Management

Planning &
Control
System
The success and reputation that we enjoy today is the result of
the high degree of planning and the systems & procedures
adopted over a period of time. MPCS is one such system
developed internally to enable effective project management.
Management Planning:
Systematically plan the course of action for achieving the objects
within the stipulated time in the most economical manner with
utmost safety.
Control system helps to monitor:
The deployment and effective utilization of various resources.
Progress of work vis--vis plans set
Predict the end results even at intermediate stages so that a
corrective action may be taken, if required, during the course
of the project.
S0 Construction programme.
S1 Schedule of invoicing
S2 Schedule of milestone events.
S3 Schedule of plant and machinery requirements
S4 Schedule of staff requirements
S5 Schedule of labour requirements
S6 Schedule of material requirements
S7 Schedule of specialized agencies
S8 Schedule of direct costs
S9 Schedule of overheads.
S10 Schedule of liquidity forecasts.
To be prepared & monitored on monthly basis.
The purpose of scheduling exercise is to identify:
a) Monthly physical targets of work according to work modules.
b) Critical milestone events and to plan their commencement and
completion dates.
c) Monthly requirement of staff and different categories of
manpower.
d) Requirements of sub-contractors so as to facilitate mobilization,
demobilization and planning.
e) Monthly requirements of bulk materials, critical materials and
consumables.
f) Requirements of plant & machineries, equipments and special
tools, so as to plan their mobilization / acquisition & deployment.
g) Monthly requirements of cash.
h) Monthly targets of billing, costs and contribution from the projects.
It is an input for other schedules hence vital. Execution of the
project is detailed according to work sequence and forms basis of day
to day action plan.

Procedure:
Study the scope of work / drawings in detail and decide on the
sequence of construction including methods to be adopted.
Prepare network / bar chart assuming most likely time period for
each activity.
For projects with more than one structure, a master S0 schedule
should be prepared, taking into consideration milestone events in
each structure and also inter-dependency of activities between
structures.
The S0 should be reviewed every month at site, and updated,
taking into consideration corrective actions proposed to make up
the progress.
This schedule will form the basis for monitoring progress of
invoicing.
Procedure:
Refer S0 and calculate quantities of items to be billed every
month.
Based on the quantities for each month and sales price,
calculate month wise invoicing amount.
Agreed payment terms will be taken into account in arriving at
invoicing figures.
For lump-sum contracts, split-up of lump-sum price for each
stage of payment will be taken into account since payment may
not be based on quantities of work done.
The total invoicing figure will also include escalations as per
accepted terms in the contract.
 This schedule is a summary of the most important events /
intermediate milestones, particularly those included in the
contract and others which involve co-ordination with other
agencies.
The schedule will help the cluster office in having a broad
idea of the progress of each project, without having to go
through detailed reports or charts.
It will also form the basis for preparation of monitoring
formats.
Depending on the size and complexities of the project and
the number of structures involved, the number of
milestones to be represented in the schedule can be
decided.
 This schedule will help the resource department / P&M
department in timely mobilization of P&M including decisions
such as own / hire.
This schedule will also form the basis of the action plan for
demobilization.
Compiling this schedule from various sites will make it possible
for planning on overall basis for the IC.
Based on S0
List out all the plant and machineries required for the
project.
Fix the date of requirement at site and also probable dates
of release.
This schedule should be reviewed and updated every
month.
 This schedule will help the resource department (P&M dept for
P&M staff) in timely mobilization of staff including decisions on
new recruitments.
This schedule will also form the basis of action plan for
demobilization of staff.
Compiling this schedule from various sites will make it possible
for planning on overall basis for the IC.
Based on S0
For large and medium sized projects, organization chart is to
be made and roles of key personnel defined.
List out the staff required for the project in different disciplines
and at various levels. Specialist staff requirement like
slipform, climbing form, erection specialists etc. should also
be planned.
The duration of staff deployment will be based on S0.
This schedule will help:
In stage wise mobilization of labour, particularly skilled workmen like
carpenters, masons, welders, fitters.
In ensuring that there are no abnormally high peaks or troughs in
labour requirement resulting in either idle or shortage of labour
during the tenure of the project.
In assessing the requirements of labour housing and other
amenities at site.

The labour requirement indicated in this schedule will be related to

the construction programme (S0) and the work load.
If, during the preparation of S5, large peaks and troughs are
noticed, S0 may have to be revised to avoid such abnormalities.
This schedule will indicate the total quantity of all the essential
materials to be procured. It can thus:
Ensure availability of these items as per requirement at
site.
To monitor procurement function and procurement cost.
To ensure sufficient lead time for procurement of materials
at lowest possible prices / best terms and to avoid
emergency purchases.
Procedure:
Compute material requirements month wise for each item as
per break up of quantities in S1.
Sum up month wise requirement of materials taking into
consideration the lead time and stock level.
1. This schedule lists out items of work which are to be
carried out by specialized agencies i.e., items of work not
directly executed by L&T and also the dates by which
these items of work should be commenced as per S0.
2. Early dialogue with specialized agencies, to finalize
scope of work and specifications, should be started so
that the specialized agencies are fixed well in advance
and they can commence work as per dates in this
schedule.
3. Piece rate labour sub-contractors will not be included in
this schedule.
 These schedules help in computing the total cost of project at the
scheduling stage and form the basis of Accepted Cost Estimate
and Job Cost Report.
Rates for individual items will be worked out on the basis of prices
collected, finalized construction methods, and construction
programme as in Schedule S0.
Using these rates and quantities given in the work sheet of cost,
the month wise costs will be worked out for direct work items.
The cost on over heads will be determined by working out staff
salaries and benefits, cost of temporary structures, site
installations, insurance, bank guarantee charges etc. and will form
part of schedule S9.
Hire charges of specific plant and equipments which can be
charged to the individual items of work will be taken in direct cost
under respective items.
 This schedule will give the cash flow requirements of the job
and differences between outflow and inflow.
This forecast will be prepared jointly with the accounts
department.

Some of the reasons for the gaps in cash flow may be:
Procurement of large quantities of scaffolding and
shuttering materials and non capitalized tools and tackles.
Amount spent towards very large site set up like staff
quarters, labour housing, water supply, electrical
installations, establishing crushing plant for aggregates etc.
Huge advances paid to specialized agencies without
corresponding receipt of advances from clients.
3 Months look ahead planning
(Pictorial Representation)
1. Arranging Resources takes time.
2. Skilled Manpower mobilization takes minimum two months
3. Plant & Machinery mobilization takes 2 to 3 months
4. Material Procurement takes 2 to 3 months
5. This means, we have to look ahead 2nd and 3rd month right
now. We must know the fronts, rate of progress and make
assumption about inputs
6. It is important that we should sustain the resources at least for a
couple of months time. Cases like mobilization in the 1st month,
followed by demobilization in the 2nd month and again
mobilizing in the 3rd month should not happen.
7. If we can look ahead next 3 months on a continuous path, we
will be able to arrange resources in time and pursue correct
course of action.
 Planning once done, does not hold good for
entire duration of project.
Periodical review sets the rhythm.
Frequent Reviews on planning throw more
clarity on the path of our progress.
Take charge of planning without time shift.
You need to set new dates, reschedule
resources.