Project Management Conventional &

Contemporary
Prof. M. G. Korgaonker

Project Management Conventional &

Contemporary
Major Changes in Project Sector in India

Public Private Partnerships using models such as BOT

Increase in size and capacity of projects executed
Consortia, joint ventures, strategic alliances in projects
Rapid entry of new entrants and rapid corporatization
Improved practice of project management
Improvement in productivity, quality and delivery capability
Consultancy services in construction / project mgt, procurement
services, regulatory issues, technology

Project Management Conventional &

Contemporary
Major Changes in Construction Sector in India

Mega project financing, both within and outside India

Government funding for infrastructure projects
Secure and execute projects abroad
Projects at all levels : national, state, municipal
Projects and construction account for largest employment
Projects in Infrastructure, Oil & gas exploration, Petroleum and
chemicals, ICT, Power, Social development
Institutions and implementation plan for safety, quality, technology
Improved safety record of construction industry from accident rate of
0.10 / million man hrs worked in 2001 down to around 0.01

Project Management Conventional &

Contemporary
Major Changes in Construction Sector in India

Reduction of time and cost overruns from 167 % to 64 %

Industry Status under IDBI Act to construction industry
Arbitral institutions for dispute resolution
National Skill Development Mission
Construction Sector Skill Council Of India
Disaster identification and mitigation
Go head for REITs and IITs (Real Estate Investment Trusts &
Infrastructure Investment Trusts)
Go ahead for raising funds through QIP( Qualified Institutional
Placements) mechanism

Project Management Conventional &

Contemporary
Some Illustrations of Recent Brand Building Projects

Space Exploration Mangalyan,Chandrayan, INSAT, Launch Vehicles

National Highway Development
Large Refineries ex. Reliance at Jamnagar
Konkan Railway
Delhi Metro Rapid Transit System and several othe metro projects
Bandra Worli Sea Link
Mundra Port & SEZ : Indias largest Pvt Sector Port & SEZ
New / Modernized Airports Hyderabad, Bangalore, Delhi, Mumbai

Project Management Conventional &

Contemporary
Some Illustrations of Recent Brand Building Projects

Automotive vehicles small cars, SUVs

Nuclear Power Plants
Oil & Gas Exploration and Interstate Pipelines
Super Critical Thermal Power Plants
Nationwide Telecom Networks
New City Development Lavasa, Ambey Valley
Large Scale Nationwide Retail Development
Large scale township development

Project Management Conventional &

Contemporary
Major Challenges in Project Sector in India

Lack of stable governance system systems & procedures, single

window project clearance mechanisms, well coordinated approach
Lack of long term funds resulting in expensive short term financing
Complex legislation in - land acquisition, environmental protection
Long delayed dispute resolution with piled up dues & over dues
Gigantic debt - severely cripples industrys ability to grow
Unsatisfactory resource base technology, manpower skills,
materials, innovative methods, management of stake holders

Project Management Conventional &

Contemporary

Project is an endeavour in which human, material and financial

resources are organized to undertake a unique scope of work of given
specification, within constraints of cost, and time, so as to achieve
unitary, beneficial change, through the delivery of objectives.

Scope

Purpose

Orgzn

Time

Qlty
Cost

Project Management Conventional &

Contemporary

Method well defined

Greater Chance of
failure

No

Yes

Greater Chance of
Success

Type 2 : Water

Type 4: Air

Product devpt.

Research & Devpt

Type 1: Earth

Type 3 : Fire

Engineering

Application Software

Yes
No
Goals well defined

Project Management Conventional &

Contemporary
Project Breakdown Structures

Product Breakdown Structure ( PBS )

Organization Breakdown Structure (OBS )

Work Breakdown Structure ( WBS)

Project Management Conventional &

Contemporary
Product Breakdown Structure : Heathrow Airport, Terminal 5 Project T5

Two large terminal buildings

An Air Traffic Control Tower
Road and Railway transportation links
13 kms of bored tunnels
Over 60 aircraft stands
A 4000 space multi storey car park and a hotel
An automatic baggage handling system
Airfield infrastructure

Project Management Conventional &

Contemporary
Irrigation project
0000

Level 1
Site Clearance
0100

Site improvmt
1000

Irrigation
works
2000

Consulting
services
3000

Project
manager
4000

Level 2
Drainage
ditches
1100

Roads &
paths
1200

Road
surfacing
1300

Canals &
flow strctrs
2100

Canal lining
2200

Procurement - 2310
Installation - 2320

Pump eqpt
2300

Project Management Conventional &

Contemporary

No

Type 2 Project

Type 4 Project

Milestone planning
Configuration Mgt.

Milestone Planning
Configuration Mgt.

