USSR USING NEW METHOD TO PLAN AND SCHEDULE WORK ON CONSTRUCTION PROJECTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A002200120001-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 12
• Document Creation Date: December 9, 2016
• Document Release Date: April 23, 2001
• Sequence Number: 1
• Publication Date: February 1, 1965
• Content Type: BRIEF

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INTELLIGENCE BRIEF
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ON I ON
)IREC'I"ORA'1 F; OF INTELLIGENCE
office ofd- Research and Reports
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Fe'brua.ry 1365
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This material contains information affecting
the National Defense of the United States
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Title 18, USC, Secs. 793 and 794, the trans-
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 Approved For Release 2001/05/ 7? C 7 T 0 0 2 01 0001-3
USSR USING NEW METHOD
TO PLAN AND SCHEDULE WORK
ON CONSTRUCTION PROJECTS
During 1964, for the first time, the USSR introduced a new method
of planning, scheduling, and managing construction projects -- commonly
known in the US as the "Critical Path Method" (CPM) -- at four construc-
tion projects. These were the Chelyabinsk automatic blooming mill,
the urea complex and thermal electric powerplant of the Lisichansk
Chemical Combine in the northern Donets region, the Burshtynsk
state regional' powerplant in western Ukraine, and the Smolensk electric
bulb plant. During January 1965, five additional. projects were reported
to have adopted CPM, and many others are actively preparing to convert
to this method. It is proposed to employ CPM on several hundred con-
struction projects, including a hundred chemical construction projects,
during 1965.
1. Background
CPM is a method of planning, scheduling, and managing construction
projects developed by the Remington Rand Corporation for E. I. du Pont
de Nemours Company in early 1957. It was applied to a $10 million
du Pont construction project in 1957, and since then it has come into
widespread use in the US. At about the same time that du Pont was
working on CPM, the Special Projects Office of the US Navy and Booz-
Allen and Hamilton, Management Consultants, were working on a similar
scheduling and progress management system for the development of the
Polaris missile, called Program Evaluation and Review Techniques
(PERT). The completion of the Polaris project we'll ahead of schedule
was credited in part to PERT. As a result, the US defense agencies
now require PERT or CPM for all major projects.
In the USSR, CPM is referred to as "network planning and directing"
(setevoye planirovaniye i upravleniye -- SPU). One of the most important
phases of CPM is the construction of an arrow diagram -- in Soviet terms
a "network schedule or diagram" (setevoy grafik). The arrow diagram
indicates all the activities necessary to complete a project, graphically
For a detailed description of GPM and PERT, see The Constructor,
September 1961, pp. 24-29, and January 1962, pp. 28-30, and Con-
struction Methods, May 1962, pp. 130-135.
C-O-N-F-I-D-E-N-T-I-A-L
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C-O-N-F-I-D-.E-N-T-I-A-L
indicates the length of time required by each, and shows those that must
be completed before other activities can begin. In a small project an
arrow diagram may be constructed, time estimates made, and the critical
path calculated manually. The critical path is the route of principal activi-
ties on which the duration of the entire project is determined. The re-
maining activities, which are not on the critical path, have a reserve of
time, and a change in the dates of their performance (within limits) will
not affect the course of construction. On a large project incorporating
hundreds of items, time-cost estimates for most activities and a spec-
trum of schedules must be developed by a computer.
As work on the project proceeds, the diagram is reviewed and re-
calculated periodically, incorporating new data concerning progress
that have been collected from the field. As the status of construction
changes and as different activities move into the critical path, manage-
ment is alerted to any lagging operations in time to initiate corrective
measures.
2. Soviet Application
At the urea complex in Lisichansk a volume of construction-
installation work of several million rubles was being carried out by
22 construction and installation organizations. It is claimed that the
CPM network of some 800 activities, or items, calculated by computer
permitted the work to be accomplished in 1-1/2 years instead of 2-1 / 2
years as indicated by Soviet construction norms. The Chelyabinsk
automatic blooming mill reportedly was built in 1 year instead of the
normal time period of 2 years.
On three of the projects converted to CPM in 1964, and completed
in that year, work had been underway for some time. Only in the case
of the Smolensk electric bulb plant, which is scheduled for completion
at the end of 1965, was CPM introduced early in the construction period.
These projects, designated as experiments in the use of CPM, appear
to have progressed faster than is normal for Soviet projects of a similar
type and magnitude. The extent to which this is attributable to priority
of supply and intensified interest of management in pushing the project
versus better organization attributable to CPM cannot be determined
at this time.
The use of CPM will aid Soviet builders in planning and reducing
costs through improved scheduling but will not be a panacea for all
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the problems of the Soviet construction industry. CPM can indicate
what materials and equipment are necessary and when they must be
received to complete the project on time. If, as in the past, the sup-
pliers do not furnish the materials and equipment when needed, CPM
cannot prevent delays. Improved direction at the work site and timely
recognition of problem areas, however, should decrease duration of
construction significantly.
Widespread application of CPM to construction in the USSR will
require further standardization of accounting methods and the creation
of a large number of computing and information-processing centers.
One Soviet engineer has estimated that the computing centers will
cost approximately 100 million rubles. He notes that although this
is a considerable sum, it is worthwhile because the application of
CPM should result in a saving of at least 1 or 2 percent of the cost
of construction-installation work, or 300 million to 400 million rubles
in a year.
25X1A
Analyst:
Coord: ORR
C-O-N-F-I-D-E-N- T-I-A-L
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CONFIDENTIAL
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Date -if Dcwiimentt February 1. 96151
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V*tRfi Now Method to Plea and . shed 4a Wcrk on Gonstrttctjon
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St/A/DS Distribution of Current Support Brief No. a5-3Z. USSR
New Methade to Plan and Schedule Work on Construction
Projects --- February 1965 (CQNF1-!NTIA1)
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19 February" 1965
cB 66-3:2, BR
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Project No. 33. 5224
Report Series CIA/RR CB 65-12
Title USSR Using New Method to Plan and Schedule Work on Construction
Projects -- February 1965 (CONFIDENTIAL)
Responsible Analyst and Branch
MS/CST 25X1A
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