Analysis of Cost Optimization Through Crane Quantity
1. Application of Scope, Schedule, Cost Modeling to:
Norbert Chang and Christopher Pickard
3/2/2016
OPEN SITE CONDITIONS
2. Take Home Messages - Results
Insight 1: Diminishing returns on days reduced for each additional crane
past 2 cranes
Insight 2: Level-by-level construction results in shorter schedule duration
and reduced subsequent cost
Insight 3: Economic tradeoffs for reduced project duration
3. Baseline vs Optimized Result Comparison
** bold metrics are in comparison to baseline
Criteria Baseline 1 – Crane 2 – Crane 3 – Crane 4 – Crane
Schedule
Duration
60.15 days
(including CIP Topping
& CIP Foundation)
48.42 days
-20% duration
vs baseline
30.28 days
-50% duration
vs baseline
24.34 days
-60% duration
vs baseline
22.36 days
-63% duration
vs baseline
Project Cost $8,231,268.39 $8,145,895.15
-1.04% cost vs
baseline
$8,236,504.85
+.06% cost vs
baseline
$8,321,867.74
+1.10% cost vs
baseline
$8,435,893.74
+2.49% cost vs
baseline
Cost per Day
Reduced
- $(7,278.20)
-.088% of total
baseline cost
$175.31
+.002% of total
baseline cost
$2,383.77
+.03% of total
baseline cost
$3,017.36
+.04% of total
baseline cost
4. Assumptions
Work Environment:
• Unlimited site access / laydown space
• Optimal weather conditions and site conditions
Schedule Durations:
• Same day grout curing
• Crane movement transition period negligible
• CIP topping slab can begin after 2 level delay
• Materials fabricated and delivered on-time
Costs:
• 1 time mobilization cost per crane and crew
• Direct costs/productivities remain constant
5. Initial Strategies
Level by Level Construction
Zone division
By Level – Vertical Zones (1, 2, 3, 4, 5, 6)
Within Level - Horizontal Zones (A, B, C, and D)
Construction Sequence
4 Primary Tasks
› Vertical Elements (Columns & Shearwalls)
› Horizontal Elements ( Spandrels & Beams)
› Deck Elements (Double and Single Tees)
› CIP Topping (Full level with 1 level duration delay)
Cranes
1, 2, 3, and 4 Crane scenario
› Constrained by Construction Sequence
7. BASELINE
1 CRANE
2 CRANE
3 CRANE
4 CRANE
60.15 days
53.43 days
33.14 days
36.05 days
32.13 days
6.27 days
-------------
-$85,373.24 Cost Reduction
(-$13,616.14 per day)
17.38 days
-------------
+$90,609.70 Cost Increase
($5,213.45 per day)
2.91 days
-------------
+$85,362.90 Cost Increase
($29,334.33 per day)
1.01 days
-------------
+$114,026 Cost Increase
($112,897.03 per day)
Schedule Durations vs Baseline
18. Take Home Messages Revisited
Insight 1: Diminishing returns on
days reduced for each additional
crane past 2 cranes
Insight 2: Level-by-level
construction results in shorter
schedule duration and reduced
subsequent cost
Insight 3: Economic tradeoffs for
reduced project duration with
additional cranes
20%
50%
60% 63%
0%
20%
40%
60%
80%
1 Crane 2 Crane 3 Crane 4 Crane
P R O J E C T D U R AT I O N R E D U C T I O N
V S B AS E L I N E
$8.23
$8.15$8.10
$8.20
$8.30
Baseline 1 Crane
Millions
T O T AL C O S T
60.15 48.42
0
50
100
Baseline 1 Crane
T O T AL D U R AT I O N S
( D AY S )
-1.04%
0.06%
1.10%
2.49%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
1 Crane 2 Crane 3 Crane 4 Crane
T O T AL P R O J E C T C O S T
I N C R E AS E V S B AS E L I N E
**Note: 1 crane shows decrease because of sequencing
switch from bill-boarding to level by level construction
19. Open Site Approach Overview Revisited
Criteria Baseline 1 – Crane 2 – Crane 3 – Crane 4 – Crane
Schedule
Duration
60.15 days
(including CIP Topping
& CIP Foundation)
48.42 days
-20% duration
vs baseline
30.28 days
-50% duration
vs baseline
24.34 days
-60% duration
vs baseline
22.36 days
-63% duration
vs baseline
Project Cost $8,231,268.39 $8,145,895.15
-1.04% cost vs
baseline
$8,236,504.85
+.06% cost vs
baseline
$8,321,867.74
+1.10% cost vs
baseline
$8,435,893.74
+2.49% cost vs
baseline
Cost per Day
Reduced
- $(7,278.20)
-.088% of total
baseline cost
$175.31
+.002% of total
baseline cost
$2,383.77
+.03% of total
baseline cost
$3,017.36
+.04% of total
baseline cost
** bold metrics are in comparison to baseline
20. Recommendations for the application of SSC Modeling
What would do the following again…
• Utilize LBS (location based scheduling)
• Consistency between scheduling and cost nomenclature /
categorization
• Adaptable tools / financial models
• Resource load schedule
What we would do the following differently…
• Encompass entire process from pre-fabrication to installation
• Taken into consideration more detailed crane logistics
• Indirect costs could be analyzed in greater detail
21. Main Personal Lessons Learned
Chris
• LBS / Pull Production System
• 4D modeling / sequencing
• CPM/ resource loaded scheduling
Norbert
• Quick hand analysis / sequencing in the beginning shortens schedule
creation duration
• Earned Value Analysis
• Variability Analysis
22. Appendix
Which of the course concepts did you use?
• LBS / Pull Production System
• 4D modeling / sequencing
• CPM/ resource loaded scheduling
Which of the course concepts do you wish you could have used?
• Pull Planning outside workflow
• Earned Value Analysis
• Variability Analysis