Fundamentals of Project Management 1 Overview of Project 1.1 Concepts and Definition of Project 1.2 Characteristics of a Project 1.

3 Proj ect Environment 1.4 Types of Project 1.5 Projects Life Cycle and Project Phases 1.6 Project Organizations 2 Project Management 2.1 2.2 Concept and Definition of Management Concept of Project Management 2.3 T he Project Manager, His Roles and Responsibilities 3 Project Management in Nepal 3.1 3.2 3.3 3.4 Historical Overview Project Planning in Nepal Why do Projects Fa il in Nepal? Improving Project Management in Nepal 1

1. Overview of Project 1.1 Concept and Definition of Project Projects are the specific schemes or action units designated for the investment of given resources and skills with an aim of attaining some predetermined object ives. A project starts from the scratch. It has a specific objective. It has a w ell-defined life span divided into a life cycle. It involves a set of activities within a schedule and budget. It integrates human and non human resources. Acco rding to Harold Kerzner: A project is any series of activities and tasks that: h ave a specific objective to be completed within certain specifications have defi ned start and end dates have funding limits, and consume resources. A project is one-time job that has defined starting and ending dates, a clearly specified ob jective, or scope of work to be performed, a pre-defined budget, and usually a t emporary organization that is dismantled once the project is complete ( The proj ect Managers desk Reference, James Lewis) A group of multiple interdependent acti vities that require people and resources is the Project. Projects generally orig inate from plans. They serve as the building blocks for development planning. A Plan, Programme and Project are different concepts yet complementary to one anot her. PLAN A plan is an image, map or vision to represent the forms and/or features of desi red situation(s). It is a process of setting future goals for country or organiz ation and choosing the actions to achieve these goals. Plans may be Community De velopment Plan, District Development Plan or Regional Development Plan depending upon the area it serves and its magnitude. Similarly, depending upon different sectors (agriculture, education, Health and so on) there may be different sector -specific plans known as Sectoral Development Plan. And finally, we have the Nat ional Development Plan. In Plan document, we can find only the level or sector-s pecific Broad Decisions indicating what and how much is to be achieved with the investment of given resources. A plan itself is static. In other words, a plan r epresenting only an imagination or vision will have no meaning unless it is put into operation to achieve its set objective/s. A Plan is a set of Programmes. PROGRAMME A Programme is the extensive and consistent set of action units stating the need s of interrelated activities to achieve the plans objectives and goal. There coul d be several programmes within a plan or development plan. PROJECT A project is a unique group of tasks designed to attain a specific objective wit hin the constraints of time, cost and quality based on planning and control thro ugh the use of a variety of resources in a dynamic environment. 2

Project Family Tree Development Plan Agricultural Programme Health Programme Roads Programme Other Programme Wheat Project Potato Project Fertilizer Project Livestock Project Other Projects Plan Programme Project Work Package Activity/ Task Five-Year Plan Health Programme Hospital Construction Electrification Package Pr eparation of Drawing 3

Project Terminology Goal: Goal is what exactly needs to be accomplished after completion of the proj ect. Project Scope: Documented set of standards and criteria that the customer d efines as successful completion. Objective: A combination of tasks that concern specific functional groups or structural areas. Tasks: A combination of activiti es that lead to the achievement of a definable result. Activity: A time consumin g piece of work with a definite beginning and end. Duration: The elapsed time fr om the beginning to the end of an activity, task or objective. 1.2 Characteristics of Project Despite the different types and natures of projects we observe in different sect ors and in different levels, all of those necessarily reflect a set of common ch aracteristics. A project has the following characteristics: 1.Objective: Each an d every project needs to be guided to achieve an objective or a set of objective s. It ceases to exist when the objective is achieved. 2.Life Span: A project has beginning and end. It cannot continue forever. 3.Constraints: A project has a s chedule. It operates within the constraints of time, cost and quality. Every pro ject requires certain investment of resources. 4.Unique: Every project is unique . No two projects are exactly similar. 5.System: All projects need to undergo a system of inputs-process - Outputs. 6.Life Cycle: Every project will have its ow n phase-based cycle. 7.Teamwork: A project has many participants. It requires te amwork under the leadership of the Project Manager. 8.Organization Structure: A project is a temporary organization. A project usually has its own budget and ma nagement. 9. Planning and Control System: A project requires information, planni ng and control system. The actual performance is compared with the planned targe ts. 10. Collection of Activities: A project is a collection of activities that a re linked together to constitute a system. Time Environment Objectives Cost Model of a Project Quality 4

1.3 i Project Environment Internal Environment Environment consists of forces that influence the projects ability to achieve its objective. Projects operate in a dynamic environment. Project environment can b e classified into: Internal environment is located within the project. It is Con trollable by the project. It provides strengths and weaknesses to the project. T he forces in the internal environment consists of: o Project Objective o Constra ints o Structure o Resources ii Task Environment The task environment of a project is made up of stakeholders. They are either in volved in the project or their interests are affected by the project. The elemen ts of task environment are: o Customer o Contractor o Consultants o Suppliers o Government o Financiers o Competitors o Labour Unions iii. External Environment It is located outside the project. It cannot be controlled by the project. The p roject can indirectly influence it. It provides opportunities and threats to the project. The forces in the external environment are: o Economic o Technological o Political-Legal o Socio-cultural (For detail Refer- Project Management in Nep al by Dr. Govinda Ram Agrawal page: 16-20) 1.4 Types of Project Projects can be of many categories. Various ways of categorizing a project are a s shown in the Table below. Sponsorship Nature Orientation Speed Funding Source Technique Size

Customer Individual Product Normal Indigenous Labor Mega Oriented Intensive Organizati taff Crash Foreign Major Process Capital Contractor Special Disaster -J/V Medium -Bil l Intensive Government Complex Oriented Small -Multilateral INGO Donor (For detail Re fer- Project Management in Nepal by Dr. Govinda Ram Agrawal page: 21-34) 5

1.5 Projects Life Cycle and Project Phases A project is time bound. It has beginning and end. The life of a project is divi ded into several phases to provide better management control and appropriate lin ks to the ongoing operation of the performing organization. Each phase defines t he work outcomes or deliverables of the project. The phases are arranged in a se quence. Collectively, the project phases are known as Project Life Cycle. Projec t life cycle generally defines: o What technical work should be done in each pha se? o Who should be involved in each phase? Cost and staffing levels are low at the start, higher towards the end, and drop rapidly as the project draws to the Conclusion. The probability of successfully completing the project is Lowest, an d hence risk and uncertainty are highest at the start of the project. The probab ility of successful completion generally gets progressively higher as the projec t continues. The ability of the stakeholders to influence the final characterist ics of the project product and the final cost of the project is highest at the s tart and gets progressively lower as the project continues. Risk/Amount Formulation Risk Amount of stake Planning Implementation Termination Time Project life cycle: The breakdown and terminology of project phases differ; depending upon whether w e are discussing products or projects. The life cycle phases of a product are: o Research & Development o Market Introduction o Growth o Maturity o Deterioratio n o Death Today, there is no general agreement about the life cycle phases of a project. This is understandable because of the complex nature and diversity of p rojects. 6

Project life cycle according to Cleland and King: o Conceptual Preliminary Evaluation of project idea Identification of needs Determination of initial technical, environmental and economic feasibility and practicability of the system. Preliminary identification of human and non-human resources o Definition Firm identification of resources required Preparation of the detailed plans requ ired to support the system Establishment of time, cost and performance parameter s Standardization of efforts and completion of documents for operations Identifi cation and management of the resources required facilitating the production proc ess such as inventory, supplies, labor, funds etc. Project implementation Use of the system results by the intended customer Evaluation of the project and its i ntegration into another organizations System phase down Reallocation of resource s to other projects o Production o Operational o Divestment The Life cycle of a Construction Project: The various phases in the life cycle of a project are: g Phase Implementation I Termination Phase Formulation Phase The main tasks in the formulation phase are: Project Identification and Formulation Project

Formulation Phase

Plannin

Project identification A situation survey is done. The project idea is born. The project is conceptuali zed. The sources of project ideas are internal (Strategies, Plans, Programmes, R &D Dept., Quality Circle) or external (Customer needs, Donors, Experts, Politici ans, Legal Provisions, Technological Development). 7

Project Formulation Defines the parameters of the identified project. Broad statement defining the o bjective and outputs Preliminary statement of schedule and resources required. P reparation of Project Proposal based on prefeasibility study and preliminary des ign. II Planning Phase The basic tasks in the planning phase of the project are: Feasibility study Appr aisal Detailed design Feasibility Study Determines the implement ability of the projects. The areas for which analysis i s done areo Technical analysis Studies the feasibility of meeting technical spec ifications and examines the availability of alternative technical solutions. o F inancial analysis Studies the financial sustainability of the project in terms of capital requirements and capacity for meeting of financial obligations. o Manag ement analysis Studies the adequacy of management system to direct and control t he project. o Marketing analysis- Studies project capacity, market demand and sa les forecast. o Economic analysis Studies net contribution of the project to the economy and to the society. Benefit/Cost analysis is done for this purpose. o E nvironmental analysis- Studies the impact of the project on the environment. Fea sibility study should be based on accurate information. Appraisal It is the Evaluation of the projects ability to succeed. Appraisal is based on th e findings of the feasibility analysis. It addresses - Ability of the project to achieve its objectives - Comparability of the project with other projects (in t erms of investment, cost/benefits, job creation, profit etc.) The competent auth orities appraise the project against a list of criteria (policy, technical, econ omic, financial, social, etc.) before giving approval and formally approve the p roject selected through appraisal. Approval involves finalization of funding pro posals and agreements and allocation of resources to the project. Detailed design It is concerned with - Preparation of blueprints of engineering design and speci fications for construction, facilities, equipments etc. - Preparation of detail implementation plans and work schedules. The design task establishes: Operating plans and performance standards Allocates responsibilities Determines activities and resources Sets down work schedules 8

III Implementation Phase The basic tasks in this phase are: - Implementation - Control Implementation Implementation is concerned with mobilization. It involves Setting up of project organization, Allocation of tasks and responsibilities, Getting together project team Preparation of tender documents. Other pre-construction activities like la nd acquisition and coordination with other infrastructure, Tendering, Constructi on and/or installation of equipment Project management, quality assurance, progr ess reporting and the participation of target groups and project affected groups . Control It involves supervision and control of project performance to provide feedback. Monitoring of project performance is done. It is a means to improve implementati on through the identification of problems and the possible corrective actions. V arious techniques like CPM, PERT and other network analysis techniques are used for control purpose. The Control comprises the following activities: Setting of standards Measuring outputs Verifying the output with pre set standards Finding deviations, if any. Correcting the process/output to the pre set standards if re quired. IV Termination Phase The basic tasks in this phase are: Project Evaluation Project Handover Project Evaluation Evaluation measures the effects and impacts of the project. It can be carried ou t during the project implementation to improve implementation or can also be car ried out after project completion to improve future project planning and managem ent. Project Handover Handover begins when the project work is finished. Resources are then reallocate d to other projects. 9

Other ways of breaking project phases in the Project Cycle I. Concept and Feasibility Study Engineering and Design Procurement Construction St art Up and Implementation Operation and Utilization F/P P/P I/P I/P I/P T/P II. National and Local Level needs Benefit Monitoring And Evaluation Operation and Maintenance Project Implementati on Project Identification Project Preparation Project Cycle Project Appraisal Funding Loan/Grant Negotiation and A 10 Donor Appraisal

1.6 Project Organizations Concept of Organization: An Organization is a network of structure and relationship. Commonly, the focus of the structure is the specialization of the human elements of the group. Characteristics of Organization: Goal-Oriented Collection of People Consists of Structure (division of labor) Con sists of Technology Has Environment Has Feedback

Project Organization When projects are initiated, two issues immediately arise. First, a decision mus t be made about how to tie the project to the parent firm. Second, a decision mu st be made about how to organize the project itself. Project Organization consis ts of: Designing a Structure Pulling together Project Team Establishing Authorit y and Responsibility relationship Establishing Project Office There are three ma jor organizational forms commonly used to house the projects. Functional Organization Pure Project Organization Matrix Organization

1 Functional Organization Organization structure is broken into different functional units. The project ta sks are performed through functional units. A project tends to be assigned to th e functional unit that has most interest in ensuring its success or that can be most helpful in implementing it. Functional elements of the parent organizationAdministrative home for a project. General Manager Production department Marketing department Finance Department HR Department Project A Project B 11

Advantages: o There is maximum Flexibility in the use of staffs. o Individual experts can be utilized by many projects o Specialists in the division can be grouped to share knowledge and experience-Synergistic solutions to technical problems o Serves a s a base of technological, procedural, administrative and overall policy continu ity. Functional division contains the normal path of advancement for individuals whose Expertise is in the functional area. Disadvantages: o o o o o o Lack of Client/Project focus. Focus on unique area of interest. Deci sion delay No individual is given full responsibility- lack of co-ordination Ten dency to sub optimize the project Weak motivation for people Does not facilitate a holistic approach to the project (e.g. Jet air craft/ emergency room in a hos pital can not be well designed unless designed as a totality.) 2 Pure Project Organization o The project is separated from the rest of the parent system. o A self- contain ed unit with its own technical staff/ administration. o The project manager has his own line organization with project authority and responsibility. o The proje ct has its own resources and management. General Manager Project A Manager Design Construction Administration Production Department Marketing Department Other Departments Advantages: o o o o o o o The PM has full line authority over the project Project work force directly responsible to the PM Line of communication- shortened. Focus on proje ct objective High motivation Unity of command Exists Flexible labor force 12

Disadvantages: o o o o Duplications of efforts/Inefficient use of resources Lack of job securit y Stock piling of equipments / Technical expertise Projectiles (A disease-that c reates animosities between parent organization. staff and project staff) 3. Matrix Organization o A combination of pure project organization and functional Organization o It is a pure project organization overlaid on the functional divisions of the parent firm. o Project team is assigned from the functional departments. o The PM has o verall responsibility General Manager Production department Project A Manager Advantages: o o o o o o o Marketing department Finance Department HR Department The project is the point of emphasis/ special focus Availability of entire reser voir of technical talents in the FD Team identity Less anxiety about job Rapid r esponse to client needs Consistency of policies/ practices/procedures of parent firm Holistic approach/Balance of resources Disadvantages: o Power and Authority is balanced. Doubt exists who is in charge o Division of a uthority and responsibility is complex o Movement of resources from project to p roject- may foster political infighting among the several PMs. o Projectile is s till a serious disease. o Violates the management principle of unity of command. 13

2 Project Management 2.1 Concepts and Definition of Management All organizations carry out various activities to achieve their certain pre-dete rmined goals. Management helps organizations to achieve goals. Management can be defined as follows: Management achieves goals by getting the jobs done efficien tly and effectively through and with people by using the means of planning, orga nizing, staffing, directing and controlling in a dynamic Environment. Management is a know- how. Actually it is an art. It consists of skills, practical knowled ge, creativity and result- orientation. Management is a science also because it has an organized knowledge of principles and techniques. Management is a profess ion also. Characteristics of management Management achieves goals Management gets the jobs done efficiently and effectiv ely Management works through and with people Management is a process comprising planning, organizing, staffing, directing and controlling Management operates in an environment Principles of management Principles are fundamental truths and are essence of management theory. Henry Fa yol propounded 14 Principles of Management, which are universally applicable. Th ese are: Division of Work: Principles of specialization. An employee should be a ssigned only one type of work to increase output. Authority and Responsibility Au thority Legitimate power, right to influence others and make decisions Responsibi lity Obligations to carry out assigned jobs. It cannot be delegated. Accountabili ty Answerability for satisfactory performance Those who exercise authority must a ssume responsibility. Unity of command: One employee should have only one boss. Unity of direction: One head and one plan for a group of activities having the s ame objective. Span of management (Scalar chain of command): All employees shoul d be linked with each other in superior- subordinate relationship. Subordination of individual interests to general interests Remuneration: Fair and equitable p ay to employees. Discipline: Obedience and respect for agreement. Centralization : Highly centralized power structure; decentralization with centralized control. Order: A place for every thing and every thing in its proper place. Equity: Sen se of kindliness and justice throughout all levels of scalar chain. Stability an d tenure of personnel: The tenure should be stable. Initiative: Encourages subor dinates initiative. Esprit de Crops: Union is strength; cohesiveness and team spi rit. 14

Functions of Management Management is what managers do. Management has certain functions. Various writer s have classified management functions differently. Some of them are as listed b elow. i. Henry Fayol (POCCC) Planning Organizing Commanding Coordinating Controlling Planning Organizing Staf fing Directing Coordinating Reporting Budgeting ii. Luther Gullick (POSDCORB) iii. Goal Setting Planning Assembling resources Organizing Implementing Controlling F or our purpose, the functions of management are: Kast and Rosenzweig (GPAOIC) i. Planning: Predetermining future Selection of goals Discovering alternatives Choosing the b est alternative Choosing future course of actions Estimating the cost and resour ces etc. ii.

Organizing Defining activities and tasks Grouping the activities in departments Design structure Assigning activities to the position and people Establishment of resp onsibility and authority Manpower planning Preparation of an inventory of people available Job analysis to determine job description Recruiting, selecting, plac ing developing, promoting, remunerating and retiring 15 iii. Staffing

iv. Directing (Leading) Communicating, influencing and motivating people Concerned with interpersonal as pect of management. Establishing standards Measuring actual performance Finding and analyzing deviations v. Controlling Corrective actions. Managerial Skills: Managers need wide variety of skills. These skills can be categorized into: Tech nical Skills: Ability to perform a specialized task or function. Human Skills: A bility to go along and motivate people. Conceptual skills: Ability to think and analyze and to relate the organization to environmental forces. Conceptual Conceptual Conceptual Human Human Human Technical Technical Technical Top Managers Middle Managers Lower Managers Top Managers have the overall responsibility for the survival, growth and welfar e of the organizations. They should have more conceptual skills. Middle managers subordinate to top managers. They implement and control plans and strategies de veloped by top managers. They are responsible for the activities of lower level managers. It will be better to have all three skills equally for them. Lower man agers subordinate to middle managers. Operating personnel report to them. They s hould possess more technical skills than other two skills. 16

2.2 Concept of Project Management Project management is a system approach for efficient and effective achievement of project objectives through assignment of total responsibility and accountabil ity to a single project manager from inception to completion and coordination ac ross functional lines with proper utilization of planning and control tools Acco rding to Harold Kerzner: Project management is the planning, organizing, directi ng and controlling of company resources to complete specific goals and objective s. Project Management is an alternative to the traditional management models. It is planning, implementing and controlling of complex and unique projects to ach ieve results within constraints in a dynamic environment.

