KYAMBOGO UNIVERSITY

Department of civil and Building Engineering

P.O.BOX 1, KYAMBOGO-KAMPALA, UGANDA

FACULTY OF ENGINEERING

BACHELOR OF ENGINEERING IN CIVIL AND

BUILDING ENGINEERING

TCBE 4206: PROJECT MANAGEMENT ASSIGNMENT.

KALAMOI JOHN PAUL KIMONG

17/U/16194/ECE/PE.

LECTURER: ENG. ACAI JOSEPH

SUBMISSION DATE: 14th NOVEMBER 2020.

TCBE 4206 Project Management Assignment

QUESTION ONE.

Qn. (a)

Project management is the application of processes, methods, skills, knowledge and experience
to achieve specific objectives according to project acceptance criteria within agreed parameters.
Project management has final deliverables that are constrained to a finite timescale and budget.

Example of project management can be designing and developing an e-commerce website for a
client focusing on selling home furniture in a timeframe of three months. In this example the
objective is “going live by the end of the project” and the product as an e-commerce website
that sells furniture and the timeframe is three month.

Program management is very similar to project management, but instead of one project, this
discipline involves managing several ongoing projects at once. Related projects are grouped
and managed together. Overseen by a program manager as opposed to a project manager,
program management focuses on how a group of projects affects the organization’s strategic
goals and objectives.

Example is creating a website and another to run a marketing campaign for it.

Project portfolio management (PPfM), is the process of clarifying, prioritizing, and selecting
the projects and features an organization wishes to pursue. A strong portfolio management
enables organizations to effectively and efficiently determine which projects and features
provide the most significant return on investment.

Example includes managing real estates, stocks and bonds.

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Qn. (b)
There are five stages in a project management and if the lifecycle provides a high level view of
the project, the phases are the roadmap to accomplishing it.
Phase 1: Project Initiation
This is the start of the project, and the goal of this phase is to define the project at a broad level.
This is when you will research whether the project is feasible and if it should be undertaken. If
feasibility testing needs to be done.
Phase 2: Project Planning
This phase is key to successful project management and focuses on developing a roadmap that
everyone will follow. This phase typically begins with setting goals. Two of the more popular
methods for setting goals are S.M.A.R.T. and CLEAR:
S.M.A.R.T. Goals. Measurable, Attainable, Realistic, Timely.
CLEAR Goals. Collaborative, Limited, Emotional, Appreciable, Refinable
Phase 3: Project Execution
This is the phase where deliverables are developed and completed. A lot is happening during
this time, like status reports and meetings, development updates, and performance reports. A
“kick-off” meeting usually marks the start of the Project Execution phase where the teams
involved are informed of their responsibilities. Tasks completed during the Execution Phase
include: Develop team, Assign resources, Execute project management plans, Procurement
management if needed, Set up tracking systems, Task assignments are executed, Status
meetings etc
Phase 4: Project Performance/Monitoring
This is all about measuring project progression and performance and ensuring that everything
happening aligns with the project management plan. Project managers will use key
performance indicators (KPIs) to determine if the project is on track for example project
objectives, quality deliverables, project performance etc.
Phase 5: Project Closure
This phase represents the completed project. Contractors hired to work specifically on the
project are terminated at this time. Valuable team members are recognized, evaluating what
went well during the project and identifying project failures. This is especially helpful to understand
lessons learned so that improvements can be made for future projects.

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Qn. (c)
Project failure refers to failure to achieve objectives of a project within the planed budget and
time which results into client’s dissatisfaction. This failure can be caused by many reasons
which include;
Unclear Goals and Objectives.
This happens when work is begun without clear project objectives and goals. For example, a
contractor begins constructing a residential home. He or she is likely to fail if he doesn’t know
the number of people, their status and the nature of life they live. It is through clear objectives
that all such factors are catered for.
Lack of resource planning.
If other aspects of project are planed well but resources are not planned for, the project is most
likely going to fail. For example, a project under execution stage with less human resources, or
less facilities as required will suffer from considerable time delays and high expenditure.
Lack of project visibility.
Project visibility refers to transparency, clear communication and good document management
of a project team. For example, if the status of each project task is not known to everyone in the
management, no one will assist or adjust accordingly to save the situation in case it is going
wrong. This will eventually lead to entire project failure.
Unrealistic expectations.
Targeting unachievable results has brought many projects down. This happens when the
project manager fails to gain a clear picture of what his team is capable of accomplishing and
within which time frame. For example, planning to accomplish a task equivalent to three days
in one day without increasing work force. This demoralizes workers and can result in serious
disputes between the workers and the management.
Scope creep
Scope is everything that you are going to do and conversely not going to do. This happens
when the parameters of the project were not well defined from the onset or there is external
pressure internally from the team or externally from customers to take on task that were not
part of the original project plan.
Communication gap
The existence of gaps for flow of information within the project management structure will lead
to delay of information leading to delay in service delivery within the project structure.

