TO

AT
NATIONAL SEMINAR

19th January 2012

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PRESENTATION ON

By

Vice President - HNPCL Mumbai

19th January 2012

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GOOD LEADERSHIP IS THE ART OF GETTING
EXTRA ORDINARY WORK DONE THROUGH
ORDINARY PEOPLE

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 PROJECT MANAGEMENT CONCEPT
AS PER BRITISH STANDARD BS 6079 : 1996,
PROJECT MANAGEMENT IS DEFINED AS:

1. PROJECT (CLAUSE NO. 1.3.6)

A UNIQUE SET OF COORDINATED ACTIVITIES,

WITH DEFINITE STARTING AND FINISHING POINTS

UNDERTAKEN BY AN INDIVIDUAL OR ORGANIZATION

TO MEET SPECIFIC OBJECTIVES WITHIN

DEFINED SCHEDULE,

COST AND

PERFORMANCE PARAMETERS.
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PROJECT MANAGEMENT CONCEPT

2. MANAGEMENT

PLANNING, MONITORING AND CONTROL

OF
THE FUNCTIONS SUPPORTING

THE COMPLETE CYCLE (FLOW) OF ACTIVITIES,

AND
THE ASSOCIATED FLOW OF INFORMATION..

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 PROJECT MANAGEMENT CONCEPT

3. PROJECT MANAGEMENT (CLAUSE 1.3.9)

PLANNING, MONITORING AND CONTROL OF ALL

ASPECTS OF A PROJECT AND THE MOTIVATION OF
ALL THOSE INVOLVED IN IT TO ACHIEVE THE
PROJECT OBJECTIVES ON TIME AND TO THE
SPECIFIED COST, QUALITY AND PERFORMANCE.

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 PROJECT MANAGEMENT CONCEPT

4. PROJECT MANAGEMENT ACTIVITY (PMA)

(CLAUSE 1.3.9)

AN OPERATION, WITHIN A WORK PACKAGE OF A

WORK BREAKDOWN STRUCTURE, THAT IS A SPECIFIC
ACTION TO BE COMPLETED TO AID THE FULFILLMENT OF
THE PROJECT AS A WHOLE.

5. PROJECT MANAGER (CLAUSE 1.3.10)

THE INDIVIDUAL OR BODY WITH RESPONSIBILITY
FOR MANAGING A PROJECT TO ACHIEVE SPECIFIC
OBJECTIVES.

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 PROJECT MANAGEMENT CONCEPT

5. PROJECT MANAGER
THE INDIVIDUAL OR BODY WITH RESPONSIBILITY
FOR MANAGING A PROJECT TO ACHIEVE SPECIFIC
OBJECTIVES.

IT CAN BE ELABORATED AS THE INDIVIDUAL OR BODY

WITH THE RESPONSIBILITY FOR MANAGING A
CONTRACTED PROJECT BY CO ORDINATING PROJECT
MANAGEMENT FUNCTIONS AMONG CUSTOMER,
CONSULTANT, SUPPLIERS, AND PROJECT SITE IN THE
FIELD OF ENGINEERING, MANUFACTURING, SUPPLIES,
ETC FROM CONCEPT TO COMPLETION OF THE PROJECT
IN LINE WITH THE CONTRACT AGREEMENT.
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 PROJECT MANAGEMENT CONCEPT

6. PROJECT LIFE CYCLE (CLAUSE 1.3.8)

THE SEQUENTIAL PHASES THROUGH WHICH A

PROJECT PASSES TO REACH ITS OBJECTIVES.

a) Define phase
b) Plan phase
c) Implement phase
d) Close phase

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 1. DEFINE PHASE

1 DEFINE PHASE-

a) Project strategy – Project (Goal) is defined

If the Goal is -

S pecific
M easurable
A ttractive
R ealistic and it’s
T imeline is clear

then it is a SMART Goal

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PROJECT MANAGEMENT CONCEPT

SUCCESS IS BEST ACHIEVED WHEN WE

ARE CLEAR ABOUT THE GOAL AND
FLEXIBLE ABOUT THE PROCESS OF
GETTING THERE

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 2. PLAN PHASE

Planning -

Setting a Direction
for

a System
and then

Guiding the systems to follow the Direction

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 2. PLAN PHASE
2 PLAN PHASE-
2.1 a) Product Break down Structure (PBD)

- Decide the Packages / Sub packages

- Group them according to strategy
- Define the scope clearly and award the job

b) Work Break down Structure (WBD)

- Estimate all the works to be done in order to

create the packages / sub packages
- Estimate the duration for each work
- Make mile stone schedule
- Make L-1 schedule
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 2. PLAN PHASE
2.2 PLAN INFRASTRUCTURAL PACKAGES

2.3 IDENTIFY UNREALISTIC DEAD LINE IF POSSIBLE

REMOVE THEM OR HAVE ALTERNATE PLAN TO
NULLIFY THEIR EFFECT.