The main characteristics of Project Management Objectives-oriented Change-oriented Single responsibility center Multi-discipli ed Requires functional coordination along functional lines. Requires integrated Planning and Control systems. Achieves results within the constraints of time, c ost and quality. Key Objectives of Project Management Any project must meet several objectives. Each objective is made up of many conc erns, or constraints. Project management should have a document that has all of the details of each concern spelled out. Objective Quality Requirements Deadlines Document Specifications Project Schedule Cost limits Project Budget High levels of Team Project Commitment Charter/Team Commitment Concerns/Constraints Definition of end product Form, fit and function Must compl ete by ----- Must start by---------- Cant start before ---------- We can only spend -------- Bring it under -------------- Your minimum profit margin is ----- We unders tand the purpose Each persons role is clear Mutual respect and trust Self- motiva ted 17

2.3 The Project Manager, His Roles and Responsibilities The Project Manager The project manager serves as a single responsibility center to achieve project objective within the constraints of time cost and quality. His actions make or br eak the project. He occupies a focal position in project management. He assumes t otal responsibility and accountability for the project from inception to complet ion. A project manager must manage key project stakeholders-customers, contracto rs, consultants, suppliers, government, labor unions, competitors and financers. Time Cost Quality What to Manage? Time Cost Quality Where the PM stands in project control? Client Organization Project Manager Project Team What a PM the job. port from 18 should know? What the priorities are? What authority he has? Opportunity and facilities to do Feedback-to know how he is getting on. What extent of guidance and sup the superiors? Recognition for good program.

Skills Requirements of Project Manager 1. Technical skills: Understanding of the technology involved Evaluation of technical concepts and so lutions Communication in technical terms Assessment of technical risks, trends a nd innovations 2. Managerial Skills Planning and control skills Organization skills Decision making skills Human Res ource Management skills Leadership skills 3. Human Relations skills Communication skills Motivation skills Negotiation and bargaining skills Conflic t management skills 4. 5. Conceptual Skills They are ability to relate the project to environmental forces. The project mana ger should have vision, foresight, judgment and intuition. Team Building skills They are ability to integrate people from many disciplines and departments into an effective team.

Roles of Project Manager 1.Diplomat: Maintain better relationship between project and environment Ensure polit pport Tackle new threats, if any Have high level of sensitivity Good negotiating skill Responsible for all action of project personnel Make things happen by act ive intervention Make changes if necessary Coordinate the team Controlling and a llocating resources Authority and influence Define ethics, norms and values of t he team Motivating capacity Drive- be a leader Team spirit- team work 19 2.Chief Executive: 3. Leader

Responsibilities of Project Manager Responsibility is the obligation to perform duties and carry out tasks. It flows from authority. It cannot be delegated. The specific responsibilities consists of: i. Defining and maintaining project integrity ii. Selecting the project team iii. Identifying and managing stakeholders iv. Planning the project implementat ion v. Project organization vi. Project implementation vii. Project control and progress tracking viii. Financial management ix. Change and conflict management Few Important Tips for Project Managers: Money makes things possible, people make things happen We are not looking for fi re-fighting managers, we need managers to prevent fire If you want every thing, you may get nothing If you dont know where you have to go, any road will lead you there. Those who have no place and work in the project should not be in the pro ject. Being a construction manager, dont be overly defensive, keep yourself cool, conceal your frustrations, when you slip off- say so. The down side risk of Project Management Severe down side risks When a PM begins to fall in love more with his jobs than with his family, the result is usually lack of friends, a poor home life and pos sibly divorce During the birth of the missile and space programs, companies esti mated that the divorce rate among PMs and Project Engineers was probably twice t he national average. The followings are the characteristics of the workaholic Pr oject Manager: o o o o o Every Friday he thinks that there are only two more wor king days until Monday At 5:00 PM he considers the working day only half over He has no time to rest or relax He always takes home work from the office He takes work with him on vacations. 20

3. 3.1 Project Management in Nepal Historical Overview Nepal is one of the least developed countries of the world. More than 38% of peo ple live below the poverty line. The project concept in Nepal began in 1950/51 w ith a grant assistance of US $ 100,000 by USA. The planned development in Nepal began with the implementation of the First Five Year plan in 1956 (1956-1961). S ince then, Nepal has implemented Nine Development Plans. The current Tenth plan (2002-2007) is mid-way in implementation. The financing of Nepals development pla ns has been heavily project based. Project management model appeared in Nepal du ring 1970. The project organization structure adopted was Development Committee. I t was an autonomous pure project organization structure for the management of a specific project. The matrix project organization structure was also used. The f irst Engineering project in Nepal was an iron bridge over the Bagmati River in 1 850. The first hydroelectric project at Pharping was completed in 1911. The Raxu al-Amlekhgang railway line was constructed in 1927. Manakamana Cable Car is the marvel of project management in Nepal. Kali Gandaki A, Kulekhani, Marsyngdi HydroPower projects and International Conference Hall are the Mega projects in Nepal. 3.2 Project Planning in Nepal Most central level development projects in Nepal are planned by the donors. Most local level projects, however, are planned within the country by various agenci es of the ministries or local authorities. National Planning Commission, NPC is responsible for preparation of five-year development plan. Projects are the prim ary means of translating development plans into action. Central level projects s hould have approval of NPC. Enactment of Local Self Governance Act, 1999 (LSGA) and Local Self Governance Rules, 2000 (LSGR) has made local bodies responsible f or local level planning. According to the new decentralization concept, local bo dies (e.g. DDCs, VDCs and Municipalities) are totally responsible for planning a nd implementing local level projects. These bodies, constituted of the directly elected local representatives, prepare Periodic Plans for the development of the ir jurisdiction by comprehensively taking into consideration of the situation, n eed and potential of their jurisdiction and the aspiration of the local people. Planning is Participatory and Bottom-Up. On the basis of this Periodic Plan, the y prepare Annual Plans for development investment. There are sets of government guidelines for helping the local authorities undertake such planning exercises. In addition to the Annual Plans and Periodic plan, the districts are also encour aged to prepare a vision plan of the concerned district in a participatory manne r. This vision plan, generally termed as the Strategic Development Plan basicall y defines 20-year development goals in different sectors for the district and is essentially a Perspective Development Plan. In that sense, the Annual Plan is e xtracted from Periodic Plan, which in turn, is extracted from Strategic Developm ent Plan. 21

3.3 Why do Projects Fail in Nepal? Project implementation in Nepal has remained poor. Most development projects hav e failed to achieve the desired results. Time and cost overruns are common. Ther e are various reasons behind the failure of the projects. Some of them are as li sted below: Unclear Policy and Objectives Weak Institutional Capabilities Lack o f Users Participation. Defective Project Design Delays in Project approval Consul tants related Problems Procurement Delays Delays in Contract Award Lack of Co-or dination Delays in Budget Release Lack of Counterpart Funds Poor Monitoring and Evaluation Corruption 3.4 Improving Project Management in Nepal Problems of project implementation are profound in Nepal. Poor implementation ha s been the key reason for project failure. Thus for successfully managing constr uction projects in Nepal, project implementation needs urgent improvement. The a ctions needed for this purpose are: Formulate proper policies and guidelines Ens ure good project design Improve financial management Strengthen institutional ca pabilities Establish PMIS system Prepare implementation plan Streamline procedur es Strengthen Co-ordination, Monitoring and evaluation Control corruption and po liticization. Thank You. 22

PROJECT PLANNING TOOLS 1 1.1 Work Break Down Structure (WBS) Concept: To develop a project schedule, the successful Project Manager must break the pro ject down into small work components. The concept is fairly intuitive. Most peop le understand that any job is easier to handle when broken into smaller pieces. A Work Break Down Structure is a tree showing the hierarchy of the required work t o be performed to complete a project. It organizes, defines and displays the wor k to be accomplished. In planning a project, the project manager must structure the work into small elements that are: Manageable, in that specific authority an d responsibility can be assigned. Independent, or with minimum interfacing with and dependence on other ongoing elements. Integratable so that the total package can be seen. Measurable in terms of progress. The WBS is the single most import ant element because it provides a common framework from which: The total program can be described as a summation of subdivided elements. Planning can be perform ed. Costs and budgets can be established. Time, cost and performance can be trac ked. Objectives can be linked to company resources in a logical manner. Schedule s and status-reporting procedures can be established. Network construction and c ontrol planning can be initiated. The responsibility assignments for each elemen t can be established. The work breakdown structure acts as a vehicle for breakin g the work down into smaller elements, thus providing a greater probability that every major and minor activity will be accounted for. 1. 2 Hierarchy of Work: A job must be broken down into objectives, then into tasks, and finally into act ivities. Using this hierarchy of work simplifies the process of breaking down th e project into its smallest components, called activities, and ensures that any of the components is not missed out. Objective: An objective is a combination of tasks that concern specific functional groups, major contractors, major subasse mblies or some other logical division of the total project like major parts, ski lls or major resources etc.

Tasks: A task represents one of several major deliverables towards an objective. It is a combination of activities that lead to the achievement of a definable r esult. Activities: An activity is a time consuming piece of work with a definite beginning and end. Activities are the basic building blocks of a project, the i ndividual actions that will be performed one at a time. To develop Work Break Do wn Structure: Develop the project goal. Define the objectives- the preliminary p lan. Have teams refine the objectives. Have teams break down the objectives into tasks. Have doers break down the tasks into activities. Chart-1 shows a typical example of WBS with break down of the project into objectives, tasks and activi ties. There is a variety of WBSs. Alternatively a WBS can be developed as compos ed of three components: Work Items Levels & Work Packages Work Item: A work item is a manageable element at each level. Level: The level refers to the managemen t scope, which divides a project into clearly defined elements. For example, lev el 0 is for end product of a project. Level 1 is for manageable elements of the project manager. Level 2 is for manageable elements of superintendent. Level 3 i s for manageable elements of project engineer. Level 4 is for manageable element s of fore men. Work Packages: The units of WBS at the lowest developed level. Th e work package is to be performed by a single organization unit (crew), sub-cont ractors etc. and is the base for project element, short interval planning, and c ollection of expenditures. Chart-2 shows a typical example of WBS with break dow n of the project into work items, levels and work packages.

2 Precedence Relationships: It is the relationship between activities based on where they occur in relation to each other. In other words, it is the sequencing of activities. There are fou r main logical categories that will influence the sequencing of activities. Tech nical Requirements o Write before editing o Test before repairing o Frame before pouring concrete Safety and efficiency considerations o Check preflight checkli st o Disconnect power before making repairs Policy or preference decisions o A d eveloper may insist that landscaping of the entrance must precede the opening of sales office. Though there is no technical reasons or may even be less efficien t to do so. o Vendor certification prior to contract o Preference to minority co ntractors Availability of limited resources o One may not be able to commit majo r expenditures until revenue is realized or credit is obtained o One may not be able to hire outside experts in some fields, and have to do with in house teams. 3. Planning Tools The Planning phase of any venture involves a listing of tasks or jobs that must be performed to bring about the ventures completion. Gross requirement for materi al, equipment and manpower are also determined in this phase, and estimate of co sts and duration for the various jobs are made. PLANNING ESTIMATING SCHEDULING CONSTRUCTION COST RESOURCES Material Equipment Manpower TASKS Activity start & finish dates Project start & finish dates COST Cost Profile RESOURCES Resource Aggregation Resource Levelling Limited Resource Allocation SITE LAYOUT Materials Equipment Manpower TECHNOLOGY Methods Organization DIRECT Materials Equipments Manpower INDIRECT Overheads Profits Sequence of operations

Scheduling on the other hand, is laying out of the actual jobs of the project in the time order in which they have to be performed. Manpower and material requir ements needed at each stage of construction are calculated, along with the expec ted completion time of each of the jobs. Control generally regarded as the under lying managerial function, begins with reviewing the difference between the sched ule and actual performance once the project has begun. The analysis and correcti on of this difference forms the basic aspect of control. There are a number of p lanning, scheduling and controlling tools in use. Basically these tools are of t wo types- the bar chart and flow chart. The use of any particular type depends u pon the situation and complexity. A separate description on each of these tools is given in following paragraphs. 3.1 Bar Chart (Gantt Chart) A graphical representation of project activities shown in a time scaled bar line with no links shown between activities. A bar chart is a scheduling technique i n which activity duration is drawn to scale on a time base. A bar chart is also called a Gantt chart since it was developed by Henry Gantt. It is one of the mos t popular and widely used techniques for planning and scheduling activities beca use the graphical representation of a bar chart makes it easy to read and unders tand. How to draw Bar Chart? Listing of work activities Estimation of work duration Identifying start and com pletion date in calendar format Drawing each activity as a horizontal bar in chr onological order according to its start date. Easy to understand The status of t he project can be assessed in a short time Easy to develop and implement No trai ning is required Appropriate for small projects Starting point for planning Advantages: Shortcomings: The length of the bar indicates rough time estimate. Difficulties in seeing imme diately and exactly overall project duration if changes occur in any particular activity. Not detail but gross planning

 It does not show specifically which activities to control and expedite and how m uch. It does not depict the dependencies of activities upon each other. Updating means to redraw the entire chart again and again. Types of Bar Charts: Bar charts differ in the way they show planned progress on the horizontal scale, in the way they report progress and in numerous details of diagrammatic style. Three of the more common types of bar charts are discussed in some detail below. Type I: Linear Time-scaled for Planning; Linear Progress-scaled for Reporting Jan Feb March April May Type I: Plan Bar Reporting date Jan Feb March April May Type I: Reporting Bar Assumes that progress on an activity is a direct linear fu nction of elapsed time. Therefore, in planning, no attempt is made to show the p hysical percentage completion at any point on the bar representing an activity. In order to report progress, a parallel bar is sometimes placed immediately belo w the plan bar and is initially open also. Then as the job progresses, it is sha ded in direct proportion to physical work (not necessarily elapsed time) complet ed on the activity. In above example, 5 months were originally scheduled for the activity and that 60% of time has elapsed by the reporting period.. However, th e shaded bar reports that only 50% of the physical work in the activity has been completed. It may seem that the activity is lagging behind by 10% or by 15 days . But it may not be true. It depends upon the volume of work and resources sched uled during different months. If resources scheduled are higher towards first ha lf, it may be lagging behind the target and if the resources scheduled are highe r towards later half, it may be on or ahead of scheduled target.

Type II: Time-scaled for Planning; Time-scaled for Reporting Jan 0 10 Feb March 30 50 April May 80 100 Type II: Plan Bar Reporting date Jan 0 10 Feb 30 March 50 April 80 May 100 55 0 8 28 55 Type II: Reporting Jan 0 10 Feb 30 March 50 April 80 May Jun 100 0 8 28 55 75

90 96 Type II differs from Type I in the sense that planned cumulative progress percen tages (in terms of physical work, man hours expended etc.) are written at the en d of each basic time interval (generally at the top). This progress need not be uniformly linear. In above example, 50% of the work is planned to be performed i n last 2 months (40% time interval). As the activity gets underway, work complet ed is reported by a parallel shaded bar below the planned one. It is shaded to s how the actual time worked on the activity up to the current date or to completi on, whichever is earlier. Figures giving the actual percentage cumulative progre ss are written on the opposite side of the bar.

