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Document Creation Date: 
December 9, 2016
Document Release Date: 
April 23, 2001
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February 1, 1965
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PDF icon CIA-RDP79T01003A002200120001-3.pdf473.19 KB
Approved For Release 2001 /05/ffofq *tZ1 1DAi3I9.002200120001-3 INTELLIGENCE BRIEF 1 F':i A ~'~'1) 5C,1,L L71.` W ()1ZK ON I ON )IREC'I"ORA'1 F; OF INTELLIGENCE office ofd- Research and Reports Approved For Release 2001/05/17(j0d1 7 I46bi 200120001-3 (JA/RR C13 65-1Z Fe'brua.ry 1365 Copy No, Wa 2 GROUP 1 Excluded from automatic' { downgrading and declassification Approved For Release 2001/05/17 : CIA-RDP79TO1003AO02200120001-3 This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Approved For Release 2001/05/17 : CIA-RDP79TO1003AO02200120001-3 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 Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 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 Approved For Rele 4/ 15/Il-7D- A FD'07$Td4OTO3A002200120001-3 Approved For Release 2001/05/t7 -OC -_P 9 I P ZL _T_ 0 0 0 120001-3 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 Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 CONFIDENTIAL CONFIDENTIAL Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 Analyst: MS/CSI 1 pl!roved For Release 2001/05/17 : CIA-RDP79TO1003AO02200120001-3 0 OFFICE OF RESEARCH AND REPORTS St/P/RR Control Section Control Sbeet Series Number CIA/RR CB 65-12 Date -if Dcwiimentt February 1. 96151 Reci lenit. 1-741-7-2.30- Recd in St/P/ C 174 25X1A St/P 175 CGS/HR/Ops, 1G81, H Filed in St/P/ C J// 2 )120) 4 poi- 25X 1A 25X1 A 17 Feb 65 Approved For Release 2001/05/17 : CIA-RDP79TO1003AO02200120001-3 25X1A CONFIDENTIAL' (Project 33. 5224) - kasa .tie&tion Aber of Copies WIOUP I Excluded iron) automallt downgrading and deciassiflcatloe 280? 176 GONAOENTIAt -".AV roved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 SUBJECT: Distribution of Current Support Brief No. 55-1~ V*tRfi Now Method to Plea and . shed 4a Wcrk on Gonstrttctjon Pro3ectle --- r eb rcry 1965 t . ?1AL} Copy No. 1 O/DDI, Room 7E32, Hdqtrs. 2 - 3 NIC 4 - 12 OCI Internal 25X1A 13 - 14 ONE 16 - 21 St/CS/R 22 O/DDI - 23 - 31 NSA 25X1 A 32 NSAL 33 - 280 ORR Distribution, St/A/Document Support Section, Room GH0915, Hdqtrs. (Distributed by OCR) FI T!AL COUP 1 Excluded tram automatic dowsrrading and declas?iticatlan Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 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) Copy-Nn, 34 35 36 37 - 42 43 - 48 49 - 54 55 56 - 60 61 - 66 67 68 - 76 77 - 78 79 - 80 81 25X1A 82 - 87 88 89 90 91 92 93 94 95 25X1A 96 97 98 99 100 101 102 - 103 .104 - 106 107 108 109 - 110 I'll 112 113 - 114 115 - 153 154 - 157 158 - 169 1.70 - 171 172 - 173 174 - 230 231 - 280 Recipient DD! , Room 4039, Hq A If, DAD/RR Ch/E St/PR D/A (1 each branch) D/MS (1 each branch) D/R (1 each branch) MRA D/P (1 each branch) P/F (1 each branch) St/PS D/I (1 each branch) D/GG D/GC St/FM Analyst/Branch Room 1B4004, Hq. GR/CR BR/CR FIB /SR/CR, Room 1G27, Hq. Library/CR IPI/CR MS/CST 25X1A A . Chief, OCR/FDD CD/OO OCt/SA/R, Room 