2.4 PLAN TAKING INTO ACCOUNT FESTIVALS, HOLIDAYS,

SEASONAL EFFECTS

2.5 IDENTIFY MAJOR MILESTONES TO BE ACHIEVED

2.6 IDENTIFY STATUTORY AND NON STATUTORY

CLEARANCES

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 2. PLAN PHASE

POOR PLANNING DOCUMENTS ARE ONE

IMPORTANT REASON FOR BAD PROJECT
RESULTS IN TERMS OF ADDITIONAL,
UNPLANNED WORK, TIME DELAY AND COST
OVER RUN

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 2. PLAN PHASE

2.6 A) STATUTORY CLEARANCES

1. POLLUTION CLEARANCE WATER GOI / GOS

AND AIR

2. PROJECT IMPORT REGISTRATION MOP, GOI

3 ENVIRONMENTAL CLEARANCE MOEF, GOI

4 AVIATION CLEARANCE AAI, GOI

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 2. PLAN PHASE
2.6 B) NON-STATUTORY CLEARANCES
1 LAND AVAILABILITY AT PLANT AREA

2 FOR TRANSPORTATION OF COAL

3 TRANSPORTATION OF FUEL (SECONDARY FUEL)

4 REAL ESTATE RIGHTS & RIGHT TO ACCESS

AND USE OF SITE, INCLUDING RIGHT OF WAY
FOR ALL CORRIDORS TO THE FACILITY FROM
NEAREST STATE HIGHWAY, R&R

5 MEGA POWER PROJECT STATUS

6 DEFENCE CLEARANCE 17
 2. PLAN PHASE
2.6 C) OTHER CLEARANCES
1 APPROVAL AS PER EXPLOSIVES ACT AND RULES

2 APPROVAL AND REGISTRATION OF STEAM

GENERATOR AS PER INDIAN BOILER REGULATION

3 APPROVAL AS PER INDIAN ELECTRICITY ACT

AND RULES FOR ELECTRICAL INSTALLATION

4 APPROVAL AS PER INDIAN PETROLEUM ACT AND

PETROLEUM RULES FOR STORAGE AND
TRANSPORT OF PETROLEUM PRODUCTS

5 APPROVAL AS PER GAS CYLINDER RULES AND

HANDLING AND TRANSPORT OF COMPRESSED
GASES 18
 2. PLAN PHASE
2.6 C) OTHER CLEARANCES
6 A) COLLECTION, STORAGE AND DISPOSAL OF WASTE
B) SITE CLEARANCES, SAFE REPORT AND SAFETY
AUDIT

7CONFIRMATION OF COLLECTOR / DIRECTORATE OF

TOWN AND PLANNING FOR THE USE OF THE SITE FOR

THE CONSTRUCTION AND OPERATION OF THE POWER

STATION AND FUEL FACILITY

8 CONSENT OF RELEVANT PANCHAYAT FOR THE

DEVELOPMENT OF PROJECT SITE AND THE
TOWNSHIP SITE

•APPROVAL OF CHIEF INSPECTOR OF FACTORIES OF

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THE PROPOSED DESIGN AND CONSTRUCTION OF
 2. PLAN PHASE
2.6 C) OTHER CLEARANCES
10 ALLOCATION / APPROVAL OF ELECTRIC
SUPPLY FOR BULK CONSTRUCTION POWER

11 NO OBJECTION CERTIFICATE REGARDING AIR &

FUGITIVE EMISSIONS

12 NO OBJECTION CERTIFICATE FOR PLANT LAYOUT

WITH REGARD TO ELECTRICAL EQUIPMENT,
OPERATIONAL SAFETY

13 NO OBJECTION CERTIFICATE FOR STORAGE OF

CONSTRUCTION MATERIALS, ETC. TILL COD OF
THE PROJECT

14 NO OBJECTION CERTIFICATE FOR STORAGE OF

CONSTRUCTION MATERIAL, FUEL OILS AND
CHEMICALS, ETC. IN THE SCOPE OF THE 20
CONTRACTOR, TILL COD OF THE PROJECT
 2. PLAN PHASE
2.6 C) OTHER CLEARANCES
15 NOC FOR STORAGE OF DISTILLATE OIL