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Loss/death of a staff
Death of a key staff member or resignation within the project team will leave gaps within the
project management structure
In adequacy in risk management

Failure by management to identify and mitigate risks due to a lack of proper risk management
strategy will lead to project failure

QUESTION TWO
Qn. (a)
The characteristic features of a project are as follows:
Objectives:
A project has a fixed set of objectives. Once the objectives have been achieved, the project
ceases to exist.
Life Span
A project cannot continue endlessly. It has to come to an end. What represents the end would
normally be spell out in the set of objectives.
Single entity:
A project is one entity and is normally entrusted to one responsibility centre while the
participants in the project arc many.
Team-work:
A project calls for team-work. The team again is constituted of members belonging to different
disciplines, organizations and even countries.
Life-cycle:
A project has a life cycle reflected by growth, maturity and decay. It has naturally a learning
component.
Uniqueness:
No two projects are exactly similar even if Die plants are exactly identical or are merely
duplicated. The location, the infra-structure, the agencies and the people make each project
unique.
Change:

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A project sees many changes throughout its life while some of these changes may not have any
major impact; then- can be some changes which will change the entire character of course of
the project.
Successive principle:
What is going to happen during the life cycle of a project is not fully known at any stage. The
details get finalized successively with the passage of time. More is known about a project when
it enters the construction phase than what was known say, during the detailed engineering
phase.
Made to order:
A project is always made to the order of its customer. The customer stipulates various
requirements and puts constraints within which the project must be executed.
Unity in diversity:
A project is a complex set of thousands of varieties. The varieties are in terms of technology,
equipment and materials, machinery and people, work culture and ethics. But they remain inter-
related and unless this is so, they either do not belong to the project or will never allow the
project to be completed.
High level of sub-contracting:
A high percentage of the work in a project is done through contractors. The more the
complexity of the project, the more will be the extent of contracting. Normally around 80% of
the work in a project is done through sub-contractors.
Risk and uncertainty:
Every project has risk and uncertainty associated with it. The degree of risk and uncertainty
will depend on how a project has passed through its various life-cycle phases. An ill-defined
project will have extremely high degree of risk and uncertainly Risk and uncertainty are not
part and parcel of a certain projects only, there aren’t simply cannot be a project without any
risk and uncertainty.

Qn. (b)
Project management is the application of processes, methods, skills, knowledge and experience
to achieve specific project objectives according to the project acceptance criteria within agreed
timescale and budget. Project management serves many functions which include;
Defining the project scope:

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Project scope is part of project planning that involves outlining and documenting a list of
specific project goals, deliverables, tasks, deadlines, and costs. The scope is agreed upon by all
stakeholders involved in the project which summarizes the projects end goal and how the work
shall be carried out.
Estimation of project’s cost:
Project management helps to arrive at the budget of the project. It also provides a cost control
which keeps truck of expenditure and it correlation with the budget.
Defines the time frame of a project:
In project management, expected duration for execution of a project is defined and each task
making up a project is fitted into the specified timeline.
Team building:
Project management helps to build a team (people) to run the project. Each team member is
allocated at least a responsibility to handle during the project progress.
Successful communication:
Project management gives a well-defined flow of information across all levels of project
management.
Quality control:
It is a role of project management to ensure quality of the deliverables.
Risk management.
Risks and changes are constant in the field of management. Project management allow project
tem to take back control over the risks and to face them in a collected and organized manner.

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QUESTION THREE
Question summary.
On 15th February 2017, Mr. Kirunda contacted Mr. Obura Kenneth of city cleaning services

the job should begin on 18th February and end on 21st February 2017

Mr. Kirunda will pay $40 per hour for the fifty hours

20th February 2017 at 10 pm in the night, $45 per hour for the same amount of time.

On 21st February 2017 at 6 pm after the graduation ceremony and heavy lunch from Serena
Hotel.

Kirunda arrived home and realized that only 80% of the entire work had been completed.