5G19, Hq. D.DI/CGS, Room 7F35, Hq. DDI/CGS/HR, Room 1G81, Hq. OSS 25X1 A OBI DD/S&~T/SpINT OTR./1.S/1P, Room 532, Broyhill Bld 1000 Glebe (1 OTR/SIC) NPI.C/CSD/REF, Room 15518, Commandant National War Col ege, Ft, es ie McNair, Attn. Classified Records Section, Rm. 26, Nat'l War College Bldg. Washington, D. C. Assistant Secretary of Defense, ISA, Room 4D825, Pentagon Defense Intelligence Agency, DIAAQ-3, ABldg., Arlington Hall Station USIA, Warren Phelps, IRR/D, Room 812, Walker Johnson Bu.a.ilding, 1734 New York Avenue, N. W. State, INR Communications Center, Room OR, State Dept. Bldg. Dr. Neilson. Debevoise, NSC, Room 365, Executive Office Bldg Frank M.Charrette, Agency for International Development, Chief, Statistics and Reports Division, Room A-204, State Annex #10 St/P/C/RR, Room 4F41, Hq. Records Center Approved For Release 2001/05/17: CIA-RDP79T01003A Qc "??" downgrading anA LUU 1 tlecl,Fsificatlen FI HE C I R Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 19 February" 1965 cB 66-3:2, BR irk on Construction SSt x A* s^ t ~rta.0. i-~ wr -r,. M scov',i and London 25X1A The cisseruna :c:? r a:.c . _ry this mernera;idum has baen completed, BY: ?8 f Date. Approved For Release 2001/05/17 Cl 2g0120001-3 DFRDE , TD Approved For Release 2001/05/17 : CIA-RDP79T01003A002200120001-3 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 RECOMMENDED DISTRIBUTION TO STATE POSTS Berlin, Germany Bucharest, Romania Budapest, Hungary Moscow, USSR Prague, Czechoslovakia Sofia, Bulgaria Warsaw, Poland Europe Belgrade, Yugoslavia Bern, Switzerland Bonn, Germany Brussels, Belgium Copenhagen, Denmark era ermft:t ' Geneva, Switzerland Helsinki, Finland The Hague, Netherlands Lisbon, Portugal `-Iondon, England Luxembourg, Luxembourg Madrid, Spain Oslo, Norway Paris, France Rome, Italy Stockholm, Sweden Vienna, Austria Wellington, New Zealand Manila, Philippine s Canberra, Australia M lbour e A---t al? e F ' Bangkok, Thailand Djakarta, Indonesia Hong Kong Rangoon, Burma Kuala Lumpur, Malaya Saigon, Vietnam Seoul, Korea Singapore, British Malaya Taipei, Formosa Tokyo, Japan Vientiane, Laos Phnom Penh, Cambodia Colombo, Ceylon Near East & South Asia Ankara, Turkey Athens, Greece Cairo, Egypt Damascus, Syria Kabul, Afghanistan Karachi, Pakistan New Delhi, India Nicosia, Cyprus Tehran, Iran Baghdad, Iraq Tel Aviv, Israel Beirut, Lebanon Amman, Jordon Jidda, Saudi Arabia Ottawa, Canada Approved F or Ielease 2001/05/17 : C , Mexico Guatemala Panama Brazillia, Brazil Buenos Aires, Argentina Bogota, Colombia Santiago, Chile La Paz, Bolivia Montevideo, Uruguay Caracas, Venezuela Yaounde, Cameroun Leopoldville, Congo Addis Ababa, Ethopia Accra, Ghana Abidjan, Ivory Coast Nairobi, Kenya Monrovia, Liberia Tripoli, Libya Rabat, Morocco Lagos, Nigeria Mogadiscio, Somal Khartoum, Sudan Tunis, Tunisia Pretoria, South Africa. Algiers, Algeria Cotonou, Dahomey Dakar, Senegal Bamako, Mali ,7,9Tq1ftA 22" down adig and declassification SECRET f'hen F X11 e d ,Ln 1 ArrrnoI rl ~nr del ~nn~ inrin~ r_ i r 81 85A8822 0 12000 1RECORD OF REVIEW OF ORR PUBLICATIONS FOR SECURITY/SANITIZATION APPROVAL 25X1 C 25X1A e G - a7 Excluded from automatic downgrading and declassification