16 LOCAL APPROVAL FOR OPERATING THE PLANT

17 LOCAL APPROVAL OF ARCHITECTURAL PLANS

FOR TOWNSHIP

18 CLEARANCE FOR LIFTS

19 APPROVALS / CLEARANCES FOR LABOUR / MAN

POWER LIKE LICENSE FROM LABOUR
COMMISSIONER FOR CONSTRUCTION LABOUR,
REGISTRATION OF WORKERS

20 EXPORT AUTHORISATION (EXPORT LICENSE)

21 CLEARANCE FOR EOT CRANE / OTHER BUILDING

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CRANES
 3. IMPLEMENTATION PHASE

3.1. KICK-OFF MEETINGS-

KICK-OFF MEETING IS THE BEGINNING OF

IMPLEMETATION PHASE.

3.2 A TYPICAL AGENDA FOR KICK-OFF MEETING –

1 Detail scope of works

2 Identification of packages and detail
of respective LOIs
3 List of terminal points of contract
4 List of exclusions in the contract
5 Proposed date of signing of
contract.
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6 Allocation of works for various mfg
 3. IMPLEMENTATION PHASE
3.2 TYPICAL AGENDA FOR KICK-OFF MEETING CONTD….
7 Detail of co ordinators for all the agencies
concerned with postal addresses, contact
persons area wise, phone numbers, fax
number, e-mail address, mobile number etc
8 Contract coordination procedure with
Customer, Consultant, inter units etc.
9 Document numbering and trasmittal
modalities.
10 Data for preparation of L1 / L2 networks
11 List of drawings to be approved by customer
for all the packages. Schedule of submission
and approvals with dates.
12 List of Quality plans to be approved by
customer for all the packages. Schedule of
submission and approvals with dates.
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 3. IMPLEMENTATION PHASE
3.2 TYPICAL AGENDA FOR KICK-OFF MEETING CONTD….
13 List of Sub vendors to be approved by
customer for all the packages. Schedule of
submission and approvals with dates.
14 Nomenculature of auxiliaries like fans, mills ,
pumps etc. ( Numbering from left to right or
from right to left )
15 List of mandatory spares to be supplied
under each package and unitwise allocation
of the same.
16 List of special tools and tackles to be
supplied for each package and unitwise
allocation of the same.
17 List of commissioning spares to be supplied
for each package.
18 List of recommended spares if any
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 3. IMPLEMENTATION PHASE
3.2 TYPICAL AGENDA FOR KICK-OFF MEETING CONTD….

19 List of customer inputs with schedule dates

20 Clarity on Guarantee data schedule.
21 Detail regarding applicability of Liquidated
damages clause.
22 Detail regarding Insurance coverage for
transportation, storage, E&C
23 Clarity on Zero date of contract
24 Clarity on mode of material despatches
25 Address of the customer for despatching the
materials, Name of the Rly siding, List of
transporters available and their addresses
with contact person and phone numbers
26 Project schedule milestone wise.
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 3. IMPLEMENTATION PHASE
3.2 TYPICAL AGENDA FOR KICK-OFF MEETING CONTD….

27 Clarity regarding commissioning, trial

operation, final acceptance, defect liability
period etc.
28 Clarity on scope of consumables to be
supplied during and after commissioning.
29 Clarity on taxes and duties
30 Clarity on Terms of payment
31 Site office/ space requirement.
32 Requirement of construction power and
construction water

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 3. IMPLEMENTATION PHASE
3.3 PREPARE L-1 NETWORK

3.4 GET L-2 NETWORK DULY MATCHED WITH L-1

3.5 FINALISE ENGINEERING INFORMATION FLOW

SCHEDULE AND DISTRIBUTE TO CONCERNED

3.6 FINALISE QUALITY PLAN / FIELD QUALITY PLAN

SCHEDULE AND DISTRIBUTE TO CONCERNED.

3.7 FINALISE BROAD BILLING BREAKUP IN LINE WITH

LOA

3.8 FINALISE BILLING BREAK UP FOR INDIVIDUAL UNITS

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 3. IMPLEMENTATION PHASE
3.9 PREPARE CONTRACT HAND BOOK :
1. ITINDEX
SHALL CONTAIN
MAP THE LOCATION
SHOWING FOLLOWINGOF–THE
PROJECT
(ROAD MAP AS WELL AS RAIL MAP)

2. PROJECT INFORMATION – POSTAL ADDRESS,

CONTACT POINTS OF CUSTOMER,
CONSULTANTS,
SITE, FOR TECHNICAL AND FINANCIAL
MATTERS

3. ALLOCATION OF SUPPLIES & SERVICES.

4. MILESTONES TO BE MONITORED

5. LIST OF MAJOR INPUTS FROM CUSTOMER

6. CONTRACT CO-ORDINATION PROCEDURE. 29

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 3. IMPLEMENTATION PHASE
3.9 CONTRACT HAND BOOK CONTD…..
7. CORRESPONDENCE/DOCUMENT
TRANSMITTAL PROCEDURE.