Solution

a) Budgeted cost of work scheduled BCWS=$40×50=$2000

b) Budgeted cost of work performed (BCWP)=80% of $2000=0.8× 40×50 =$1600

c) Actual cost of work performed (ACWP) at 80% work completion = 80%×45×50

=$1800

d) Schedule variance (SV) ¿ BCWP−BCWS

¿ $ 1600−$ 2000
SV =$−400 behind schedule
e) Cost variance (CV)=BCWP−ACWP
¿ $ 1600−$ 1800
CV =$−200 over budgeted
BCWP
f) Schedule performance index, SPI¿
BCWS
$ 1600
¿ =0.8 behind schedule
$ 2000
BCWP
Cost performance index, CPI¿
ACWP
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$ 1600
¿ =0.89 over budget
$ 1800
g) Critical ratio, CR
CR

¿ Time ¿ be taken ¿ do the work ¿ be taken¿ do the work + Excess timetaken ¿ finish the work ¿
Time ¿
50
¿
20
50+( ×50)
100
=0.83
Since CR= 0.83¿ 1.0, this implies that the project is either behind schedule, or over
budgeted or both.
To reduce on the over budget, Mr Kirunda should reduce the hourly rate for Mr Obura
and to be on schedule or ahead of schedule, Mr Obura’s workers should work more
hours a day to complete the work before 22nd February 2017

QUESTION FOUR

Qn. a)

3 7 10

C
3 0 10 34 5 39 39 9 48
H J
34 0 39 39 0 48 48 7 55
0 3 3 3 5 8 10 10 20 20 14 34 L
A E F G 48 0 55
0 0 3 5 2 10 10 0 20 20 0 34 42 5 47
34 8 42 K 55 2 57 57 2 59 59 0 59
I 43 1 48 N O Completion
3 4 7 35 1 43 55 0 57 57 0 59 59 0 59
B
6 3 10 42 4 46
M
51 9 55
7 2 9
D
57 50 59

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Qn. b)

The shortest time required to have the building in place is 59 days

Qn. c)

He should develop a good break down schedule and identify all the works that can be done
concurrently.

The duration of each task in the work breakdown schedule should be allocated such that the
total project time is not exceeded.

Enough resources should be availed to enable concurrency of activities.

Periodic monitoring of the project progress.

Qn. d)

Advantages of PERT

It caters for uncertainties.

It determines the critical activities.

It shows the interdependencies between tasks.

Limitations

It assumes unlimited resources.

It is time and Labour consuming.
There is a lack of functional ownership of estimates.

QUESTION FIVE

Qn. a)

They are used interchangeably because they both use network diagrams however; they
differ in the following ways;

CPM is activity oriented i.e. it breaks down the project into various activities aimed at
achieving project objectives while PERT is event oriented i.e. it breaks down a project into
major events called milestones.

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CPM is deterministic and usually employed for small and less complex projects whereas PERT
is probabilistic based on three-time duration estimates and its normally used for complex
projects with uncertainties.

To determine the critical path, for the PERT method, the three-time duration estimates are first
converted into a single expected time and then the process follows the one of CPM which
makes them to be used interchangeably

Qn.( b)

B C
3 5
13,14,15 7,9,11

A
1 2
4,5,6

E F G H
D 4 6 7 8 9
13,15,17 8,10,12 3,4,5 1,2,3 0,0,0

B 19 C 28
3 5
14 21 9 30

0 A 5
1 2
0 5, 5

20 E 30 F 34 G 36 H 36
D 4 6 7 8 9
15 20 10 30 4 34 2 36 0 36

B 19 C 28
3 5
13,14,15 21 7,9,11 30

0 A 5
1 2
0 4,5,6 5

20 E 30 F 34 G 36 H 36
D 4 6 7 8 9
13,15,17 20 8,10,12 30 3,4,5 34 1,2,3 36 0,0,0 36

Qn. ii)

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B 19 C 28
3 5
13,14,15 21 7,9,11 30

critical path
0 A 5
1 2
0 4,5,6 5

20 E 30 F 34 G 36 H 36
D 4 6 7 8 9
13,15,17 20 8,10,12 30 3,4,5 34 1,2,3 36 0,0,0 36

Critical path =A-D-E-F-G-H

Length of critical path= 5 +15 +10 +4 +2 = 36 days.

