67-~.

SPATSAElDCONSTRUCTION
COSTCONTROL

Hobert Smith
Chief SPATSEngineer, Planning
The H. K. Ferguson Company, Inc.
One Erieview Plaza
Cleveland, Ohio till&

Presented At

AMERICANASSOCIATIONOF COSTENGINEERS
LlTH~TIONdL~TING,CLEVELAND,OHIO
JULY 10-12, 1967

- 203 -
The need for an effective method of eontrolling non-
repetitive operations, such as those which typify the
construction industry, has long been apparent. Devel-
opment of PERT, LESS, CPM, and several other
planning-scheduling and control methods did not provide
an adaquate solution. Sequence Planning and rime
scheduling - SPATS - a control technique developed by
The II. If. Ferguson Company does provide all the
elements necessary for total project control. Applied
initially to the Companys construction operations, this
system has been expanded to include engineering, pur-
chasing, expediting, safety, and labor relations activi-
ties. SPATS is today effectively providing the manage-
ment of our company and others with a meaningful tool
for total control.
But SPATS is just that - a tool, not a substitute for
effective management. It does not make decisions nor
does it solve problems. But it provides the informa-
tion necessary for valid decisions to be made and de-
fines problems in advance so corrective action can be
taken before schedules are jeopardized or excessive
costs incurred.
SPATS, by incorporating, altering, and adding to the
methods of other planning and control systems, ac-
complishes its purpose through the collection and
dissemination of information. To a large degree, the
nomenclature and network diagrams (Figure I) are
common to the other systems.
GENERAL NETWORK AND NOMENCLATURE
EARLY START
CRITICAL ACTIVITY
GENERAL NETWORK AND NOMENCLATURE
Figure I
- 204 -
No control system, including SPATS, can be self-
contained and function successfully. Each must draw
upon every facet of the organization for pertinent
information. As Figure II indicates, all functional
areas of the organization contribute to the overall
effort.
For ezample, the Project Engineer and Project Con-
struction Manager provide duration, progress, man-
power requirements, and similar data while material
and equipment costs, delivery dates, and other related
information is furnished by Purchasing. Similarily,
wage rates, jurisdictional agreements, and manpower
availability figures are obtained from Labor Relations.
Of special significance is the data received from the
Estimating Department. This detailed information
concerning direct labor costs and direct manpower
requirements is used as the primary comparison fac-
tor throughout a project.
SPATS, in turn, provides a medium for the free inter-
change of data among these groups and acts as a co-
ordinator between them. But above all, it provides
management with the information essential to making
sound judgements and decisions.
The development and acceptance of planning and con-
trol systems has been ,influenced considerably by the
use of data processing equipment. Although more
SPATS AID TO SAFETY
ACTIVITY CODE LND
DEEREE OF HAZARD
AND REFERENCED
PREVENTION PROCEDURES
12 - 22 - 27
sophisticated installations dc permit greater flexibility
and variations in programming, large units are not
necessary for the computerization of any system,
Presently, at Ferguson, an IBM 360-C computer with
high speed printers, sorters, and other peripheral
equipment is used for processing SPATS data. Row-
ever, less complex installations are satisfactory for
projects of moderate size requiring only a modest
degree of data processing.
Computer time required for SPATS is minimal; current-
ly somewhat less than one percent of total available
capacity is used for this purpose. At other times the
equipment is utilized for engineering calculations,
general accounting and statistical functions.
SOURCES OF
INFORMATION
PROJECT
ENGINEER
+ f
PAST -
RECORDS -
PROCUREMENT
SOURCES OF INFORMATION
The computer program for the SPATS system consists
of two basic phases (Figure RI). The LESS Phase
provides least cost estimating and scheduling. This is
a tabular model of the project resulting from activity
durations supplied in the input data (Figure IV). Event
identification numbers and activity descriptions, craft
designations, and manpower requirements are also in-
cluded.
The LESS Phase computer output provides early and
late start and finish times, total float, and free float
for each activity. Manpower requirements and craft
designations are also included, but only for reference
purposes. This data is in two forms; by calendar dates
and by project workday numbers.
A thorough analysis of this data is made by the SPATS
Engineering Department. All critical activities are
studied to determine if economical and practical ways
exist to reduce duration times and thus advance project
completion. Among these possibilities are increases
