Project management Project

Work

CONSTRUCTION OF A NEW
BUILDING

Submitted To: Submitted By:

Ms. Tanuja Kaushik Satadal Chanda
PG20095040

Acknowledgement
The entire body of work as it stands today is largely due to the rich contribution, through
discussions and practical exposure. It is my pleasure to gratefully acknowledge the help and
advice rendered by a number of people, who in their ways tried to realize my hope of
completing the project. It is impossible to grade or classify the assistance provided by them,
however small, for it is the thought that counts, not the extent to which they have helped. So
I am pleased to thank everyone who has helped me in bringing the project to reality.

I am thankful to Ms. Tanuja Kaushik (Assistant Professor & Area Chair - Operations),for
helping me on each and every step of the project work and guiding me towards the right
path, so that, I was able to understand the topic and thereby complete the project more
efficiently.
Topic 1 – Introduction to Project Management

The Project:-

The project is about the construction of a new sub-branch for the organization in
Gurgaon. The stipulated time period for the project is 8 months starting from 7 th March
2011 to 7th November 2011. It is building for official purpose and an extension for the
reach of this organization.

Why is this task a project and not a part of regular operations?

A project is defined as a temporary endeavor that consumes resources, incurs cost and
produce deliverables over a finite period of time to achieve a specific goal. As this
endeavor will consume resources, will incur cost and will help to meet the goal of
extending the reach of this organization it is a project and not a part of the normal
operations. Also it is a start to finish job with a specific time period.

The start date and tentative end date of the project:-

The start date is 7th March 20111 and tentative end date is 7th November 2011

Traits of a Project Manager for this particular project

 Flexible – Flexibility is required for the PM of this project especially when dealing
with new team members who may need specific, firm direction to get started.
 Credible – PM should be Trust Worthy, Competent, Dependable and honest.
 Tolerant – Considering the fact that the Resources, Goals and Objectives  are 
often vague for a construction project, PM Should be tolerant . While dealing
with varied group of stakeholders  having different objectives and opinions ,
Project Managers should be able to approach each group with understanding and
Tolerance for successful project completion
  Innovative - PM should be innovative with solutions as the Resources and
capabilities needed to complete a project may be scarce.
 Available  - As there are many aspects of managing a Project Managers must be
available to spend time with various people involved in  the project for ensuring
project success
Topic 2 – Project Life Cycle

Feasibility report for this project

The location for this project is a industrial area with a number of organizations present
and running their operation from this particular location.
The economic feasibility of this project is justified by the fact that this upcoming office
building will be present in a “Special Economic Zone” thus providing the organization to
have better options for its business.

Benefits of the project to the organization

 Presence in a Special Economic Zone.

 Delegation of work between the branches will help in smooth lining of all the
operations
 Generation of additional economic activity
 Development of infrastructure facilities

Mention how the project fulfills the needs and requirements of the organization

This organization has reached a stage where it is ready to expand and make its presence
felt in the market. A new branch will fulfill these requirements and also make work
more comfortable and streamlined.

Costs associated with the project

Rent of the land- Rs. 25,000/-

Material cost- Rs. 15,00,000/-
Labour Cost- Rs. 5,00,000/-
Construction Cost- Rs. 20, 00,000/-
Others- Rs. 50,000/-

Total cost- Rs. 40,75,000/-

Lastly, recommend whether the project should be sanctioned or not?

Yes, this project should be sanctioned.

Topic 3 – Project Management Process

Initiating

The initiation processes is to determine the nature and scope of the project. If there are
constraints in this stage and is not performed well, it is unlikely that the project will be
successful in meeting the business’ needs. The key project controls needed here are an
understanding of the infrastructure industry and making of a superior design that helps in
streamling of the business and making sure that all necessary controls are incorporated into the
project.
In this stage we analyzing the business needs/requirements in measurable goals also a
Reviewing of the current operations Is required. Financial analysis of the costs and benefits
including a budget has to be initiated in this stage. Once the initiating of all the costs are done,
Stakeholder analysis, including users, and support personnel for the project is done.

Planning

The development of a construction plan is very much analogous to the development of

a good facility design. The planner must weigh the costs and reliability of different
options while at the same time insuring technical feasibility.

Project planning for this project includes:-

 Determining the planning process

 Selection of the planning team
 Identify deliverables and creating the work breakdown structure;
 Estimating the resource requirements for the activities;
 Estimating time and cost for activities;
 Development of the schedule;
 Development the budget;
 Risk planning;
 Finally, a formal approval to begin work

Executing

The executing phase involves implementing the planned activities according to the approved
schedule and budget. This is where the work of the project is actually performed and consumes
both resources and time. In this phase, the project manager coordinates the work of the project
team. The deliverables are produced as outputs from the processes performed as defined in the
project management plan.

