SCHEDULE AND COST ESTIMATES

Undertaking a PSM initiative will requite time, staffpower, and funding— direct and/or indirect. The task team s first priority will be to develop a detailed plan for the Core Management Group s review and approval, including specific schedules and cost estimates. 

Management should insist that reviews are conducted in a timely, efficient and cost effective manner. Schedule and cost estimates should be submitted by the project manager for senior management approval where appropriate. Where the use of a consultant is contemplated, whose costs and services may be extensive, competitive proposals should be sought, and the final selection approved by management. 

Using pilot charter, like the one shown in Exhibit 44.1, develop and document the objectives, metrics, scheduling, and cost estimates for the pilot. Time spent here will help you achieve your objectives rather than having to compensate for poor planning during the pilot run. Your planning session should answer the following questions ... 

Take an active role in checking schedules and cost estimates. 

U.S. Army. 2001b. U.S. Army Chemical Demilitarization Program Releases Updated Official Schedule and Cost Estimates, Press Release, October 4. Aberdeen Proving Ground, MD Program Manager for Chemical Demilitarization. 

The purpose of the NSCMP is to provide centralized management and direction for the characterization and destruction of nonstockpile CWM, develop disposal facilities, provide schedule and cost estimates, and ensure compliance with federal, state, and local regulations. 

A document that indicates cleany what is provided in terms of technology, quality, schedule, and cost A basis in enough detail to be used in controlhng the project and its costs to permit proper evaluation of any proposed changes A device to permit subsequent evaluation of the performance compared to the intended performance A document to control the detailed estimate for the final design, construction, and design... 

Project controls - estimating, scheduling, and cost control. Occasionally the Owner would also perform ... 

What is the construction schedule and the estimated cost of the pollution abatement devices ... 

Having defined and gathered data adequate for an initial reserves estimation, the next step is to look at the various options to develop the field. The objective of the feasibility study is to document various technical options, of which at least one should be economically viable. The study will contain the subsurface development options, the process design, equipment sizes, the proposed locations (e.g. offshore platforms), and the crude evacuation and export system. The cases considered will be accompanied by a cost estimate and planning schedule. Such a document gives a complete overview of all the requirements, opportunities, risks and constraints. 

Review Scheduling A review scheduhng procedure should be estabhshed that documents who is responsible for initiating the review and when the review(s) should occur during the project. The scheduling needs to balance availability of process information, review technique used, and the impact of potential review action items on project costs (i.e., early enough to minimize the cost of any potential changes to the process). The aclual amount of time needed for the review should also be stated in the procedure. On the basis of the number of project reviews required and the estimated time needed for each review, the project cost estimate should include the cost for project reviews as part of the total cost for the project. 

In order to analyze job requirements, duration, and cost, labor estimates must be performed. Without a labor estimate by skill and in sequence, it is difficult, if not impossible, to develop a realistic work schedule. 

There are a number of different ways of estimating the cost of constructing a chemical plant. Some require veiy little information and some require a complete listing of every item, from pipe fittings to storage tanks and electrical sockets to generators. All assume a normal schedule and normal conditions. A normal schedule implies that the contractor and engineers will be allowed to operate in the most efficient way. Any attempt to complete the plant sooner will result in increased investment costs. This is discussed in Chapter 13. 

Traditionally the PERT diagram did not involve costs, but in the early 1960s a plan called PERT/Cost was developed that was similar to the cost-control concepts of CPM. Some authors claimed they were now essentially the same. PERT/Cost involves obtaining one cost for each activity. If the expected time were,the same as the normal time, the procedure for cost control would be the same as for a CPM system. The PERT system can also be easily adapted to the method presented for speeding up projects (crashing). The remarks made previously about scheduling and obtaining time estimates apply equally well to PERT and CPM. 

The EDS II test program includes testing and design studies needed for a preliminary design of a full-scale pilot plant, a preliminary hazard analysis, development of a full-scale cost estimate, and a schedule for construction and operation of a facility employing the AEA technology. 

Recommendation 2. The end state, end use, and stewardship issues pertaining to closure of any chemical agent disposal facility should be resolved early so that planning can proceed on an assured rather than an assumed basis. If possible, facility end uses should be included in the RCRA operating permit. If end use and end state cannot be defined early in the planning process, risk assessments and cost and schedule estimates for alternative end states and uses should be prepared. 

Finding 9. Cost containment efforts in the closure of JACADS are fragmented and have been inhibited by the absence of a total project cost baseline estimate for the Army and all contractors supporting closure activities. A multiyear program cost estimate and schedule that encompasses all closure costs is essential for the cost-effective completion of the JACADS closure campaign. Costs will probably change as the closure project evolves. 

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