Qn. iii)

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Qn. iv)

Activity Optimistic Most likely Pessimistic Expected Standard

S/No.
description (days) (days) (days) time deviation Variance
A Plan production 4 5 6 5 0.33 0.11
Procure
B materials for 13 14 15
part X 14 0.33 0.11
Manufacture
C 7 9 11
part X 9 0.67 0.44
Procure
D materials for 13 15 17
part Y 15 0.67 0.44
Manufacture
E 8 10 12
part Y 10 0.67 0.44
Assemble parts X
F 3 4 5
and Y 4 0.33 0.11
Inspect
G 1 2 3
assemblies 2 0.33 0.11
H Completed 0 0 0 0 0.00 0.00
Sumation 59 3.33 1.78

Mean expected time (along the critical path) = 5+15+10+4+2 = 36

Variance (along the critical path) = 0.11+0.44+0.44+0.11+0.11 = 1.21

Standard deviation = √ varia nce = √ 1.21 = 1.1

Qn. v)

probability of completion in 30 days = p(x ≤ 30) = p(z ≤ x)

scheduled duration−expected duration 30−36
where x= = = -5.45
standard deviatin 1.1

p(z ≤ x) = p(z ≤−5.45 ¿= 0.0000

Qn. vi)

the value of x corresponding to 0.98 probability = 2.055

Duration corresponding to 98% probability of completion = Expected duration +

2.055×Standard deviation.

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= 36+2.055×1.1 = 38.2605days approximately 38days.

Qn. vii)

The value of x corresponding to 0.25 probability = -0.675

Duration corresponding to 98% probability of completion = Expected duration – 0.675×

Standard deviation.

= 36-0.675×1.1 = 35.2575days approximately 35days.

Qn. viii)

Critical path method determines the mean expected time for the project.

It determines the critical activities which have not to be delayed at all.

It displays clearly interdependences between activities in the project.

Qn. ix)

It assumes unlimited resources which is not necessarily true.

For bigger projects, it is hard to follow the network.

QUESTION SIX

Qn. (a) Stages in project development

Initiation

Development of project concepts and initial set of goals, mapping out benefits of
proposed project with assumptions, constraints and estimates of required resources,
much is unknown and the project may be nothing more than a high level goals.

Research, data collections, experiments and feasibility studies are carried out to the
need assessment of the project.

Requirement, the basic items needed are identified for the project executions.

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Estimation, the amount of resources required for the project such as finance, time,
labour, plants and materials are estimated for the successful completion of the project.

Planning, is the process of defining your objectives and scope, goals, objectives and
milestones(deliverables) and assigning tasks and budgetary resources are allocated.

Procurement, is a method for establishing relationship between an organizations

purchasing department and external suppliers to order, receive, review and approve all
the procurement items necessary for project execution.

Architecture and design,

Implementation, the real execution of the project activity is carried out where quality
assurance controls is adhered to during the project work.

Testing

Deployment

Closing

Qn.(b)

Differences between economic assessment and financial assessment of construction

project.

Economic assessment is atool that calculates the potential cost and assigns values to the
anticipated benefits of a proposed projects.

Financial assessment is atool that tells you wheather a project will contribute to your
over all goods or be drain on your resources.

Qn. (c) Difference between public projects and private projects

Private Public
Purpose Financial Social
Fundings Debt and equity market Taxes,tax free bonds,low
interest loans
Materials Some Most
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Project life Shorter Longer

Benefits Financial Financial,social economic
aesthetic
Conflicts Moderate Common and high
Politics Little/moderate High
Measure of efficiency Npv ,IRR Very difficult

Qn.(d)Economic benefit in economic assessment

Increased productivity is realized

It is cheap and popular

It maintains level of ground water

Hygiene improvement

Disbenefits in economic assessment

It involves a lot of desilting which makes maintenance costly.

Tanks occupies large space.

Sources of water in tanks is mainly rainfall therefore any variations in rainfall may.

QUESTION SEVEN

Qn. (a)

key results areas of a manager of a construction projects

Interpersonal roles

Governance roles. He/she is alegal and social head of the project

Leadership roles, as a leader, the project manager directs the interfuncional effort for his team

Liaison roles, project manager maintain contact outside the organization inorder to assess the
external environment of competition, social changes or changes in governmental rules,
regulations and laws.

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Informational roles

Monitoring roles, motivates the project team to provide timely results on project performance
objectives

Dissemination roles, project manager transmits relevant information received from external
source and internal systems to the concerned people in the work place.

Spokespersons roles, Act as a sole representative through whom all communication with clients
or external parties are conducted outside site.

Decisional roles

-Entrepreneurs roles, He seeks and identify opportunities to promote improvements

-Conflict handler roles, the project manager maintains organizational harmony by resolving
conflicts and diagnosing organizational behavior

-Resource allocation roles, project manager allocates project resources accordingly

-Negotiation roles, He/She negotiates important issues and business related matter both inside
and outside of the project environment and represent the organization on major negotiation.