Monitoring and Controlling

Monitoring project progress is essential. Gathering and distributing information is key to

insuring a project's success. Collecting a variety of information related to resource utilization
and time expenditures is critical in determining what percentage of the project has been
completed and whether the project will complete on time. The project manager is responsible
for gathering and disseminating all kinds of project related news and information. This
information can be used to influence expectations, in evaluating resource utilization, and
making adjustments to the plan.

Monitoring and Controlling for the construction project includes:-

 Measuring the ongoing project activities as they take place one after the other in the
planned form
 Monitoring all the project variables (cost, effort, scope, etc.) for the building against the
project management plan and the project performance baseline.
 To monitor and control corrective actions to address issues and risks properly
 Implementation of approved changes.

Closing

The project has to be officially closed after its objectives are being met with. Project facts or
statistics are compiled from project information that will assist in the assessment of project
performance. These might include comparisons of the baseline plan to project plan, plan to
actual results, scope changes, milestones to actual results, and others.

According to you on which process should team members spend the most time and
why?

The process in which team members should spend the most time is the planning phase
this is because while constructing a building the design, estimation of materials required
and execution panning is most important.
Topic 4 – Project Integration Management

You have to select one project proposal amongst three. Following are the variables of
the projects. Interest rate for all is 8% per annum. Calculate the Net Present Value of
each project and determine which proposal should be selected.
Time Investment
Project Cash Flow in Each Time Period (Rs)
Period (Rs)
1st 4 yrs 22000 28000 35000 50000 90000
2nd 6 yrs 25000 32000 48000 55000 60000 65000 225000
3rd 5 yrs 43000 57000 65000 75000 90000 280000

Solution:-

PROJECT-1 PROJECT-2 PROJECT-3

CASHFLO
YEARS CASHFLOW YEARS CASHFLOW YEARS W
INR
1 INR 22,000.00 1 INR 25,000.00 1
43,000.00
INR
2 INR 28,000.00 2 INR 32,000.00 2
57,000.00
INR
3 INR 35,000.00 3 INR 48,000.00 3
65,000.00
INR
4 INR 50,000.00 4 INR 55,000.00 4
75,000.00
INR
    5 INR 60,000.00 5
90,000.00
    6 INR 65,000.00    
INVESTMEN INR INVESTMEN INR
INVESTMENT INR 90,000.00 T 225,000.00 T 280,000.00
RATE 8% RATE 8% RATE 8%
           
           
NPV 18,911.48 NPV -14,090.40 NPV -23,338.05
           
PROJECT "1" IS SELECTED        

Topic 5 – Project Scope Management

Work Breakdown Structure

Building

Level 1 Level 2 Level 3 Level 4

Site Preparation Foundation Framing Roofing

1.1. Layout 2.1 Erect forms 3.1 Floor Joists 4.1 Install sheathing
3.1.1 Install f3 joists
3.1.2 Install sf2 joists

1.2. Grading 2.2 Pour concrete 3.2 Sub-flooring 4.2 Lay shingles
3.2.1 Install f2s flooring
3.2.2 Install fsf flooring

1.3. Excavation 2.3 Remove forms 3.3 Stud Walls

3..3.1 Erect first floor studs
3.3.2 Erect 2nd floor stud walls

3.4 Frame roof

Level 5 Level 6 Level 7

Walls Utilities Finish work

5.1 Hang Sheetrock 6.1Electrical 7.1 Interior

5.2 Tape and bed 6.1.1 Rough In 7.1.1 Install cabinets
6.1.2 Building inspection 7.1.2 Install appliances
6.1.3 Finish work 7.1.3 paint walls
6.2 Plumbing 7.1.4 Finish work
6.2.1 Rough in
6.2.2 Building inspection
6.2.3 Finish work
 Topic 6 – Project Time Management
Calculate the float and mark the critical path based on given task durations
Activity A B C D E F
Predecessor - A B,E - D E
Time (Days) 1 4 3 9 6 8

The Critical Path Diagram:-

1
4
A B
3
C
Start Finish

8 D E
9 F
6

Critical activity = (start) ABC (finish)

Critical path = (start) ABC ( finish)
Total days required to complete the project = 8 days
Topic 7 – Project Cost Management

What is the Planned Value (PV) of your project? Based on that calculate the following:

