PRESENTATION ON PROJECT MANAGEMENT

TOPIC: PLANNING, MONITORING & COORDINATION PMG GROUP, JMC PROJECTS LTD.PRESENTOR: CHINTAN SUTHARDATE: 20TH JANUARY 2010

Prime Purpose of operating a business is to earn profit!Secondary Purpose are toSuccess!Earn Fame!Generating Employment!

To be successful a construction company must:Estimate the cost of construction projects accuratelyPredict the schedule of the workControl the progress and expenditures during constructionComplete projects safely and on time This leads to need of Project Management

WHAT IS PROJECT MANAGEMENT?Managing 5 M:

ManMachineMoneyMomentMaterial

Out of this 5 Ms, the most difficult to manage is Man. Perhaps the most important or critical Resource is Man

This influence the qualities required in a Project Manager. The qualities Required in a Project Manager shall be discussed in later part of the presentation.

PROJECT MANAGEMENT FUNCTIONS Project Scope understanding.

Planning Planning (WBS, schedule)Resource allocationBudget Project team creationProject kick-off

Project Mobilization. Resource management and Optimization. Project Monitoring & Control Project Coordination. QS, Billing and MIS. Implementation/construction Project termination, hand-off to operations mgt

PROJECT SCOPEDrawing Review.Scrutiny and clear understanding of Technical specification.Study of Tender Documents, Conditions of Contract and Scope.Preparation of list of Deliverables from Client/Owner

PROJECT PLANNINGPreparation of Detailed Work Break Down Structure (WBS).Codification of WBSDetailed Activity list.Estimation of Duration of Each Activity.Defining the Precedence and Subsequence of activities.Establishing Critical Milestones, internal and external deliverables.

PROJECT PLANNINGProject Resource allocation.StaffLabourP&MSite InfraMaterialProject Procurement Plan.Project Kick off.Subcontractor Deployment plan and Bought Out Items.

Preparation of Detailed Work Break Down Structure (WBS)Program/Project WBSThe program/project WBS (PWBS) is the structure that encompasses the entire programor project. It usually consists of three levels of products/elements with associated workThe three upper levels of the PWBS are defined below.Level 1 is the entire program/project.Level 2 elements are the major product segments or subsections.Level 3 contains definable components, or subsets, of the level 2 elementsWBS elementsshould be identified by title and by a numbering system that performs the followingfunctions:Identifies the level of the WBS element.Identifies the higher-level element into which the element will be integrated.Identifies the cost account number (if any) of the element.

The WBS provides:A framework for detailed work schedule information based on technically verifiable Project completion. A network of events (e.g., start, complete, duration)There is a logic to the relationship of the activities needed to produce and complete the project.Resources (e.g., labor skill, cost, and materials) can be allocated.Responsible Department, Labour, subcontractor) can then be identified for each of the activities

PREPARATION OF CONSTRUCTION SCHEDULEBased on the WBS:Establishing relationship between activities, predecessors, successors, etc.Prepare a Network diagram.Work out Activity duration based on the Manpower allocated to the activity and Productivity.Productivity can be worked out based on the following formulae.P = W x /T P = Productivity (Gang), W = Work/Output, = Efficiency Factor.Based on the productivity Duration of Activity with a particular allocation of resource can be worked out.Use of Planning Tool, e.g. MS Project, Primavera, MS excel, etc. can be used for the preparation of schedule.Derivation of Critical Activities can be arrived.

Paretos 80-20 rule20% of the activities are critical and should be managed carefullyThe other 80% will average out

RESOURCE ALLOCATIONPlant & Machinery/Asset AllocationMaterial AllocationLabour/Manpower AllocationTime Allocation (shall be discussed in project monitoring)Cost Allocation (shall be discussed in ProjectBudget)

RESOURCE ALLOCATION P&M/ASSETBased on the complexity, nature, schedule, clients/owners requirement, terrain, etc. the Plant and Machineries/Assets are allocated on a project. E.g.

