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UNIT I - Introduction to Project

Management

Project Management concepts - Objectives,


Planning, Scheduling Controlling and Role of
decision in Project Management. Traditional
Management System, Gantt’s approach, Load
Chart, Progress Chart, Development of Bar Chart,
Merits and Demerits
Introduction
• Construction – Project – Construction Project
• Management – Construction Project
Management
Construction
• Every construction is “Unique” – even mass
houses built with same plan.
• Resources required in construction:
– Manpower, materials, machinery, funds, space
and time
• One of the highest source of utilising National
Budget funds and growth contributors (10%)
Project
• Project means a task to achieve a goal by utilising
resources. It involves satisfying requirements of time,
cost and quality (sometimes legal regulations)
• Example:
– building a house
– buying a car (or a pen or anything)
– completing a degree, etc.
• Characteristics of a project.
– Unique.
– Time bound.
– Require resources for completion
Construction Projects
• Construction is now-a-days carried out as a
project
• Stakeholders of a construction project:
– Owner, consultant, contractor, supplier, end user.
• Stages of a (construction) project:
– Initialisation, Design, Execution, Commissioning,
Utilisation & Maintenance, Closing
Construction Projects: Types
• Based on construction facility:
– Building Projects: Residential, Commercial and Institutional Buildings
– Infrastructure Projects: Roads, Airports, Railways and Power Plants
– Industrial Projects: Factories, Industries and Manufacturing Units
– Special Construction Projects: Nuclear Power Plants, Space Station
• Based on equipment usage:
– Light Construction Projects - Small or less number of equipment are
used: Residential Buildings
– Heavy Construction Projects - Construction is done by big and large no.
of plant and equipment: Roads, High Rise Buildings, etc.
– Industrial Construction Projects - Special equipment are used:
Treatment Plants, Installation of equipment in power plants, industries
Construction Projects: Types
• Based on time period
– Long Term Construction Projects (>10 years): Dams, Power Plants
– Medium Term Construction Projects (3-10 years): Long Roads
– Short Term Construction Projects (<3 years): Residential Buildings
– Special-Short Term Construction Projects (<1 year): Major repair and
expansion works
• Based on budget
– Mega Construction Project (> Rs. 1000 Crores): Long Roads, Dams, etc.
– Large Construction Project (Rs. 100-1000 Crores): Power Plants
– Medium Construction Project (Rs. 5-100 Crores): Factories
– Small Construction Project (< Rs. 5 Crores): Residential Buildings
Management
• Management means controlling and
completing tasks within specified time, cost
and quality by controlling the relevant
resources.
• Example:
– supervision of construction job
– managing production in industries
Why Projects Fail?
• The project lacks (higher management support and)
resources
• Tasks and goals are unclearly defined
• Planning and pre-project preparation are inadequate
• Management methods are inappropriate or misused
• Communication is insufficient
• Technical and managerial skills are missing
• The project manager is lacking in skills and
experience
Construction Project Management
• Project Management / Construction
Management / Construction Project
Management - is an art and a science
• It is process of mobilising and managing
resources (people, materials and money,
equipment, space, time) to complete any
construction facility within the constraints
(budget, time duration and specified technical
and statutory standards
Management Areas
• Integration
• Scope - what
• Time - when
• Cost - how much
• Quality
• Human Resources - who
• Communications
• Risk - may be / may not be
• Procurement (Materials / Equipment) - what
• Space - where
Human Resource Management
• Human resource is one of the resources which
can control all the other resources like
materials, machines, etc.
• Unlike machines, the limit of capacity can be
extended through proper motivation and
leadership.
• Unlike other resources like materials, the
value of human life cannot be fixed.
Project Management Concepts
• Network tools: PERT (Project Evaluation and Review
Technique), CPM (Critical Path Method), PNA (Precedence
Network Analysis)
• Strategy means policy based planning for long term. Tactic
means need based planning for short term.
• Organisation is a group of people working to achieve a
common goal. Example: bank, school, government, etc. Types:
– Line organisation. Example: government bodies, industries
– Line and Staff organisation. Example: large company,
construction site
– Functional organisation. Example: research centre for
medicine
