Project management Project Work

CONSTRUCTION OF A NEW APARTMENAT

MBA 2009-11 IILM Institute for Higher Education

GURGAON

Submitted To: Ms. Tanuja Kaushik

Submitted By: ArjunDhairwal (PG20095151)

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:This project is about the construction of a new society Apartment for the People who are living in Gurgaon. The stipulated time period for the project is 1 year starting from 15th March 2011 to 15th March 2012 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 starts date is 15th March 2011 and tentative end date is 14th march 2011

Traits of a Project Manager for this particular project y Flexible The project should be 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. y Credible Project Manager should be Trust Worthy, Competent, Dependable and honest. y 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 y Innovative Project Managemnet 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 area for this project is a Residential area with a number of adjacent buildings and many families are staying at those buildings. 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 y Presence in a Special Economic Zone. y Delegation of work between the branches will help in smooth lining of all the operations y Generation of additional economic activity y 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 landMaterial costLabour CostConstruction CostOthersRs. 10,00,000/Rs. 30,00,000/Rs. 8,00,000/Rs. 20,00,000/Rs.2,00,000/-

Total cost-

Rs. 70,00,000/-

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

Topic 3 Project Management Process

Initiating The processes of initiation are 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 streaming 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 is 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:y y

Determining the planning process Selection of the planning team

y y y y y y y

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:y y

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 .

Project 1st 2nd 3rd

Time Period 5 yrs 6 yrs 4 yrs

Cash Flow in Each Time Period (Rs) 43000 25000 22000 57000 32000 28000 65000 48000 35000 75000 55000 50000 90000 60000 65000

Investment (Rs) 280000 225000 90000

Solution:PROJECT-1 YEARS 1 2 3 4 PROJECT-2 CASHFLOW YEARS INR 1 43,000.00 INR 2 57,000.00 INR 3 65,000.00 INR 4 75,000.00 PROJECT-3 CASHFLOW YEARS INR 1 25,000.00 INR 2 32,000.00 INR 3 48,000.00 INR 4 55,000.00 INR 5 5 60,000.00 INR 6 65,000.00 INR INVESTMENT 225,000.00 INVESTMENT RATE 8% RATE CASHFLOW INR 22,000.00 INR 28,000.00 INR 35,000.00 INR 50,000.00 INR 90,000.00

INR INVESTMENT 280,000.00 RATE 8%

INR 90,000.00 8%

NPV

-23,338.05

NPV

-14,090.40

NPV

18,911.48

PROJECT "1" IS SELECTED

Topic 5 Project Scope Management Work Breakdown Structure Building

Level 1 Site Preparation 1.1. Layout

Level 2 Foundation 2.1 Erect forms

Level 3 Framing

Level 4 Roofing 4.1 Install sheathing

3.1 Floor Joists 3.1.1 Install f3 joists 3.1.2 Install sf2 joists 3.2 Sub-flooring 3.2.1 Install f2s flooring 3.2.2 Install fsf flooring 3.3 Stud Walls 3..3.1 Erect first floor studs 3.3.2 Erect 2nd floor stud walls 3.4 Frame roof

1.2. Grading

2.2 Pour concrete

4.2 Lay shingles

1.3. Excavation

2.3 Remove forms

Level 5 Walls 5.1 Hang Sheetrock 5.2 Tape and bed

Level 6 Utilities 6.1Electrical 6.1.1 Rough In 6.1.2 Building inspection 6.1.3 Finish work 6.2 Plumbing 6.2.1 Rough in 6.2.2 Building inspection 6.2.3 Finish work

Level 7 Finish work 7.1 Interior 7.1.1 Install cabinets 7.1.2 Install appliances 7.1.3 paint walls 7.1.4 Finish work

Topic 6 Project Time Management Calculate the float and mark the critical path based on given task durations Activity Predecessor Time (Days) P 1 Q P 4 R Q,T 3 S 9 T S 6 U T 8

The Critical Path Diagram:1 3

Start P Q 4 R Finish

U 6

Critical activity = (start) PQR (finish) Critical path = (start) STU ( 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. 70,00,000 EV (Earned Value)= Rs. 75,00,000 AC (Actual Cost)= 65,00,000 CV (Cost Variance)= EV-AC= Rs.( 75,00,000-65,00,000)= Rs. 10,00,000 (CV value is positive; the project is currently under budget) SV (Schedule Variance)= EV-PV= Rs. (75,00,000-70,00,000)= Rs. $5,00,000 (SV value is positive; the project is currently ahead of schedule) CPI (Cost performance index)= EV/AC= (75,00,000/65,00,000)= 1.15 (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)= 1.07 (SPI value is >1 or =1, the project schedule trend is currently ahead or on planned schedule) EAC(Estimate at Completion)=AC+BAC-EV=(65,00,000+70,00,00075,00,000)= Rs.60,00,000 ETC (Estimate to complete)= EAC-AC= Rs (60,00,000-65,00,000)= 5,00,000

Topic 8 Project Quality Management Project Quality Management should be written with the objective to provide project management with easy access to quality requirements and should have ready availability of the procedures and standards thus mentioned. The Project 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 y Management responsibility. y Design reviews to insure safe and effective construction procedures are a major element y 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 y vigilance and cooperation during the construction process y Procurement y field inspection and testing y final checkout of the facility

Topic 9 Project Human Resource Management Project Team:Project Management and Administration 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. 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 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 sitespecific 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 Manager

Architect

Engineers

Super Visor

Legal Coordinator

Coordinator

Subordinates

Workers1

Workers2

Workers3

Project Time Management Teams Design Team Technical Team Administration Labours Time Period 1 Months 2 Months 6 Months 6 months (from the second month)

Months

Design team 7% Technical Team 13%

Labours 40%

Administration 40%

RACI model Project head Design A A Technical Workers RA Legal I department R R C Design Head Technical head Supervisior Legal adviser

C C

Topic 10 Project Communications Management Communication may happen verbally or through e-mail, as well as through charters and project plans, addenda and status reports. Communication plan like the project plan is a necessary part of a project. 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:y y y y Via Face to Face Via e-mail Via Informal contact Via daily, weekly and monthly reports

Topic 11 Project Risk Management y y y y y y Potential Risks for the project Social Approval 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 Medium

Risk 4

Risk 2
Low

Risk 1
Low Medium Risk High

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 projects 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:y y y y y y Honest Trustworthy Market capitalization Agility Reliability Charges and discounts.