Prof Works IRICEN Pune Budget Overrun 1400 Schedule overrun 350 SOH may be failure in term of Project management but successful as a human creation Symbol of Australia Over Budget by 1900 ID: 782030
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Slide1
TECHNIQUES
SANJAY KHARE
Sr.
Prof.
(Works)
IRICEN, Pune
Slide2Budget Overrun- 1400%, Schedule overrun- 350%
SOH may be failure in term of Project management,
but successful as a human creation.
Symbol of Australia
Slide3Over Budget by 1900%.
Project was deliberately underestimated
SUEZ CANAL constructed in 1880
“
NOT for PROFIT MEGA PROJECT”
Slide4Some Indian Project
Delay
(in Months)
Coast of
Delay
( Cr./
yr
)Production Loss(in Cr.)
Bokaro Steel Plant 72
51.72
3018.75
Gujrat Refinery1227.99438Idukki Hydel Project4811.95
Delays in Project and their effects
Slide5What is a project?
A unique undertaking composed of interrelated activities
which has a
precise goal
,
well defined beginning and end
, often involving staff from
cross-functional groups, that operates under specific constraints of resources, schedules, and requirements
Slide6Organization of resources into activities
Implementation of the activities in a logical sequence
WHAT ARE RESOURCES ?
Materials
Equipment
Technology
People
Time
Money
What is a project?
Slide7Project and Program
A project is a one-time effort that produces a specific result, for example, a building .
This is in contrast to a
program
, which is
an ongoing process, such as
a quality control program, or
an activity to manage a series of multiple projects together.
Slide8LIFE CYCLE OF A PROJECT
Seven Phases
Concept and Feasibility Studies
Preliminary Engineering and Design
Detailed Engineering and Design
Procurement
Construction
Start-up and Implementation
Operation or Utilization
Slide9VARIOUS STAGES OF PROJECT
THINKINGPLANNING & SCHEDULING
DATA COLLECTION
STATUS UPDATE through NETWORK & EARLY WARNING
EXECUTION
TESTING
MAINTENANCE
Slide10Identification of work
Chargeable to
Revenue
(Demand No. 4/7/11/
9
)
Chargeable to
Capital
(Demand No.-16)
Life Cycle of Railway Project (Govt. Funding)
Field survey & conceptual drawings
conceptual drawings and Justification
RECT/PECT
Proposal for sanction
Abstract Estimate
Approval
Sanction
IRPSM
Slide11Chargeable to
Revenue
Chargeable to
Capital
Preparation of Estimate and Sanction
Detail Estimate
FLS
Contract
Planning for execution
Departmental
Store procurement
TENDERs
Contract Management & Execution
Commissioning
Life Cycle of Railway Project (Govt. Funding)
Slide12Lifecycle of Railway Infra
Projects
(through
E
xternal Funding)
Feasibility
Study & DPR
Preparation
Project
Contracting
Asset operation
& maintenance
Project
Construction
Project
Financing
Railway
Infrastructure
Project Lifecycle
Project Identification
As-is assessment of railway connectivity
Traffic movement through competitive mode such as road
Structuring &
Procurement
Feasibility Study & DPR Preparation
Current and Future Traffic Assessment
Economic Analysis
Detailed
Project Assessment
Technical Assessment
Financial Assessment
Contracting
Contract Packaging
Defining obligations of contracting parties
Payment mechanisms
Financing
Debt Financing from Multilaterals, Financial Institutions and Banks
Equity Financing from stakeholders
Execution
Project Management
Project Governance
Contract Management
O&M
Asset optimization
Financial Management
Compliance reporting
Project
I
dentification
Structuring & Procurement
Structuring
- Risk Assessment, Financial Risk analysis, Risk allocation and sharing
Procurement
–
Procurement Strategy, Procurement delivery
Slide13INTEREST GROUPS
Owner
(Employer) wants to achieve best value for their investment
Contractors
desire to bid low enough to win but high enough to realize profit on investment
Workers
hope to achieve better living standards and working conditions
Slide14What is a project manager?
The role responsible for leading and coordinating the project effort from inception to its successful completion; the person
responsible for making things happen
Slide15What is project management?
A set of skills and methods of planning, organizing, and managing a project from inception to its successful completion
“
Completion of Project on time within Budget without comprising Quality
”
Slide16WHY PROJECT MANAGEMENT
To define the project and agree with the customer
To handle projects effectively in an organization.
To plan and assess resource needs for the project
To estimate project cost and make proposals
To plan & schedule activities in a project
To allocate the right resource at the right time
To assess risk and failure points and make backup plans
To lead a project team effectively and communicate well among team members.