Objectives
Objectives of construction project management
are:
• complete the work within estimated budget,
specified time and prescribed quality
• provide safe and satisfactory working
conditions for all (workers and surrounding)
• motivate people and achieve as a team
Stages in CPM
• Formulation stage or Inception stage consists of
creation of project idea due to a need, carrying out
feasibility studies, arranging the sources of funds and
finalising the acting to be carried out in the project.
• Mobilisation stage or Preparation stage involves
preparation of preliminary plan, designing and
finalising drawings, specifications and contracting,
resources mobilisation and fund allocation.
• Execution stage or Construction stage consists of
planning and controlling, managing resources,
construction and commissioning and handling over.
Roles (or) Functions of Construction
Manager
• Planning
• Scheduling
• Organising
• Staffing
• Directing
• Controlling
• Co-ordinating
Planning
• Planning is the preparation of time-based
action plan (to-do list) to complete any activity
by pre-setting the action to be taken, time of
completion, resources and cost requirement.
Plan can be expressed as graphical or
diagrammatic representation like bar chart,
etc.
• Formulation stage
Importance of Planning
• It provides direction
• It provides unifying frame-work
• It helps to identifies future opportunities and
threats (SWOT Analysis)
• It provides performance standards
Steps in Planning
• Define : project objectives
• Establish: goals and intermediate stages
• Develop : format and means of achieving goal
• Evaluate : feasibility of resources
• Determine: alternatives
• Test : consistency and compatibility
• Choose : achievable choice (or alternative)
• Decide : the plan
Scheduling
• Scheduling is setting time limits to the plan of
action. It involves estimation of time period
required to complete activities and fixing the
start time and end time. Network techniques
like CPM and PERT are used to carry out
scheduling
• Mobilisation Stage
Steps in Scheduling
• Calculate: (quantity) information details
• Assign : time to activities
• Give : consideration - resource availability
• Allocate : resources
Control (or) Controlling
• It is important for ensuring the effective and
efficient work.
• It needs constant review of the work plan to
check on actual achievements and to discover
and rectify deviations.
• It consists of measuring the work, comparing
with planned work, analysing the lagging in
work, identifying and rectifying the short fall.
• Execution Stage
Steps in Controlling
• Establish: problem (definition)
• Develop : alternatives
• Analyse : alternatives
• Make : final decision
Role of Decision Making
• Decision making means selecting the best
choice among the available options. The
options may be method or course of action or
material or equipment or manpower
selection.
Traditional Management System
• Types of management:
– Traditional management system which has
activities carried out in sequential manner, i.e.,
second activity is started after completion of first
one.
– Modern or Scientific management system which
has activities carried out in parallel, i.e., second
activity can be started even before the completion
of first one.
Gantt Chart – Bar Chart
• Gantt chart is a Bar chart. It is a simple, conventional method
of representing the project schedule diagrammatically. It is
widely used in the construction industry for progress
monitoring, especially in small to medium projects.
• It illustrates a project schedule. It shows start and finish time
(or date) of activities of project in a form of Work Breakdown
Structure. It also show the dependency (or precedence)
relationships between activities
• It is a chart with 2 coordinate axes, usually X-axis representing
time and Y-axis representing activities in a project.
• It was developed by Henry Gantt at starting of 20th century
Bar Chart
Gantt Chart – Load Chart
• Gantt charts can be used as Load Charts to
indicate usage of resources
• Gantt charts can be used as Progress Charts to
show current schedule status using percent-
complete shadings and a vertical "TODAY"
line.
Gantt Chart – Progress Chart
• Gantt charts can be used as Progress Charts to
show current schedule status using percent-
complete shadings and a vertical "TODAY"
line.
Gantt Chart – Progress Chart
Bar Chart with Milestones
Development of Bar Chart
• Breakdown : project into activities
• Decide : sequence of activities
• Assign : time duration
• Represent : above information in bar chart
Merits and Demerits of Bar Chart
+ Simple – Less Information
+ Easy – Progress review difficult to show
+ Measurable – Activity inter-relationships
+ Modified* – Time uncertainties / rescheduling

* To Milestone Charts, Progress Charts