Qn. (b) The key factors that distinguishes construction project management from just
other forms of management.

Project management has final deliverables and finite time span unlike management which is an
ongoing process

Construction project manager oversees onsite operations such as personnel, materials,

construction budget while project manager oversees all phases of the project from marketing
administrative needs.

Qn(c) Application of the following management approaches in construction

i) Critical chain project management,

Is a method of planning and managing project that emphasizes the resources (people,
equipment, physical space) required to execute project tasks.it helps you identify both
resource and task dependencies to help you complete projects as efficiently as possible.

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ii) Events chain methodology

Is a network analysis technique that is focused on identifying and managing events and
relationship between them (event chain) that affect project schedules. Events chain
methodology tries to mitigate the effect of motivation and cognitive biases in estimating
and scheduling.it improves accuracy of risks assessment and helps to generate more
realistic risks adjusted project schedule

iii) Capability Maturity model integration,

Is the model that helps organizations effectuate process improvement and develop behavior
that decrease risk in service, product and software development.The followings are the 5
CMMI maturity levels

Initial, process is seen as unpredictable, poor controlled and reactive, business in this
stage have unpredictable environment that leads to increased and inefficiency.
Managed, process is well characterized by projects and are frequently reactive.
Defines, process is well understood, the organization is more proactive than reactive.
Quantitatively managed, processes are measure and controlled, the organization is using
quantitative data to implement predictable process that meet organizational goals

QUESTION EIGHT
Qn. (a)
i. Work package. A work package is the smallest unit of a Work Breakdown Structure.
By breaking a project down into work packages, the development of Work Breakdown
Structures becomes easier—and project managers will have a finer level of control over
assignments.
ii. Activities. An activity is a scheduled phase in a project plan with a distinct beginning
and end. An activity usually contains several tasks upon completion of which the whole
activity is completed. Several activities can be combined to form a summary activity.
The purpose of defining activities in a project is to distinguish the particular task that
has to be done with a specific objective to produce the project deliverables.
iii. Operations are the ongoing execution of activities and they follow an organization's
procedures to produce the same result or a repetitive service. Operations are
permanent in nature.
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b) Free Float is the amount of time an activity or group of activities can be delayed, brought
forward or extended without affecting the successor activity. It is calculated as:

FREE FLOAT = Earliest start time of succeeding activity - earliest finish time

For example a project manager may choose to finish an activity on the path by six days in
advance and then put the resources somewhere else or first use the resources somewhere else
then put it back to the activity path

While Interfering float is the time available to delay an activity without delaying the project’s
estimated completion time, but delaying an activity into interfering float will delay the start of
one or more following non-critical activities (activities that are not in the critical path).
Calculated as:

INTERFERING FLOAT = TOTAL FLOAT - FREE FLOAT

Qn. (c)

Months 1 2 3 4 5 6 7 8 9 Practical 15
completion

10

Cost(million 3 3 3 3 4 4 4 3 2
ushs)

Labour(40%) 1.2 1.2 1.2 1.2 1.2 1.6 1.6 1.2 0.9

Material(50%) 1.5 1.5 1.5 1.5 2 2 2 1.5 1

Plant(10%) 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.3 0.2

Profit(40%) 1.2 1.2 1.2 1.2 1.6 1.6 1.6 1.2 0.8

Amount payable 4.2 4.2 4.2 4.2 5.6 5.6 5.6 4.2 2.8
profit

Retentions(5%) 0.21 0.21 0.21 0.21 0.28 0.28 0.28 0.21 0.41

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Income after 3.99 3.99 3.99 3.99 5.32 5.32 5.32 3.99 2.66
dtt(retention)

Income 3.99 3.99 3.99 3.99 5.32 5.32 5.32 3.99 3.675 1.015
received(payabl
e made)

Expenditure

Labour 1.2 1.2 1.2 1.2 1.6 1.6 1.6 1.2 0.8

Materials 1.5 1.5 1.5 1.5 2 2 2 1.5 1

Plant 0.3 0.3 0.3 0.3 0.4 0.4 0.4 0.3 0.2

Total 1.2 3 3 3 3.4 4 4 3.6 2.6 1.2

expenditure

Income received -1.2 -0.21 0.78 1.77 2.36 3.68 5 6.72 8.11 10.585 11.6

On the 10th month payment made with 2.5% of retention plus the payment for the 9th month

Total money for retention

=0.21+0.21+0.21+0.21+0.28+0.28+0.28+0.21+0.14

=2.03

Payment on 10th month =2.66+(2.03/2) = 3.675

Total income received =1.2 1st month

= (-1.2 +3.99)-3 income received –expenditure

=0-1.2

= -0.21 2nd month……………..up to the 10th month

External funding required for the project are the sum of negative value of the income which is
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1.2+0.21 = 1.41

Therefore, external funding required for the project is 1.4m shillings.