Type III: Time-scaled for Planning; Variable Progress-scaled for Reporting In th is type of bar chart, work completed is reported by shading in alternating areas in the lower and upper portions of the bar, one for each basic time interval wo rked.. The segments are shaded in proportion to the physical work actually perfo rmed during the basic time interval compared with the scale for the basic time i nterval in the range being shaded. It is important to recognize that the scale o f progress generally changes during each basic time interval considered unless p rogress is indeed a direct linear function of time. Jan 0 10 Feb 30 Mar 50 April 80 May 100 June July 0 8 28 55 75 90 96 100 The End

MR Gelal FPM CPM/PERT Networks CPM/PERT Networks are flow charts and are sometimes called network diagrams. Cri tical Path Method (CPM) is a graphical network- based scheduling technique that evolved in late 60s. US Government agencies insisted on their use by contractors on major government projects. Basic concepts of CPM such as activities, events a nd predecessors have become a regular part of the language of Project Managers. CPM enables planners and managers to thoroughly analyze the timing and sequentia l logic of all operations required to complete a project. In the 1950s, the US N avy developed the project management tool known as PERT (Project Evaluation and Review Technique). In the same decade (in 1956) CPM (Critical Path Method) was d eveloped jointly by Engineers at DUPont and Remington Rand. Since the mechanics of the two approaches are so similar, they are now commonly referred to as CPM/P ERT. The most obvious difference between the two is that PERT recognizes uncerta inty in activity duration by the use of optimistic, pessimistic and most likely durations, whereas CPM makes only one time estimate for an activity- the most li kely duration. In PERT, three duration estimates for each activity is developed. These are: The most Optimistic duration: duration of an activity if all went ri ght, without any problem. The most pessimistic duration: duration of an activity if everything went wrong. The most likely duration: duration of an activity bas ed on experience of what usually happens- something went wrong and some thing ri ght. A probability is attached to each estimate, and the final duration is deriv ed from a stochastic formula: Final Duration= D0P0 + Dp Pp + Dc Pc Where, D0 is the most optimistic duration P0 is the probability of D0 Dp is the most pessimis tic duration Pp is the probability of Dp Dc is the most likely duration Pc is th e probability of Dc CPM is most often used in commercial projects. It differs fr om PERT only in the duration estimating technique. As CPM requires only one dura tion estimate; it sure do save a lot of time and effort. In practice, however, b oth PERT and CPM are used synonymously. 1

MR Gelal FPM PERT is used more in research and development projects and CPM is used more in p rojects such as construction, where there has been some experience in handling s imilar endeavors. Project characteristics that are essential for analysis by CPM are: The project consists of a well-defined collection of jobs, or activities w hich when completed mark the end of the project. The jobs are ordered, that is t hey must be performed in technological sequence. PERT/CPM charts can be drawn in one of two ways: Activity on Node (AON Diagram): Each activity is represented b y a node/box. Example: Activity A precedes activities B and C. E cannot start un til both B and C are finished. B precedes D. D and E must finish before F can st art. G must wait for F to finish. B A D F G C E Activity on Arrow (AOA Diagram): Each activity is represented by an arrow Exampl e: In the above example, the AOA diagram will be as shown below. A B D F G C E Sometimes dummy activity (which requires neither time nor resources) is introduc ed. It is required to properly show the logic of an arrow network to provide uni que labeling. The nature of the relationships conveyed by the dummy activities i s not readily clear. For example, the dotted arrow on the far left representing finish to start between A and C could also mean start to start between B and C, which is not true in this case. For these and other reasons, the AON technique i s generally used and for our purpose also we will describe PERT/CPM networks in AON only in this chapter. 2

MR Gelal FPM The Critical Path So far the only logic element in CPM networks has been discussed. The second mai n element is time. In general, these schedule calculations involve the following steps: i. Estimating Durations Once all activities in a project have been defin ed and organized into a logical CPM network, their durations must be estimated. An activitys duration is the expected amount of time that will be required to com plete the activity from start to finish. ii. Forward Pass: The calculation procedure called the forward pass establishes the earliest start and finish times for each activity in the network. The following nomenclature a nd relationship is used in the discussion of the forward pass: Early Start (ES): The early start of a job in a project is the earliest possible time that the jo b can begin. Early Finish (EF): The early finish of a job is its early start tim e plus the time needed to complete the job. The Forward Pass yields an ES and EF f or each activity, and the earliest finish date, T for the project. S= Start time of project (usually =0) ES (a)= S for all beginning jobs, or ES (a)= Max {EF (a ll predecessors of a)} EF (a)= ES (a) + t (a) T= Max {EF (all jobs)}= Earliest f inish time for project The set of rules that defines the procedure for the forwa rd pass calculations is called an algorithm. iii. Backward Pass: The calculation procedure called the backward pass establishes the latest allowa ble start and finish times for each activity that will still permit the overall project to be completed without delaying beyond the scheduled completion date. T he following nomenclature and relationship is used in the discussion of the back ward pass: Late Start (LS): It is the latest time the job can begin without push ing the finish date of the project further into the future. Late Finish (EF): Th e late finish of a job is its late start time plus its duration. The Backward Pas s yields LS and LF for each activity, and the finish times for all jobs. 3

MR Gelal FPM LF (a)= T for all ending jobs, or LF (a)= Min {LS (all successors of a)} LS (a)= LF (a)-t (a) iv. Total Float/Slack The total float or total slack for an activity is the maximum amount of time tha t the activity can be delayed without extending the complete time of the overall project. However, such a delay might postpone the early start of one or more of its following activities. Total slack of a job activity is the difference betwe en its late start and early start times (or equivalently, as the difference betw een its late finish and early finish times). TS= LS- ES or LF-EF v. Free Float/S lack Free float is the maximum amount of time an activity can be delayed without dela ying the early start of any of its followers. For calculation purpose, the free slack of a job is the difference between its early finish time and the earliest of the early start times of all its immediate successors. Free slack, of course, can never exceed total slack; moreover, all jobs that have total slack do not n ecessarily have free slack. In general, a job has free slack if it has more tota l slack than one of its immediate successors. FS (a)= Min {ES (immediate success ors of a)} EF (a) vi. Critical Path A critical path is a continuous chain of activities from the beginning to the en d of a network with the minimum float value. In the case where the target projec t completion time is set equal to the early project completion time, a critical path will have Zero Float. In other words the longest path through the network i s called the critical path. 4

MR Gelal FPM Example: Draw AON diagram indicating ES, EF, LS, LF and earliest finish time of the project having the activities, durations and precedence relationship as show n in the table below. Activity Duration Predecessors A 6 B 3 A C 4 A D 9 A E 12 F 8 G 3 B, D H 6 C, D I 4 C J 4 E K 3 E L 1 E M 6 G, H N 7 H O 4 N, I, J P 2 K, L 5

MR Gelal FPM, Class Note VI Construction of Arrow Networks Example Activity A B C D E F G H K L M Duration 3 2 1 4 4 3 5 3 3 1 2 Predecessors A A C B, E B, E B, F D, G, H G, H Followers D, E G, H, K F L G, H K L, M L, M Equivalent Precedence Network D A E G L Start End B H M C F K 1

MR Gelal FPM, Class Note VI AON Diagram D A E Start B Start S=0 L G H M End Finish Time T= 14 C F K 2

MR Gelal FPM, Class Note VI AOA Diagram 2 7 9 1 3 5 8 10 4 6 3

MR Gelal FPM, Class Note VI Forward Pass D (x) = Estimated duration for activity x ES (x)= Earliest start (expected) time for activity x EF (x)= Earliest finish (expected) time for activity x S= Projec t start time ES (Initial Activities) =S ES (x) = Maximum (EF (all predecessors o f x)) EF (x) = ES (x)+ D (x) Backward Pass D (x)= Estimated duration for activity x LS (x) = Latest allowable start time fo r activity x LF (x) = Latest allowable finish time for activity x T = Target pro ject completion time LF (End Activities) =T LF (x)= Minimum (LS (all followers o f x)) LS (x) = LF (x)- D (x) Total Float The Total Float for an activity is the maximum amount of time that the activity can be delayed without extending the completion time of the overall project. How ever, such a delay might postpone the early start of one or more of its followin g activities. Total Float for Activity x, TF (x) = LS (x)- ES (x) = LF (x)- EF (x) 4

MR Gelal FPM, Class Note VI Free Float Free Float is the maximum amount of time an activity can be delayed without dela ying the early start of any of its followers. Free Float for Activity x, FF (x) = Minimum (ES (all immediate followers of x))EF (x) All activities on the critical path have zero float- Total or Free. Free float f or any activity is always less than or equal to the total float. 5

MR Gelal FPM, Class Note VI THE S-CURVE S-Curve is one of the popular planning tools. S-Curve graphically plots some mea sure of cumulative progress on the vertical axis against time on the horizontal axis. Progress can be measured in terms of money expended, quantity surveys of w ork in place, man-hours expended, or any other measure which makes sense. Any of these can be expressed either in terms of actual units (Rupees, Cubic meter, et c.) or as a percentage of the estimated total quantity to be measured. Why does it look Like S? On most projects, expenditures of resources per unit time tend to start slowly, build up to a peak, and then taper off near the end. This causes the slope of th e cumulative curve to start low, increase during the middle, and then flatten ne ar the top. After signing a construction contract, the contractor has to prepare himself for the work. Also minor works are started which takes time to gain mom entum. After the period of slow start, when the contractor mobilizes him fully, the rate of progress accelerates remarkably and for quite sufficient duration, t he rate of progress is constant. Finally, a falling off of this rate of progress is marked when the project is towards completion. Contractor reduces his manpow er substantially and activities are limited to finishing, testing and commission ing. By this, for any project, if we draw on a graph, we find a figure having Sshape. S- Curve Cumulative Cost Time Traditionally, the curve was being used to plan the budget and cash flow only. I t was drawn for cumulative schedule of cost on vertical scale and time duration on horizontal scale. But now, we have started using it not only to plan overall cost of the project, but also to plan man-hours, physical percentage completion, individual items of work and so on. In that case 6

MR Gelal FPM, Class Note VI the vertical scale represents man- hours, physical p ercentage of work completed etc. and horizontal scale always represents the time . Example: An airport construction project has to move 10,000 cubic meter of earth within 1 0 days. The daily excavation quantities are as shown in figure 1 below. Summing all the daily excavation quantities through any particular day gives the cumulat ive quantity by that day. For example, by the end of day 5, the cumulative quant ity is the sum of excavation on days 1, 2, 3, 4 and 5. That is = 200 + 600 + 100 0 + 1400 + 1800 = 5000 The shape of S- Curve can be seen by connecting the point s at the end of each days cumulative production as shown in figure 2. Figure 1 Figure 2 7

MR Gelal FPM, Class Note VI LINE OF BALANCE Line of Balance is a graphic technique used for project planning and control to depict timequantity relationships. They apply best to linear and repetitive oper ations such as tunnels, pipelines, highways and building projects. The vertical axis typically plots cumulative progress or percentage completed for different s ystems of a project, such as the structural, electrical, mechanical and other tr ade sub contractors on a high-rise building. The horizontal axis plots time. An example may be, clearing, excavation, stringing, welding, pipe laying, and backf ill operations on a pipeline. As long as the slopes are either equal or decreasi ng as one moves to the right, the project should proceed satisfactorily. However , if early scheduling shows one operation proceeding too rapidly, with a high sl ope compared with those preceding it, the time and location of the first conflic ts become rapidly apparent. To illustrate this, figure 3 shows the eighth operat ion starting to conflict with the seventh, when each is about 70% complete. 100% Time 8

MR Gelal FPM, Class Note VI 9

MR Gelal FPM Linked Bar Chart Linked bar chart is a modified version of Gantt bar chart. It was developed to o vercome some of the inherent limitations of bar chart. It shows the links betwee n an activity and the preceding or succeeding activities. The linked bar chart h as advantage of exhibiting the effect of delay on succeeding activities and also it can provide some information of the extra time available (if there is) with an activity for its completion. The extra time available for an activity for its completion is called float. Similarly, the activities, which do not have extra time for completion, are called critical activities. It is to be noted that link ing bars are very complicated, difficult and sometimes impossible to show graphi cally. An example of linked bar chart is presented below. Example: Activity A B C D E F G H Duration 4 3 2 2 7 3 8 8 Predecessors A A B B C D E, F Followers B D F G H H Corresponding AON and CPM Network D B E Start A G End C F H Corresponding Linked bar Chart is as given in figure 1 below. 1

MR Gelal FPM Milestone Chart A Milestone Chart is an improved version of a bar chart in which some of the lim itations of bar chart are eliminated. As Henry Gantt invented it, it is called G antt Milestone Chart. Combined activity bar charts can be converted to milestone bar charts by placing small triangles at strategic locations in the bars to ind icate completion of certain milestones within each activity or group of activiti es as shown in figure below. A milestone implies some specific stage or point wh ere major activity either begins or ends, or cost data become critical. Figure ( a) shows a bar chart of a project, which involves four tasks or activities or jo bs viz. Task I, Task J, task K and Task L and figure (b) shows the corresponding Milestone Chart. It may be seen that in a milestone chart the long time activit ies or jobs or tasks are identified in terms of specific events or milestones wh ich are plotted against the time scaled indicating their accomplishments by spec ified times. Each bar in a milestone chart again represents an activity or job o r task and all the bars taken together represent the entire project. A milestone chart shows relationship between the milestones within the same activity or job or task. It may be seen from fig. (b) that Milestone 2 can not be started until milestone 1 has been accomplished. Thus as compared to bar chart better control can be achieved with the help of a milestone chart, but it still possesses the same deficiency that it does not depict the interdependencies between the variou s tasks or the relationship between the milestones of different tasks. 2

MR Gelal FPM Earned Value Analysis Any deviation in schedule, performance or cost from the plan or from the set sta ndard to the actual accomplishment is called variance. In the past the conventio nal method of control analysis was variance analysis. This measures the differen ce between two factors by subtracting one from the other to give a positive or n egative variance. It can be used to show differences between actual progresses a nd planned, and the resources used against estimate or budget. For example, the followings are common variances in the control of projects: Scheduled start vs. Actual start Scheduled finish vs. actual finish Scheduled time for an activity v s. actual time Scheduled date of milestone vs. the actual date when the mileston e was reached Budgeted cost vs. Actual cost Measured value vs. Actual cost Budge ted man-hours vs. Actual man-hours Budgeted unit cost vs. Actual unit cost Altho ugh still used extensively today, variance analysis must be supplemented by othe r methods, as it is an inadequate, often misleading, and sometimes meaningless, guide to progress and performance. For example, consider a simple case where out of total project cost of NRs. 25,00,000, the budgeted expenditures to date on a project is NRS. 850,000 and actual expenditure is NRs. 900,000, giving a varian ce of NRs. 50,000. All this tells us is that expenditure is ahead of budget. It does not give us any of the following information: Whether we are on, above or b elow the expected cost performance. What will be the likely final cost of the pr oject Whether we are on, behind or ahead of schedule What will be the likely com pletion time of the project Thus variance analysis, when used on its own is an i neffective way of analyzing and reporting project progress and performance. Performance analysis based on Earned Value The modern methodology used in analyzing project progress and performance uses Pe rformance Measurement based on Earned Value concepts, which integrates cost and sch edule on a structured and personalized basis. There are actually three elements of data required to analyze performance, from which more information can be extr acted than from than two-element variance analysis. These elements are: Budgeted Cost of Work schedule (BCWS) = NRs. 850,000 Actual Cost of Work Performed (ACWP ) = NRs. 900,000 Budgeted Value of the Work Actually Completed, i.e. Earned Valu e (EV) =NRS.750, 000 In addition the completion time of the project is 50 weeks (say). 3

MR Gelal FPM Cost variance CV Cost Variance CV, is the difference of Budgeted Value of Work performed (Earned Value) and Actual Cost of Work Performed. It can be expressed as: CV= EV-ACWP Negative value of CV indicates Cost Overrun. In the above example, CV is, = NRs. 750, 000- NRs. 900, 000 = NRs. (-) 150, 000 The project is NRs. 150, 000 over b udget! Cost Performance Cost Performance can be obtained by dividing Earned Value EV by Actual cost of W ork Performed ACWP. It can be expressed as: Cost Performance = EV/ACWP In the above Example, Cost Performance = NRs. 750,000/NRs. 900,000 = 0.8333 The project is obtaining 83.33 Paisa of Earned Value for every Rupee expended, that is cost performance is 83.33% of that planned. Final Cost Forecasting= NRs. 25,0 0,000/ 0.83333 = NRs. 30,00,000 The project will be NRs. 500,000 over budget, if there is no change in performance. Schedule Variance SV Schedule Variance SV (In cost terms), is the difference of Budgeted Value of Wor k performed (Earned Value) and Budgeted Cost of Work Schedule (BCWS). It can be expressed as: SV= EV-BCWS Negative Value of SV indicates time overrun. In the above example, SV is, SV (In cost terms)= NRs. 750,000- NRs. 850, 000 SV (In cost terms)= NRs. (-) 100, 000 The Project is equivalent of NRs. 100,000 behind schedule. Schedule Performance Schedule Performance can be obtained by dividing Earned Value EV by Budgeted Cos t of Work Schedule BCWS. It can be expressed as: Schedule Performance= EV/BCWS In the above Example, Schedule Performance = NRs. 750,000/NRs. 850,000 = 0. 8823 Schedule Performance is only 88.23 % of that planned. Final Completion Time For ecasting= 50 weeks/ 0.8823 = 56.67 Weeks The project will be 6.67 weeks late, if there is no change in performance. 4

MR Gelal FPM Resource Allocation and Leveling Resource Any consumable, except time, required to accomplish an activity, such as labor, materials, equipment, machinery, tools and shop space are the resources for the project. Resource requirements are estimated at the activity level based on proj ect/activity documentation and achieved productivity or production rated under t he stated environmental and managerial conditions. More than one resource needed is to be estimated. These resources may be constant over an activitys duration o r may be variable in intensity. Having estimated the resources needed for the ac tivities considered, and based on the CPM diagram already developed, the project team will develop a schedule with no resource constraints. Project resources al l have certain characteristics that differentiate them in specific categories fo r further analysis. 1. Stock ability 2. Required/ Availability resource intensit y Constant Intensity (Uniform Requirement) Non uniform Intensity (Non uniform re quirement) 3. Resource Complexity. Resource Aggregation Resource aggregation is a method of calculating needed resources at the project or multi project level for each time unit to enable implementation of the plan. During this process, no limitation on available resources is considered. Most CP M oriented software on the market is capable of performing aggregation or finding daily (time unit) project requirements for all resources estimated as needed to implement the plan. Resource Aggregation Process The step-by-step procedure for obtaining resources histograms for a given projec t with or without computer usage are as listed below. 1. A project CPM network u sing the arrow or precedence technique is developed. 2. The required resources/a ctivity are limited; sometimes more than one resources / activity is specified. 3. The CPM network is computed considering Early and Late start schedule. 4. A b ar chart in ascending order of early or late activity start is developed. 5. For each specified resource for each project time unit, the total daily-required re source is calculated. 6. For each resource, based on requirements per project ti me unit, histograms are developed. (for both ES and LS schedule). 7. For each re source analyzed, cumulative curves for early start and late start schedules are developed on the same plot. Resource Allocation Resource allocation is the distribution of available resources to different acti vities on different dates and in different quantities is. It is usual in plannin g a project; a planner has to consider not only the activity precedence relation ships but also the availability of the resources. While allocating resources, th e planner tries to distribute (allocate) the resources from non-critical activit ies to critical activities so that important activities (having no floats) can b e continued without affecting the project completion date. 1