Slide17Project Management Plan
“Tells How work will be done”The key to a successful project is on the planning.All the detailed planning work for different aspects of the project is integrated into one single plan known as the
Project Management Plan
Slide18Planning & Scheduling
Planning is an art and science of converting a set of objectives to realization
through a series of steps executed in an
organized and predicted way
so that there will be less requirement of changes in the plan later on.
The old saying
“Plan the work, Work the plan”
Slide19Fundamentals
Scheduling
Philosophy
Scheduling Terms and
Definitions
Types
of
Schedules
Relationships
Resources
Slide20Scheduling Philosophy
Why do you
schedule?
What do you
schedule?
When do you
schedule?
Slide21Scheduling Philosophy (cont’d)
Why do you schedule?
Provides a tool for breaking work into manageable chunks
Provides a tool for measuring progress
Monitor and measure progress against goals
Provides a commitment about when things will be done
Encourage everyone on the project to see their efforts as part of a whole
Satisfy customer or contractual requirements
A schedule is a formalized method of managing time and resources
Slide22What do you schedule?
Milestones
Activities required by contract or customer
Activities
critical
to the performance of the project
Changes to the original plan
A simple schedule that is used is far more valuable than the most detailed schedule created to satisfy a contractual requirement!
Scheduling Philosophy (cont’d)
Slide23When do you schedule?
Prior to, or at the beginning of a project. This schedule is referred to as the
“baseline”
At periodic intervals during the project. This is commonly referred to
“updating”
If there are changes in the scope of the project
If the project is substantially behind or ahead of the baseline
Scheduling Philosophy (cont’d)
Slide24Scheduling
Terms and Definitions
Common scheduling terms :
Project
Activity (Schedule or Task)
Duration
Relationship
Bar Chart (Gantt)
Lag
Critical Path
Milestone
Float
Work breakdown Structure (WBS)
Resource
Slide25Project
A project is finite, it has a specific beginning and endpoints
A project contains resources, typically time, money and people
A project is measurable
Scheduling Terms and Definitions (cont’d)
Slide26Activity (Schedule or Task)
The activity is the basic building block of a schedule
An activity defines a measurable quantity of work
Activity-on-node (AON)
Nodes represent activities, and arrows show precedence relationships
Activity-on-arrow (AOA)
Arrows represent activities and nodes are events for points in time
Scheduling Terms and Definitions (cont’d)
Slide27Activity On Arrows
3
2
0
1
3
1
1
1
1
2
4
6
7
3
5
Lay foundation
Design house and obtain financing
Order and receive materials
Dummy
Finish work
Select carpet
Select paint
Build house
1
3
2
2
4
3
3
1
5
1
6
1
7
1
Start
Design house and obtain financing
Order and receive materials
Select paint
Select carpet
Lay foundations
Build house
Finish work
Activity On Nodes
Slide28Duration
Measurable unit to perform an activity
Typically, durations are in work hours or work days
Relationship
The interdependency of one activity to another.
Predecessors and successors
Predecessor
is a task whose completion (wholly or partly) determines the start of the successor
Successor
is a task which is dependent on the completion (wholly or partly) of the predecessor.
Scheduling Terms and Definitions (cont’d)
Slide29Bar Chart (Gantt)
Graphical representation of a group of activities making up a project, represented by bars along the horizontal time axis. Shows duration and planned sequence of activities
Lag
The time associated in the relationship between two activities.
For example, stripping forms can not be completed until 10 days after concrete is placed. In this case, there is a
10 day lag
between the activities
Scheduling Terms and Definitions (cont’d)
Slide30Critical Path
The path or
paths
which are the series of activities
having zero float
and must be completed on their scheduled dates or the project is in jeopardy
Milestone
A point in time that signifies
either the beginning
or
the end of a series of related activities. A milestone has
zero duration
Scheduling Terms and Definitions (cont’d)
Slide31Float
A measure of leeway in activity performance.
Typical float types are
“free float”
and
“total float”
Free float is the amount of time that an activity’s
start can be delayed without affecting
the early start of
successor
activities
Total float is the
amount of time in starting or finishing
an activity that
will not affect the completion
of the project
Scheduling Terms and Definitions (cont’d)
Slide32Work Breakdown Structure (WBS)
Framework for organizing activities that make up a project
A method of breaking down a project into individual elements (components and tasks) in a hierarchical structure to be executed by the project team to create required deliverables
Process of subdividing project deliverables and project work into more manageable components.
It groups tasks facilitating resource allocation, assignment of responsibilities and measurement and control of the project.
Structure of WBS and level (/duration) of activities depends on the Reporting requirements for the project.
It is developed before identification of dependencies and estimation of activity durations.
It is a foundation of project planning.
Scheduling Terms and Definitions (cont’d)
Slide33Resource
Anything needed to complete an activity: Labor, Materials, Equipment, Design, etc.
