nac project management

7/27/2019 NAC Project Management

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October 1, 2013Construction Project Management -

NAC Course 1

Project Planning and Management

Dr. K S Ramesh


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NAC Course 2

Time Slippage and Cost Overrun:

Reasons and RemediesDr. K S Ramesh


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NAC Course 3

Performance of Indian Economy portrays a mixed picture

Achievements Failures

New equations are emerging

New International Trade Policies in operation

New Solutions are sought

Deregulated market

Transparency in our operationsCustomer orientation Concern for quality

The New Mantra is Customer Relationship Management


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NAC Course 4

Since the dawn of LPG Era evenIndian corporate giants areshivering in their pants.

It has been a learning for us andwe are now in a position to facethe competition.

-Mr. S D Kulkarni

former CEO of L&T in 1992

- A Director of L&T in 1996

What did L&T do to change their views?

STAKEHOLDERS DELIGHT


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NAC Course 5

WHO ARE YOUR STAKEHOLDERS ?

Union and State Governments

Funding Agencies

Contractors, Suppliers and Consultants

Employees of your organisationFarmers / Cultivators from whoom you acquired land

Buyers of Property from your Company

Public at large


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NAC Course 6

What is a Project ?A Project is an investment of resources on a

package of interrelated and time bound activities.

The investment is made, anticipating returns in future.

A Project as a Unit can be planned, executed

and resources can be provided with an expectation

of returns

A Project should have a definite beginning and

a definite end.


7/61October 1, 2013Construction Project Management -

NAC Course 7

For Example:

Building an Irrigation System

On-farm Development

Conducting Seminars / Workshops / Conferences

Maintenance Operations

Recruiting Executives

Constructing Infrastructure facilities



NAC Course 8

When does a Project begin ?

The day administrative, technical and

financial approvals are received.

Land acquisition also should be

completed.

The day a VIP lays the foundation

stone.



NAC Course 9

When does a Project end ?

The day it is commissioned.

When the production starts.

On that day a VIP inaugurates by

cutting a ribbon or breaking half a

dozen coconuts.

Projects in this country never end.



NAC Course 10

Two Major Risks come to forewhile talking about Projects

Time Slippage / Delay

Cost Overrun / Escalation



NAC Course 11

Mega Projects

Underground

Railways in Calcutta 20 years

Moonidih Coal Mine 25 years

Salal Power Project in

J&K > 18 years

Vizag Steel Plant 8 years

Like these 135 projects have been delayed


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Construction Project Management -NAC Course 12

Projects successfully completed

Nehru Stadium in Chennai Abu Dhabi Airport

Bahai Temple in Delhi

Vijaipur Project was completed on Time

IFFCO Aoala Project delayed by 2 months

NTPC Projects, Asian Games in 1982.

General Elections


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Why Do Projects Face Delay and Cost Overrun ?

Zero date not specified properly

Inadequate / irregular flow of resources Political Interference

Lack of motivation among project personnel

Absence of accountability Frequent transfers of Project personnel

Weak coordination

Frequent changes in the specifications

Too frequent monitoring


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Improper planning

Selection of wrong technology

Contractors/ consultants not adhering toschedule

Resistance from Social Activist

Absence of sound monitoring system

Rigidly applied rules

Land acquisition

Man - made disasters Natural disasters


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How to visualize a Project ?

A Project does not end the day the target is

reached

Project must be seen in its totality

Time in the final analysis is money

Time slippage often leads to cost overrun andvice versa, resulting in a vicious circle


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Elements of any Project

Programmed Objectives

Rules, Regulations, Constraints andPolicy Restrictions

Management Control Inputs

Implementation Process

Output

Outcome

Impact

Feedback


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SYSTEMS MODEL FOR PROJECTS

Programmed

ObjectivesRules, Regulations, Constraints

Policy Restrictions

Management Control

Input Implementation

Process Output Outcome Impact

Feedback


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NAC Course 18

Systems Approach to Planning and Managing Projects

Programmed

Objectives

Formulate

Alternatives Appraisal

Implementation

Planning

Monitoring

Evaluation

If, +ve

If, -ve


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NAC Course 19

Aspects to be included in Project Appraisal

Policy Acceptance

Social Acceptance

Economic Viability

Financial Viability

Technical Feasibility

Managerial Skills

Environmental Issues

Consistency with other efforts

G O O


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NAC Course 20

PLANNING FOR IMPLEMENTATION

Step 1 : List All Activities, if listed

according to the agencies WBS

Step 2 : Specify a Logical Sequence

Step 3 : Work out the duration of

Activities

Step 4 : Assemble the Activities in

a flow diagram

Step 5 : Analyze the flow diagram


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NAC Course 21

Planning for Project implementation - An

Illustration

Project Title : Establishing a Computer Centre

The proposed project is acceptable to the policy of

the Municipal Corporation, socially acceptable,

economically and financially viable, technically

feasible, will not adversely affect the environment

and consistent with the other efforts made by the

Corporation to modernize Management practices.