QUESTION NINE

In order to effectively manage and run a successful project, leadership must guide their
employee and develop problem solving techniques. Finding a suitable solution for issues can be
accomplished by following the four steps basic problem solving process and methodology as
described below,

Define the problem. Diagonise the situation so that your focus is on the problems not just its
symptoms. Helpful problem solving techniques includes using flow charts to identify the
expected steps of a process and cause-an effect diagrams to define and analyse root causes.
This step support the involvement of interested parties, the use of factual information,
comparison of expectations to reality and a focus on root causes of the problem.

You should begin by;

Reviewing and documenting how processes currently work that is who does what, with what
information, using what tools, communicating with what organization and individuals, in what
time frame, using what format.

Evaluating the possible impact of new tool and revised policies in the development of your
‘what should be’ model.

Generate alternative solutions

Postponed the selection of one solution until several problem solving alternatives have been
proposed. Considering multiple alternative can significantly enhance the value of your ideal
solution. Many alternatives to the problem should be generated before final evaluation.
Common mistake in problem solving is that alternative are evaluated as they ae proposed, so
the first acceptable solution is chosen, even if it is not the best fit. If we focus on trying to get
the results we want, we miss the potential of learning something new that will allow for real
improvement in the problem solving process.

Evaluate and select an alternative

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Skilled problem solvers use aseries of consideration when selecting the best alternative. They
consider the extent to which a particular alternative will solve the problem without causing
other an anticipated problem, all the individuals will accept the alternative, Implementation of
the alternative is likely, the alternative fits within the organizational constraints.

Implement and follow up on the solutions

Leaders may be called upon to direct others to implement the solution or facilitate the
implementation with the help of others. Involving others in the implementation is an effective
way to gain by- in and support and minimize resistant to subsequent changes.

Regardless of how the solution is rolled out, feedback channels should be build in the
implementation. This allow for continuous monitoring and testings of actual events against
expectation. Problem solving and the techniques used to gain clarity are most effective if the
solution remain in place and it is updated to response to future changes.

QUESTION TEN

Structure of Organization The organizational structure is the network of relationships between

the various positions in an organization. A clear understanding of an organizational structure is
helpful in making more frequent detailed adjustments in the organizational arrangements. Most
problems occur in organizations due to defects in their structures. To remove such defects and
render organization more effective, a systematic and thorough study of its structure must be
made. The efficient functioning of the organization is possible only when every member of the
organization knows the following facts: The goal of the organization, His/her duties and
responsibilities, Delegation of authority, to whom one is responsible, who is to work with
whom?
Qn. (a)
Types of Organization Structures
The distribution system of authority and responsibility in any undertaking amongst its members
depends upon the type of magnitude of the work involved. Depending upon the manner in
which the authority and responsibility in an undertaking are distributed, the organization setup
or structure can be divided into the following three types: Line or military structure, Line and
staff organization and Functional organization.
Line or military organization
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This is the earliest, simplest and most important form of organization. In this type of
organization, authority descends from the top of the structure to its bottom level through a
downward delegation of authority. All major decisions are taken by the executives at the top
and passed on to their immediate subordinates for necessary action at their level. Thus a direct
relationship of authority and responsibility is established between the superiors and
subordinates as shown in figure 1.

Applications
This organization structure is suitable for small and medium size factories in which subordinate
operational staff is not high.
It is also suitable where continuous process is required such as in sugar and paper industries, oil
refineries, spinning and weaving mills.
Where automatic plants are used
Where Labour problems are not difficult to solve.
Line and staff organization
The line organization is suitable for large and complex enterprises, undertaking large
constructional works and heavy projects where key men need advice from expert specialists in
different fields. These specialists are normally staff with long experience. They do not have
authority to command anybody. Their functions mainly are advisory and are not directly
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involved in carrying out the major objectives of the enterprise. The ‘line’ personnel execute the
work to fulfill the objectives of the enterprise and maintain discipline and stability while ‘staff’
provides expert opinion based on long experience; carry out research, planning, scheduling and
recording of progress.
Figure 2 shows the line and staff relationships.