Type 1 Project

Type 3 Project

MWD

Yes

Milestone Planning
Configuration Mgt

Activity Planning

Yes

GWD

No

Project Success Factors

Communication

Project
Mission

Top Mgt
Support

Proj.
Schedules
/Plans

Client
Consltn

HR

Tech
Tasks

Client
Accept

Monitoring &
Feedback

Trouble
Shooting
Strategic : Mission, Top
mgt. support,Proj. plans

Tactical : client consult, HR,

Tech. Tasks, Client Accept,
Monitoring & feedback,
communication, trouble shoot

Project Management Conventional &

Contemporary
Initiating

Planning

Executing

Controlling

Closing

Integration

Scope
Time
Cost
Quality
Communication
Human Resources
Risk
Procurement
Safety
Environment
Finance
Claims

Integrating Project Processes And

Knowledge Areas

Project Management Conventional &

Contemporary
Techniques Used in CPM

Three Breakdown structures PBS, OBS, WBS

Bar charts, Network analysis using PERT / CPM/ PDM/GERT
Critical Chain Methods (CCM) based on TOC
S curve, EVM / EDM mainly for project monitoring
Simulation, risk matrix, risk register and other risk analysis methods
AHP, Fuzzy networks, other multi criteria methods
Responsibility matrix, competency assessment tools, soft skill labs
Software such as MS Project, Oracle Primavera, Project Professional,
CANDY, Palisade, BRICS, etc
Cost estimation and forecasting models
Critical success factors

Project Management Conventional &

Contemporary
Case of Denver International Airport Project

In 1980s, Denver Stapleton Airport had overgrown its capacity levels.

In 1989, voters approved a new modern airport to be completed by fall
1993
Clear mission, stable funding, great economic benefits expected,
necessary political backing
One of the largest tenants, United Airlines, required an automated
baggage handling (ABH) system to turn the aircraft around in <30 mins
In Dec 1991, it commissioned BAE Automatic Systems Inc to design
and implement the system with an estimated schedule of 2.5 years

Project Management Conventional &

Contemporary
Case of Denver International Airport Project

The baggage handling system was a high tech project, requiring

several design cycles and extensive testing. BAE familiar with building
ABH systems, on a much smaller scale
The new technology, large number of entities to be served, high degree
of technical uncertainty and short time span were critical factors
What was expected to be a standard, large construction project,
became a nightmare for its stakeholders and resulted in enormous
delays and excessive costs
Airport finally opened for business in Feb 1995, 16 months late and
$ 1.5 billion over budget. United to use the BAE system only for its
terminal concourse

Project Management Conventional &

Contemporary
The Chunnel Project

Underground 32 mile double rail tunnel for through trains and special
car & truck carrying shuttle trains. Planning period 1974-86.
Transmanche Link (TML) awarded contract. Channel Tunnel Group /
FranceManche (Eurotunnel) owner of 55 year concession for the link.
Bid price US $ 5.5 billion, eventually increased to US $ 14.9 bln
Multinational team above and below the ground. 15000 workers
The Treaty of Canterbury and IGC coordinated the approach,
construction, operation, and safety of the tunnel
Implementation started in 4 th quarter of 1987. Ended on Dec 15, 1994.
Project handed over fully operational. Impressive quality

Project Management Conventional &

Contemporary
The Chunnel Project Development, Implementation, Close Out

Eurotunnel responsible for 70 % cost overruns on original contract and

TML for 30 % ( max 6 % of total ). In 1990, Eurotunnel for 1.58 billion
overrun and TML for 30 % of everything above
Worlds largest privatized project. Difficult due to inflexibility of project
characteristics, cross cultural exchange between two countries, two
languages
State of art laser and computer technology to bore tunnel and test rail
system. Amazing feat of excavating three tunnels so close together
and meet in right spot in both countries

Project Management Conventional &

Contemporary
The Chunnel Project - Multiple Problems

New technology and modifications during project due to unexpected

conditions and changes. Ex : French used sophisticated equipment to
grout on their side
IGC approved designs not in original concession agreements
Safety changes by IGC created - ve schedule variances affecting 12
tunneling faces excavated by 11 TBMs
The Higher of the Two Standards created schedule delays. Change
from 600 mm doors to 700 mm doors causing 9 month delay
Near the end of the project, requirement of A/C system to cool the
tunnel leading to US $ 200 million scope increase.
Bare Minimum approach to cost estimating and contract awarding
left no operational reserves