in manpower, further overlapping of activities, and use
of overtime.
The modified data is then reprocessed and a new LESS
Phase printout obtained (Printout I). Further analyses
are made and additional reprocessing is done until it is
determined that the data represents a desirable, realis-
tic, and economical schedule. Only then is the MAN-
POWER Phase begun.
AND CONSULTATION
MANAGEMENT PROJECT
1 -=I/ MANAGER
- LABOR
- RELATIONS
SAFETY
ESTIMATING
AND CONSULTATION
FIGURE II
The MANPOWER Phase, a Ferguson innovation, com-
bines resource requirements and restrictions with the
LESS Phase output data. Manpower needs are introduc-
ed through the input data (Figure V), using composite
crews - forces comprised of craftsmen from more than
one trade. For example, while the erection of struc-
tural steel is normally done by ironworkers, such items
as tank and vessel installation require work by boiler-
makers, pipefitters, and ironworkers. Therefore, a
composite crew, denoted TANK for computer purpo&
es, may con&et of three boilermakers, two pipefitters,
and one ironworker (rigger). The same is true of many
other activities found on any project.
The initial output, an unrestricted Manpower Require-
- 205 -
 SPATS
COMPUTER SYSTEM
COMPUTER SYSTEM FLOW CHART
Figure III
ments Summary (Printout II), is a day-by-day summa-
tion of manpower neededto follow the early start-early
finish LESS Phase schedule. At this point, unlimited
manpower and equipment resources are assumedto be
available.
A study in depth of this summary by the SPATS Engi-
neering Group is made, considering such factors as the
daily direct labor work force, manpower availability on
a craft basis, and widely fluctuating manpower require-
ments. Construction equipment availability is also sn
important factor.
Limitations are then introduced to impose the necessary
restrictions. If, for instance, the unrestricted man-
power requirements indicate several peaks and valleys,
limitations can be applied to induce a leveling effect on
the total work force as well as individual crafts. For
example, the availability of men in a specific craft is
always an inherent limitation. If there are only twenty-
five pipefitters available in a particular area, this is
the limit which must be used in manpower planning.
Restrictions are then incorporated and a revised Man-
power Requirements SummarJireceived (Printout III).
If these restrictions do not result in an extension of the
project completion date and if the durations and man-
power needsfor each activity are satisfaotory, the
MANPOWER Phaseprogram is continued. Manpower
graphs, a general schedule, and craft responsibility
- 206 -
FL0 w CHU
lists (Printouts IV, V, & VI) are then compiled.
The General Schedulepresents the activity sequencein
a logical manner and within the limits imposed. It
provides preferred start and finish dates for each
activity and represents the most economical and prac-
tical approach to the project under the prescribed con-
ditions .
The General Scheduleis illustrated graphically on time-
scale networks (Figure VI). These networks depict all
work to be performed by engineering, procurement, and
construction and provide a complete visual concept of
the project. It is here that interdependenciesof
activities are clearly evident. Thus, the basis for pro-
ject control is established.
To exercise effective control over a project once it is
underway, a meansof measuring progress is required.
SPATS fulfills this need through a system of periodic
project monitoring. This is in the form of a written
discussion of progress achieved on each work area and
is accompaniedwith a Project Progress Chart (Figure
VII) that graphically illustrates current project status.
The Progress Chart, similar to the familiar construc-
tion bar chart, presents various elements of the project
as logical parts of the whole. For instance, typical
unite may include a process building, office building,
general site work, storage facilities, and other items.
 These are further divided into their component parts.
The process building would probably include, from the
construction standpoint, foundations and slabs, struc-
tural steel, equipment installation, process piping, and
other general work categories. From the engineering
standpoint, components most likely would be presented
on a discipline basis such as structural, mechanical,
electrical, and so forth.
From the network and General Schedule, all activities
encompassed within each unit or component part would
be grouped together and a duration span for that group
established. Using manpower requirements shown in
the General Schedule, a total of the manpower needed
for the unit is determined and its proportionate weight
of the entire project expressed as a percentage of total
direct labor. Separate figures are used for engineering