MR Gelal FPM Resource Allocation Process Many of the constraints hedging in a plan will have origins in the limitation of total resources or in the proportion of total resources that can be committed t o a project. Resource allocation procedures or programs allocate available resou rces to project activities in an attempt to obtain the shortest project schedule (completion date) consistent with fixed resource limits. For project managers, one of the most challenging tasks is allocating resources that are available onl y in a fixed amount for a given period. The first step of the process is to iden tify project required resources with limited availability and the periods of ava ilability. Available resources with constant intensity for long period of time o r project duration (e.g., a tower crane for lifting materials for a multistory b uilding). Available resources for shorter or cyclic periods o Stock able resourc es (if not used today, can be used in future) o Non-stock able resources (if not used when allocated, incur extra costs in future) To reach the best use of reso urces, the utilization factor of the allocated resources is desired. The additio nal cost directly associated with utilization of allocated resources fall in one of the following categories: Cost of hiring or requiring additional resources C ost of idle labor or equipment Cost of delay to other activities not having enou gh resources to schedule the work. The quality of allocation decision can be mea sured through a resource utilization factor. A utilization factor of 1 for the p roject is considered best. A simple procedure is presented for understanding the allocation procedures that lead to a more realistic schedule. The resource avai lability limits are known for the entire project duration. Starting with the fir st day of the project, consider all activities that can be scheduled and select the one with the highest priority. The most common priority criterion is the ear liest start and minimum total float. If an activity meets the allocation criteri on and there are available resources in the pool, schedule and assume that the a ctivity will not be interrupted until completion. A more complex procedure consi ders the possibility of interrupting an activity after its start and reschedulin g the remaining position at a later date. Resource Leveling Resource Leveling is the method of scheduling activities within their available float so as to minimize fluctuations in day- to- day resource requirements. By r esource leveling, we try to optimize the use of resources required to complete a project. Resource leveling helps in obtaining uniformity (so far as possible) i n resource requirement throughout the life of a project. The benefit of resource leveling is to ease resource management so that cost involved in managing resou rces can be minimized. Resource Leveling Process: i. ii. iii. iv. Identification of what type of resources on what dates and on wh at quantity. Preparation of Resource Histogram of the resources required for eac h activity in a time series. Shifting of activities having floats for resource a llocation/leveling. Sometimes, resource allocation/leveling may require extensio n of total project duration also. 2

MR Gelal FPM, Limited Resource Scheduling The completion of a construction project at maximum efficiency of time and cost requires the judicious scheduling and allocation of available resources. Men pow er, equipment and materials are important project resources that require close a ttention. The supply and availability of resources is seldom be taken for grante d due to seasonal shortage, labor disputes, equipment breakdowns, competing dema nds, delayed deliveries and many other uncertainties. Nevertheless, if time sche dules and cost budgets are to be met, the work must be supplied with the necessa ry men, equipment and materials when and as they are needed on the job site. The project manager has to identify and schedule the future job needs so that the m ost efficient employment is made of the resources available. He must establish w hat resources will be needed, when they must be on site and the quantities requi red. He should have detailed compilation of resource requirements. If it appears that there will be adequate numbers of resources available to satisfy these pro jected requirements, the work presumably goes according to established schedule and no adjustment of the job completion date is required. If the resources requi rement discloses that demand will exceed the supply, remedial measures to combat inadequate resource supply is to be made. If there are conflicts among project activities for the same resource items, rescheduling the non- critical activitie s will often solve the problem. Most project managers are faced with The problem of relatively fixed manpower availabilities, a certain number of machines or ot her pieces of equipments, and considering money as a resource- a limited budget. Jobs that occur on parallel paths through the network may compete for the same resources, and even though precedence constraints would not prevent their being scheduled simultaneously, a limited supply of resources might force them to be s cheduled sequentially. Example: Consider the small project plotted as a schedule graph with a horizontal time sc ale. The horizontal length of each activity arrow represents its duration and th e number above the arrow represents its manpower resource requirement. Assume th at there are only 10 men available on any day. In modified schedule, the complet ion time has increased from 6 to 7 days. The resource limit has resulted in a de layed completion date. (See graph in next page) 1

MR Gelal FPM, The complexity of Project Scheduling with Limited Resources Problems of resource scheduling vary in kind and in severity, depending upon the nature of the project and its organizational setting. In some cases there may b e just one key resource- perhaps a large crane- that is bottleneck in scheduling a project. Activities must be scheduled so that no two of them requiring the sa me facility occur at the same time. Or perhaps there is relatively small number of resources, whose limited availability must be jointly considered in schedulin g. At other extreme are projects requiring many resources, most of which are ava ilable in fixed, limited amounts. The problem of scheduling activities so that n one of the resource availabilities are exceeded and none of the precedence relat ions are violated is a exceedingly difficult task for project of even modest siz e. This is especially true if one tries, simultaneously, to minimize project dur ation or meet some other reasonable scheduling criteria. Resource leveling progr am attempts to reduce peak resource requirements and smoothen out period-to-peri od assignments, within a constraint on project duration. Resource Leveling of Project Schedules In most project situations resources can be acquired or released in practically any desired amounts if one is willing to pay expenses involved in changing resou rce levels, such as the costs of hiring, training, unemployment insurance, and s o on. It is usually prudent, however, to maintain relatively stable employment l evels and to utilize resources at a more constant rate. The activity slack is a measure of flexibility in the assignment of activity start times. The scheduler may use activity slack as a means of smoothing peak resource requirements. One h as to start by calculating an early start schedule for the project and then plot ting a resource loading chart for the schedule. (See Example 2 in next page) 2

MR Gelal FPM, Resource Requirement/ Availability and Economics of Project Completion Date 1. The projects required resources can be satisfied at normal prices. The recommendation is to adopt the early start schedule and target the project e arly completion date. 2. If the project requirements cannot be satisfied at the normal price level. Maintain the project completion date, reschedule the activities, and target the project contractual due date (Project late finish date) 3. If the early schedule resource requirements can be satisfied using the resour ce Premium -price level (if economical). The planner may choose this solution, targeting early completion. 4. If project resource requirements can not be satisfied at the premium- price level by implementing an activity early start schedule but it will be possible to comp lete the project by contractual due date. There is no alternative. 3

MR Gelal FPM, Class Notes 10 Project Monitoring and Control 1.Concept Monitoring and evaluation (M & E ) are of critical importance for achieving the objective of the project and are among the most challenging tasks faced by the P roject Managers. They are tools for effective project management. Monitoring and Evaluation are related but distinct activities. Monitoring: Monitoring refers to timely gathering of information to review project implement ation. It is usually an ongoing activity throughout the life of the project. It is management review of project implementation to ensure that project inputs, sc hedules, outputs and other actions are proceeding according to the plan. It is d one during the project implementation phase. Some definitions: Meredith and Ment el Monitoring is collecting, recording and reporting information concerning any and all aspects of project performance that the project manager or others in the Organization wish to know. David I. Cleland Monitoring means to keep track of a nd to check systematically all project activities. Monitoring is a feedback mech anism. Evaluation: Evaluation is an objective and systematic process for determining relevance, eff iciency, effectiveness and impact of project in the light of its objective. Eval uation can be on- going, terminal or ex-post. Evaluation is used to improve proj ect implementation or to improve future project planning and decision-making. 2 Project Monitoring and Evaluation in Nepal The UNDP/World Bank developed the existing project monitoring and evaluation sys tem in Nepal in 1993. It is common to all sectors. It consists: A system of weig hting. Indicators for financial and physical performance. The monthly and trimes ter performance reports related to financial and physical performance of project s from Line Ministries serve as the heart of monitoring system. Projects are div ided into: o Priority Projects o Other Projects The Central Monitoring and Evalu ation Division of NPC monitors priority Projects. Monthly and Trimester reports, supplemented by ad-hoc field observations of projects by NPC staff, serve as th e source of information for monitoring. Problems of project implementation are i dentified. Sector- wide problems are discussed in National Action Development Co mmittee (NDAC) chaired by the Prime Minister on a trimester basis. The non- prio rity projects are reviewed by the respective line ministries in the Ministry Act ion Development Committee (MDAC) 1

MR Gelal FPM, Class Notes 10 3. Logical Framework for M&E A logical framework is generally used for monitoring and evaluation. It evaluate s cause and effect relationships and assumptions and risks of the project. The l ogical framework evaluates three sequential relationships: Inputs to Outputs Outputs resulting from inputs. For example, construction of Cold Storage facilit y for Apple Promotion Project. Outputs to Effects Effects resulting from project outputs. For example, ability of storing apple fo r a long time with out damage is an effect of cold storage facility. Effects to Impacts Impacts resulting from project effects. For example, higher income to farmers du e to higher price of apple in the market during off-season is the impact of appl e storage. The assumptions and risks are evaluated as to their validity. They ca nnot be controlled by the project. Performance Benchmarks serve as the standards for monitoring and evaluation purposes. A logical framework matrix for each pro ject is prepared for planning, monitoring and evaluation purposes as shown in th e box below. Narrative Summary Objectively Verifiable Indicators Per Capita Inco me Objective (Increased by 2010 will be economic growth NRs. 25000 through econo mic (PCI now is NRs. reform) 11000) Means of Verification Assumptions and Risks Nepal Human If assistance from Development donors continues Report published after If the present 2010 situation of Sample Surveying insurgency improves. Reports of CBS If the present Agriculture/Irrigation/Subsidies Policies of HMG/N and the nor ms and programs continues If assistance from donors continues Effect/Purpose (Increased Production and productivity through modernization and professionalism in agriculture and livestock) Outputs (Area irrigated by X Irrig ation Project) Activities Rice Production Reports of DADO by 2010 shall be Records of DIC 50,000 MT (Present Production 36,000MT) 3000 Hectors Project completion donors Inputs 2 If assistance from report of DOI continues

MR Gelal FPM, Class Notes 10 Key Concepts in Logical Framework o Objective: Desired outcome of the project o Purpose: Effect or impact of the project. o Outputs: Deliverables of the project o Activities: Tasks that must be undertaken to accomplish outputs. o Objectivel y Verifiable Indicators (OVIs): Targets in terms of quantity, quality and time (QQT) to measure actual performance. o Means of Verification (MOV): Sources of information that provide the basis for monitoring and evaluation of the proj ect. o Assumptions and Risks: External factors beyond the control of the project . 4. Concept of Control: Control, generally regarded as the underlying managerial function begins with rev iewing the difference between the schedule and actual performance once the proje ct has begun. The analysis and correction of this difference forms the basic asp ect of control. It ensures that the right things are done in the right manner an d at the right time. Control is measuring, evaluating and correcting actual perf ormance to achieve planned targets. Some definitions: Koontz and Weihrich Controlling is the measurement and correction of performance in order to make su re that enterprise objectives and the plans devised to attain them are accomplis hed. Ivancevich, Donnelly, Wilson: Controlling consists of actions and decisions managers undertake to ensure that actual results are consistent with desired results. Control is interrelated with planning. Planning provides standards for control. Control measures actual perf ormance and compares it with standards to identify deviations. Deviations are an alyzed to take corrective actions. Control is a continuous process. To be effect ive, it should give attention to critical control points or benchmarks where dev iations adversely affect the attainment of targets. Types of Control: I. Pre- Control (Feed-Forward Control): It is inputs- based. It is initiated before the start of the activity. It antici pates problems in advance and takes preventive corrective actions. Example: Spec ification for Quality Control, Acquisition of right human resources. II. Concurrent Control (Yes/No Control): It is transformation- based. It is initiated during the implementation of the ac tivity. It ensures that operations are being conducted according to plans. Probl ems are corrected as they arise. Example: Quality control from process to proces s. 3

MR Gelal FPM, Class Notes 10 III. Post Control (Feedback Control): It is output-based. It is initiated after the completion of the activity. It is based on feedback of performance results. Example: Financial analysis. 5 Project Monitoring and Control cycle Control is a cyclic process. Figure below shows project monitoring and control c ycle. Planning / Replanning (Setting standard) Corrective Actions Goals Measuring Actual Performance Finding and Analyzing Deviations i. Setting standards (What should be done?) Planning sets standards for performance Starting point of control Targets of per formance Standards can be in terms of quality, quantity, costs, income and time. Standards should be clearly understandable and reasonable. 4

MR Gelal FPM, Class Notes 10 ii. Measuring Performance (What actually was done?) Measurement of actual performance within a given period Continuous on going proc ess to get feedback Internal reports relating to quantity, quality, costs, incom e, time etc., provide information about actual performance. iii. Finding Deviations (Extent and Causes of Difference) Comparison of actual performance with standards Performance can be equal to, be higher, or be, lower than standards The magnitude of deviation is identified The causes and incidence of deviation are analyzed The responsibility for deviation is located iv. Corrective Actions (Future Standards) Corrective actions are taken The actions can beo Do nothing, if deviations are w ithin the allowable tolerance o Corrective actions (More training, better raw ma terials, design improvements, greater motivations etc.) o Change standards (Stan dards are revised to make them appropriate and realistic) 6. Prerequisites of Control system The prerequisites of control system are: Planning: Control is not possible with out planning. Information System: Control is based on feedback of performance information. Organization Structure: Contro l requires a structure with people and clearly defined authority-responsibility relationship to collect performance information and ana lyzing. Flexibility: Should be flexible and capable of adjusting to environmenta l changes. Participation: Control should be based on participatory approach. Tim eliness: The reporting and feedback for control should have timeliness. There is no point in bringing a doctor after death. 5

MR Gelal FPM, Class Note 11 Project Monitoring and Control 1. SCHEDULE CONTROL Time is one resource that we manage and control; it is non-renewable. Schedules are a graphical representation of time management on a project. Control of proje ct progress is an on-going activity. Progress must be marked on the plan for eve ry one to see; it should be reported from site and must be supplemented by the r eport on expediting procurement activities so that reliable updated reports can be prepared at regular intervals. During the process of implementing the plan ac cording to the schedule, we may come across one or more of the following possibi lities: that some or all activities are progressing according to schedule; that some or all activities are ahead of schedule; and that some or all activities ar e behind schedule. If all activities are progressing according to the schedule, there is no need for updating the network but this is seldom the case. Therefore , based on the progress of the work and the revised durations of unfinished acti vities due to delays, the schedule has to be redrawn. 1.1 Marking Project Progress Information Progress information can be displayed on a project network or bar chart as shown in figure 1 below. A thick line can be used above an activity line to show exte nt to which the activity has been completed. Since the bars are drawn to scale, the length can shoe the status of activities on a certain day. Notice in figure 1 above that activities 1-3, 3-4 and 2-4 are behind schedule. Activity 6-7, on t he other hand, is 50% complete and two days ahead of schedule. On the day of upd ate, a vertical line is drawn through the bar chart to indicate how far the proj ect should have progressed. The use of such control information in a format that enables easy visualization of the activity status enables all members of the pr oject team to predict future events more accurately, weather favorably or unfavo rably. 1.2 Updating When the progress report has been received from the site, it is necessary to com pare it with the original schedule. Although the duration of each activity can b e compared with its planned duration, this does not give an accurate picture of actual performance. For a clear understanding of what a delay on an activity mea ns to the complete project plan, it is necessary to perform an update. In effect this involves entering the progress information into the network plan and analy zing the network with this added information. Updating is carried out to accommo date configuration changes, to assign a new target date instead of a previously planned target date, and to reflect remedial actions designed to correct deviati ons in order to predict their effect. 1

MR Gelal FPM, Class Note 11 Updating CPM Network: Process The CPM networks previ ously developed in planning can be used to aid planners and managers in decision making during controlling process. When the project is partially completed and is at an intermediate stage, it may be possible that: the time durations origina lly assigned for some activities were erroneous and the planner may himself feel it desirable as a result of experience or he may be enriched with additional in formation, or compelled by some changes in original schedule due to various reas ons, to reconsider and re-estimate duration times of activities not yet being pe rformed. Now, new information and considerations can be placed on the original n etwork and fresh calculations are made for controlling the project. The process of replanning and rescheduling based on the results which serve as a guidance fo r decision by performing calculations made by taking into consideration the new knowledge and latest information at an intermediate stage of the project thus mo difying the original network, is known as the process of Updating. Data Required for Updating The following information is necessary to update the plan at an intermediate sta ge of execution of a project: Original network Original network calculation char t Stage at which updating is being done Execution position of the project at tha t stage and New information and knowledge, that affects the duration time of the activities to be performed. Steps in Updating Process: 1. DESCRIBE: updating point as per the original plan 2. RECORD: what has happene d actually till that point 3. SUMMARIZE: the knowledge attained in the tabulated form 4. PLACE: the information contained in the updating table on to the origin al network. Assigning the time of update as the earliest occurrence time for the tail event of the project Allocating a zero time duration for all activities whic h have been completed Entering the remaining estimated durations of those activit ies which are in progress; and Entering the estimated durations based on new know ledge of activities which are still to be Commenced. 5. PERFORM: calculations of earliest occurrence time and latest occurrence time and mark these on the netwo rk known as updated network. The updating cycle is as shown in figure 2 below. 2

MR Gelal FPM, Class Note 11 Re-plan / Reschedule Project Network Compare Progress to Schedule: Is it Satisfactory? Issue Directions Report Progress Execute the Project Record and Assess Progress Project Completed Figure 2: Updating Cycle 3

MR Gelal FPM, Class Note 11 Illustrative Example: The network of a project shown below is to be updated at t he end of 12 days. The following conditions exist at the time of updating. Activ ity 1-4 was completed as originally planned. Activity 1-3 was executed more rapi dly than originally scheduled, and it took 8 days for its completion. Activity 3 -4 commenced following the completion of activity 1-3 and was finished at the en d of 11th day. Activity 4-5 was commenced following the completion of activity 1 3 (i.e., at the end of 11th day), and still requires 6 more days for its complet ion. Completion of activity 1-2 was delayed drastically, and it still requires 1 0 more days for its completion. Activity 2-7 will commence following the complet ion of activity 1-2 and will require 9 days for its completion instead of 6 days originally estimated. The time required to perform activity 5-8 has been revise d based on the experience on the project gained to this point. It now requires 1 0 days in the place of 6 days originally planned. No other activities have been started, and the original time estimates for these activities still appear to be accurate. Update the network, and determine the revised critical path. TE =8 TE =23 2 7 TL =24 TL=18 TE =20 TE =13 TL =13 TL =20 TE =29 1 4 5 TE =0 TL =0 TL=29 8 3 TE =10 TL= 10 4 6 TE =24 TL =24