Planned value (PV) = Rs. 40,75,000

EV (Earned Value)= Rs. 45,00,000
AC (Actual Cost)= 35,50,000

CV (Cost Variance)= EV-AC= Rs.( 45,00,000-35,50,000)= Rs. 9,50,000

(CV value is positive; the project is currently under budget)

SV (Schedule Variance)= EV-PV= Rs. (45,00,000-40,75,000)= Rs. $,25,000

(SV value is positive; the project is currently ahead of schedule)

CPI (Cost performance index)= EV/AC= (45,00,000/35,50,000)= 1.26

(CPI value is >1 or =1, the project cost trend is currently under or at planned budget)

SPI (Schedule Performance Index)= EV/PV= (45,00,000/40,75,000)= 1.10

(SPI value is >1 or =1, the project schedule trend is currently ahead or on planned
schedule)

EAC(Estimate at Completion)=AC+BAC-EV=(35,50,000+40,75,000-45,00,000)=
Rs.31,25,000

ETC (Estimate to complete)= EAC-AC= Rs (31,25,000-35,50,000)= -4,25,000

Topic 8 – Project Quality Management

Quality control and safety represent increasingly important concerns for project
managers. Defects or failures in constructed facilities can result in very large costs. Even
with minor defects, re-construction may be required and facility operations impaired.
Increased costs and delays are the result

Quality Policy
 Design reviews to insure safe and effective construction procedures are a major
element
 The acceptance or rejection of a lot is based on the number of defective (bad) or
non-defective (good) items in the sample. This is referred to as sampling by
attributes
 vigilance and cooperation during the construction process
 Procurement
 field inspection and testing
 final checkout of the facility
Topic 9 – Project Human Resource Management

Project Team:-

Management
The management team is on top of the hierarchy, and includes the board of directors
and chairperson (if applicable), the managing director and the directors of the technical
and administrative teams within the company.

Project Management and Adminstration

Next in line are the project and site managers, and the administrative team, human
resources included. Some companies will have a sales department and customer-
relations officers in addition to a design team that will look after planning and structural
engineering.

Supervisors
While most companies will hire the majority of the workforce just before the start of a
building project, they will keep a group of qualified trade workers in employment as
supervisors (gaffers). Supervisors will either manage their particular group of trade
workers, such as bricklayers, ground worker, carpenters etc., or they will direct a group
of mixed trades within a site-specific project, such as foundation laying and window
fitting.

Construction Trade Workforce

A small group of trade workers or laborers are usually kept on a company's books for
maintenance or repair of previous projects. The size of the group of regulars depends
on the size of the company, but smaller companies are often more dependent on a
regular workforce as they are more likely to take on projects on short notice.
Hierarchy:-

Project Head

Architect Engineers Super Visor Legal Advisor

Draftsman Subordinates

Workers Workers Workers

Project Time Management

Teams Time Period

Design Team 1 Months
Technical Team 2 Months
Administration 6 Months
Labours 6 months (from the second month)

Months
2
1

Design team
Technical Team
Administration
Labours

RACI model

Project Design Technical Supervisior Legal

head Head head adviser

Design

Technical

Workers
 Legal
department
Topic 10 – Project Communications Management

A communication plan like the project plan is a necessary part of a project.

Communication may happen verbally or through e-mail, as well as through charters and
project plans, addenda and status reports. Proper Communication Management
provides a conceptual umbrella that enables organizations to integrate their disparate
messaging efforts. It allows them to create and distribute communications that, while
different in style and purpose, have an inner coherence

Communication channel:-
 Via individuals
 Via e-mail
 Via personal meeting
 Via daily, weekly and monthly reports

Topic 11 – Project Risk Management

Potential Risks for the project

 Government Approval
 Conflicts among workers
 Overshadowing by already set competitors
 Safety concern for the building

As this is a Special Economic Zone the risk of getting over-shadowed by the already set
competitors is the high probability risk and likely to have a greater impact.
 Probability- Risk Matrix:-

Risk 3
High

Probability Risk 4
Medium

Risk 2

Low

Risk 1

Low Medium High

Risk
Topic 12 – Project Procurement Management

As is the case with almost every aspect of the project management process, it is
essential and imperative that the project management team and or the project
management team leader implement an effective and succinct plan when it comes to
the various components of procurement throughout the project’s life cycle. The
materials for delivery to and from a construction site may be broadly classified as : (1)
bulk materials, (2) standard off-the-shelf materials, and (3) fabricated members or units.
The process of delivery, including transportation, field storage and installation will be
different for these classes of materials. The equipment needed to handle and haul these
classes of materials will also be different.

Criteria to Select Vendors:-

 Trusthworthy
 Market capitalization
 Agility
 Relaibility
 Charges and discounts.