1

Course Name

Module 56/ PGPPM

Candidate Name
Course Title Reg. No. Assignment No. Date of Dispatch

Ashar Milind Mahesh Rashmi

Projects Planning & Control 210-03-31-8104-2123 PGPM 22 19th February 2011

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Introduction to Project Management

Each project has a predetermined duration with a definite beginning and an identifiable end; its starting point is the time when the client, and its end marks conceive the idea the time when the mission is accomplished. The time span between the start and completion of a project represents the project life cycle, which varies from few months to few years. Although construction projects differ in many ways, the life span of a project follows a similar pattern. After conception there is a gradual build-up in the use of resources, it is followed by a longduration plateau and towards the end, there is a rapid run-down till completion. The life cycle of a typical construction project can be broadly divided into the following stages.

(a) Formulation stage this includes: Project idea conception Feasibility studies Investment appraisal Project definition

(b) Mobilization stage this covers preparation of: Project preliminary plan Designs and drawings Specifications and contract finalization Resources mobilization and earmarking fund.

(c) Construction stage this includes: Planning and controlling execution Inducting resources Construction and commissioning Final handling over to the client

Project Identification :
Construction of a new international cricket facility outside a mega city. It should have the following facilities1. 2. 3. 4. Capacity of spectators- 80,000 Play facility for- Day & Night play. 6 directional T.V. camera platforms. Safety of players from the spectators.

5. 6.

Pavilion for V.I.P with a seating capacity for 300. Adequate parking space for all.

Time available- 16 months inclusive of monsoon. Other details- Cost of construction is to be recovered in 5 years. The average cost per ticket will be Rs100/- & there will be 4 matches per season. Note- all figures taken for calculations are based on assumptions except those provided. All conditions are also assumed regarding the project execution & nature of work. Calculation of approximate projected revenue to be earned by the stadium in a period of 5 yearsCapacity of spectators (excluding V.I.P seats) Capacity for V.I.P pavilion Assumed total capacity= 80,000 300 80,300

Assumed cost per ticket1. 2. Average cost per ticket for spectators- Rs100/Average cost per ticket for V.I.P seats- Rs200/-

Assumed revenue of the stadium per match: It is assumed that the stadium will not always be packed to capacity. So we will take an average of the tickets expected to be sold.

Average capacity covered for 4 matches per season for spectators1st Match2nd Match3rd Match4th Match100% of total capacity. 80% of total capacity. 60% of total capacity. 50% of total capacity.

Therefore- Average seats filled for spectators= (100+80+60+50) 4=72.5% or say 73%.

Average capacity covered for 4 matches per season for V.I.P pavilion1st Match2nd Match100% of total capacity. 100% of total capacity.

3rd Match4th Match-

80% of total capacity. 75% of total capacity.

Therefore- Average seats filled for the V.I.P pavilion=(100+100+80+75)4=88.75% or say 89%. Based on the above assumed data the revenue expected per match is= {(73% x 80,000) x Rs100/-} + {(89% x 300) x Rs200/-} = Rs58, 93,400/- per match. Assumed revenue expected per seasonRevenue expected= 4 matches per season x Rs58, 93,400/= Rs2, 35, 73,600/Assumed revenue expected in a 5 year periodRevenue= 5 years x Rs2, 35, 73,600/= Rs11, 78, 68,000/Since the cost of construction is to be recovered in five years based on the above given assumptions which have been considered taking a pessimistic point of view that all the seats in the stadium will not always be booked to capacity so the entire cost of the project should not exceed the derived value of revenue recoverable within a period of five years. Therefore the total cost of construction should not exceed Rs11, 78, 68,000/- & for this period the maintenance cost should be zero. The technical aspects of the construction design; planning & execution should keep in mind the above figure so that the ultimate cost should be within this limit.

FEASABILITY STUDIES
The major construction projects are undertaken to meet the particular needs of a client. Generally, a client is well informed and clear about what he needs, but sometimes what he thinks he wants and what he really needs may actually be different. The first step in the development of a project is to analyze the needs of the client. This requires a critical examination of the needs through feasibility studies. The feasibility study evaluates project potential by examining technical feasibility, economic viability and financial implications. The subject to be covered in the feasibility report of a construction project will depend upon the purpose of the report and the nature of the project. For example, the feasibility report of an

industrial project may include the following aspects:

1. 2.

Proposed product features. Demand survey it includes prospective customers, consumption pattern, existing market, government policy, demand forecast and sale potential.

3.

Technical studies These cover production process selection, construction methodology, location study, power and local resources availability, means of transportation, scope of work, wastage disposal arrangement, construction cost estimates, preliminary time plan, resource forecasts, outline project organization, and statement of project time and cost objectives.