MR Gelal FPM, Class Note 11 Solution: Figure above shows the original network, with TE and TL marked. The critical pat h, shown by dark lines is along activities 1-3, 3-4, 4-5 and 6-8.Table below giv es the details of execution of the various activities at the end of 12 days. The updated network can now be drawn on the basis of data of columns (1), (2), (4) and (5) of the above table. For those activities, which have already been comple ted, completion time t is taken to be zero, since they require zero time after t he 12th day. Also the earliest event time (TE) and latest occurrence time (TL) o f each event is computed with reference to the original date of the project. Thi s can be best achieved by taking TE for event 1 as equal to 12. Table: Review after 12 days Activity Whether completed or not Yes/No If yes, time taken (days) Additional Co mpletion time required time required for activities for activities in progress y et to begin (days) (4) (5) 10 (1) 1-2 1-3 1-4 2-7 3-4 4-5 5-6 5-7 5-8 6-8 7-8 (2) No Yes Yes No Yes No No No No No No (3) 8 5 3 9 6 4 3 10 5 5 After having determined the updated TE for each event, corresponding TL can be c omputed by the backward pass. The updated network is shown in figure below. The critical path of the updated network has now changed; it is along activities 1-2 , 2-7, 7-8, shown by dark lines. According to the updated network, the project w ill take a total time of 36 days, instead of 29 days originally planned. On the day of updating, the remaining duration of the project is = 36-13 =24 days. 5

MR Gelal FPM, Class Note 11 Updated Network: TE =22 TL =22 TE =31 TL =31 2 7 1 TE =12 TL =12 TE =12 TE =18 TE =36 TL =36 4 TL =20 5 TL =26 8 3 TE =12 TL =20 6 TE =22 TL =31 6

MR Gelal FPM, Class Note 12 COST CONTROL Every project has its own way of controlling cost with a wide variety of record keeping, terminology and approaches. Project cost control systems should be desi gned to highlight potential problem areas. If you anticipate that some functions or contractors may have cost overruns, then track cost by function or contracto r. Conversely, if you anticipate certain tasks or objectives to be the source of cost problems, then design the system to track cost by task. Other possibilitie s include tracking cost by resource type, by work category, and by activity. All costs must be managed and most costs can be controlled. An important question i s which costs are controllable and by whom? Some costs are not directly controll able and yet a project manager must manage within a given environment, such as t he state of the general and local economy. There are three cost categories: a. Direct Cost Direct costs are those that can be related to the production, such as the cost o f labor and material inputs that remain as part of the permanent facility. Direc t costs include the following: Labor wages Overtime premium Materials Sub contra ctors Freight Sales tax b. Indirect Cost Indirect costs include labor, material, and expenses that are incurred but canno t be readily apportioned to a particular part of the project. They are usually a pplied as a percentage of direct costs, and include items such as General superv ision, Daily subsistence allowances, Temporary roads and facilities, Snow remova l, Licenses and permits Insurance and First aid facilities etc. c. General Overhead Cost These are home office costs that are charged to a project on a predetermined bas is. General overhead costs include: Costs for executive management Home office f acilities Other costs required to carry out the normal courses of company busine ss. Field personnel can measure the costs incurred on a project best. The starti ng point for data collection is at the grass roots level through the use of time cards, invoices for materials, material requisition forms, and equipment utiliz ation sheets. 1

MR Gelal FPM, Class Note 12 1. Labor Cost On all projects it is necessary to obtain the number of hours spent on each part of the job by each employee. The man-hour distribution sheet is usually prepare d by the foreman, except for costing, which is done by the office. The informati on on this sheet is summarized from the daily time check report in which the for eman records each workers time against the work items on which the individual wor ks. The activity code column on the daily time sheet, as shown in figure 1 below and the man-hour distribution sheet have this function. Daily time sheets and m an-hour distribution records are totaled weekly, as well as the costs for each a ctivity and each work item. Full use of man- hour information cannot be made wit hout knowing the interim quantity of work. It is of little value to know the man - hours expended on an incomplete work item if the quantities of work done are n ot known. The quantity report, as shown in figure 2, is used to measure the work done on different work items in the preceding period. It provides space for not ing the budgeted and actual quantities of work done. The forecast quantity is no rmally estimated, taking into account any changes. A labor report as shown in fi gure 3 enables management to keep track of man-hours worked. Such reports genera lly give a comparison of work item in terms of estimated hours for each activity with the actual hours to date and indicate any overrun or under run. Total esti mated and actual man- hours within each work item are listed. The difference bet ween the forecast to complete and the original estimate is computed and listed a s the projected overrun and under run, depending on whether the balance is posit ive or negative. Date: Job No: DAILY TIME SHEET AND WORKER HOUR DISTRIBUTION Report No: Page No: Occupatio n Employee Name No 32 75 80 96 Activity Code Perf. Agncy Work Item Hours BA03100 R O 4 3 2 Labor Carpenter Iron worker Mason X Y Z P 15-32 16-48 20-43 25-50 Reg ular BA03200 h r R O 5 2 9 12 4 3 7 15 OT h 2 5 r 18 23 Amount 144 220 00 00 Figure 1: Example of daily time sheet

MR Gelal FPM, Class Note 12 CHARGE NO AS OF DATE WORK ITEM BA 03 200 WORK UNIT m 3 ACTIVITY 15-32 BUDGET ACTUAL LATEST REVISED 750 400 800 SHEET WORK ITEM BA 03 300 WORK UNIT m3 BUDGET ACTUAL LATEST REVISED 200 125 220 Figure 2: Foremans Quantity Report CONTRACT RESPONSIBLE CONTRACT NO DESCRIPTION ORGANIZATION XXXX YYYYY NNN WORK ID ENTIFICATION CURRENT PERION WORKER-HOURS RESOURCE AGENCY WORK ITEM A E ( OVR) UNDR REPORT DATES FROM-------------TO------------TOTAL WORKER-HOURS E F/COMP. PROJECTED (OVR) UNDR A/TO DATE Crew Supervisor XX Str. Steel work Welders Crane Oprt. Light Equip. Oprt. Structural Metal frame 205 200 (5) 875 2000 2500 (500) Figure 3: Example of worker- Hour Summary Report 3

MR Gelal FPM, Class Note 12 2. Material Cost Material cost feedback is generated mainly through a purchase requisition contro l procedure. All materials used on a project are requisitioned by the home offic e (Project Manager) or the field office (Construction superintendent). A good de finitive estimate and a bill of materials provide excellent control documents by which the material cost can be kept in check on a project. For control to be ex ercised at the appropriate time, it is essential that a record of purchases be m aintained by the organization. If the quantity and cost of materials for a parti cular work item do not match its estimate, the cost engineer must determine the reasons for the discrepancy and report to the Project Manager. The materials rec eived on the site must be recorded on a material receiving report or in a simila r manner. The materials receiving report is useful for inventory control and for keeping track of the status of purchase orders received at the site. Materials are charged to work items by means of the costing code, and every order, invoice , and delivery ticket should bear both a job name and number and a costing code for the work item. For the materials, that can not be charged to a particular wo rk item ( for example, ready mixed concrete which are used in many items and som etimes as indirect cost items also), an inventory of materials on site is taken at the end of week. After deducting these quantities from the materials received , the materials used can be determined. These are distributed over the volume of work performed in each work item, as shown in figure 4. Such materials are cost ed at the average purchase price for the period. To check on the use of a certai n material on a project, it is useful to generate a material consumption report separated by work items using a format similar to the man-hours report. PERFORMI NG AGENCY MATERIALS XXX Concrete QUANTITY USED 600 WORK ITEM BA 03 200 UNITS m3 RATE 1000 AMOUNT 600000 Figure 4: Material Register 4

MR Gelal FPM, Class Note 12 3. Equipment Cost Equipment cost must also be charged to work items just like man- hours and mater ials cost. To do this, a record of number of hours per work item and the hourly rate for each piece of equipment is required. The number of days that equipment is assigned to a project can be derived from checking- in and checking- out proc edures. Hours of operation can be accumulated from equipment time cards, as show n in figure 5. Idle time should be distributed to items of work or captured in a separate idle time account. When use of equipment is not heavy on a project, th e equipment costs can be applied to all work items as well as to all activities as an indirect cost. In such cases, operators and operation costs are charged di rectly to work items, along with the manpower costs. PERFORMING WORK MON. TUE. W ED.---- TOTAL AGENCY ACTIVITY ITEM (hrs) (hrs) (hrs) (hrs) RATE XXX 4-5 AA02200 4 3 5 12 100 Total: AMOUNT 1200 Figure5: Weekly Equipment Record Control of Spending Even though the project manager is responsible for the total project budget, thi s budget is made up of a collection of items, assigned to various team members t o spend. These team members do not have visibility of the total budget and are u sually spending in isolation. In addition, the timing and the amount actually sp ent on a budgeted item will vary from the budget, causing item variances. The su m total of these variances needs to cancel out or be within the budgeted toleran ces. This never happens by itself. In order to exercise effective control on spe nding, you need insight into the behavior of spending. Most items are spent over a period of time. Each time another expenditure towards this item is needed, tu rning an increasing portion of the Budgeted Cost into Contracted Cost. This port ion is called Cumulative cost- to- date. What is left is called item balance. Item Balance = Budgeted Cost- Cumulative Cost to- date. The objective of a project manager is to have a zero or positive item balance wh en this item is complete. An easy way to keep track is to keep a running balance per item, except that you dont know at which point the big variances may hit. As you get deeper into the implementation of an item, you get better visibility of its true cost requirements, i.e., how much more will it take to complete this i tem, which is known as Projected Cost to Complete. Projected Total Cost= Cumulat ive Cost- to- date + Projected Cost to Complete. 5

MR Gelal FPM, Class Note 12 By comparing this projected total cost with the budg eted cost, we can anticipate the ultimate variance for this item, known as Proje cted Variance. Projected Variance= Budgeted Cost- Projected Total Cost Keeping t his projected variance at zero or positive becomes the responsibility of the ite m Owner. Example: Given the following data for an important project item, calculate (a) the item b alance, (b) the projected total cost, and (c) the projected variance. Cumulative Cost- to- date = Rs. 5,40,000.00 Budgeted Cost= Rs. 7,50,000.00 Projected Cost to Complete= Rs. 2,50,000.000 Solution: (a) Item Balance = Budgeted Cost- Cumula tive Cost- to- date = Rs. 7,50,000- Rs 5,40,000 = Rs. 2,10,000.00 (b) Projected total cost= Cumulative Cost- to- date + Projected Cost to complete = Rs. 5,40,00 0 + Rs. 2,50,000 = Rs. 7,90,000.00 (c ) Projected Variance= Budgeted Cost- Proje cted total Cost = Rs. 7,50,000- Rs. 7, 90,000 = Rs. (40,000) It is obvious that this item will overrun the budget if action is not taken to get it back in budge t. The End 6

MR Gelal FPM, Class Note 13 Quality Control 1. What is Quality? According to Advanced Learner Dictionary, Quality is degree of goodness. Similar ly Crossby defines Quality as conformance to requirements. According to Juran, Q uality is fitness for purpose. Others define Quality as: Zero defects Consistent conformance to expectation Doing things right the first time Quality is the tot ality of characteristics of an entity that bears on its ability to satisfy state d and implied needs. Facts Regarding Quality Quality is not grade (Grade is an indicator of category or rank related to featu res that cover different sets of needs for products or services intended for the same functional use. Level is a general indication of the extent of departure f rom the ideal. A high-grade article can be of inadequate quality as far as satis fying needs and vice- versa. E.g. a luxurious hotel with poor service or a small guest- house with excellent service.) Quality costs more, but lack of quality c osts even more Quality is a means of achieving project success. It is not the go al in itself. Process quality is more than product quality Quality standards do not demand the best quality; they establish the minimum requirements to be achie ved. Quality does not happen by accident, it has to be properly planned and impl emented Management, Commitment and Involvement is a MUST. Break interdepartmenta l barriers and encourage teamwork. Philosophy of Do it right the first time. Preve ntion is better than rectification. Quality must be customer focused. Set goal w hich is SMART (Specific, Measurable, Attainable, Relevant and Track able). Drive out fear so that workers work efficiently. Sub-standard materials Malpractices in Construction Shoddy workmanship Summary of Quality Gurus Be Careful: 2. Quality Management Quality management includes Quality Assurance (QA) and Quality Control (QC) as w ell as other concepts of quality planning, quality policy and quality improvemen t. Total Quality Management (TQM) develops these concepts as a long-term global management strategy and the participation of all members of the organization for the benefit of the organization itself, its members, its customers and society as a whole. 1

MR Gelal FPM, Class Note 13 QUALITY MANAGEMENT QUALITY CONTROL What to do? How to do? QUALITY ASSURANCE TOTAL QUALITY Detection Prevention Improvement Adequate Authorized Implemented Improvement Method? Who does? Output Verified Work Procedures Work Processes

Inspections Sample or 100% Inspectors Audit QA Samples Quality Circles All All work Processes Organization Employees Quality System The provision made by management to ensure that quality is protected and promote d throughout all an organizations activities is referred to as the Quality system o r Quality Management system Quality control Quality Control is the operational techniques and activities that are used to fu lfill requirements for quality. Quality Inspection is done first for quality con trol. Activities such as measuring, examining, testing, gauging one or more char acteristics of a product or service and comparing these with specified requireme nts to determine conformity is quality inspection. Inspection is concerned with sentencing the product as good or bad, by comparison with the standard. On the o ther hand, quality control is concerned with feedback of the comparative 2 Client Suppliers

MR Gelal FPM, Class Note 13 information in order to regulate the process. In qua lity control, the limits are set so that the process can be adjusted before prod uct from the process reaches the limit where it has to be rejected. Quality Assurance All those planned and systematic actions necessary to provide adequate confidenc e that a product or service will satisfy given requirements or quality both with in the organization and externally to customers and authorities. Quality assuran ce: is a systematic way of ensuring those organized activities happen in a way t hat they are planned. is concerned with anticipating problems and with creating the attitudes and control that prevent problems from arising. firstly, aims to i mpart confidence to the client assuring that his needs will be consistently met (external quality assurance). Secondly, it aims to achieve quality through syste matic and planned actions avoiding fire-fighting or crisis management (internal q uality). Elements of Quality assurance system Assessment of the projects requirem ents Development of technical specifications and acceptance criteria Choice of q uality materials and design Choice of construction method; Equipment/ Plant Fiel d supervision and quality control Assessment of quality of completed project Per iodic Inspection and Maintenance measures Preparation of Quality Assurance Plan Clearly defining the objectives Enumerating the activities involved Incorporatin g the requirements of quality in each activity and providing far a fail- proof s afeguard, if any, and Laying down the surveillance plan, checks and penalties fo r each apprehended lapse and omission Total Quality Management Total quality Management is a new concept of quality management and is that aspe ct of the overall management function that determines and implements the quality policy. The essential elements of TQM are: Quality Planning Quality Control Qua lity audit Quality surveillance Quality Assurance Quality Circles 3

MR Gelal FPM, Class Note 13 TQ (Improvement) QA (Prevention) QC (Detection) Total Quality Management Quality Plan A Quality Plan (QP) is a document setting out the specific quality practices, re sources, and sequences of activities relevant to a particular product, service, contract or project. It should define: The quality objectives to be attained The specific allocation of responsibilities/authority during the different phases o f the project The specific procedures, methods and work instructions to be appli ed Suitable testing, inspection and audit programs at appropriate stages A metho d of modification for the quality plan as the project proceeds. Other measures n ecessary to meet the objectives 3. Quality Management Tools (a) Brain Storming Brainstorming is an idea- generating process. Alternatives are generated spontan eously through group creativity. Freewheeling including unrealistic or fantastic alternatives is encouraged. Criticism is ruled out. The generated alternatives are screened to identify appropriate alternatives. BS is used to: Generate list of problems Identify possible causes of problems Identify possible solutions Ana lysis, Evaluation and Investigation Develop action plans 4

MR Gelal FPM, Class Note 13 (b) Cause and Effect Analysis Cause and effect analysis is very useful for investigating root causes of proble ms. A solution applied after finding root causes of problem will have chance of lasting success in eradicating the problem. C/E analysis is a form of structured brainstorming breaks complex problems down sorts and records ideas gives focus to generate more ideas considers all areas points to root cause Effect Cause Sub-Causes 5

MR Gelal FPM, Class Note 13 (c) Process Flow Chart A process is anything, which converts an input into an output by doing work. Flo w chart provides substantial help to picture a process where overlaps, duplicati on and iterative loops are easily identified. Concreting Work Cement Sand Aggregate Water Batching to Proper Ratio Dry Mixing Addition of Water Mixing Slump Test Placing Compaction/Finishing 6

MR Gelal FPM, Class Note 13 (d) Check List Check list is the collection of different activities accompanied with required q uality standards in each activity expressed in a sequential order so that each i tem is checked with the stipulated performance standard. 4. Quality circle Quality circle is a small group of employees in the same work area or doing a si milar type of work who voluntarily meet regularly for about an hour every week t o identify, analyze and resolve work related problems, leading to improvement in their total performance and enrichment of their work life. QC is a technique of participative management for continuously improving quality, quantity, efficien cy and safety. QC is a work group of employees, who meet regularly to discuss th eir quality problems, investigate causes, recommend solutions and take correctiv e actions. 5. Quality Costs Quality cost can be divided into two parts: 1. Quality Management Cost Prevention cost Cost involved in activities to ensure right first time performan ce, e.g., costs of: quality planning new products review process planning proces s control quality audits supplier quality evaluation training Appraisal Cost Cos t involved in activities that check whether right first time is achieved, e.g., costs of: incoming inspection and test final inspection and test product quality audits maintaining accuracy of test equipments evaluation of stocks etc. 2. Failure Cost Cost involved in the activities which result from not confirming to right first time and includes: Internal Failure Cost (Scrap, Rework, Failure Analysis, Re- i nspection, Scrap and rework from suppliers etc.} External Failure Cost (Warranty charge, Returned material etc.) Intangible Quality Cost (Loss of goodwill of th e company) Quality costs more but lack of quality costs even more. 7

MR Gelal FPM, Class Note 13 Cost Per Unit Of Production Economic Balance Total Cost Prevention and Appraisal Cost Failure Cost Quality Level Cost of Quality The Fundamentals of Quality System ISO 9000 International quality system standard The ISO 9000 series actually consists of F ive Documents 1. ISO 9000: Principal Concepts and Applications (Definitions) 2. ISO 9001: Qual ity Systems- Model for Quality Assurance in Design/Dev./Prod./Installation/Servi cing 3. ISO 9002: Quality Systems- Model for Quality Assurance in Production / I nstallation 4. ISO 9003: Quality Systems- Model for Quality Assurance in Final I nspection and Testing 5. ISO 9004: Quality Management and Quality System Element s Guidelines ISO 9000- 9003 issue orders. Use the word shall. ISO 9004 offers advi ce, using the word should. It is an advisory or guidance document. Needed for inte rnational trade. For selling the products of developing countries to the develop ed countries and to compete with International market, one has to be attached to ISO 9000 and produce its goods or services as per the attached standard. 8

