurate time estimates,” and “inexperienced project management.”

The answers given in a survey situation depend very much on the mindset of the person responding. Is the reason really “inaccurate cost estimates” or should it have been “failure to execute to the estimate”? How many times have you seen a problem in execution “swept under the carpet” as being an inaccurate estimate or plan? One of these two answers points to the estimating system and process while the other points to project management. The estimates were generated; and, at some point, they were deemed to be sufficiently detailed to launch the project. If a scrubbed and blessed estimate is “inaccurate” that would still be a failure of project management. If the problem were really a failure to execute, then how easy would it be to blame the problem on poor estimates? This blog will discuss the cited failures as if they were execution failures.

Earned Value Management (EVM) Consultant Specialists

There are situations in life where the need for specialized advice is common and well accepted by us all. When your doctor is unsure of the medical issues, the doctor will send you to a specialist. The reason is obvious. The specialist has learned so much more about a specific problem and has so much experience diagnosing and treating the problem that it would be foolish not to secure the services of that specialist. In fact, it might be malpractice. A project management consultant can be thought of much like a medical specialist.

There are similar situations in business where the need for specialized knowledge is critical. Large companies tend to have in-house legal departments to cover the day-to-day legal issues and tasks that are central to their businesses. However, the need to go to outside counsel for large or unusual issues is accepted. Companies do not hesitate to engage the services of outside law firms to help them through troubled times. Project management consultants are like outside counsel.

What if there were a project management or earned value management situation you have never encountered before? A good example would be the times that H&A has been called in to help clients navigate the unhappy circumstances of needing to go over-target. Going through the over-target-baseline (OTB) or over-target-schedule (OTS) process is not a common experience. It is a tense time when careers can be on the line and the company reputation might also be at risk. It takes specialized knowledge to get it right. In some cases, it even takes the objective view of an outsider to help make the right decisions.

Specialized Knowledge

Another example of specialized knowledge being crucial is when the customer has deemed some issue on the project to be deficient. In some situations, a customer’s Corrective Action Request (CAR) can result in cost penalties and damaged reputations; possibly even worse consequences could result. Engaging the services of an EVM consultant with experience in identifying problems, building Corrective Action Plans (CAP)s, and leading or helping implementing the corrective actions is often a valuable and necessary action. Ask yourself how smart it would be to assume that those who were involved in causing the issue would be capable of creating a satisfactory solution.

These scenarios are aligned with the idea of project management consulting being something you only need in a crisis. There are other non-crisis needs for specialized support. Often H&A is engaged simply to help a client prepare a proposal. A proposal situation puts heavy demands on the company staffing levels and can require areas of specialized knowledge not available in the company. What if the company has never created a fully compliant Integrated Master Schedule (IMS) and they could use help the first time? What if there are not enough trained and experienced schedulers to work on the proposal? What if the company does not have a documented project management system?

Make or Break Opportunities

Projects can be huge and risky. They can be make-or-break opportunities to a company. Where so much can depend on good project management, smart companies recognize the need for an outside opinion and outside talent. Just like the internal legal department, the internal project management group sometimes needs to call on outside subject matter experts. While it might be obvious, let’s look at some reasons why this is true.

There are more ordinary everyday reasons to engage a project management consultant. Perhaps an organization just managed to win a new project bigger than any they have won before. In this case, they may not be ready to handle the project in terms of experience, systems, and even just talented headcount. A project management consulting company such as H&A can bring solutions to your earned value woes. It can also provide temporary training staff to get things going until the client is ready to take over.

Poor Communication

Let’s get back to the survey of reasons that projects failed. Are there issues on the list where project management consulting could have made a difference? Imagine an improved project management process and staff after a period of consulting to support creating or improving systems and training personnel?

The fifth most frequent reason for failure is “poor communication.” A good project management system with trained personnel is all about communication. Communication of plans, communication of progress, communication of issues, and communication of corrective actions are all actions required in a project management system. Quite often the problem of “poor change management,” cited as the sixth most common reason for failure, is reduced or eliminated after using the consulting services of a specialist?

What about the twelfth cited problem of “inadequate resource forecasting”? Would a well built and maintained resource-loaded Integrated Master Schedule (IMS) go a long way in providing forecasts of resource needs and the impacts of not having the resources? In fact, a proper IMS would help with several of the cited reasons for failure, such as inaccurate duration estimates. In fact, the application of a process, such as Schedule Risk Analysis (SRA), with the help of an experienced consultant can identify such issues in advance while there is still time to take action.

Earned Value Training

Disregarding the threat of failure as a motivator, the need for constant improvement should be enough reason to consider a project management consultant. We can all laugh at the time-worn clichés of “not-invented-here” or “we’ve never done it that way;” however, these are clichés for a reason. There is resistance to outside help and there is resistance to change. But outside help can be a great logjam breaker. An experienced and knowledgeable consultant can be your voice when you need someone who has, to use another cliché, “been there and done that.”

In fact, our consultants can laugh when they say they have “been there” and they have more than a T-shirt to prove it.

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