ASSUMPTIONS


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NAC Course 22

There is a building available, which could

be used for establishing the proposed

Computer Centre.


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NAC Course 23

Staff have to recruited. They have to be

trained. Training of staff will be organizedin a different Computer Centre while the

proposed Centre will be under installation


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NAC Course 24

The new Centre will require a new power

line. The new line will have to approved by

the Electricity Board. Electrical wiring canbe done only after obtaining the approval

from the electricity board


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NAC Course 25

The new Centre will be run for a period ofthree or four weeks before it is handed

over to the Manager of the Computer Centre


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NAC Course 26

Before undertaking any task get the project

plan approved by the Board of Directors.


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NAC Course 27

Step 1 : List All Activities

Project Plan Approval

Recruit Staff

Purchase Computers

Obtain New Power Line Train Staff

Install Computer

Electrical Wiring

Trial / Pilot Run


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NAC Course 28

Organize the Activities in a Tabular form

Activity

Code

A

BC

D

E

FG

H

Activity Description


Recruit StaffPurchase Computers

Obtain New Power Line

Train Staff

Install ComputersElectrical Wiring

Pilot / Trial Run


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NAC Course 29

STEP 2 : SPECIFY A LOGICAL SEQUENCE

Activity

Code

Activity Description

A

B

C

D

E

FG

H


Recruit Staff

Purchase Computers

Obtain New Power Line

Train Staff

Install ComputersElectrical Wiring

Pilot / Trial Run

A

A

A

BC

D

E, F, G

None

Immediate

Predecessor


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NAC Course 30

Step 3 : Work out the Duration

of Every Activity

Illustration : Project Plan Approval

Collect Data from more than 30 Project Mangers who have

implemented similar projects elsewhere in the past under

more or less identical conditions. Sample date is as givenbelow :

12 6 8 9 10 6 22 13 12 14

6 8 2 10 9 8 12 10 6 128 9 7 11 6 5 6 20 8 6

6 8 12 6 10

In the sample data :


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NAC Course 31

In the sample data :

Minimum = 2 Weeks

Maximum = 22 Weeks

Majority of the Managers have taken 6 Weeks

Minimum ------> Optimistic Time t (op)

Maximum ------> Pessimistic Time t (per)

Majority -------> Most Likely Time t (ml)

t (est.) = t(op) + 4 t(ml) + t(per)

6t (est.) = 2 + 4 x 6 + 22 = 8 weeks

6


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NAC Course 32

Activity

Code

Activity Description Immediate

Predecessor

Activity

Duration (in

months)

A

B

C

DE

F

G

H


Recruit Staff

Purchase Computers

Obtain New Power LineTrain Staff

Install Computers

Electrical Wiring

Pilot / Trial Run

None

A

A

AB

C

D

E, F, G

2

3

5

22

4

2

1


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NAC Course 33

WHAT IS AN ACTIVITY ?

AN ACTIVITY IS A TASK WHICH TAKES PLACEOVER A PERIOD OF TIME.

EVERY ACTIVITY REQUIRES RESOURCES

ACTIVITY CODE

K

ACTIVITY DURATION

16 WEEKS

6 14


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NAC Course 34

4

5

7

Appoint Staff

Purchase M/c

Award Contract

6

Approval


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NAC Course 35

Training Seminar

Pack your Personal Effects

Settle Telephone Bills

Get Return Reservation confirmed

Departurefrom

Hyderabad

Buy gifts for Spouse & Children

Return Library Books and then


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NAC Course 36

Prepare Tea

& Coffee Cook Lunch

Discuss the Topic :

Project

Management

Serve & Drink Tea

or Coffee


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NAC Course 37

Prepare Tea

& Coffee Cook Lunch

Discuss the Topic :

Project ManagementServe & Drink Tea

or Coffee

Dummy Act iv i ty


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NAC Course 38

0 1

2

3

4

5

6

7 8

A

B

C

D

E

F

G

H

2

3

5

2

2

4

2

10 2

5

7

4

7

6

6 7 11

1112

1211

11

11

7

9

9

7 6 2

20


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NAC Course 39

EVENT ORIENTED SCHEDULE

Event EOT LOT Slack

0

1

2

34

5

6

78

0

2

5

74

7

6

11

12

0

2

9

79

11

11

1112

0

0

4

05

4

5

00


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NAC Course 40

EST = Earliest Occurrence Time of its Predecessor Event

EFT = EST+ AD

LFT = Latest Occurrence Time of it Successor Event

LST = LFT - AD

Left Hand Side Event, figure in the bottom of the event

Right Hand Side Event, figure on the top of the event

ACTIVITY ORIENTED SCHEDULE


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NAC Course 41

Act.

Code

EST EFT Act.

Dur.

LST LFT Float

A

B

C

D

E

F

G

H

0

2

2

2

5

7

4

11

2

5

7

4

7

11

6

12

2

3

5

2

2

4

2

1

0

6

2

7

9

7

9

11

2

9

7

9

11

11

11

12

0

4

0

5

4

0

5

0

ACTIVITY ORIENTED SCHEDULE


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NAC Course 42

FAQs

What is the use of these techniques?