Concentrated and higher volume of concrete shall require Tower crane, Batching plant, Concrete pump(20, 30, 35, 40 cum/hr. cap, etc.) based on the production requirement. Scattered concrete requirement with higher volume may require Batching plant, transit mixers, Concrete pump.

Scattered lower volume of concrete may require, drum mixer machines, hoists, mini loaders, wheel barrows, etc.

Heavy steel built up section erection, equipment erection, etc. shall require Heavy duty cranes, Gantry, etc.

RESOURCE ALLOCATIONMATERIAL ALLOCATIONBased on the schedule, the requirement of Direct and Indirect Material is worked out.The same is allocated weekly, monthly, quarterly, etc. Periodic Bill of Material (material liquidation plan)is prepared. Specification, drawings, are stipulated as per tender or on approval of client/owner.Based on the allocation, Procurement plan is prepared. Procurement plan shall be discussed later in the presentation.

RESOURCE ALLOCATIONMANPOWER/LABOUR ALLOCATIONBased on the Schedule and WBS, Manpower allocation is done.Many factors affect the allocation, such as delays, clients priority, Labour availability, Productivity, Religious engagement, Festival, etc.Considering all factors the Project Manager has to allocate the Manpower. However a theoretical example is shown herewith.

PROJECT BUDGETDirect Cost

Establishing the Bill of Material for the project.Rates and cost of Material.Working out the cost of Labour.Cost of Composite work/ Bought out items and Subcontractors.

Indirect Cost

Construction ExpenseTaxesSalary and WelfareP&M, Asset CostWater, Electricity, Diesel, etc.EHS costSite Infrastructure Cost.

Operating MarginHO expenseNet Profit

ROLLED BUDGETWhy Rolled Budget is required?Quantity variationExtra itemsChange in Scope/DesignLag in scheduleChange in taxesPrice escalation, etc.Cost allocation is accordingly done.

ORGANIZATIONDesignating Key Project Staff:Project ManagerTeam LeadersPlanning EngineersQS EngineersAdmin PersonnelSafety PersonnelQuality Personnel

ORGANIZATIONIMPORTANCE OF TEAM BUILDING:Project is not successful on individual effort, its a team effort. PROJECT TRIANGLE

An Equilibrium required between these factors, hence team building becomes very important for the success of a Project.A optimal mix of People and skills is essential while building a Project Team.

PROJECT KICK OFFPurpose:Introduction and Communication matrix.Site infra and labour accomodation.Deliverables from Client/Owner.Mobilization Strategy.EHS requirement.

PROJECT MONITORING & CONTROLTIME MONITORINGCOST MONITORINGQUALITY MONITORING

PROJECT MONITORING TIME MONITORINGEvery project has a schedule and execution has to be in synchronization with the same.

Hence it becomes essential to control time over-run.

This can be achieved by Time monitoring and control.

There are certain reports generated for this purpose. These MIS form a part of Decision making pyramid.

There can be many reasons for time over-run such as, non-availability of work fronts, hold due to quality or workmanship, delay in statutory approvals, inefficiency in allotting work front to labour or subcontractor, non-availability of resource. This can be taken care by efficient communication, reporting and monitoring on daily basis.

Considering the same, mitigation plan is prepared and time allocation, resource allocation, is done.

The example of Weekly and daily progress reports are shown herewith.

The planned vs actual monitoring can also be done using tools, such as MS Project, Primavera, etc.

RESOURCE MONITORINGCOST MONITORINGProject profitability depends on the cost over-run or savings.Cost monitoring is of great significance.Cost monitoring w.r.t. Zero budget.Cost monitoring w.r.t. rolled budget.

PROJECT PROCUREMENT PLANBased on WBS and Bill of material Long lead procurement items are identified and perspective vendors are found.Based on material allocation and schedule of requirement, procurement plan is prepared.Various items have different lead times for purchase.The indenting, floating of Enquires, order and delivery schedule are reversely calculated.

PROJECT COORDINATIONIdentifying resource needs of projectProper communicationInputs in decision making

PROJECT MANAGERS ROLELeadershipOrganizationCommunicationFinanceTechnical savvyPolitickingTeam buildingPraisingPunishing