The Physical Financial Schedule is a tool used to control projects. Through it, it is possible to avoid unpleasant surprises, such as budget overruns and problems with deadlines.
It is not by chance that the tool is widely used in the planning of construction works in civil construction , but it is important to highlight that it can be useful in other sectors. If well elaborated, the schedule can play a fundamental role for the work to be developed respecting deadlines and planned values.
Next, understand step by step what it is like to make a Physical Financial Schedule!
The Physical Schedule details the stages of the project, the expected progress so that the final objective is achieved. All activities are listed, organized, described and the time (beginning, end and duration) of each one is defined.
The schedule development is carried out based on the scope and also on previous experiences, that is, with historical data from similar works. The schedule can be adjusted as the work goes on, and this is how a new document appears: the completed Physical Schedule.
The comparison of what was planned, with what was actually done, can show if the initial schedule was flawed or if the project development is slower than it should be. Thus, if the difference between them is too large, corrective actions must be taken.
This view of everything that needs (and has already been done) helps managers to organize themselves better, which generates savings, improves productivity and the quality of final delivery.
As the name implies, the Financial Schedule is used to estimate the amounts expected to be spent during the execution of the project. Like the Physical Schedule, it is done in the planning phase.
To elaborate it, it is interesting to observe the cost budget of the enterprise, in the case of works, and the list of activities that has already been defined. Thus, based on the resources needed and their value, it is possible to measure how much will be spent in each of the stages.
This information is essential to prevent the execution from stopping due to the lack of financial planning – which compromises the work of professionals and makes the project more expensive.
Over the course of the activities, the planned disbursement is compared with the actual amount being invested. If the difference is too high, the manager needs to take quick measures to optimize execution and avoid financial losses.
Financial physical schedule
As you may have already noticed, the Physical and Financial Schedule are related and that is why there is the Physical Financial Schedule. It demonstrates how the expenses will be over time, that is, the disbursement that will need to be made at home one of the stages of the project. It includes:
- definition of dates;
- cost estimates;
- materials and labor required;
- important rules and information for execution.
The importance of the Physical Financial Schedule
If you have made it this far, you may have already noticed the great relevance of the schedule in project planning, be it in Civil Construction or other areas. After all, the instrument is used mainly to avoid two gigantic problems in these works: the delay in the deadlines and the excessive expenses.
It also helps control the progress of tasks, improves team productivity, the quality of delivery of the final product, and contributes to reassure the project contractor or investor.
Steps for creating a Physical Financial Schedule
There are several models of Physical Financial Schedule ready on the internet, but you can also choose to develop your own, or even remove / add columns in the layouts that already exist. Using pen and paper is also a valid alternative, the most important is to be able to organize the information correctly.
Now, understand what is the step by step for the proper development of the Physical Financial Schedule.
Define project activities
The first step is to list all the activities that need to be performed. They must be detailed in sequence. Each company can define the best way to carry out this definition, but it is interesting that the process can be easier if tasks that require the same materials and professional services are grouped together. In addition, there are tasks that depend on a previous one, that is, that can only start after the completion of other actions. This relationship between activities should also influence the schedule.
Analyze the time of each activity
After organizing each activity sequentially, it is essential to estimate the time that will be spent to perform them. As we said, the calculation can be done based on previous projects and the experience of the professionals involved.
Observe the resources used in each activity
The surplus or lack of materials, the hiring of too much labor, among other problems can be avoided with proper planning. To facilitate this organization, it is interesting to list all the resources that will be needed in each of the project’s activities.
Check for possibilities to optimize the schedule
After collecting all the data, it’s time to insert it in a spreadsheet, in a specific project software such as MS-Project or in the place chosen by you.
Check out information you can’t miss:
- list of activities to be developed in a strategic sequence;
- estimate of the time needed for the execution of each of the actions;
- cost of each stage (including materials, leases and labor).
The important thing is that the information is organized and can be viewed easily. At that point, check whether adjustments can be made to make the schedule and project more streamlined.
Losing control with deadlines, values or the order in which tasks need to be performed is a nightmare for any manager. Because of this, the Physical Financial Schedule is an important tool to avoid problems or plan corrective actions. If there is an estimate of spending a large amount of money on a particular stage of the work, for example, it is possible to start fundraising in advance to reduce risks.