MANAGEMENT TECHNIQUES

AND
PROJECT MANAGEMENT THROUGH NETWORKS
 DEFINITION
Construction management is a systematic method which involves planning,
organizing, coordinating and controlling the various activities in any construction
industry.

This requires the knowledge of various management techniques and other tools
to implement before and during the constructional stages.
 PRINCIPLES OF PROJECT
MANAGEMENT
Project Management Objectives
The objectives of project management are to execute a project so that deliverables can meet scope
requirements on budget and schedule, and at acceptable risk, quality, safety, and security levels.
The example maintenance facility project is to deliver a five bay facility that meets pre-determined
performance specifications within the three year schedule.
Many times project objectives compete with each other and require skillful balancing throughout the
project life cycle by the project manager. For example, unexpected soil conditions delay the
maintenance facility construction contractor. The schedule can be made up by paying additional
costs for contractor overtime to make up the delay. This is a cost/schedule trade-off.
The greatest threat to project success is scope creep. The addition of a sixth bay to the maintenance
facility we mentioned earlier is a clear example of added scope. Often projects face more subtle
scope creep because the project manager allows the users to piggy back additional requirements
on the project. For example, it may be that originally in the CIP process the maintenance of non-
revenue vehicles was to be done in a different location. During the project life cycle the lease on the
non-revenue location was lost and the maintenance department wants them maintained at a new bay
at the new facility. The project manager will need to address such changes through retracing of the
CIP process and obtaining new project authorization.
 Project Management Process
The project management process begins with identification of the user requirement, project
constraints, resource needs, and establishment of realistic objectives to meet the strategic
goals. Many times this will be an iterative process as new information becomes available
through efforts by various professionals on the project and input from third parties,
communities, users, and agencies having jurisdiction.
The strategic goals that relate to capital projects are summarized in CIPs. Many times this
information is in the Agencys short range and long range transit plans. The approval of the
project by the governing body will establish the project authorization. The project manager uses
the project authorization to develop project management plans for implementation of the
project.
The project manager must have prior experience (or should consult with peers with prior
experience) with the particular project type to balance the above competing objectives in a
timely manner to adequately plan the project. Lack of prior experience will increase risks of not
achieving the project objectives.
 STAGES OF PLANNING
1. Goal setting:
2. Developing the planning premises:
3. Reviewing Limitations:
4. Deciding the planning period:
5. Formulation of policies and strategies:
6. Preparing operating plans:
7.Integration of plans:
8. Follow up measures
 GOAL SETTING
establishment of organizational or overall objectives is the first step
objectives should be set in key areas of operations.
they should be specified in clear and measurable terms.
objectives are set in the light of the opportunities perceived
Establishment of goals is influenced by the values and beliefs of
executives, mission of the organization, organizational resources,
etc
 objectives must be clear, specific and informative
Major objectives should be broken into departmental, sectional and
individual objectives.
to set realistic objectives, planners must be fully aware of the
opportunities and problems that the enterprise is likely to face.
 DEVELOPING THE PLANNING
PREMISES
Before plans are prepared, the assumptions and conditions underlying
them must be clearly defined
assumptions are called planning premises
They are forecast data of a factual nature.
Analysis of internal (controllable) and external (uncontrollable) forces is
essential
 . REVIEWING LIMITATIONS
several constraints or limitations affect the ability of an organization to
achieve its objectives
they must be anticipated and provided for.
The key areas of Imitations are finance, human resources, materials,
power and machinery
 DECIDING THE PLANNING
PERIOD
The planning period should be long enough to permit the
fulfilment of the commitments involved in a decision.
The planning period depends on several factors
future that can be reasonably anticipated,
time required to receive capital investments,
expected future availability of raw materials,
lead time in development and commercialization of a new
product, etc.
 6. PREPARING OPERATING
PLANS
Several medium range and short-range plans are required to
implement policies and strategies.
These plans consist of procedures, programmers, schedules,
budgets and rules.
Such plans are required for the implementation of basic plans.
Operational plans reflect commitments as to methods, time,
money, etc.
 . FORMULATION OF POLICIES
AND STRATEGIES
The responsibility for laying down policies and strategies lies
usually with management.
the subordinates should be consulted as they are to implement the
policies and strategies.
Alternative plans of action should be developed and evaluated
carefully
Imagination, foresight, experience and quantitative techniques are
useful in the development and evaluation of alternatives.
 7.INTEGRATION OF PLANS
Different plans must be properly balanced so that they support one
another.
plans must be communicated and explained to those responsible for
putting them into practice.
 8. FOLLOW UP MEASURES
A system of continuous evaluation and appraisal of plans should be
devised
identify any shortcomings or pitfalls of the plans under changing
situations.
 ADVANTAGES
Helps as a key for completing the given task.

