Process of Building Order

1
Lecture was elaborated with the help of grant
project of Ministry of Education, Youth and
Sports, FRVŠ n. 2005 Innovation of Subject
Financing of Building Order

• Process of Building Order

2
Financial Strategy of Building Order

• Planning of cash-flows and sources for their
  coverage in time, optimization of the balance
  between equity and other sources
• Factors influencing the way of financing of the
  order
• Condition agreed in the contract
• Number of sub-suppliers
• Number and the extent of realized orders in the
  same time period
• During the creation of the financial strategy of
  the order is also necessary to respect
• Time plan
• Harmonogram of works

3
Time Planning Methods

• Generally there are three methods of time
• planning
• Time harmonogram
• Milestones
• Network diagrams

4
Time Harmonogram

• Depending on the contract for work it determines
  the process of the building order form the time
  aspect
• Depending on the technical documentation of the
  building there are objectively and in time
  determined objects and activities, which are
  connected with technological and organizational
  bindings
• In the time harmonogram are defined milestones,
  which specify partial dates creating the deadline
  of the realization

5
Time Harmonogram and Milestones
Activities
Time

• Activities duration is displayed as a horizontal
  abscises
• Ends of abscise corresponds to a beginning term
  and finishing of the activity on the horizontal
  time axis
• Milestones time plan indicates key-activities on
  a project
• Project milestone is usually the important
  activity or time point during the building order
  realization

6
(No Transcript)
7
(No Transcript)
8
Network Diagrams

• We compose network diagram for time, costs and
  resources analysis
• Network analysis methods
• represent a plan of project activities
• make possible costs valuation of project
  activities by the sequential costs cumulating
  method according to the work flow on a project
• make possible to use all resources most
  economical
• ? Network diagram is a graphical model of the
  project, which represents the dependence among
  activities.

9
Basic Network Diagram Terminology

• Activities
• Network path
• Start node of the network diagram
• Finish node of the network diagram
• Arrow
• Separating node
• Merge node

10
Arrow Diagramming Method

• Arrow Diagramming Method represents
  Activities-on-Arrow (an activity name is
  displayed on an Arrow).
• Node in Arrow Diagramming Method represents Start
  and Finish of one ore more activities. A node
  doesnt pose any claim on time and resources.
• Arrow in Arrow Diagramming Method represents
  activity.

11
Basic Rules of the Connection of Particular
Activities
The activity S can be started after the activity
R
R
S
S
R
12
Basic Rules of the Connection of Particular
Activities

• The basic convention of the node realization
• Any node of Arrow Diagramming Method is realized
  only, when a realization of all activities, which
  end in the node, ends. This characteristic is
  called Conjunction of Node enter
• A realization of any node (except the end of
  Network diagram) means that the realization of
  all activities that begin in the node begins.
  This characteristic is called Determination of
  Node exit

13
Basic Targets in the Case of the Network Diagram
Making

• Maximum logic of the Network
• Good overview of activities and linkages
• Making easy of control and interpretation of the
  Network diagram
• A possibility of a division into phases at large
  Network diagrams

14
Phases of the Network Diagram Making

• Problem formulation
• Making of the first Network diagram
• Continuous formal adjustment

15
Problem Formulation

• The determination of the project targets and
  project drift
• PROJECT STRUCTURALIZATION
• The determination of project spread and details
  of dividing of the project into activities,
  definition of relations between activities
• PROJECT ORGANIZATION

16
Making of the First Network Diagram

• The first step is to create the work structure,
  the set of all activities of the project
• Either from the beginning We ask What is
  necessary to do further?
• Or from the end We ask What must be done
  before?
• First we must set the logical sequence of
  activities, which are in progress at the same
  time. Than we set all activities in the time
  sequence so, how they concur
• The logic of the Network, so the right setting of
  activities, is determined especially by
  technological and functional feasibility of
  bindings. Bindings can be
• Technological bindings
• Organizational bindings
• Time bindings
• We determine project milestones

17
Resources Analysis

• Allocation of the production forces (human
  resources) and other
• resources required for the realization of the
  activities in the time
• We distinguish following kinds of resources
• Human resources
• Material resources
• Technological resources
• Financial resources
• We talk especially about two kinds of resources
• Human resources
• (necessary for using the other resources)
• Financial resources
• (financial evaluation of the activity contains
  human, material and technological resources)

18
Resources Allocation

• There are two reasons, why it is necessary to
  deal with the allocation of
• the resources in the case of the project
  management
• Network diagram can show that there will be
  overmanning in the future period
• This information should call managers
  attention
• obtaining of new orders to be able to use the
  manpower surplus
• plan of the changing-over of this workers
• Network diagram can show, that several activities
  in progress can require the same resources at the
  same time
• we have to remake Network diagram in order that
  the project will not be delayed.
• we have to use the slack time (time reserves) of
  some activity if it exists (i.e. the activity is
  not on the critical way)

19
Special Characteristics of Particular Types of
Recourses Allocation

• The resource type workers
• Workers are set in integer that is corresponding
  to the number of the required workers
• The pumping of this resource is equally spread
  into the operating period of the activity
• That means, that every activity that takes 2
  weeks, than requires 5 workers. Every day work 5
  workers on realizations of the activity
• The resource type financial expenses.
• The financial expenses we can set by double way
• the financial expenses for the whole activity
• the financial expenses for the time unit of the
  activity

20
Mass Curve and its Analysis

• Mass curve
• the diagram that displays amount of particular
  type of resources (human resources or financial
  resources) needed in every time unit of the
  project

21
Methodology for Valuation of the Process of
Building Order

• System of management APO is based on cyclically
  realized analysis of fulfillment defined aims of
  the building construction
• APO differs 3 aim parameters
• Actual aim parameter A
• We suppose that construction will be realized
  directly according to the project documentation
  and valid contract
• Real costs for realized part calculation of
  costs for remaining part according to the valid
  project documentation and contract
• Probable aim parameter P
• Includes improvement in the area of costs, which
  we consider to be possible (high degree of
  certainty), if the building is realized according
  to the contract, in this aspect is improved aim
  parameter P compared to A
• Real costs of realized part calculation of
  costs for remaining part including accepted
  operations for their improvement
• Optimal aim parameter O
• In the area of revenues exists the supposition
  that all possible improvements will be realized
  in the frame of valid norms, in the area of costs
  all possible reductions are also supposed
• Real costs of realized part calculation of
  costs for remaining part including accepted
  operation for their improvement possibilities
  of increasing of the efficiency beyond valid
  project documentation