4.

Financial implications It contains sales forecast, project budget, capital costs, profitability trend, payback period, net present worth, cash flow forecast, and sources of financing.

5. 6.

Economic viability It highlights social implications and cost benefit analysis. Summary of recommendations.

The feasibility report, if found favorable, is followed up with investment appraisal. The purpose of appraisal is to conduct an objective assessment for investment decision. It involves critical examination of the techno-economic analysis of feasibility findings, with particular reference to: Demand analysis Technical specifications feasibility Strength, weaknesses, opportunity and threat (SWOT) analysis Environments implications Financial analysis Economic analysis

Appraisal of feasibility stage enables a client to: a) Decide on the project concept, time and costs;

b) Outline the approach needed to taking the project; c) Appoint key persons like construction project manager or project coordinator, to act as his representatives; and d) Nominate specialist-associated agencies such as the architect, designer and consultants, as per the requirements. Depending upon the nature and complexity of the project, the following may assist client in making decisions. a) Client representative these include the prospective project manager or his nominee and the related officials. b) Specialist these include the architects, engineers, planners, and finance management consultants. c) Concerned officials of administration and technical departments.

The process of formulation of needs, collection of information, critical examination concept and re-examination of needs, may have to be repeated several times over before a project inception finally takes shape. Finally, the feasibility studies and its appraisal lead to the definition of the following aspects relating to the project: Broad scope of work involved. Project objectives. Outline execution methodology. Preliminary time plan. Resource forecasts. Cash flow pattern and sources of funding. Outline organization. Potential risks and problem areas.

Mobilization or Preparation Stage

The mobilization stage aims at processing the project preliminaries so as to enable the commencement of the construction stage. This is achieved by the following:

a)

Compiling detailed design and drawings, specifications, and bills of quantities, so as to complete all the documents necessary for contracting works.

b) Planning project execution. This includes the work programme, manpower plan, materials plan, plant and machinery utilization plan, work-organization and mobilization plan, and project budget or cost plan. This process also continues during the construction stage. c) Tendering and appointing contracts, especially those needed for commencement of the work,

The composition of the team to prepare for commencement of the project depends upon many factors such as size and nature of the project, project characteristics, and the time and cost objectives. This team is lead by the project manager designate and, the project chief planner coordinates its works. The other participants of the team include the following:

a)

Architect and design engineers.

b) Construction engineers from HVAC, civil, mechanical or electrical branches. c) Tendering staff, like the contracts managers and quantity surveyors. d) Specialists consultants, such as the town planners, geologists, and the environmentalists. e) Selected manager and the connected officials.

In this preparation stage, the project manager, assisted by the chief project planner, performs the key functions. These include, but are not limited to, the following: a) Participate in the finalization of design, drawings and specifications so as to formulate construction methodology.

b) Prepare project execution preliminary plan and formulate the schedule for processing various contracts. c) Advise the client on an early purchase of the items of plant and equipment needing a long lead-time for procurement. d) Evolve the pre-tender construction plan for each tender package. e) Scrutinize the tender packages, including drawings and specifications, so as to minimize the discrepancies. f) Conduct the pre-tender briefing to contractors to ensure that the bidders understand the tender documents and the work involved in each tender. g) Evaluate project costs and compile project budget including preliminary allocations for the various heads of expenditures. h) Compile a project directive covering the scope of work, work plan, organization, and the policies and procedures for implementing the project.

Execution Stage
Most of the construction projects are executed through the contract system. The contract documents define the contracted scope of the work of each contractor. They also provide the contractual relationship between the construction manager of the contractors and the project manager. The contract agreement is based on mutual trust between the contracting parties, both of whom have their share of responsibilities and obligations. In this process, disagreements sometimes arise. These may be on account of deviations in the scope of work and other factors like time delays, inflation and unforeseen circumstances. Contract provisions do provide a mechanism for the settlement of such disputes through arbitration. Construction at the site of the contracted projects is supervised and carried out by two separate agencies. These are: the client team led by the project manager, and the contractor workforce managed by his construction manager. Both teams have the common goal of completing the project in time within specified costs and quality specification. However, their roles differ. It is the project manager who plays the dominant role. He represents the client and acts as the boss at site. He ensures smooth functioning at site and makes decisions when the] site faces problems. He manages the entire construction process so as to achieve the assigned project objectives. He manages the contractors employed at site, and the site activities, with the help of his supervisory team that reports to him for decisions; it is he who is accountable to the client for the construction of the project. The main functions of this constructions supervision team can be outlined as follows. 1. Scrutinize the contract documents to ensure that all amendments are incorporated into the drawings, specifications and bill of quantities held at site. 2. Scrutinize the contractor's plan of work, the mobilization plan, the construction and the quality control measures to ensure that they are in order. 3. 4. Scrutinize the pre-work preparation of work to ensure a smooth start of construction activities Scrutinize the work programmes to ensure that they are realistic, and monitor their progress regularly. procedures

5.