I have been implementing Projects, with some

Delay. What advantage I get by using them?


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NAC Course 43

Advantages of Using Network Techniques

1. Project time can be estimated systematically

2. It has the predictive ability

3. Point of time at which coordination is required can be

pre-determined

4. Resource Plan can be formulated based on theschedule

5. Wherever necessary time reduction could be

Examined

6. Close monitoring of the progress could be established


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NAC Course 44

As per our plan the project would take 12 months, Due to

reasons not known the Chief of the Organization wants us

to complete it within 7 months, What will you do ?

Crash or Compress the Network.

1. Check the time estimates2. Check the assumptions3. Introduce as many parallel activities as possible4. Go in for a different but feasible technology5. Introduce reward - cum - punishment6. Divert resources from non critical projects to critical

Projects

7. Divert resources from non critical activities to criticalactivities8. Drop low priority activities, wherever possible9. Provide more resources

If none of the above suggestions works what will you do ?


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NAC Course 45

Activity Normal Crash Cost slope

Time Cost Time Cost

A

B

C

D

E

F

G

H

2

3

5

2

2

4

2

1

10,000

12,000

850,000

10,000

12,000

40,000

10,000

8,000

1

2

3

1

1

2

1

1

15,000

15,000

1,000,000

15000

18,000

54,000

15,000

8,000

5,000

3,000

75,000

5,000

6,000

7,000

5,000

--


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NAC Course 46

0 1

2

3

4

5

6

7 8

A

B

C

D

E

F

G

H

1

3

5

2

2

4

2

10 1

4

6

3

6

5

1011

1110

10

10

6

8

8

10


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NAC Course 47

0 1

2

3

4

5

6

7 8

A

B

C

D

E

F

G

H

1

3

5

2

2

3

2

10 1

4

6

3

6

5

910

109

9

6

7

7

10

9


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NAC Course 48

0 1

2

3

4

5

6

7 8

A

B

C

D

E

F

G

H

1

3

5

2

2

2

2

10 1

4

6

3

6

5

89

98

8

6

6

6

10

8


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NAC Course 49

0 1

2

3

4

5

6

7 8

A

B

C

D

E

F

G

H

1

3

4

2

2

2

2

10 1

4

5

3

6

5

78

87

7

6

5

5

10

7


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NAC Course 50

0 1

2

3

4

5

6

7 8

A

B

C

D

E

F

G

H

1

3

3

2

2

2

2

10 1

4

4

3

6

5

67

76

6

4

4

5

10

7


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NAC Course 51

0 1

2

3

4

5

6

7 8

A

B

C

D

E

F

G

H

1

2

2

2

2

2

2

1

0 1

3

3

3

5

5

5 6

65

5

3

3

3

10

5


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NAC Course 52

In the Network drawn the lines do not represent the

time taken to accomplish the task. For instance, the

Activity B - Recruit Staff takes 2 months and the

activity F- Install Computers takes 4 months. Therefore,the length of the line F should be double the length of

line F. But it was not planned that way, meaning the

lines ware not drawn according to a scale. The

Network drawn according to according to scale is

known as

Square Network

Scalograph

Time Scale Network


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NAC Course 53

0 1 2 3 4 5 6 7 8 9 10 11 12

A

B

C

D G

E

F H

EARLY START STYLE MANAGEMENT

10,000

12,000

450,000400,000

20,000 20,000 8,000

10,000

10,000

10,000

482,000 20,000 420,000 28,000


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NAC Course 54

1 2 3 4 5 6 7 8 9 10 11 12

A

B

C

D G

F H

LATE FINISH STYLE MANAGEMENT

10,000

450,000 400,00020,000 20,000

8,000

E

10,00012,000

10,00010,000

460,000 0 442,000 48,000

Follow up


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NAC Course 55

Information

Processing / Analysis

Conclusion / Inference

Decision

Implementation

Follow-up


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NAC Course 56

Information

Timely Comprehensive

Relevant

Reliable

Format Oriented

Suggestions for Improving Project Management


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October 1, 2013 Construction Project Management -NAC Course 57

Practices

1. Develop a detailed implementation schedule2. Prepare a Resource Plan based on anticipated progress

3. Design & operate a sound monitoring system

4 Ensure that contract takes care of penalty, if delays occurs

5 Introduce reward and punishment

6. Continuity of Project Team

7. Decentralized decision making

8. Systems approach to planning and management9. Select the most appropriate technology

10. Mobilize participation of local community


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What is the need of the hour?

C ommittment

A ccountability

D iscipline


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A Successful Project Manager is

One who can be an

M

L

A

ANAGER

EADER

DMINISTRATOR


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If You Still Feel That Projects Can No t Be

Managed As Per the Schedule and Within

The Resources Provided For !

Establish A Society for

Prevention of Cruelty toProjects.


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But I Dont Know If You Enjoyed Listening To Me

I Enjoyed Talking To You

Thank You

nac project management

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