Functional Organization

In this type of organization all similar and related workers are grouped together under the
charge of one person. The idea is to divide the work in such a manner that each person has to
perform a minimum number of functions and he is fully responsible for the aspect of the work.
For example, a foreman in the materials section would be responsible for the procurement and
supply of all types of materials to the workers all sections. Thus in order to perform his
function effectively, he may have to deal with all personnel in the various departments. Thus in
a functional organization, a subordinate anywhere in the organization will be commanded
directly by a number of supervisors, each having authority in his/her own field.

This organization is found in government and private sector where much complicated
operations are involved e.g. big chemical plants, and steel plants

Figure 3 shows the Functional Organization structure.

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Qn. (b)

Advantages of line organization structure

It’s simple, economical and easily understood by the employees
Unity of authority and control
Provides strong discipline
Quick decisions
Responsibility is fixed and everybody knows to whom he is answerable
It provides effective coordination within each department
Disadvantages
The top executive tends to be overloaded with work as all decisions have to be taken by him
such that progress of work and its improvement may not be attended to.
Generally, there is inadequacy of communication from lower levels upwards though there is
smooth communication from top to bottom. Thus the feedback is not received by top executives
and this affects progress of the whole work.
The loss of one or two capable men may affect badly the whole organization.
It’s not possible to take advice from experts; hence all decisions have to be taken by the person
in charge himself.

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As the executives have to deal with different types of problems, expertise is not attained and
Due to the long channel of communication from top to bottom, there are chances of delay and
message distortion.

Advantages of Line and Staff organizational structures.

The advice of specialists and experts is available at all levels i.e. it’s a planned and specialized
system.
Quality of products/ service is better and wastage is less
It gives increased economy and efficiency though extra expenditure has to be incurred on staff
personnel [experts]
As staff personnel do considerable general work, line personnel get sufficient time to devote to
achieve objectives of the company.
It provides for large variety of jobs, hence better opportunities for the advancement of
employees.
Discipline problem is solved due to line relationship.
Disadvantages

The “staff” may not succeed in getting their ideas implemented for lack of authority as they are
not vested with any authority.

In this system, the duties and responsibilities are difficult to understand which may cause
confusion between line and staff personnel (charts and manuals are required to indicate clearly
duties and responsibilities).

The expert advice available is conveyed to workers through line officers which is quite a
lengthy route; there is risk of misinterpretation and misunderstanding given advice.

The overhead cost of the product may increase due to high salaries of staff personnel.

The slackness of any section will affect the whole working system.

This system is preferred for medium and large scale industries depending upon the internal
structure and nature of production activities-most common in automobile industries.

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Advantages of functional organizational structure.

Expert advice is available through specialists

It enables the division of Labour on the basis of specialization of functions and in planned
manner.

It enables increased efficiency, as each person has to perform limited number of functions
Manual work is separated from mental work

It maintains the functional efficiency of each person

It helps in doing work as per specifications.

Disadvantages

There is no clear cut line of authority

As each subordinate has a number of bosses, it gives rise to disrespect and weakens the
discipline in the organization.

Due to overlapping of authority, it is likely to develop friction between different members of

staff,

The system is too complicated and is suitable, particularly for the lower departments in the
management.

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QUESTION ELEVEN.

Qn. (a)

Qn. (b)

project duration = 59 weeks.

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QUESTION TWELVE

Each project has a predetermined duration with a definite beginning and an identifiable end. Its
starting time is the time when the idea is conceived by the client and its end marks 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 a few months to years. Although
construction projects differ in many ways, the life span of a project follows a similar pattern.
After conception there are gradual builds up in the use of resources, it is followed by a long-
duration plateau dud towards the end, there is a rapid rundown till completion. Typical
construction project life cycle. 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 funds.

c) Construction stage: - This includes:

Planning and controlling execution

Inducting resources

Construction and commissioning

Final handing over to the client

project manager is the key participant in all these stages and acts as a catalyst who motivates
the participants for achieving the stage objectives. Feasibility or Inception Stage. The first step
in the development of a project is to analyze the needs of a client. This requires a critical
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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:

Proposed product features

Demand surveys - it includes prospective customers, consumption pattern, existing market,

government policy, demand forecast and sales potential.

Technical studies - These cover production process selection, construction methodology,

location study, power and local resources availability, means of transportation, scope of work,
waste disposal arrangements, construction cost estimates, preliminary time plan resource
forecasts, outline project organization and statement of project time and cost objectives.

