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This Recommended Practice (RP) is brought to you as Total Cost

public service by AACE International, the Authority for Management®


Total Cost Management. Framework:
The AACE International Recommended Practices are Total Cost
the main technical foundation of our educational and Management is a
certification products and services. The RPs are a series systematic approach
of documents that contain valuable reference to managing cost
information that has been subject to a rigorous review throughout the life
process and recommended for use by the AACE cycle of any enterprise, program, facility, project, product or service.
International Technical Board. AACE’s flagship publication, the TCM Framework: An Integrated
Approach to Portfolio, Program and Project Management, is a
AACE International is a 501(c)(3) non-profit structured, annotated process map that for the first time explains each
professional association serving the total cost practice area of the cost engineering field in the context of its
management community since 1956. AACE relationship to the other practice areas including allied professions.
International provides its members and stakeholders
with the resources they need to enhance their
performance and ensure continued growth and
success. With over 8,500 members world-wide, AACE
International serves total cost management Visual TCM
professionals in a variety of disciplines and across all Framework:
industries. AACE International has members in 87
countries. If you share our mission to “enable Visual TCM graphically
organizations around the world to achieve their demonstrates the
investment expectations by managing and controlling integration of the
projects, programs, and portfolios and create value by strategic asset
advancing technical knowledge and professional management and
development”, then we invite you to become one of project controls
our members. process maps of the TCM Framework. The Visual TCM application has
been designed to provide a dynamic view of the TCM processes, from
In addition to this and other Recommended Practices, the overall strategy process maps to the mid-level processes and
here are just a sample of the products and services that detailed activities. The processes are hyperlinked, giving the user the
AACE has to offer you: ability to move to and from related process maps and reference

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material. This allows for the optimal effectiveness of understanding and management. Comprehensive, well organized, and timely, each PPG is a
using the process and sub-process in the context of and relationship to collection of selected articles covering a particular technical topic area
associated sub-processes that share common strategies and objectives. or industry segment. The PPGs provide an excellent source of reference
Visual TCM allows the user to view and apply TCM section-by-section, material and is a welcome addition to any reference library.
at a sub-process or functional level. Visual TCM is available to members
at no extra fee.

Certification:

Virtual Library: Since 1976, AACE has


been certifying
Members receive free individuals as Certified
access to the Virtual Cost Consultants
Library, an online (CCC)/Certified Cost
collection of over 5000 Engineers (CCE);
complete technical Certified Cost
articles on virtually Technicians (CCT);
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engineering. Search Consultants (CFCC); Earned Value Professionals (EVP); and Planning &
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organizations that rely on you for help!

Professional
Practice Guides Online Learning
(PPGs): Center:

Professional Practice The Online Learning


Guides contain the Center features
most worthwhile modules based upon
contributions to the actual technical
field of total cost presentations captured

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at our Annual Meetings. Each recorded unit includes a live audio Discussion
recording of the speaker synchronized to the slides accompanying the Forums:
presentation. Each unit includes the technical paper associated with the
presentation, and a downloadable audio-only version that you may play The discussion forums
on your mobile device or iPod. Completion of each unit earns 0.1 AACE encourage the
recertification credits (i.e. 0.1 CEUs). An electronic certificate of exchange of thoughts
completion will be attached to your profile. and ideas, through
posting questions and
discussing topics. They
provide a great means for networking and interaction with your peers.
Conferences: Participate anytime at your convenience and receive automatic e-mail
notifications on topics that are of interest to you. With several thousand
AACE International’s users, if you have questions or concerns about a technical subject,
Annual Meeting brings program, or project - the forums are a great resource for you.
together the industry’s
leading cost
professionals in a
forum focused on
learning, sharing, and Mentoring
networking. Over 100
hours of technical presentations and an industry tradeshow that will Program:
challenge you to better manage, plan, schedule, and implement
technology for more effective and efficient business practices. Looking to gain more
knowledge from an
The International TCM Conference is a similar event that is held outside experienced
of North America – complete with technical presentations, seminars professional or an
and exhibits. opportunity to help
another professional?
Included with your membership, AACE offers a comprehensive
mentoring program for individuals interested in sharing knowledge with
others or advancing their own careers to the next level.

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Career Center: Periodicals

AACE’s career center Members receive a


provides tools and complimentary
resources for you to subscription to the
progress through your Cost Engineering
career. journal, AACE’s
bi-monthly
Looking for the next professionally
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and items of interest to the total cost management community, with
special features for our members.

Salary and
Demographic
Survey:
Conducted annually,
salary survey is a great
resource for
employers that want
to gain a better
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employees interested in knowing how their compensation compares
with their peers in the profession.

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AACE International Recommended Practice No. 24R-03

DEVELOPING ACTIVITY LOGIC


TCM Framework: 7.2 – Schedule Planning and Development

Acknowledgments:
Jennifer Bates, CCE Katrina D. Knight
Steven G. J. Boeschoten Philip D. Larson, CCE
Larry R. Dysert, CCC Wesley R. Querns, CCE
H. Ernest Hani Dr. Randy R. Rapp, PE CCE
Christian Heller Richard A. Selg CCE
John K. Hollmann, PE CCE Kul B. Uppal, PE

Copyright 2004 AACE, Inc. AACE International Recommended Practices


AACE International Recommended Practice No. 24R-03
DEVELOPING ACTIVITY LOGIC
TCM Framework: 7.2 – Schedule Planning and Development

March 26, 2004

PURPOSE

This recommended practice is intended to provide a guideline, not establish a standard. This is not a
how-to on any particular methodology.