8. EXTRACT OF SALIENT TERMS &

CONDITIONS OF CONTRACT.

9. LIST OF SPARES TO BE SUPPLIED.

10. TRIAL OPERATION DETAILS AS PER

CONTRACT.

11. GUARANTEED PARAMETERS FOR PG

TEST.

12. TESTS TO BE CARRIED OUT

13. LD / PENALTY / BONUS DETAILS

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 3. IMPLEMENTATION PHASE
3.9 CONTRACT HAND BOOK CONTD…..

14. LIST OF EXCLUSIONS

15. STATUTORY APPROVAL DETAIL

16. L-1 NETWORK

17. FACILITIES TO BE PROVIDED BY

CUSTOMER

18. CONSIGNEE ADDRESS

19. INDEX OF TENDER / OFFER DOCUMENTS

20. LIST OF TERMINAL POINTS

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 3. IMPLEMENTATION PHASE

3.10 REVIEW PROGRESS ON INFRASTURE, EXPEDITE AND

FOLLOW UP ENABLING WORKS

3.11 EXPEDITE SUPPLY OF ERECTION DRAWINGS

QUALITY PLANS TO SITE

3.12 EXPEDITE MATERIAL SUPPLY TO SITE

3.13 MAKE A ROLING PLAN OF 3 MONTHS MATERIAL

REQUIREMENT.

3.14 ORGANISE MONTHLY REVIEW MEETING TO MONITOR

AND CONTROL PROGRESS AS PER L-2 SCHEDULE

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Monitoring and Control
A Management process in which -
(1) Actual performance is compared with planned
performance,
(2) Difference between the two is measured,
(3) Causes contributing to the difference are
identified, and
(4) Corrective Action is taken to eliminate or
minimize the difference

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 PREBID
COMML
INVOLVEMENT
PROCESS
MAFG
POST AWARD MAP
UNITS
RECEIVE C I S &
& ENGG
CONT DOC
CENTRES

ORGANISE
ISX KICK OFF MTG
CONSULTANT
CUSTOMER REQUIREMENT

FREEZE SCOPE,
INTERFACES, CUST
TSX
INPUTS & ESTABLISH
CONT COORDN
PROCEDURE
CUSTOMER

PUR PREPARATION OF L-1

SCH & CHB . RECEIVE L-
2s AND WITH L-1

PREPARATION OF
ENABLING WORK SCH &
EXPEDITE
MSX

COORDN FOR ENGG, QP

APPRL, VENDOR APPRL,
PROCUREMENT,
TESTING, X-PORTN OF
CRITICAL PKGS
QLY

MONITOR PROGRESS,
REVIEW PROJECT /
MILESTONE (PMX-F15)
AND TAKE CORRECTIVE

C U S T O M E R SAT I S F AC T I O N
ACTIONS FOR
DEVIATION
SOX

RESOLVE CUST
COMPLAINT
CONTINUAL
IMPROVEMENT
IN PM PROCESS
CONTRACT CLOSING
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(FORM PMX-F14)
 3. IMPLEMENTATION PHASE

3.15 PREPARE PHYSICAL AND FINANCIAL TURN OVER

FOR THE ENTIRE CONTRACT PERIOD AND MONITOR
THE SAME

3.11 PLAN, MONITOR AND CONTROL OF

INFRASTRUCTURE AND ENABLING WORKS.

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 4. PROJECT LIFE CYCLE

4 CLOSURE PHASE-

a) Finalise documentation “As build” / “As

done”

b) Collect and evaluate all lessons learnt.

Data Banking
It will be useful for next project

c) Close the project officially

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ACTION PLAN FOR COMPLETING THE
WORK IN SPECIFIED TIME

USE OF INTEGRATED PROJECT MGMT. SYSTEM

1. PROJECT MANAGEMENT FROM

CONCEPT TO COMMISSIONING.
2. USE OF LEVEL 1, LEVEL 2 AND LEVEL 3
NETWORKS FOR MANUFACTURING,
ERECTION & COMMISSIONING.
3. EXPEDITING INTERFACE
REQUIREMENTS FOR CUSTOMER’S
SCOPE OF WORKS.
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ACTION PLAN FOR COMPLETING THE
WORK IN SPECIFIED TIME