Financial implications - It contains sales forecast, project budget, capital cost profitability
trend, payback period, cash flow forecast and sources of financing.

Economic viability- It highlights social implications and cost benefit analysis.

Summary of recommendations.

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QUESTION THIRTEEN

Planned value: is the planned cost of the total amount of work scheduled to be performed by a
specified date (date of evaluation).

Earned value: is the planned cost to complete the work that has been done by the date of
evaluation.

Cost variance: is the measure of how much Earned value deviates from the actual cost of
completed work.

Schedule variance: this is the measure of how much earned value deviates from planned value
of a project at a specified date.

Time variance: this is the difference between the estimated time to reach a certain stage of
project progress and the actual amount of time taken to reach the same stage. The negative
implies the project progress is behind the schedule.

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part (b)

i) Budgeted cost of works scheduled ¿ ( 18+10+0.8 x 20+0.15 x 40 ) x 4000

BCWS=¿USD 200,000

ii) Budgeted cost of works performed ¿(18+ 0.8 x 10+0.7 x 20+0) x 4000
= USD 160,000

iii) Actual cost of works performed = (18+0.8 x 10+0.7 x 20+ 0) x 5500

= USD 220,000

iv) Schedule Variance = (BCWP) - (BCWS)

= 160,000 – 200,000
= USD -40,000 behind schedule

v) Cost Variance = (BCWP) - (ACWP)

= 160,000 – 220,000
= USD -60,000 over budgeted
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BCWP 160,000
vi) Schedule Performance Index = = = 0.8 behind schedule
BCWS 200,000

BCWP 200,000
Cost Performance Index = = = 0.91 over budgeted
ACWP 220,000

vii) Critical Ratio (CR) = SPI x CPI

= 0.91 x 0.8
= 0.728
Since the critical ratio is less than 1, the project performance is poor.

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QUESTION FOURTEEN.

Qn. (a)

The Critical Path Method is a network analysis technique used to predict project duration by
analyzing which sequence of activities has the least amount of schedule flexibility i.e critical
path.

Precedence Network analysis is the method of constructing a project network diagram using
nodes or boxes to represent the activities and connects them with arrows that show the
dependencies.

Both Precedence Network Analysis and Critical Path Methodology belong to the same family
of network analysis techniques and they are similar in the following ways;
Both make use of the network-type graphic model to represent the time plan for execution of
the project.
Both apply critical path analysis concept for determining project duration and identification of
critical activities.
Both network techniques are employed for scheduling and controlling the projects.
Both separate planning and scheduling where by in a network, planning proceeds scheduling
and budgeting of resources.
Both enable systematic and logical development of time programme of complex projects with
resource constraints with a clearly defined scope of work and interconnection between
activities.
Both establish a relationship between time and cost thus enabling optimization of resources.
Both act as a basis for monitoring progress and analysis of deviations.

Qn. (b)

The Critical Path Methodology (CPN) is a network analysis technique used to predict project
duration by analyzing which sequence of activities has the least amount of schedule flexibility
i.e. critical path whereas Precedence Network analysis is the method of constructing a project
network diagram using nodes or boxes to represent the activities and connects them with
arrows that show the dependencies.

Precedence Network Analysis (PNA) has activities arranged in rows of symmetrically placed
horizontal boxes connected with dependency lines which appear better whereas critical path

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methodology contains arrows, dummy arrows and events drawn in forward direction at various
angles.

PNA takes more time to develop its logic sketch whereas logic arrow diagram of CPM is easy
to develop.

PNA enables easy alteration as it involves connecting dependency lines instead of shifting
arrows and events as in the CPM network.

CPM network with its distinct events and simple logic relationship can be easily understood by
those not familiar with the network analysis which is not the case for PNA with multiple logic
relationship.

PNA has more realistic logic representation of engineering tasks as they occur in actual
execution than CPM.

CPM is comparatively easier to analyze than PNA since PNA requires all the time data to be
transferred from one activity to its adjoining activity before it is analyzed.

Qn. (c)

Introduction of network analysis requires specialized training. Though simple and

straightforward, it challenges the beginners.

Network analysis is not very useful for planning repetitive type of work. The planning of such
projects needs scheduling rather than preparation of a ladder-type network.

Network analysis provides the means for taking decisions but the actual decisions have to be
made by the management itself. This means a bad management can’t be guided by the Network
analysis.

Network analysis indicates practical courses of action to accomplish specified time objectives
by using optimum resources but does not outline plan for execution of work.

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