Project Management Conventional &

Contemporary
The Chunnel Project - Multiple Problems

Communication between French and English sides limited. Two teams on

opposite ends, working towards middle without communication
Ill defined Scope and FP contracts. Assume Best Case Scenario and
use Changed Conditions to justify claims
Loan financing raised by consortium of 206 banks worldwide. Banks given
too much leeway and control
Conflict of Interest between subcontractors and TML, between TML and
CTG / FM. Some contractors investors (JVs) with CTG / FM winner.
Cooperation and teamwork in 3.5 years of tunneling, overshadowed
Funding by private sources, contractual errors in estimates and risk
allocation, multiple methods of compensation led to US $ 2.25 billion claim
against Eurotunnel by the TML
Several arbitration bodies incl International Chamber of Commerce
involved to resolve key portions of the complex claims

Project Management Conventional &

Contemporary
Five Dimensions of Projects Success

Project efficiency

Impact on customer

Impact on the team

Business and direct success

Preparation for the future

Project Management Conventional &

Contemporary
Preparation for future

The Diamond Framework RPM Mpdel

Project Success

Business and direct success

Impact on team

Impact on customer

Efficiency
Success Dimensions

Short
Time Frame

Medium

Long

Project Management Conventional &

Contemporary
Technology
Super high tech
High tech

Medium tech
Low tech
Array

Complexity

Assembly

Platform

System

Derivative

Novelty

Breakthrough

Regular
Fast / competitive

The Diamond Framework

NTCP Model

Time critical
Blitz

Pace

Project Management Conventional &

Contemporary
Pace
Regular
Fast/Competitive
Time Critical
Blitz

Description
Time not critical to immediate project success
Most common project carried out by industrial organizations
Must be completed by a specified date
Most urgent, most time critical. Crisis projects

Novelty
Derivative
Platform
Breakthrough

Description
Products / projects are extensions and improvements of
existing products / projects
New generations of existing product / projects.
Products / projects are new.

Complexity
Assembly
System
Array

Description
Elements, components, modules combined into a single unit
Complex collection of elements and subsystems
Large, widely dispersed collection of systems

Technology
Low Tech
Medium Tech
High Tech
Super High Tech

Description
Rely on existing and well established technology
Use existing/base tech but adopt new tech/ feature
Most tech new to firm, already exist, available at project start
New tech must be developed during the project

Project Management Conventional &

Contemporary
Technology
Super high tech
High tech

Automated Baggage
Handling Project

Airport Construction
Project

Medium tech
Low tech

Array

Complexity

Assembly

Platform

System

Derivative

Novelty

Breakthrough

Regular
Fast / competitive

Dar = ( PI, LT, Ar, TCr )

Dba= ( PI, HT,Sy, TCr )

Time critical
Blitz

Pace

Denver International Airport

Project

Project Management Conventional &

Contemporary
Technology
Super high tech
High tech

Medium tech
Low tech
Array

Complexity

Assembly

Platform

System

Derivative

Novelty

Breakthrough

Regular
Fast / competitive

Dr = ( PI, MT, Ar, Re )

Da = ( PI, HT, Sy, FC )

Time critical

Require Style

Blitz

The Chunnel Project

Actual Style
Pace

Project Management Conventional &

Contemporary
Sr No

Planning Type

Features

Lean Principles

Eliminate waste, pursue CI. Let customer pull

Specify value for ultimate customer and identify value
streams
Deliver things right first time

Project Design

Techniques like Virtual Reality and 3D CAD

Integrated design / build
Design for Standardization and Pre assembly

Project
Procurement

SC rationalization, vendor partnering, modularization

Transparency/ confidentiality of costs / cash flows
JIT delivery of materials to point of use

Project Human
resources

Clear communication
Training, teamwork, multi skilling
Motivated, well trained, flexible, fully engaged workforce

Panning
Techniques

Initial Planning, Look Ahead ( LA ) Planning, Weekly Work

Planning (WWP), Last Planner (LP), Linear Scheduling Method
(LSM), Daily Graphical Schedule

Project Management Conventional &

Contemporary
Increase Heathrows Capacity from 67 to 95 million passengers a year. BAA
Owner. High Q Infrastructure delivered on March 27, 2008. Total cost US $ 8.5
billion.
Main Components of T5

Supply Chain of T5

Structure of T5

Two large terminal buildings

An Air Traffic Control Tower
Road and Railway
transportation links
13 kms of bored tunnels
Over 60 aircraft stands
A 4000 space multi storey
car park and a hotel
An automatic baggage
handling system
Airfield infrastructure

T 5 supply chain
included suppliers as
follows :

Subdivided into :

80 first tier
500 second tier
2000 third tier
5000 fourth tier
15000 fifth tier

Overview of T 5 Project

1000 work packages

16 major projects
147 sub projects
Smallest sub project of $
2 milln to larger projects
such as $ 600 milln
Heathrow Express
underground rail station