THE H. K. FERGUSGN COMPANY

SPATS
LESS PHASE INPUT DATA
Work Order No. Project Page No.

RESPONSIBLE
ACTIVITY DESCRIPTION

LESS PHASE INPUT DATA

Figure lV

THE H. K. FERGUSON COMPANY

SPATS
MANPOWER PHASE INPUT DATA

Work Order No. Project Page No.

Basic Crafts for Ma

MANPOWER PHASE INPUT DATA

i
Figure V

- 207 -
and construction.
Actual progress is then measured against the predeter-
mined schedule. Percentage of work accomplished is
determined by using a composite of information. Judge-
ments of experienced personnel associated with the
project are strongly considered, especially in the con-
struction phase where physical measurements of work
completed are acertained. For engineering, the pri-
mary source is the drawing schedule. Other sources of
project progress include manpower reports, periodic
construction reports, purchasing and expediting reports,
job condition statements, and other project data. By
drawing upon all these sources, a full and accurate
measurement of project status is reached and areas of
difficulty made apparent. This allows attention to be
given to any problem areas and, therefore, permits
corrective action to be taken before the project schedule
or cost is seriously affected.
SPATS NETWORK
Figure VI
Full utilization of SPATS means more effective project
control from inception to completion. Advantages to
each group or department vary. Zn engineering, Fer-
guson has learned that designing can be done to a
schedule, an objective that many people, including
Cost Engineers, have long been attempting to accom-
plish. The Purchasing Department is provided with
schedule information much sooner than in the past and
expediting per_eonnel have a firm basis for discussions
with vendors about deliveries.
The effect of manpower leveling is of substantial bene-
fit to Labor Relations through reduced employment in-
terruptions resulting from sound predictions of the needs
for specific crafts well in advance. This leads to a re-
duction of unemployment insurance taxes.
The Safety Department is able to study each activity
well in advance, determining types and degrees of haz-
ards involved before construction begins. Using the
coding system pictured in Figure I! advance warnings
are signalled and the appropriate precautions taken.
Recorded results today include lower accident rates
and a savings in insurance costs.
At Ferguson, SPATS has proved to be an effective,
practical control system that is based upon logic and
fact and, most importantly, results. Armed with
sensible objectives, an accurate measurement of per-
formance, and a positive means to avoid difficulties,
management manages effectively with SPATS.
PROJECT PROGRESS CHART

Figure VII

- 209 -
 TOT. FR.
TL. HD. DUR MP RESP DESCRIPTION OF ACTMTY E.START E.FIN. L.STAR!c L.FIN. FLT. FLT.
604 605 80 1 ELEF COMPPROCFSS
WIRF:LINE 3
604 618 80 1 ELEF COMFPROCESS
WIRELINE 1

250 0 CONSTRUCT
80 5 P+IF CONTINST DSGN
$08 609 20 5 P+IF COMPINST DSGN
609 653 10 1 AEi O.A. PLANTLGT DSGN
613 558 0 0 DUMMY
613 577 0 0 DUMMY
AB OWNERS APPROVAL

PUR PURFORSERVICEAREAEQPT
AB OWNERSAPPROVE
TO CONSTRUCTION
CONSTRUCTION
AB O.A. PW= 1
AB O.A. PW= 2
AB O.A. PWRACK
STARTSHOPDWGS LIST 3
SHOPDWGSCO!@LIST 3

LESS PHASE COMPUTER PRINTOUT

Printout I

PROJ-ECTMANPOWER
REQUIREMENTS
SUMMARY

MANPOWER
AVAILABLE

999 999 999 999 999 999 999 999 999 999

PROJECT CRAFTCODES
DAY ARCF MECF EXXF STRF P+IF

0 4 8 7 10 2 0 0 0 0 0

5 0 3 2 3 2 0 0 0 0 0
10 0 5 2 2 2 0 0 0 0 0
15 0 2 2 2 2 0 0 0 0 0
30 1 4 2 3 2 0 0 0 0 0
40 1 2 2 3 2 0 0 0 0 0

UNRESTRICTED MANPOWER REQUIREMENTS SUMMARY

Printout II

- 210 -
 PROJECTMANPOWER
REQW SUMMARY
f

MANPOWER
AVAILABLE
110 60 999 999 250 85 165 999 999

PROJECT CRAFTCODES
DAY LAB OETD PF BM CF SUBS

0 0 0 0 0 0 0 0

67 6 0 2 0 0 0 14

91 14 2 2 0 0 0 40

99 24 6 3 0 0 1 40

106 24 6 3 0 0 1 28

109 24 9 3 0 0 1 86

119 28 13 5 0 0 1 86

RESTRICTED MANPOWER REQUIREMENTS SUMMARY

Printout III

***~**~~++ik~~~*
* * CRAFTCODES LAB CARP Iw OETD PF BM ELF MW CF SUBS
<* PF CURVE *
* * MPAVAILABLE 110 60 999 999 250 85 165 999 999 999
*mm** -***MM