MR Gelal FPM PERT: Time Estimates 1 Uncertainties: Use of PERT PERT stands for Programme Evaluation and Review Technique, which can be applied to any field having some uncertainties about time of completion of project activ ities. These uncertainties may be about the times required for developmental res earch, engineering designs, ultimate construction and may be for specific activi ties or sometimes about the configuration of end product itself. There is little past history on which to base network construction and time estimates. In such projects, management cannot be guided by past experience. They are referred to a s once- through operations or projects such as launching a spacecraft. Two appro aches may be used for assessment of duration for any activity in a project for i ts completion. The first approach is the deterministic approach in which we may assume that we know enough about each job or operation, so that a single estimat e of their durations is sufficiently accurate to give reasonable results. This a pproach is followed by CPM users. The second approach is the non-deterministic a pproach or the probabilistic approach in which one may only be able to state lim its within which it is virtually certain that the activity duration will lie. Be tween these limits we must guess what is the probability of executing the activi ty. PERT planners follow this approach. 2 Time Estimates Time is the most essential and basic variable in PERT system of planning and con trol. PERT is mostly used for research and developmental projects, which are ref erred to as once- through. In these projects, there is uncertainty about the tim es required for the completion of various activities. Thus, to take the uncertai nties into account, PERT planners make three kinds of time estimates: The Optimi stic Time Estimate: duration of an activity if all went right, without any probl em. This time estimate is denoted by t0. The Pessimistic Time Estimate: duration of an activity if everything went wrong. This time estimate is denoted by tp. T he Most Likely Time Estimate: duration of an activity based on experience of wha t usually happens- something went wrong and some thing right. This time estimate is denoted by tL. Frequency Distribution These three time estimates, though look simple, are very difficult to prepare, u nless some guidance is available. The planner should base the estimations on ava ilable information and past experience. For example, consider a certain activity A under diverse conditions. The time required for the completion of this activity under each condition is known. Naturally, the time of completion will be short (optimistic time) if better than normal conditions exist. The number of cases wh en such conditions exist for completion of an activity A will be naturally small . Similarly, time of completion will be long (pessimistic time) if adverse condi tions are there, and such cases will also be small in number. If a curve is now plotted between the time of completion and the number of jobs completed in that ti me, a frequency distribution curve, such as the one shown in Fig. 1 below will b e obtained. From the curve, it is clear that there are large numbers of cases of the activity that are completed in the most likely time. Such a curve is also c alled unimodal curve, since it has single hump. 1

MR Gelal FPM No. Of Activities Time Figure 1 The curve shown in figure 1 is symmetrical on either side of point Q; such a curve is known as the normal curve. It is not necessary that a freque ncy distribution curve may be normal; it may have skew due to which it is not sy mmetrical about the peak Q. Figure 2 below shows few frequency distribution curv es. Figure 2 (a) Figure 2 (a) Figure 2 (a) Figure 2 (a) 2

MR Gelal FPM Figure 2 (a) Frequency distribution curve having skew to the left T he difference between tL and to is 1 while difference between tP and tL is 3 day s. Figure 2 (b) Frequency distribution curve having skew to the right The differ ence between tL and to is 3 while difference between tP and tL is 1 day. Figure 2 (c) Frequency distribution curve symmetrical about the peak (Normal Curve) Wid er variation between tP and to (Greater Uncertainty) Figure 2 (d) Frequency dist ribution curve symmetrical about the peak (Normal Curve) Smaller variation betwe en tP and to (More reliable time estimation) The method of preparing a frequency distribution curve will be explained with the help of an example. Example 1 In a certain project, the times required for digging 54 trenches of fixed dimens ions are recorded below. The trenches were excavated by different parties, each consisting of the same number of persons. Plot the frequency distribution curve. 8 10 12 6 9 11 10 13 15 12 11 9 8 10 14 16 12 16 15 10 14 12 7 9 13 10 8 11 17 13 9 11 13 10 14 9 12 15 14 9 10 9 11 10 7 13 11 8 12 11 8 10 9 11 3

MR Gelal FPM Solution: Days Completion of No. of trenches Days completed during Completion th ese days of No. of trenches completed during these days 6 7 8 9 10 11 1 2 5 8 9 8 12 13 14 15 16 17 6 5 4 3 2 1 4

MR Gelal FPM 3 Mean, Variance and Standard Deviation Mean Mean of distribution may be defined by the algebraic sum of time durations taken by various jobs divided by the number of the jobs. tm = t / n Deviation Deviation is the difference between the time under consideration and the mean ti me. This difference may be either positive or negative. = t- tm Variance Variance is the mean of the square eviations. It is expresse by 2 . 2 = (t- tm ) / n Variance i commonly u ed in tati tic a mea ure of variability of the d i tribution. 2 Standard Deviation

= In the above example, tm = t / n 2 (t- tm )2 / n = 597/ 54 = 11.06 = 338. 834 2 Variance 2 = / n = 338. 834 / 54 = 6.275 Stan ar De viation = 6.275 = 2.50 In the above example, we observe that the most likely time ( tL ) was 10 ays, while the mean time tm is 11.06. The tallest peak of the istribution curve is c alle the mo e, correspon ing to the most likely time, tL . Both mean an mo e o not coinci e because the istribution curve is not symmetrical curve about its peak. In the case of a symmetrical curve ( i.e., normal istribution curve) the mean coinci es with the mo e. 5

It i imply the quare root of the variance. Standard deviation i denoted by ymbol .

MR Gelal FPM Time taken, t 8 10 12 6 9 11 10 13 15 12 Deviation = t - tm -3.06 -1.06 0.94 -5.06 -2.06 -0.06 -1.06 1.94 3.94 0.94 2 9.364 1.124 0.884 25.604 4.244 0.004 1.124 3.764 15.524 0.884 11 9 8 10 14 16 12 16 15 10 14 12 7 9 13 10 8 11 17 13 9 11 13 10 14 9 12 15 14 9 10 9 11 10 7 13 11 8 12 11 8 10 9 11 -0.06 -2.06 -3.06 -1.06 2.94 4.94 0.94 4.94 3.94 -1.06 2.94 0.94 -4.06 -2.06 1.9 4 -1.06 -3.06 -0.06 5.94 1.94 -2.06 -0.06 1.94 -1.06 2.94 -2.06 0.94 3.94 2.94 2.06 -1.06 -2.06 -0.06 -1.06 -4.06 1.94 -0.06 -3.06 0.94 -0.06 -3.06 -1.06 -2.06 -0.06 0.004 4.244 9.364 1.124 8.644 24.404 0.884 24.404 15.524 1.124 8.644 0.884 16.48 4 4.244 3.764 1.124 9.364 0.004 35.284 3.764 4.244 0.004 3.764 1.124 8.644 4.244 0.884 15.524 8.644 4.244 1.124 4.244 0.004 1.124 16.484 3.764 0.004 9.364 0.884 0.004 9.364 1.124 4.244 0.004 597 6 338.834

MR Gelal FPM Probability Distribution Probability is connecte with chance an Uncertainty. The probability measures a re always between 0 an 1. If an event has probability of 1, it is certain to oc cur, while if the probability is 0, it will not occur. Closer the probability va lue is to 1, more certain is the occurrence of the event. y= f(x) Probability fu nction

Probability number can always be assigne to the estimate time, if sufficient ata is available. Generally, the available ata (frequency istribution) is use to plot probability istribution. Probability istribution is the curve, with i ts height so stan ar ize that the area un er the curve is equal to unity. The h eight or the or inate of the curve at any point x, is enote by function f(x), usually calle the probability ensity function. + Thus - f (x) x = 1 Normal Probability Distribution The probability curve is not necessarily symmetrical about its apex. If the curv e is symmetrical, then it is known to have normal or Gaussian istribution. The mean of the normal probability istribution is enote by (i.e. x= ). It can be prove that: y= f(x) x 7

x No. of

ays

MR Gelal FPM (a) Approximately 68% of the values of the normal istribution lie within + from the average, where i the tandard deviation. Thi mean that the haded area of the curve between x= - to x= + i 68% of the total area. (b) Appr oximately 95% of all the value lie within + 2 from the average. Thi mean that the haded area of the curve between x= - 2 to x= +2 i 95% of the total area. (c) Approximately 99.7% of all the value lie within + 3 from the average. Thi mean that the haded area of the curve between x= - 3 to x= +3 i 99.7 % of the total area. The la t property (c ) can be u ed to calculate the Standard Deviation di rectly if the minimum time t0 and maximum time tp are known. Let u ay that the minimum time i 6 day and maximum time i 18 day for the completion of a job. If 99.7 % of all the value (I.e., po ible completion time ) are a umed to li e between 6 and 18 day then the di tance between the extreme left value (6) and extreme right value (18) hould be equal to + 3 or 6 in total. The tandard devia tion = (18-6)/6 = 2 day . Hence we conclude, in general, that tandard deviation i given by = (tp t0 ) / 6 or Variance 2 = {(tp t0 ) / 6}2 The above metho of c alculating stan ar eviation is approximate. A more exact metho is by frequenc y istribution. However, in PERT problems, the emphasis is one- time, non-repeti tive projects for which there are no history of the activity. Hence we must base computations for on the given time e timate of the e timator. The Beta Di tribution The beta di tribution i a typical type of probability di tribution, which fit well for PERT analy i . A beta di tribution i the one, which i not ymmetrical about it apex. Figure below how two beta di tribution , one having kew to t he left (beta di tribution for optimi tic e timator) and the other having kew t o the right (beta di tribution for pe imi tic e timator). Probability Probabili ty Time Duration It can be hown that for beta di tribution, Standard Deviation = ( tp t0 ) / 6 or Variance 2 = {(tp t0 ) / 6}2 Greater the variance, greater will be the uncertainty. 8 Time Duration

MR Gelal FPM 4

The three time estimates t0 (optimistic time), tp (pessimistic time) an tL (mos t likely time) are i entifie on the beta istribution. The variance an stan ar eviation can be compute by using t0 an tp . However, one must combine the t hree time estimates into one single time the average time taken for the completi on of the activity or job. This average time or single workable time is commonly calle the expecte time an is enote by tE . In computing the expecte time, a weightage of 1 is given to the optimistic time an weightage of 4 to the most likely time an weightage of 1to the most pessimistic time. Thus, tE = (t0 +4 t L + tp) / 6

Jobs t0 tL 6 10 6 tP 11 12 8

Solution The expecte times for these jobs are (tE)A = (t0 +4 tL + tp) / 6 = (4+4*6+11)/ 6 = 6.5 ays (tE)B = (t0 +4 tL + tp) / 6 = (5+4*10+12)/ 6 = 9.5 ays (tE)C = (t0 +4 tL + tp) / 6 = (4+4*6+8)/ 6 = 6 ays For job A The expecte time, tE, falls to the right of the most likely time, though the curve has skew to the left. For job B The expecte time, tE falls to the left of the most likely time, though t he curve has skew to the right. One important point shoul be note about the ex pecte time, tE. The expecte time tE represents the average value while the mos t likely time tL represents the mo e of the - distri ution. Naturally, the vertic al ordinate through tE will divide the pro a ility curve into two equal areas. I f the estimated time (to , tL and tP ) are such that the expected time tE comput ed with these comes out to e equal to tL the distri ution curve will e symmetr ical a out the mode (tL), as in jo C. Jo A B C Standard Deviation A = (tP tO ) /6 = (11-4)/6 =1.167 B = (tP tO ) /6 = (12-5)/6 =1.167 C = (tP tO ) /6 = (8-4)/6 = 0.667 A2 B2 A2 Variance = (1.167)2= 1.36 = (1.167)2= 1.36 = (0.667)2= 0.444 9

A 4 B 5 C 4 Fin

the Expecte time of each job.

Example 2 Let us take the examples of estimate times of completion of three jobs A, B an C as un er.

Expecte

Time

MR Gelal FPM Probability Function Probability Function Time Duration Job A Job B Time Duration Probability Function Time Duration Job C Expected Time for Activitie in Serie When a number of activitie are in erie , the expected time for the path, along the activitie , can be found by fir t finding the tE for each activity, and the n taking their um. Alternatively, to , tL and tP of the path can be calculated fir t by taking the um of all to , tL and tP re pectively and then tE can be co mputed. 4-6-8 11 12 5-7-11 13 4-10-12 14 Activity 11-12 12-13 13-14 to 4 5 4 tL 6 7 10 tP 8 11 12 tE 6 7.333 9.3333 tE = 22.666 10

MR Gelal FPM Alternatively, = 4+5+4 =13 = 6+7 +10 = 23 = 8+11+12 = 31 = ( t0 + 4 tL + tP ) / 6 = (13+4*23+31) / 6 = 22.67 The standard deviation for the last even t (network ending event) in a series of activity, is given by, t0 tL t0 tE tE = 12 +22+32+..+n2 Example 3 The network for a certain project i hown in figure below. Determine the expect ed time for each of the path. Which path i critical? Solution: 2 7 1 3 6 8 4 5 Path A B C D Activity 1_2 2_7 7_8 1_2 2_6 6_8 1_3 3_6 6_8 1_4 4_5 5_6 6_8 t 6 8 5 6 4 7 3 8 7 5 4 3 7 t 8 10 8 8 8 10 7 10 10 7 6 5 10 11 t 11 12 12 11 14 15 9 12 15 10 8 6 15 t 8.1667 10.00 8.1667 8.1667 8.3333 10.33 6.6667 10.00 10.33 7.1667 6.00 4.8333 10.33 t 26.34 26.83 27.00 28.33

Path A B C D Activity 1_2 2_7 7_8 1_2 2_6 6_8 1_3 3_6 6_8 1_4 4_5 5_6 6_8 t 6 8 5 6 4 7 3 8 7 5 4 3 7 t 8 10 8 8 8 10 7 10 10 7 6 5 10 t 11 12 12 11 14 15 9 12 15 10 8 6 15 t 8.1667 10.00 8.1667 8.1667 8.3333 10.33 6.6667 10.00 10.33 7.1667 6.00 4.8333 10.33 t 26.34 26.83 27.00 28.33

FPM MR Gelal

HEALTH AND SAFETY Safety Oxford Advanced Learner Dictionary define the term afety a being afe; free danger. Safety hazard are tho e that po e imminent danger of cau ing injury or death to worker or damage to material , equipment or tructure . Theoretically, afety would mean the ab ence of danger at work, which i made po ible by elim inating hazard that create the danger. A more practical definition u ed in an I LO document tate A thing i provi ionally categorized a afe if it ri k are deemed known and, in the light of that knowledge, judged to be acceptable. Howeve r, it i not alway ea y to determine to what extent the accident are the direc t re ult of the working environment only. There may be lack of proper afety equ ipment at work ite . The de ign of the tructure or of the equipment u ed may b e faulty. The phy ical condition at work ite , heat, light, humidity etc. may not be ati factory. Long working hour may cau e fatigue. Living condition , o cial habit , experience, attitude , motivation etc. are other po ibilitie . It i for the e rea on that, very often, health, occupational afety, working cond ition , working hour and welfare are bracketed together for evolving mea ure o f accident control a well of promoting afety. Safety may be defined a an act of being afe from the material , ub tance and the proce at con truction it e. Safety ba ically i concerned with no lo of life at the work place and mini mizing injurie to the workmen and other common people. It i al o concerned wit h the afety of work and with the damage of property and lo of time. Accident An event that happen all of a udden unexpectedly which may cau e injury, death or damag e to men/equipment/material and affect the life of individual and hi family a well a ultimately entire ociety.

Phy ical Improper equipment High peed of operation Unauthorized operation Machine relat ed (Working pace, Ob truction etc.) Tool related (Breakage etc.) Material (In flammable, explo ive etc.) Uniform Working environment 1

Cau e of Accident 1. Hardware Cau e

FPM MR Gelal Phy iological Poor eye ight Poor health Old age Intoxication ( alcohol, drug etc.) Phy di ability Anxiety Worrie Fear Over con ciou ne P ychological

Health Problem in Project Health hazard in project include, among other , heat, radiation, noi e, du t, hock and vibration , and toxic chemical . Perhap the main hazard here, however , i human optimi m. Since the effect are not immediately felt, we ayo I can w ork in thi du t from rock drilling for a few more hour . A hot, teamy hower w ill clear it out! o I can go into the tunnel heading without earplug . The pain top when I come out! o It ure i hot out, and Im feeling dizzy and have a real headache coming on, but it only an hour until quitting time. There i no point i n topping thi truck for a drink of water now! o Ive been working with a be to f or 20 year and Im not ick. What thi bu ine about it cau ing cancer? Increa i ngly, it i being recognized that occupational di ea e have indeed been a erio u problem in con truction. There are ub tantial direct co t for medical treat ment and di ability claim , and indirect co t through the premature lo of ki lled worker . It i virtually important that all organization involved in con t ruction tay up to date with development in occupational health and implement m ethod proven to reduce health hazard . If humanitarian concern are in ufficien t, the liability implication hould be more than enough rea on. Since Health an d Safety are interdependent to each other, they will be dealt combinly in thi c hapter. 2

2. Software Cau e Inadequate plan and program Lack of training Negligence Mi take

FPM MR Gelal Project and Safety Con ideration Project involve thou and of different type of material , chemical , equipment and machinery. Al o the work involve working on difficult working condition and ituation . Project ite are often dangerou becau e they: o Are carried ou t at dangerou place or o The con truction place are made dangerou o U e danger ou material like bla ting material and other chemical o U e dangerou method like underwater drilling and bla ting o U e heavy machine , which often become the cau e of accident. From the record of other countrie , the di tribution of cau e of accident are a follow : 50% by fall of per on 15% by falling object 15% by tran port or mobile equipment 6% by other machine and 14% by other . M o t important thing in dealing with the danger from article and ub tance and work proce and arrangement a ociated with them i good quality afety train ing to the manager of con truction indu try. If managed properly, at lea t 90% of the accident can be predicted and hence avoided in con truction indu try.