As a recommended practice of AACE International, development of activity logic (also called network
logic) in planning and scheduling provides guidelines for the sequencing of activities in a logical way
generally before duration estimating can be performed. Logic is generally determined before durations
are considered. Logic development methods include precedence diagramming, or arrow diagramming
methods. Logic is the set of activities and dependency relationships between them. Logic dictates the
planned sequencing of activities. A network diagram is often used to illustrate the logic.

Planning and scheduling are not the same. Planning is determining how the work will be done, while
scheduling is the analysis and calculation of start and finish dates.

Logic enables the combination of activities to be arranged in one of the aforementioned formats so that a
completion date can be established. Logic also enables backward passes to arrive at optimal overall
schedule duration.

This recommended practice is for use by project team members involved in planning process, a
continuation of activity identification process (reference TCM Framework section 7.2). As in identification
of activities, many individuals contribute to the development of activity logic. Having an experienced
planner coordinate the process improves final quality, and adds value to the planning process.

RECOMMENDED PRACTICE

Who Develops Logic

Better planning results from the involvement of key team members facilitated by the project planner. For
example, on a large construction project key members involved in this process might include a project
manager, construction manager, estimator, procurement manager, design manager, owner
representative, operations representative, and scheduler.

A planner has strong working knowledge of how the work is performed (i.e., how the activities inter-
relate). A scheduler takes the plan, and performs analytical functions to create the actual project
schedule such as estimation of time durations. One individual may serve as both the planner and
scheduler, or at other times may be different people.

A team meeting or workshop is an excellent means to develop activity logic. This may be combined with
the workshop to identify activities.

When Should You Develop Logic

Logic development is an iterative planning process. Initial logic development is begun after identification
of activities, and before the scheduling process step occurs. This process is further refined during
schedule development and optimization.

Copyright 2004 AACE International, Inc. AACE International Recommended Practices


Developing Activity Logic 2 of 4

March 26, 2004

How To Develop Logic

Generally, logic development starts with an activity list. Related business and project requirements must
also be considered such as project specific logic constraints. Other useful information for logic
development includes pre-existing logic templates, and historical references such as past project plans,
schedules, or parts thereof.

One method often used at the beginning of logic development is to write each activity on a separate card,
and place them on a wall. In a team process, the cards can be arranged to create a basic sequencing of
activities. Some sequencing is obvious such as forming before placing concrete. Other relationships
require flexibility and creativity in achieving planned objectives. Some activities may be concurrent, while
others may be sequential. This needs to be done in consideration of the dependency relationships
described below. Once set, the activity sequence information may be entered into a scheduling software
application

What Are the Logic Relationships

Each activity has a start and a finish. A single logic relationship describes the interdependency of starts
and finishes between two activities. There are four possible relationships between an activity’s start and
finish, and those of other activities.

The most commonly used relationship between two activities is finish-to-start (FS), wherein the first
activity must finish before the second activity can start. A second type is finish-to-finish (FF), where two
activities must complete at the same time. The third type is start-to-start (SS), where two activities start at
the same time (regardless of their finish dates). The fourth is start-to-finish (SF), where an activity must
start before a second activity can finish.

Additionally, lag time can be applied to all four relationship types. Lags are timing applied to logic; they
consume time, but are not activities per se. For example, lags can be used to define that footing
formwork needs to remain in place until concrete is properly cured.

Activities can be linked with hard logic (i.e., sequence of each activity is predetermined, such as footing A
before footing B), or soft logic wherein related activities may be combined and accomplished in a different
order as determined at the time of execution. There are also physical hard logic relationships where soft
logic does not normally apply, such as footing formwork must be in place before concrete can be placed.

What Are Logic Diagramming Methods

There are two common diagramming methods. One, precedence diagramming method (PDM), is known
as “activities on node.” In this method, each activity is represented by a node with connecting lines
representing relationships between activities. Each preceding activity (predecessor) controls the start or
finish of succeeding activities (successors). The PDM method can use all four-relationship types.

Copyright 2004 AACE International, Inc. AACE International Recommended Practices


Developing Activity Logic 3 of 4

March 26, 2004

Figure 1. Precedence Diagramming Method (PDM) – “Activity on Node”

The second, arrow diagramming method (ADM), is known as “activity-on-arrow”. In this method, each
activity is represented by an arrow between nodes. In this case, the nodes are merely symbols
representing connection points. In the ADM method, only finish-start relationships are used.

Figure 2. Arrow Diagramming Method (ADM) – “Activity on Arrow”

The PDM method is the most commonly used because it provides greater flexibility due to the availability
of more relationship types.

Before beginning schedule analysis, the logic network diagram should have a single start node or point,
and a single finish point or node. Every activity between the overall start and finish must have both a start
and a finish relationship.

Copyright 2004 AACE International, Inc. AACE International Recommended Practices


Developing Activity Logic 4 of 4

March 26, 2004

Figure 3. Precedence Diagramming

What’s Next

Development of activity logic is a pure planning step where relationships are established regardless of the
dates on which activities fall. The next step in the planning and scheduling process is to consider other
factors such as time, resources, and milestones to achieve project objectives.

CONTRIBUTORS

Jennifer Bates, CCE


Steven G. J. Boeschoten
Larry R. Dysert, CCC
H. Ernest Hani
Christian Heller
John K. Hollmann, PE CCE
Katrina D. Knight
Philip D. Larson, CCE
Wesley R. Querns, CCE
Dr. Randy R. Rapp, PE CCE
Richard A. Selg CCE
Kul B. Uppal, PE

Copyright 2004 AACE International, Inc. AACE International Recommended Practices

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