Project Management Conventional &

Contemporary
T5 Project Life Cycle
1. Planning Phase 1986 until Sep 2002

Operations

2. Design Phase 1989 Until Around 2004

3. Construction Phase
Sep 2002 Until 27 March 2008

4. Operational Phase Final

Six Months Prior to Opening

1985

1990

1995

2000

2005

2008

Project Management Conventional &

Contemporary
Recombination Steps in T 5 Project
Core team explored alternative practices, technologies and ideas from

other industries & mega projects

Doing It Differently - the guiding delivery strategy
Independent T 5 organization. Freedom to experiment and innovate
Benchmark every UK construction project over $ 2 billn in past 10 years
and every international airport opened over previous 15 years
No UK construction project successfully delivered on time, within
budget, to quality and safety records
Without a radically different approach, T 5 project would be $ 2 billn over
budget, delivered 1 year late and result in 2 deaths
Two major causes of poor performance : lack of collaboration among
project partners and clients reluctance to assume project risks

Project Management Conventional &

Contemporary
BAAs Model of Mega Project Management
Systems integration to coordinate design, engineering, integration
and delivery of a fully functioning operational system
Project and program management to support an integrated supply
chain
Off site fabrication, pre assembly, and modular production to
improve productivity, predictability, health and safety
Just in Time logistics to coordinate the supply of materials, to
increase speed and efficiency
Operational integration to undertake systems test, trials, and
preparation for hand over to operations

Project Management Conventional &

Contemporary
Best Practice
Coordinate system design and
integration, testing, handover trials
Risk bearing/risk sharing approach
Cost plus incentive approach.
Incentives for innovation
Profits shared among partners
Framework Supplier Agreements
Physical prototyping and testing of
components and subassemblies
Materials & components delivered JIT
Use of offsite consolidation centres
Training and familiarization of staff

Best Practice
Consistent process of gateways and
milestones to control project
Concurrent engineering to integrate
design, fabrication and construction
Collaborative PM software tools
Single Model Environment ( SME )
Digital prototyping and visualization
for design and construction
3 D and 4 D modeling, clash detection
Offsite manufacture of components
Offsite pre assembly
Software tool for logistics and project

Some Lessons From Mega Projects

Project Management Conventional &

Contemporary
What Should We Do ?

Develop Leaders for PM

Deploy project management system for professional PM practice
Organize around well defined PM processes and knowledge areas
Define and measure project success for customers and stakeholders
Innovate to manage complex project supply chains
Innovate Best and Next Practice PM - Adopt Lean Project Management
( LPM ); Leverage IT/CT Solutions For PM; Deploy Process Technology
Focus on Talent Development and Management
Develop and assess key competencies for project management
Embrace green and safe PM
Develop effective stakeholder management system
National approach for education, training, research, certification

Project Management Conventional &

Contemporary
Supply Chain Characteristics

Project SCs comprise : designers, consultants, technical specialists,

contractors, sub contractors, vendors, service providers
Wide variations in capabilities and competencies across SC - design,
consultancy, technical talent, specialized technology and vendors.
Impact project value delivery
Extremely limited high end contracting capabilities such as EPC, Prime
Contracting, Design Construct, etc
Coordination & integration of SCs a formidable challenge. Built on
Outsourcing , SCs need durable, sustained SC relationships
Project productivity, quality, cost, delivery need upgradation to world
class standards and benchmarks

Project Management Conventional &

Contemporary
Type

Skilled
Worker

Supervisor

Engineer/
Executive

Specialist

Manager

Level
Top

Multi
project /
verticals/
Business
leadership

Senior

Multi skilled Large site /

off shore/
overseas

Large/
overseas /
offshore

Competency Project
verticals
Leadership

Middle

Proficient in Multi
single skills function /
small site

Multi
discipline /
project

Multi
discipline /
project

Functional

Entry

Basic skills
apprentice

Single
discipline

Single
discipline /
task

Induction

Single
function

A Talent Development Matrix For AEC Companies

Project Management Conventional &

Contemporary

Knowledge

Performance

Personal

Industry Specific

Organizational

Complete CPMA Framework

Project Management Conventional &

Contemporary
Sr No

Competence

Description

Knowledge

Integration, scope, time, cost, quality, human resources,

risk, procurement, safety, environment, finance, claims

Performance

Initiating, Planning, Executing, Monitoring and

Controlling, Closing a project

Personal

Communicating, Leading, Managing, Cognitive Ability,

Effectiveness, Professionalism

Organizational

Skills and competencies specific to particular

organization and jobs
Assessment based on organization specific competence
definitions

Industry
specific

Skills and competencies specific to particular industry

Assessment based on industry specific competence
definitions

Brief Descriptions of Competencies

Project Management Conventional &

Contemporary

Thank You