Humanitarian Concern On a purely humanitarian level, the purpo e of improved occupational afety and health i to reduce the human pain and uffering, to worker familie a well a to them elve , that re ult from accident and work- induced illne . Even the t ronge t human being are frail creature when ubjected to the force of nature and the indu trial hazard a ociated with the moving machinery, du t, explo ive , heat, electricity, noi e, potential for falling, and toxic ub tance that fo rm the everyday environment of con truction. The re ulting injurie are often cr uelly di figuring and re ult in lifetime handicap and di abilitie .

Need for Safety in Con truction A di abling injury or fatal ation at many level . Accident r that motivate afe practice ow : Humanitarian Concern ideration

accident on the co t money and at the job ite Economic Co t

job ite ha negative impact on oper affect worker morale. The facto are generally identified a foll and Benefit Legal and Regulatory Con

FPM MR Gelal Economic Co t and Benefit When the indirect a well a the direct co t of accident and illne are con i dered, co t a ociated with in urance premium , claim ettlement , and the lik e are only a mall portion of the whole. Even at the project level, it i often e timated that the indirect and impact co t re ulting from interrupted producti on, reduced morale, lower productivity and ripple effect on the chedule can be everal time the direct co t a ociated with ho pitalization, di ability pay, poiled material , damaged equipment and recon truction. The indirect impact co t mu t normally be ab orbed directly by the project. Direct co t of each acci dent occurrence: Delay to project Unin ured damage Lo t production Indirect co t : Inve tigation Lo of killed worker Lo of equipment Reduced morale Much the ame analy i applie at the worker level. More typical ettlement under w orker compen ation are limited mainly to worker medical expen e and a fraction of lo t alarie . Further more, the indirect impact of the p ychological and emo tional di ruption to the familie i very real, but not ea y to quantify. Where long-term or permanent di ability re ult , there i an unknown lo t potential fo r both earning and future growth and development. Skilled worker area carce a nd valuable re ource; con iderable time, money, and effort are inve ted in their training. A career interrupted at age 25 mean that 40 additional year of kil led production have been lo t. With today hortage, it i mi judgment to ay the re will be omeone el e to take the accident victim place. For the e and other r ea on , the more enlightened organization in the engineering and con truction i ndu try- owner , con tructor , de igner and agencie alike- have recognized tha t effective program to improve performance in afety and health are not expen e , but inve tment . Some have e timated that $ 1 inve ted in afety and health p ay $ 4 to $8 in return. 4

FPM MR Gelal Legal and Regulatory Con ideration Due to competitive nature of the con truction indu try co t cutting area uch a afety and health often eem attractive and even nece ary for bu ine urvi val. Thi not only run counter to the productivity of long-term inve tment in afety de cribed above, but thi general attitude of expediency al o account in large mea ure for the high rate of bu ine failure in con truction. Regardle of the origin , the con equence of the irre pon ible afety and health perform ance of ome individual and firm have brought on law and regulation a a lev eler for all. Many Law , Rule and Regulation have been formulated and are bein g enacted in everal countrie a a phy ical approach to achieving afety. The e legi lation require the owner, de igner and contractor to meet certain requi rement to protect the worker again t health and accident hazard . A typical ph y ical mea ure of thi type i the requirement to in tall guardrail around all open floor of a multi tory building during con truction. Furthermore, phy ical mea ure are implemented to minimize injury in the event of an accident. An exam ple of thi i the requirement to wear a afety belt when working high teel and the in tallation of afety net to protect a man who lip and fall . One typic al legi lation i : o Occupational Safety and Health Act, 1970 (US), more popular ly known a OSHA. Under thi act, all employer are required to provide employmen t and a place of employment which are free from recognized hazard that are cau ing or are likely to cau e death or eriou phy ical harm to hi employee . From above paragraph , we believe without any doubt that the afety i needed for: o Minimizing rate of accident in con truction indu try o Eliminating fatal accide nt at con truction ite o Rai ing morale by which rai ing efficiency of the wor ker o Improving overall quality of the work and o Ultimately reducing con tructi on co t .

What are the Un afe Condition ? Un afe condition are tho e factor that are pre ent due to defect in condition , error in de ign, faulty planning or omi ion of e ential afety requirement for maintaining hazard free phy ical environment. Un afe condition may be gro uped into: o Inadequate mechanical guarding o Defective condition of equipment, tool , floor , tair etc. o Un afe de ign and con truction o Un afe proce , op eration or arrangement e.g. un afe piling, tocking, torage, overloading, over crowding etc. o Inadequate light and ventilation and o Un afe dre e.g. loo e c lothing, no glove , no apron and hoe etc. 5

FPM MR Gelal What are the Un afe Act ? Un afe act of the per on are tho e type of behavior at the work place that ca u e accident and lead to injurie or death. They include: o Working un afely o Contravention of afety order o Removing or altering afety device o Operating at un afe condition o U e of un afe or improper equipment etc. Human element in afety Safety policy A clear and well-defined policy hould be followed Di cu ion with trade union rel ating to afety policy Safety policy hould be reviewed and updated in regular in terval Recruitment and Placing Preparation of a tandard li t of phy ical demand applicable to the entire ta k to be included in the election procedure. Square peg into a quare hole and ci rcular peg into a circular hole hould be the guiding principle. Preparation of job de cription and job pecification including li ting the requirement the hold er of the job hould have i the re pon ibility of per onnel manager. Per onnel Manager hould eek expert advice of the afety in charge or afety expert. Medical Examination Thorough medical examination i nece ary for ome pecific job . Care hould be taken for patient of epilep y, poor vi ion and poor hearing condition. Alcoholi m Alcoholi m and drug abu e wor en the problem of control of injurie and therefor e are matter of concern. Alcoholi m in job ituation can be defined a a di ea e in which an employee con umption of any alcoholic beverage definitely and repeat edly interfere with hi job performance and/ or hi health. Alcoholi m i a comp licated di ea e and not ea y to cure a culture and value are a ociated with i t. Training

Safety Program for Con truction Safety planning Safety Implementation Safety Monitoring Safety Control 6

Employee

hould be trained for the afety procedure and practice to be followed.

FPM MR Gelal

The Growth of afety Regulation/Legi lation: Nepale e Scenario In Nepal, the government fir t re pon e toward afety in project might po ibl y be the enactment of the Labor Act 2048, which came into force on 15 May 1992. Be fore thi , there wa no pecial law regarding labor in con truction indu try. Lab or Act, 2048 contain provi ion on health and afety of the worker . A provided under chapter 5 of the act, management of an organization hould en ure the fol lowing: a. b. General Safety The working area hould be cleaned, painted, d of wa te and nece ary in ecticide pread on the area. Proper light and venti lation a well a appropriate temperature hould be maintained. Arrangement hou ld be made for the di po al of wa te material. Working area hould be free from du t, air, vapor and other material, which could adver ely affect the health of the worker. Arrangement to be made for the control of noi e and nece ary equip ment to be provided if worker have to work on loud noi e area. Work area hould not be conge ted. Every worker hould get at lea t 15 Cum. Of working pace wit hin 4m. height from the ground. Adequate potable drinking water hould be provid ed. Gent and ladie latrine to be provided at appropriate place. Medical check up of the worker hould be done at lea t once a year. Safety for Eye Eye hield or goggle hould be provided to afeguard eye from flying du t, object, weldi ng and ga cutting light etc. Safety from Chemical Per onal afety arrangement ha to be made for the worker who handle dangerou chemical . Fire Safety e. f. g. h. i. Modern afety equipment Provi ion of fire e cape Provi ion of fire ext ingui her at required place . Guarding the Machine Heavy load handling Pre ure Plant Safety Order Information of the accident 7 c. d.

FPM MR Gelal

ILO STANDARDS AND GOVERNMENT RULES In 1966, Nepal became a member of ILO. Be ide the general ILO Standard (ILS) l ike freedom of a ociation, prohibition of forced labor etc, there are ILS on Oc cupational Safety and Health which are more pecifically related to the con truc tion worker . Some of the Convention are: No 155 No 161 No 13 No 115 No 13 170 No 119 No 127 No 148 : Occupational afety and Health Convention, 1981 : Occ upational Health Service Convention, 1985 : White Lead (Painting) Convention , 1921 : Radiation Protection Convention, 1974 : Occupational Cancer Convention, 1 974 : Chemical Convention , 1990 : Guarding of Machinery Convention, 1963 : Maxi mum weight Convention, 1967 : Working Environment(Air pollution, Noi e and Vibra tion)Convention, 1977 8

Ri k and Uncertainty in Project Managing Ri k in Project When our World wa created, nobody remembered to include Certainty - PETER BERNSTEIN Every project i ri ky, meaning there i a chance thing wont t urn out exactly a planned. Project outcome are determined by many thing , ome that are unpredictable and over which project manager have little control. Ri k level i a ociated with the certainty level about technical, chedule and co t outcome . High certainty outcome have low-ri k; low- certainty outcome have high ri k . Certainty derive from knowledge and experience gained in prior proj ect , a well a from management ability to control project outcome and re pond to emerging problem . In general, ri k i a function of uniquene of a project and the experience of the project team. Ri k = f (uniquene , experience of project team). When activitie are routine or have been performed many time before, manager c an anticipate the range of potential outcome and manipulate a pect of the y t em de ign and project plan to achieve the outcome de ired. When the project i unique or team i inexperienced, the potential outcome are more uncertain, maki ng it difficult to know what could go wrong and how to avoid problem . Even in r outine project there i ri k becau e outcome may be influenced either by fact or that are new and emerging, or tho e beyond anyone control. The notion of pro ject ri k involve two concept : i. The likelihood that ome problematical event will occur. ii. The impact of the event if it doe occur. Ri k i joint functio n of the two; that i , Ri k = f (likelihood, impact) A project will be ordinarily con idered ri ky whenever at lea t one factor- eith er the likelihood or the impact- i large. For example, a project will be con id ered ri ky where the potential impact i human fatality or ma ive financial lo even when the likelihood of either i mall. Though the ri k cannot be elimina ted from project , it can be reduced. That i the purpo e of ri k management. Th ere are three major a pect of ri k management: Ri k Identification Ri k A e m ent Ri k Re pon e Planning 1

MR Gelal Cla

Note

17 & 18

1 Ri k Identification Before you can manage omething, you mu t fir t know about it. Thu , ri k manage ment begin with identifying the ri k and predicting their con equence . If a r i k and it con equence are ignificant, way mu t be found to avoid the ri k o r reduce it to an acceptable level. Acceptable ri k depend on the ri k toleranc e of project takeholder and manager . Experienced manager are more careful (a nd ri k aver e), where a le experienced takeholder tend to be greater ri ktaker (more ri k tolerant) becau e they dont know of the ri k or are ignorant o f the con equence . o Ri k of failure: project might fall hort of chedule, bud get or technical goal . o Ri k of opportunity: event leading to reward , aving or benefit . One method to identify project ri k i to proceed according to p roject chronology; that i ri k a ociated with each pha e of project life cycl e that may ruin the project immediately or lead to a later failure are eparatel y identified. High ri k in project typically tem from: o U ing an unu ual app roach. o Attempting to further technology. o Training for new ta k or applying new kill . o Developing and te ting of new equipment, y tem or procedure . An y factor with an uncertain probability of occurring, that can influence the outc ome of a project, i con idered a ri k ource or ri k hazard. The mo t difficult part of ri k identification i di covering thing you dont already know! Project ri k can be cla ified a internal ri k and external ri k . Internal ri k ori ginate in ide the project and project manager and takeholder u ually have a m ea ure of control over the e. Two main categorie of internal ri k are market r i k and technical ri k. Market ri k i the ri k of not fulfilling either market need or the requirement of particular cu tomer . The ource of market ri k in clude: Incompletely/ inadequately defined market or cu tomer need . Failure to i dentify changing need Failure to identify newly introduced product by competit or . Technical ri k i the ri k of not meeting time, co t or performance require ment due to technical problem with the end-item or project activitie . The e r i k are high in project involving activitie that are unfamiliar or require ne w way of integration and e pecially high in project with untried technical app lication . One approach to expre ing technical ri k i to rate the ri k of the project end-item or primary proce a being high, medium or low according to th e following feature . Source of Ri k: Internal Ri k : Market Ri k Technical Ri k 2

MR Gelal Cla

Note

17 & 18

External Ri k : External ri k include only ri k that tem from ource out ide the project. Pr oject manager and takeholder u ually have little or no control over the e. Ex ternal ri k hazard include change in: Market condition Competitor action Go vernment regulation Intere t rate Deci ion made by enior management/ cu tome r regarding project prioritie , taffing or budget Cu tomer need and behavior Weather (adver e) Labor availability ( trike /walkout ) Material/labor re ource ( hortage ) etc. Project ri k are identified from analy i of the numerou do cument reviewed or prepared during project conception and definition. The e doc ument include: Report from pa t project Li t of u er need and requirement WBS Co t e timate Schedule Model of end-item . The variou technique for pi n pointing ri k are: o Analogy Technique: looking at record , po t completion ummarie and project team member note and recollection from previou imilar p roject . o Checkli t : li t of factor that can affect the ri k in a project o WBS Analy i : Every work package i crutinized for potential problem with mana gement, cu tomer , upplier , equipment and re ource availability and technical hurdle . o Proce Flow Chart : A flow chart illu trate the tep , procedure a nd flow between ta k and activitie in a proce .

Ri k Identification Technique

MR Gelal Cla Note 17 & 18 o Maturity: An End-item or proce that i pre-exi ting, in talled and operational or ba ed on experience and preexi ting knowledge entail le ri k than that in the early tage of development or new. o Complex ity: An End-item or proce with numerou interrelated tep or component i mo re ri ky than one with few tep and component having imple relation hip. o Qu ality: An end- item or proce that i known to be completely producible, reliab le or te table i le ri ky than one that ha not yet been produced or ha low reliability or te tability. o Concurrency or Dependency: In general ri k increa e the more that activitie overlap one another. Sequential, dependent activitie with no overlap are much le ri ky than tho e with much overlap.

MR Gelal Cla Note 17 & 18 o Cau e- and- effect Diagram: Potential outcome or end-item (effect) due to potential cau e (hazard ) or ri k hazard (cau e) that might en ue (effect). o Brain torming: hare opinion and generate idea about po ible problem or hazard in the project. 2 Ri k A e ment Ri k are commonplace, but it i only the notable one that require attention. W hat i con idered notable depend on three thing : Ri k likelihood Ri k impact, and Ri k con equence Ri k Likelihood Ri k likelihood i the probability that a hazard or ri k factor will actually ma terialize. It can be expre ed a a numerical value between 1.0 (certain to happ en) and 0 (impo ible) or a a qualitative rating uch a high, medium or low. T able 1 below how an example of qualitative rating and the a ociated numerica l percent value for each. The table i for illu tration only. The a ociation b etween qualitative rating and particular value i ubjective and depend on th e experience of the project team and ri k tolerance of takeholder . Ri k Likeli hood: Qualitative Rating for Quantitive Value NUMERICAL 0- 0.20 0.21- 0.50 0.5 1- 1.00 Table 1 QUALITATIVE Low Medium High Table 2 i a checkli t that give numerical likelihood for five potential ource of failure in computer y tem project . Table 2: Source of Failure and Likel ihood. MS CS MH CH D Likelihood 0.1 (low) 0.3 (minor)

failure likelihood due to immaturity of oftware failure likelihood due to compl exity of oftware failure likelihood due to immaturity of hardware failure likel ihood due to complexity of hardware failure likelihood due to dependency on exte rnal factor MS Exi ting Minor rede ign MH Exi ting Minor rede ign CH Simple De ign Minor complexity CS Simple De ign Minor complexity Moderate Signif.complex Extreme complx. D Independent Sch. Depnt.on ES Perf.depnt. on ES Sch.Depnt.on NS Perf.depnt. on NS

SoA/ re earch done SoA/ never done 4

0.5 (moderate) Major change fea ible Maj.Change fea . Moderate complexity 0.7 ( ignificant) Complex de ign 0.9 (high) New but imilar to exi t. Signif.complex. Extreme complx.