4. RESOURCE PLANNING ON
- SITE INFRASTRUCTURE
- MAJOR TOOLS AND PLANTS
- CONSUMABLES

5. EXPEDITING FEEZING OF DRWINGS,

DOCUMENTS & MANUALS.
6. MONITORING & EXPEDITING BOUGHT
OUT ITEMS.
7. MONITORING AND CONTROLLING
PROGRAMMES.
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ACTION PLAN FOR COMPLETING THE
WORK IN SPECIFIED TIME

8. CONSTRUCTION PLANNING AT SITE.

9. WORKING OUT PROPER SEQUENCES OF
ERECTION
10. MANAGEMENT INTERVENTION &
FOLLOW UP
11. WORKING ON PARALLEL ACTIVITIES.

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 EXTENSION OF CONTRACT PERIOD
1 PREPARE GROUND FOR GETTING CONTRACT PERIOD EXTENDED
WITHOUT LEVY OF LD

2 REASONS FOR DELAY BY CUSTOMER, CONSULTANTS AND

MANUFACTURING UNITS TO BE RECORDED WITH DOC. EVIDENCE
3 REASONS FOR DELAY BEYOND CONTROL OF CONTRACTOR OR
OWNER TO BE RECORDED WITH DOCUMENTARY EVIDENCE LIKE –
A. NATURAL CALAMITY – FLOOD, DROUGHT, EARTHQUAKES,
EPIDAMICS, CYCLONE, HURRICANE, NUCLEAR DISASTER ETC
B. ACTS OF ANY GOVT. DOMESTIC OR FOREIGN – DECLARED
OR UNDECLARED WAR, EMBARGOES ETC
C. REBELLION, REVOLUTION, USURPATION OF CIVIL OR MILITARY
GOVT. CONSPIRACY AND TERRORIST ACTS
D. FAILURE OF ANY LOCAL, STATE OR NATIONAL GOVT
AUTHORITY IN PROTECTING THE PROJECT
4 ANY ACTION BY CUSTOMER OR CONSULTANTS WHICH RESULTED
IN ANY INCREASE IN COST TO BE RECORDED WITH DOC. EVIDENCE
TO GET COMPENSATION 52
 PROJECT MANAGEMENT : PSWR : NAGPUR

STATISTICAL ANALYSIS SHOWS DELAY IN CONTRACT CLOSING

IS DUE TO THE FOLLOWING WHICH NEEDS TO BE ADDRESSED :

1. DELAY IN ENGINEERING.

2. DELAY IN ENGINEERING AND APPROVALS OF

DRAWINGS FOR B.O.Is.

3. DELAY DUE TO LATE RESOLUTION OF ENGINEERING

INTERFACES BETWEEN UNIT TO UNIT, UNIT TO VENDOR
AND DIFFERENT PRODUCT GROUPS.

4. DELAY IN ORDERING.

5. DELAY IN PIPING ENGINEERING.

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PROJECT MANAGEMENT : PSWR : NAGPUR

STATISTICAL ANALYSIS SHOWS DELAY IN CONTRACT CLOSING

IS DUE TO THE FOLLOWING WHICH NEEDS TO BE ADDRESSED :

6. DELAY IN PREPARATION OF CABLE SCHEDULE

AND
TERMINATION DETAILS.
7. DELAY IN APPROVAL OF VENDOR DRGS & DATA
SHEETS.
8. DELAY IN INSPECTION.

9. EXTRAORDINARY DELAY IN RETIREMENT OF

DOCUMENTS FOR BOIs

10. DELAY IN COMPLETION OF TRIAL OPERATION

11. DELAY IN CONDUCTING PG TEST.

12. DELAY IN SUBMISSION OF TIME EXTENSION

CASE. 54
PROJECT MANAGEMENT : PSWR : NAGPUR

STATISTICAL ANALYSIS SHOWS DELAY IN CONTRACT CLOSING

IS DUE TO THE FOLLOWING WHICH NEEDS TO BE ADDRESSED :

13. DELAY IN RECONCILIATION OF MAIN SUPPLIES.

14. DELAY IN HANDING OVER OF INITIAL SPARES TO

CUSTOMER AND RECONCILIATION THEREOF.

15. DELAY IN HANDING OVER OF SPECIAL TOOLS & TACKLES

16. DELAY IN SUBMISSION OF DRAWINGS , DOCUMENTS

O&M MANUALS AND AS BUILT DRAWINGS.

17. DELAY IN LIQUIDATION OF PENDING POINTS.

18. DELAY IN COMPLETION OF STATUTORY REQUIREMENTS.

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