Scrutinize the quality of materials to ensu integrated work package logic diagrams into a project logic diagram. In practice, work-

packages are considered in the sequence they occur. Further the drawing of work-package logic diagrams and the process of integration can be carried out simultaneously

Preparation of Logic Diagram and Draft Network

The main purpose of the flow diagram is to facilitate a systematic drawing of the draft of network. The guidelines for converting the logic diagrams into draft network are: a. b. The dummies should be reduced to minimum. The crossing of arrows should be avoided by a suitable re-positioning of the activities. c. The new activities should be incorporated, if visualized during the preparation of logic diagrams. d. Logic of all the activities should be verified for its correctness.

Structuring Model Using Network Drawing Rules

The project networks are constantly read, referred to and reviewed. Therefore, it is essential that they should be suitably titled and numbered, neatly drawn by readable lettering printed horizontally, and divided into strata for easy reference. The various conventions and rules for drawing CPM network are given below. a) All arrows must run from left to right. Turning arrows in the reverse direction is not correct.

b) The arrows should have sufficient horizontal length so that a description could be written over it. c) The crossing of arrows should be avoided by suitably re-positioning them.

d) Arrows running close to each other should be avoided. The intervening space should be sufficient to permit writing of activity description. e) The concurrent activities (commencing and terminating into common events) should be separated by inserting additional events followed by dummy activities. f) The activities emerging from an event should takeoff from a line rather than a point. Similarly, activities terminating into an event should finish into a common line. g) Wherever possible, the network should be drawn in such a way that activities belonging to the same strata can be demarcated by drawing vertical and/or horizontal lines, h) Use of large sheets should be avoided. If required, a large network can be split into two or more sheets having common interface events. For easy recognition, the interface events can be represented by double circle or ellipse. i) j) The network should be re-drawn, if necessary, to give a neat appearance. Prints of important networks should be taken and circulated to all concerned for comments. Amendments should be carried out, if necessary.

Incorporating Activity Duration

The duration of activities are estimated while breaking down the project into activities, further, some new activities may also get added during the preparation of network. Therefore, after drawing the network, the duration of all the activities should be re-checked and necessary corrections made.

Numbering of Events
It is the last operation in the modeling of the network.

Time Analyzing Network

The focus of time analysis of a CPM network is to calculate float for each activity by conducting forward pass and backward pass with a view to determine critical path. The critical-path computation procedure involves determination of the Earliest Event Times (foreword pass), calculation of the Latest Event Times, identification of the critical events and critical activities, (having zero float) and, finally, evaluation of the project duration by summing up the duration of critical activities along the critical path connecting the start and the end events.

Activity Series & Sequences

No Activity Description
1 Clearing & Leveling Site 2 Site Layout/Lineout 3 Procuring Foundation Steel 4 Excavation for foundations 5 Concreting Foundations 6 Formwork for Gallery G-1 7 Steel work for Gallery G-1 8 Concreting Gallery G-1 9 Formwork for Gallery G-2 10 Steel work for Gallery G-2 11 Concreting for Gallery G-2 12 Formwork for Gallery G-3 13 Steelwork for Gallery G-3 14 Concreting for Gallery G-2 15 Masonry work 16 Sanitary work in Gallery G-2 17 Sanitary work in Gallery G-1 18 Sanitary work in Gallery G-3 19 Aluminum & Steel Fabrication Gallery G-2 20 Aluminum & Steel Fabrication Gallery G-1 21 Aluminum & Steel Fabrication Gallery G-3 22 Electrical works in Gallery G-2 23 Electrical works in Gallery G-1 24 Electrical works in Gallery G-3 25 PVC works in Gallery G-2 26 PVC works in Gallery G-1 27 PVC works in Gallery G-3 28 Painting Works

Preceding Activity
Nil 1 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 16 17 18 19 20 21 22 23 24 27

Following Activity
2 4 5 5 6 7 8 9 10 11 12 13 14 15 16 19 20 21 22 23 24 25 26 27 28 28 28 29

Concurrent Activity
3 3 4 Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil Nil 17,18 16,18 16,17 20,21 19,21 19,20 23,24 22,24 22,23 26,27 25,27 25,26 Nil

29 Commissioning

28

Nil

Nil

The above chart shows the sequence of the various work activities that encompasses the project in totality.