Accelerates the rate of construction and thus minimizes the duration of

construction.

Motivates people in the organization to the effective utilization of material

resources i.e. machines, materials, methods and money for the achievement of
organization goals.
 Helps in completion of given task

Accelerates the rate of construction

Minimizes duration of construction

Motivates the people in effective use of resources

Controls the quality of materials and workmanship

Reduces cost of construction, thus economical

 OBJECTIVES
To complete the work within estimated budget and time

Evolve a suitable method for achieving high quality

To provide safe and satisfactory working conditions

Make it possible for managerial personnel to take sound decisions

To avoid delay

To motivate people

To create team spirit

 CONSTRUCTION MANAGEMENT
AND ITS NEEDS
To develop the national economical conditions no. of projects and other industrial
activities are to be taken up.

These activities may be carried out by government departments (Central, State,

Public, Industrial organizations, corporations and other contracting agencies)
 SCHEDULING
Scheduling of works through management techniques such as CPM & PERT.

Knowledge of contract systems, methods of executing the works and accounting

procedures.

Optimum use of man power and machinery, good labour relations, labour
welfare, knowledge of industrial psychology, labour acts etc.
 CPM
CPM (Critical path method) is a management technique developed in 1957 58.

It is used to find out are determine how best to reduce time required to perform
routine production, maintenance and to minimize the direct and indirect
expenses.

It is generally a cost and activities oriented network analysis.

 It uses single time estimate i.e. it deals with activities of certainty.

CPM is a technique used for the planning and controlling the most logical and
economic sequence of operations for completing a project.

The project is analyzed into different activities whose relationships are shown on
the network diagram.
 The network is then utilized for optimizing the use of resources, progress and
control.

The critical path method is a powerful tool for planning, scheduling and
controlling all types of projects.

This is a graphical representation which can be used by the management for

planning, scheduling and controlling the operations of a project.
 ABOUT THE CPM
CPM stands for Critical Path Method.

In CPM networks, the whole project consists of a number of clearly recognizable

jobs or operations, called activities.

Activities are usually operations which take time to carry out, and on which
resources are expended.
 ADVANTAGES OF CPM
It is widely used in process industries, construction works, single project
industrial activities etc.

It divides the management function into planning and scheduling.

It is a graph of operations.

It helps the management in making decisions to its best advantage.

It helps the management in planning and scheduling a project.

 NETWORK FLOW

D
2 8 6
A G
6 E
B 5 8 K
1 7 3 J O 7 8
10
C H

4 F 7
4 5
9
 ACTIVITY:

i. An activity is a part of the project denoted by an arrow on the network.

ii. The tail of the arrow shows the start of the activity and the head, the
end of the activity.

iii. Each activity has to have a given time.

iv. The arrows are not drawn to scale.

v. In the above figure, activity A is shown by arrow 1-2 and 6 at bottom

shown the duration of time i.e. 6 units of time.
 EVENT:

i. An event is a stage or point where all previous jobs merging in it are

completed and all further jobs bursting out are still to be completed.
ii. The event (1) is the starting of the project.
iii. The bursting activities are A, B an C. The event (6) has D and E as
merging activities and activity G bursting.
iv. The activity G will be started only when the activities D, E, F and J
have been completed.
v. The event I represented on the network by a circle or node at the
junction of arrows.
vi. These events are numbered in their sequential order in the network.
 DURATION
Duration is the estimated time, required to complete an activity and is denoted
on/under the activity in the work.
 DUMMY ACTIVITY

i. It is factious activity with zero duration and no cost.

ii. It is used to maintain the sequential order of the activities in the

network.

iii. It is represented by dotted lines on the network.

iv. The activity 5 - 6 is a dummy activity in Fig.

v. It shows that all activities commencing from event (6) cannot start

before completion of the event.

 CRITICAL PATH
The events which have no float or slack are the critical events i.e. If TE = TL.
These events must be completed on schedule, if the project is to be completed
in the minimum total time. The path joining such critical events is called the
critical path of the network.