Scheduling Terms and Definitions (cont’d)
Slide34Types of Schedules
Written Schedule
Bar or Gantt
Charts
CPM
Schedules (Critical Path
Method)
PERT
Time
Scale Arrow Diagram
Slide35Bar
or Gantt Chart :
Graphical presentation of the schedule
Lists
activities and
durations
May show
logic
Used for small
projectsThe bar chart was originally developed by Henry L. Gantt in 1917 and is alternatively called a Gantt chart
Types of
Schedules (Contd..)
Slide36Program Evaluation & Review Technique (PERT):
Graphic view that allows for easy evaluation of the flow of a project
developed during 1958. The technique was developed and used in conjunction with the planning and designing of the Polaris missile project.
Types of
Schedules (Contd..)
Critical Path Method (CPM):
which was developed by DuPont Company and applied first to the construction projects in the chemical industry
Slide37Time Scale Arrow Diagram :
Is a combination of bar chart and normal network.
Activities are represented by horizontal lines on time scale.
Also shows interdependencies between activities.
It facilitates better assimilation of overall project- easy to mark progress, compare actual progress to schedule progress.
Useful for effective resource allocation technique- for leveling of resource utilisation shifting of certain activities.
Types of
Schedules (Contd..)
Slide38Slide39Relationships
Relationships are the interdependencies between one activity and another or group of activities
The four types of relationships are:
Finish-to-Start
Start-to-Start
Finish-to-Finish
Start-to-Finish
Slide40Relationships (cont’d)
Finish-to-Start
The most common type of scheduling activity relationship. Simply stated, the start of the next activity is dependent upon the completion of the previous activity
For example, on a construction project you can’t pour the concrete until the reinforcing steel is in place
Start-to-Start
Start-to-Start relationship implies that an activity can start once another specified activity has started
For example, Concealed plumbing work and concealed wiring work can start together.
Slide41Finish-to finish
Finish-to-Finish relationship implies that the completion of an activity is dependent upon the completion of another activity. This relation ship is
commonly used with start-to-start relationships.
For example,
Color
wash and electrical switch fixing need to be completed together.
Relationships (cont’d)
Slide42Task Dependency
Description
Relationship Diagram
Finish to Start
The finish of the predecessor determines the start of the successor
Finish to Finish
The finish of the predecessor determines the finish of the successor
Start to Start
The Start of the predecessor determines the Start of the successor (e.g. Plastering)
Start to Finish
The Start of the predecessor determines the Finish of the successor
(e.g. Dewatering )
A
B
A
B
A
B
A
B
Relationships (cont’d)
Slide43Resources
All projects consume resources!
Resources are not just people:
Resources can include money, material, equipment, and more.
How well these resources are allocated and monitored is a key measure of any project’s success or failure
Slide44Steps in Creating a Project Schedule
Activity De
f
init
i
o
n
Activity
Sequ
e
ncing
Estimating Activity DurationSchedule DevelopmentSchedule Control
Slide45Developing a Project Schedule
Activity Definition
An activity must have a
definable start and end
An activity is used to develop a plan for completing a project that sequences and schedules each activity
An activity is quantifiable and measurable
Activities shall relate to the WBS and allow for ease in quantifying and reporting
Slide46Sample WBS for Construction Project
Slide47Typical WBS
Slide48Logic and relationships
Use conventional Finish-to-Start logic to develop relationships. This is the first pass at developing a schedule.
As you refine the schedule you will incorporate Start-to-Start and Finish-to-Finish relationships.
Calendars
Is the project going to be scheduled in hours or days?
Will there be work activities that are outside the normal work periods of the project?
Will the project include week-ends and holidays?
Developing a Project Schedule (Cont’d)
Slide49Developing a Project Schedule (Cont’d)
Durations
Does the duration of each activity seem practical and achievable?
Nature of the task
critical
to the project or fill-in work?
Durations should be no less than 2-3 days nor longer than 15 days
Resources
What resources should be incorporated?
Tie resources to the level of the activities
A good place to begin assigning resources is from the budget or cost estimate
Slide50Baselining the Plan
Original Plan =
Baseline
Baseline
vs. Current
Schedule
Changes
to
BaselinePerformance MeasurementEarned Value
Slide51Updating / Progressing
Percent
Complete
Time
Budget
Physical
Remaining
Duration
Remaining
Work
Slide52Outputs From Progressing
“Schedule updates”
“Corrective action”
“Lessons learned”
Slide53Change Control Management
A famous General once said “
To win the war, you must know the enemy.
”
A famous Project Manager once said
“We have met the enemy and the enemy is change.”
Manage change, or it will manage you!!!
C
H
ANG
E
Slide54Slide55Project Managements…..
Project cost ManagementProject Quality Management Project human resource managementProject communication management
Project Risk Management
Project Change Management
Slide56THANKS…..