Project Time Schedule

No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Activity Description Clearing & Leveling Site Site Layout/Lineout Procuring Foundation Steel Excavation for foundations Concreting Foundations Formwork for Gallery G-1 Steel work for Gallery G-1 Concreting Gallery G-1 Formwork for Gallery G-2 Steel work for Gallery G-2 Concreting for Gallery G-3 Formwork for Gallery G-3 Steelwork for Gallery G-3 Concreting for Gallery G-2 Masonry work Sanitary work in Gallery G-2 Sanitary work in Gallery G-1 Sanitary work in Gallery G-3 Aluminum & Steel Fabrication Gallery G-2 Aluminum & Steel Fabrication Gallery G-1 Aluminum & Steel Fabrication Gallery G-3 Electrical works in Gallery G-2 Electrical works in Gallery G-1 Electrical works in Gallery G-3 PVC works in Gallery G-2 PVC works in Gallery G-1 PVC works in Gallery G-3 Painting Works Commissioning EST 1st Oct 06 15th Oct 06 1st Oct 06 22nd Oct 06 19th Nov 06 12th Dec 07 9th Jan 07 23rd Jan 07 8th Feb 07 8th Mar 07 22nd Mar 07 7th Apr 07 6th May 07 21st May 07 13th Jun 07 18th Jul 07 18th Jul 07 18th Jul 07 22nd Aug 07 22nd Aug 07 22nd Aug 07 26th Sep 07 26th Sep 07 26th Sep 07 14th Nov 07 14th Nov 07 14th Nov 07 1st Jan 08 1st Feb 08 EFT 14th Oct 06 21st Oct 06 28th Oct 06 18th Nov 06 9th Dec 06 8th Jan 07 22nd Jan 07 5th Feb 07 7th Mar 07 21st Mar 07 4th Apr 07 5th May 07 19th May 07 4th Jun 07 9th Jul 07 14th Aug 07 14th Aug 07 14th Aug 07 18th Sep 07 18th Sep 07 18th Sep 07 6th Nov 07 6th Nov 07 6th Nov 07 27th Nov 07 27th Nov 07 27th Nov 07 31st Jan 08 3rd Mar 08 LST 9th Oct 06 23rd Oct 06 9th Oct 06 30th Oct 06 4th Dec 06 9th Jan 07 10th Feb 07 24th Feb 07 12th Feb 07 12th Mar 07 26th Mar 07 11th Apr 07 10th May 07 26th May 07 13th Jul 07 24th Aug 07 24th Aug 07 24th Aug 07 5th Sept 07 5th Sept 07 5th Sept 07 1st Nov 07 1st Nov 07 1st Nov 07 26th Dec 07 26th Dec 07 26th Dec 07 16th Jan 08 17th Feb 08 LFT 22nd Oct 06 29th Oct 06 5th Nov 06 3rd Dec 06 4th Jan 07 9th Feb 07 23rd Feb 07 9th Feb 07 11th Mar 07 25th Mar 07 8th Apr 07 8th May 07 24th May 07 8th Jun 07 16th Jul 07 27th Aug 07 27th Aug 07 27th Aug 07 26th Sept 07 26th Sept 07 26th Sept 07 19th Dec 07 19th Dec 07 19th Dec 07 15th Jan 08 15th Jan 08 15th Jan 08 16th Feb 08 17th Mar 08

Index1. 2. 3. EST-Early Start Time. EFT-Early Finishing Time. LST-Late Start Time/ LFT-Late Finish Time.

Conclusions:
1. The data that has been used in the project planning & sequencing has been taken from earlier projects or assumed as per the situation. 2. There will be variances in the planning & execution since the ground situation & the planning assumptions have certain conflicts. 3. 4. The variances are to be carefully monitored during the project execution & corrected. There have been lag periods provided to take care of contingencies that are bound to arise like stoppage of work due to rains, labor problems etc. 5. Foundations have been planned in a way to complete it before the monsoons so that when the monsoons arrive it will be indoor work mainly & will not hamper work schedules much. 6. Structure has been given the primary focal point of construction so that the rest of the sequences can operate together in the later phases. 7. Supply chain management & HR management to co-ordinate in a manner so that the production process remains unhampered. 8. No holiday periods have as such been assumed but lags between the phases can be used for the purpose.

Bibliography:
1. 2. 3. Nicmar Lesson book. Construction Project Management by Lt Col K.K.Chitkara Construction journals.