306 ----+----1----t
307 ----t----1----+
----+----l----+----2----+----3
----+----1----t----2----+----3
309 ----t ---- 1 ----t ---- 2 ---- + ---- 3
310 ----t----1----+----2----+----3
311 ----t----1----+----2----+-----3--+--+----
----t----1----+----2----+----3----+---- t
z:: ----+----1----t----2----+----3----+----
314 ----+----1----+----2----+-----3--+--t---- t
315 ----+----1----+----~----+----3----t--------t----3----+----
----+----1----+---- 4---- +---5----t
31.6 4 ----+----5----t
317 ----+----l----+----2----+----3----+---- ----+----5----+-
318 ----+----1-w--+---- 2----+----3----+---- k ----t---- 5 --m-t-
319 ----+----1----+----2----+-----3--+--t---- ----+----5----t---- ----+-
320 ----+----l----+----2----+----3----+---- t ----t----5---+---- z ----+-

CRAFT MANPOWER GRAPH

Printout IV

- 211 -
 * GEN. SCHEDULE * PAGE 570
-----e------------e-

ARROW DUR PW ADJ-FLOAT WORK

TL HD TOGO MP NO RESP DESCRIPTION START FIN= TOTALFREE DAY

FIL!HER/RECR +SCALPERATOR 322 131 339

LIGHT + COMMUNCATIONS 323 166 339
COMPA/C EQIP NO 1 SH 323 1;; 339
PIPING2 FIRSHl 326 98 339
153 154 3 4; t PIPE ICE WAT TL, GLYCOL EXCHANGER 328 343 6991 339
169 191 i4 BLOC START CLOSURE SH 2 SOUTH 329 354 1 -339
547 550 14 2 EQOl CANLINELIST 4 329 339
173 226 7 9 4' EIEC LIGHT +P DIST 3 FLR SH 3 330 339
170 192 23 48 BLOC START CIEXJRE NORTH +EASTl 333 363 1 339
139 299 33 INSTALLELEVAMRS 333 373 131 130 339
PUMPS + MISC EQUIP LIST 1 = 1
STARTPIPE NO1 SH FIRSTFLR
INTERIORFINISHWORK
INSTALLCASE CONVEYORSLIST8
LINE2EQPTINC SOAXERLISTl
LINE1 CASEUNLOADER
INSTALL 700 SERIES EQPT L 13

GENERAL SCHEDULE

Printout V

ci . . _

I-w CONS!l!FKJCTION * IW RESP LIST * PAGE 1

---m-m----------mm_

ARROW EARLIEST PREFERRED LKE3S.T JOB FLOAT

TX HD DUR MP NO RESP DESCRIPTION STARTF~~STARTFINISHSTARTFINISHMTAL~

501 502 2: 2 2 CAIA START CAISSONS 109

2 CAIA COMPCAISSONS g 2; ;:; 169 ii
502 504 '1
503
101 505
102 20
t: :4 t GDBMSTARTGRADEBEAM+WALL@R/R
CAIS CAISSONS NO 2 STHSE 99
109 119
128 gg
109 2 log
174 12g
193
505 ,628 GDBMCOMPEXTGRADEBEAMS 119 159 119 159 129 169
507 509 35 4 1 ~16 CONST R/R INS~E BLDG 119 154 119 154 164 1x9
102 103 13 i i CAIB CAISSONS NO 1 SMSE 1.28 141 128 141 193 206
53 54 15 GDBMYARDBLDGFDNS 134 174 189
105 108 20 4 1 GDBMSTARTGDBMEXCEPT14 + 9 140 197 217
701 703 10 4 1 GDBMEXCAV REBAR POUR FOOTINGS 141 151 141 151. 294 304
110 114 10 4 1 GDBMPUMP PIT CONST 150 160 154 164 222 232 72 15
304 305 15 4 1 GDBMCONST GDBMS+PUMPPIT WALLS 158 173 159 174 270 285 112
627 508 30 4 1 GDBMINTERIOR GRADEBEAMS 159 189 189 169 199
112 115 13 4 1 GDBMGRADEBEAMSNO1 SMSE 160 173 ;z 173 216 229
108 111 10 4 1 GDBMCOMPLETEGD BM NO 2 SMSE 160 170 163 173 217 227
114 117 I.2 7 1 FLOR GRD FLRNO 2 STHSE 175 187 178 190 232 244
i :: GDBMFDNSTRACXSHED.
FLOR GROUNDFLOOR CONSTRUCTION 178
180 188 179
180 189
188 290 300 112 110
496 504 316

CRAFT RESPONSIBILITY LIST

Printout VI
- 212 -