MR Gelal Cla Note 17 & 18 When a project ha multiple, independent ri k ourc e , they can be combined and expre ed a a ingle Compo ite likelihood factor, or CLF. For example, u ing the ource li ted in Table 2 the CLF can be computed a a weighted average, CLF= W1 MH + W2 CH + W3 MS + W4 CS + W5 D Where W1, W2, W3, W4 and W5 each have value 0 through 1 and together total 1. Example 1: The ROSEBUD project involve development of hardware and oftware with character i tic a follow : The hardware i exi ting and of minor complexity; the moderat ely complex oftware involve a minor rede ign of current oftware; the performa nce of the overall y tem depend on how well it can be integrated into another, larger y tem. Calculate the CLF for the probable ri k. Solution: From Table 2 above, we have; MH = 0.1, CH = 0.3, MS = 0.3, CS = 0.5 and D= 0.9. A uming all ource are rated equally at 0.2, then, CLF = 0.2*0.1 + 0.2* 0.3 +0.2* 0.3 + 0.2 *0.5+ 0.2* 0.9 = 0.31 An . Ri k Impact What would happen if a ri k hazard materialized? The re ult would be called ri k impact. A poorly marked highway inter ection i a ri k hazard; the ri k po ed i that of colli ion with the impact of injury or death. Ri k impact in project i pecified in term of time, co t and performance mea ure . For example, Ri k hazard: in ufficient number of killed labor Ri k impact: extending the chedul e of the project Ri k impact can be expre ed a a qualitative rating uch a hi gh, medium or low. The rating i ubjective and depend upon the opinion of mana ger about the importance of the ri k. For example, a ri k leading to a chedule delay of 1 month or le might be con idered low impact, wherea a delay of 3 mo nth or more might be deemed high impact. Ri k impact al o can be expre ed a a n umerical mea ure between 0 and 1, where 0 i not eriou and 1 i cata trophic. Agai n the rating i ubjective and depend upon the opinion. Ju t a the likelihood for multiple ri k can be combined, o can the impact from multiple ri k ource . If technical, co t and chedule impact are TI, CI and SI, then Compo ite Imp act Factor CIF, can be computed u ing a imple weighted average, CIF = W1 *TI + W2 * CI + W3 * SI Where W1, W2, and W3 are valued from 0 to 1 and together um t o 1. If CIF i 0, it mean no impact wherea CIF equal to 1 mean the mo t evere impact. 5

Ri k Con equence The ri k i a function of ri k likelihood and ri k impact. Thi notion i referr ed to a the ri k con equence. Ri k con equence can be expre ed in two way . Fi r t, it can be expre ed a a imple numerical rating with a value ranging betwe en 0 and 1. In that ca e, the ri k con equence rating, RCR, i RCR= CLF+CIF- (CL F)* (CIF) Small value repre ent unimportant ri k that might be ignored; large v alue repre ent important ri k worth attending to. The con equence rating value i interpreted ubjectively. In general, Value over 0.7: high ri k project Value under 0.2: low ri k project Value of 0.48: moderate level ri k Another way to e xpre ri k con equence i an Expected value. The ri k con equence expected valu e i computed a Ri k Con equence= (Impact)* (Likelihood) The ri k con equence o n project duration i called the Ri k Time, RT. RT= (Corrective time)* (Likeliho od) The ri k con equence on project co t i called the Ri k Co t, RC. RC= (Corre ctive co t)* (Likelihood) Example 2 Suppo e the ba eline time e timate (BTE) for project completion i 26 week and the ba eline co t e timate (BCE) i NR . 500,000. A ume that the ri k likelihoo d for the project a a whole i 0.3, and, hould the ri k materialize, it would delay the project by 5 week and increa e the co t by NR . 80,000. Calculate the expected project completion time ET and expected project completion co t Ec, co n idering ri k into account. 6

MR Gelal Cla Note 17 & 18 Table 3: Impact Value for Different Technical, Co t and Time Situation . Impact Value Technical Impact (TI) Co t Impact (CI) Sched ule Impact (SI) 0.1 (low) Minimal Within budget Negligible 0.3 (minor) Small red uction in Co t increa e 1- 10% Minor lip <1month performance 0.5 (moderate) Mod erate reduction in Co t increa e 10- 25% Moderate lip performance (1-3 month) 0 .7 ( ignificant) Significant reduction in Co t increa e 25- 50% Significant lip performance > 3 month 0.9 (high) Technical goal might not Co t increa e in Lar ge lip be achievable exce of 50% (unacceptable) Above equation a ume that r i k impact are independent. If they are not, then they mu t be treated jointly a , for example, the impact of both a 20% increa e in co t and a 3- month chedu le lip.

MR Gelal Cla Note 17 & 18 Solution: A the probability of the ri k materializ ing i 0.3, the probability of not materializing i 0.7. If the ri k doe not ma terialize, no corrective mea ure will be nece ary, o the corrective time and co t will be nil. Hence RT= 5*0.3 + 0* 0.7 = 1.5 Week RC= 80,000* 0.3 +0* 0.7 = NR . 24,000 The e figure RT and RC would be included a re erve or buffer amou nt in the project chedule and budget to account for ri k. RT and RC are the c hedule re erve and project contingency (budget re erve) re pectively. Thu , Expe cted Project Completion Time, ET = BTE+ RT = 26 + 1.5 = 27.5 Week Expected Proj ect Completion Co t, EC = BCE+ RC = 500,000 + 24,000 = NR . 524,000 When the cor rective time and co t cannot be e timated, then ET and EC are computed a ET= BT E (1+likelihood) = 26* 1.3 = 33.8 Week EC= BCE (1+likelihood) = NR . 500,000* 1 .3 = NR . 650,000 7

3 Ri k Re pon e Planning Ri k re pon e planning addre e the matter of how to deal with ri k. The re pon e to, or the allocation of, ri k can take any of four form :

Ri k Re pon e Ri k Tran fer Ri k Tran fer Ri k Reduction Ri k Avoidance Ri k Acceptance Tran ferring ri k doe not reduce the criticality of the ource of ri k; it ju t remove it to another party. The commone t form of ri k tran fer i by mean of in urance, which change an uncertain expo ure to a certain co t. Ri k can be t ran ferred partly or fully from the cu tomer to the contractor, or vice ver a, u ing contractual incentive , warrantie , or penaltie attached to project perfor mance, co t or chedule mea ure . The contractor and cu tomer may decide to pli t the ri k through a contractual agreement in which each manage the ri k they can handle the be t. Of cour e it i impo ible to entirely tran fer the ri k to one party or another. Even with a fixed price contract, where the contractor ta ke all the ri k, the cu tomer till incur damage or hard hip hould the proje ct exceed the target chedule or the contractor declare bankruptcy. Tran fer of one kind of ri k often mean inheriting another kind of ri k. Ri k Reduction One of the way of reducing the ri k expo ure i to hare ri k with other parti e . For in tance, the international bank yndicated loan to third world govern ment or the tock market inve tor pread hi ri k over many ecuritie . The g eneral contractor will attempt to reduce hi ri k expo ure to pay liquidated dam age for late completion by impo ing liquidated damage clau e in dome tic ub contractor agreement . Among the many way to reduce ri k a ociated with techni cal performance are to: Employ the be t technical team. Ba e deci ion on model and imulation of key technical parameter . U e mature, computer aided y temengineering tool . Provide the technical team with adequate incentive for ucce . Hire out ide peciali t for critical review and a e ment of work. Perform exten ive te t and evaluation . Minimize y tem complexity (By decoupling acti vitie and ub y tem , that i , making them independent of one another, the fail ure of any one activity or ub y tem i contained and will not pread to other ) . 8

MR Gelal Cla

Note

17 & 18

 MR Gelal Cla Note 17 & 18 U e de ign margin (A de ign margin i quantified v alue that erve a a afety buffer to be held in re erve and allocated by manag ement. By aiming for the target value, any de ign error can mi by a much a t he de ign margin amount and till ati fy the requirement). Ri k Avoidance Ri k avoidance i ynonymou with refu al to accept ri k . The refu al to contra ct i a imple example to ri k avoidance. However, it i more relevant to con id er the pecific ri k , which can be avoided. The ba ic rational of ri k aver ion i that it i more unplea ant to lo e a given um than plea ant to gain the am e amount; for a lo may cau e a reduction in the tandard of living to which on e ha become accu tomed. In an extreme ca e, a ri ky venture may be hunned beca u e it put ba ic nece itie at ri k. Al o, avoiding ri k can dimini h the payo ff opportunitie . Re earch project and innovative, new-product development proj ect are inherently ri ky, but they offer potential for huge benefit later on. Becau e the potential benefit of uch a project i proportionate to the ize of the ri k, it i better to reduce ri k to an acceptable level rather than complet ely avoid ri k. Ri k Acceptance Not all impact are evere or fatal, and if the co t of avoiding, reducing or tr an ferring the ri k exceed the benefit, then do nothing might be advi able. Of c our e, thi re pon e would not be cho en for ri k where the impact or con eque nce are potentially evere. Not all ri k can be tran ferred, but even if they w ere capable of being tran ferred it may not prove to be economical to do o. The ri k will then have to be retained. The gamble i between paying premium and th e probability of the event occurring and the con equential lo that would re ul t. The ri k retention i ba ed on the probability of a claim for damage and wha t the practice can afford to pay if the claim i ucce ful.

Summarizing Ri k Management Project management i ri k management. Ri k have to be identified, c nd analyzed before any re pon e i made. An identified ri k i not a ri k; it i management problem. Beware of u ing olely the intuitive approach or gut fell to manage ri k. Ri k management need to be continuou from the moment the project tart to the moment it end . A poorly defined ri k tructure will breed more ri k. U e both creative and negative brain torming and dont u e the o trich approac h. Alway have a contingency plan (ri k re erve) to cope with the wor t eventual ity. Ri k management y tem hould not be complicated or burden ome; they need t o be integrated into a firm daily operation . A ri k officer hould be appointed to take the re pon ibility of ri k management. A communication channel i to be e tabli hed within the project team to en ure that bad new quickly get to the project manager. En ure accurate and comprehen ive project documentation for be tter ri k planning in future. 9

MR Gelal FPM THE S-CURVE S-Curve i one of the popular planning tool . S-Curve graphically plot ome mea ure of cumulative progre on the vertical axi again t time on the horizontal axi . Progre can be mea ured in term of money expended, quantity urvey of w ork in place, man-hour expended, or any other mea ure which make en e. Any of the e can be expre ed either in term of actual unit (Rupee , Cubic meter, et c.) or a a percentage of the e timated total quantity to be mea ured. Why doe it look Like S? On mo t project , expenditure of re ource per unit time tend to tart lowly, build up to a peak, and then taper off near the end. Thi cau e the lope of th e cumulative curve to tart low, increa e during the middle, and then flatten ne ar the top. After igning a con truction contract, the contractor ha to prepare him elf for the work. Al o minor work are tarted which take time to gain mom entum. After the period of low tart, when the contractor mobilize him fully, the rate of progre accelerate remarkably and for quite ufficient duration, t he rate of progre i con tant. Finally, a falling off of thi rate of progre i marked when the project i toward completion. Contractor reduce hi manpow er ub tantially and activitie are limited to fini hing, te ting and commi ion ing. By thi , for any project, if we draw on a graph, we find a figure having Shape. S- Curve Cumulative Co t Time Traditionally, the curve wa being u ed to plan the budget and ca h flow only. I t wa drawn for cumulative chedule of co t on vertical cale and time duration on horizontal cale. But now, we have tarted u ing it not only to plan overall co t of the project, but al o to plan man-hour , phy ical percentage completion, individual item of work and o on. In that ca e 1

MR Gelal FPM the vertical cale repre ent man- hour , phy ical percentage of wo rk completed etc. and horizontal cale alway repre ent the time. Example: An airport con truction project ha to move 10,000 cubic meter of earth within 1 0 day . The daily excavation quantitie are a hown in figure 1 below. Summing all the daily excavation quantitie through any particular day give the cumulat ive quantity by that day. For example, by the end of day 5, the cumulative quant ity i the um of excavation on day 1, 2, 3, 4 and 5. That i = 200 + 600 + 100 0 + 1400 + 1800 = 5000 The hape of S- Curve can be een by connecting the point at the end of each day cumulative production a hown in figure 2. Figure 1 Figure 2 2

MR Gelal FPM LINE OF BALANCE Line of Balance i a graphic technique u ed for project planning and control to depict timequantity relation hip . They apply be t to linear and repetitive oper ation uch a tunnel , pipeline , highway and building project . The vertical axi typically plot cumulative progre or percentage completed for different y tem of a project, uch a the tructural, electrical, mechanical and other tr ade ub contractor on a high-ri e building. The horizontal axi plot time. An example may be, clearing, excavation, tringing, welding, pipe laying, and backf ill operation on a pipeline. A long a the lope are either equal or decrea i ng a one move to the right, the project hould proceed ati factorily. However , if early cheduling how one operation proceeding too rapidly, with a high l ope compared with tho e preceding it, the time and location of the fir t conflic t become rapidly apparent. To illu trate thi , figure 3 how the eighth operat ion tarting to conflict with the eventh, when each i about 70% complete. 100% Time 3

MR Gelal FPM Linked Bar Chart Linked bar chart i a modified ver ion of Gantt bar chart. It wa developed to o vercome ome of the inherent limitation of bar chart. It how the link betwee n an activity and the preceding or ucceeding activitie . The linked bar chart h a advantage of exhibiting the effect of delay on ucceeding activitie and al o it can provide ome information of the extra time available (if there i ) with an activity for it completion. The extra time available for an activity for it completion i called float. Similarly, the activitie , which do not have extra time for completion, are called critical activitie . It i to be noted that link ing bar are very complicated, difficult and ometime impo ible to how graphi cally. An example of linked bar chart i pre ented below. Example: Activity A B C D E F G H Duration 4 3 2 2 7 3 8 8 Predece or A A B B C D E, F Follower B D F G H H Corre ponding AON and CPM Network D B E Start A G End C F H Corre ponding Linked bar Chart i a given in figure 1 below. 4

MR Gelal FPM Mile tone Chart A Mile tone Chart i an improved ver ion of a bar chart in which ome of the lim itation of bar chart are eliminated. A Henry Gantt invented it, it i called G antt Mile tone Chart. Combined activity bar chart can be converted to mile tone bar chart by placing mall triangle at trategic location in the bar to ind icate completion of certain mile tone within each activity or group of activiti e a hown in figure below. A mile tone implie ome pecific tage or point wh ere major activity either begin or end , or co t data become critical. Figure ( a) how a bar chart of a project, which involve four ta k or activitie or jo b viz. Ta k I, Ta k J, ta k K and Ta k L and figure (b) how the corre ponding Mile tone Chart. It may be een that in a mile tone chart the long time activit ie or job or ta k are identified in term of pecific event or mile tone wh ich are plotted again t the time caled indicating their accompli hment by pec ified time . Each bar in a mile tone chart again repre ent an activity or job o r ta k and all the bar taken together repre ent the entire project. A mile tone chart how relation hip between the mile tone within the ame activity or job or ta k. It may be een from fig. (b) that Mile tone 2 cannot be tarted until mile tone 1 ha been accompli hed. Thu a compared to bar chart better control can be achieved with the help of a mile tone chart, but it till po e e the ame deficiency that it doe not depict the interdependencie between the variou ta k or the relation hip between the mile tone of different ta k . 5

MR Gelal FPM Earned Value Analy i Any deviation in chedule, performance or co t from the plan or from the et ta ndard to the actual accompli hment i called variance. In the pa t the conventio nal method of control analy i wa variance analy i . Thi mea ure the differen ce between two factor by ubtracting one from the other to give a po itive or n egative variance. It can be u ed to how difference between actual progre e a nd planned, and the re ource u ed again t e timate or budget. For example, the following are common variance in the control of project : Scheduled tart v . Actual tart Scheduled fini h v . actual fini h Scheduled time for an activity v . actual time Scheduled date of mile tone v . the actual date when the mile ton e wa reached Budgeted co t v . Actual co t Mea ured value v . Actual co t Budge ted man-hour v . Actual man-hour Budgeted unit co t v . Actual unit co t Altho ugh till u ed exten ively today, variance analy i mu t be upplemented by othe r method , a it i an inadequate, often mi leading, and ometime meaningle , guide to progre and performance. For example, con ider a imple ca e where out of total project co t of NR . 25,00,000, the budgeted expenditure to date on a project i NRS. 850,000 and actual expenditure i NR . 900,000, giving a varian ce of NR . 50,000. All thi tell u i that expenditure i ahead of budget. It doe not give u any of the following information: Whether we are on, above or b elow the expected co t performance. What will be the likely final co t of the pr oject Whether we are on, behind or ahead of chedule What will be the likely com pletion time of the project Thu variance analy i , when u ed on it own i an i neffective way of analyzing and reporting project progre and performance. Performance analy i ba ed on Earned Value The modern methodology u ed in analyzing project progre and performance u e Pe rformance Mea urement ba ed on Earned Value concept , which integrate co t and ch edule on a tructured and per onalized ba i . There are actually three element of data required to analyze performance, from which more information can be extr acted than from than two-element variance analy i . The e element are: Budgeted Co t of Work chedule (BCWS) = NR . 850,000 Actual Co t of Work Performed (ACWP ) = NR . 900,000 Budgeted Value of the Work Actually Completed, i.e. Earned Valu e (EV) =NRS.750, 000 In addition the completion time of the project i 50 week ( ay). 6

MR Gelal FPM Co t variance CV Co t Variance CV, i the difference of Budgeted Value of Work performed (Earned Value) and Actual Co t of Work Performed. It can be expre ed a : CV= EV-ACWP Negative value of CV indicate Co t Overrun. In the above example, CV i , = NR . 750, 000- NR . 900, 000 = NR . (-) 150, 000 The project i NR . 150, 000 over b udget! Co t Performance Co t Performance can be obtained by dividing Earned Value EV by Actual co t of W ork Performed ACWP. It can be expre ed a : Co t Performance = EV/ACWP In the above Example, Co t Performance = NR . 750,000/NR . 900,000 = 0.8333 The project i obtaining 83.33 Pai a of Earned Value for every Rupee expended, that i co t performance i 83.33% of that planned. Final Co t Foreca ting= NR . 25,0 0,000/ 0.83333 = NR . 30,00,000 The project will be NR . 500,000 over budget, if there i no change in performance. Schedule Variance SV Schedule Variance SV (In co t term ), i the difference of Budgeted Value of Wor k performed (Earned Value) and Budgeted Co t of Work Schedule (BCWS). It can be expre ed a : SV= EV-BCWS Negative Value of SV indicate time overrun. In the above example, SV i , SV (In co t term )= NR . 750,000- NR . 850, 000 SV (In co t term )= NR . (-) 100, 000 The Project i equivalent of NR . 100,000 behind chedule.

Schedule Performance= EV/BCWS In the above Example, Schedule Performance = NR . 750,000/NR . 850,000 = 0. 8823 Schedule Performance i only 88.23 % of that planned. Final Completion Time For eca ting= 50 week / 0.8823 = 56.67 Week The project will be 6.67 week late, if there i no change in performance. 7

Schedule Performance Schedule Performance can be obtained by dividing Earned Value EV by Budgeted Co t of Work Schedule BCWS. It can be expre ed a :

Project Management Information Sy tem Project Management Information Sy tem Example - Screen Layout Main creen (Headquarter ) Site query (Headquarter )

Project Management Information Sy tem Real-time Site monitoring (Headquarter )

Monthly work tatu input (Site)

Organization Chart (Site) Document management (Site) Drawing management (Site)

Contact u Homepage E-mail Tel Fax Addre http://www.hit.co.kr global_bu ine @hit.co.kr + 82-2-2129-4387 +82-2-2129-4072 Kukdong Bldg., 6th Floor, 60-1 Choongmuro-3Ga, Ch oong-Gu, Seoul, Korea 100-705 INFORMATION TECHNOLOGY INFORMATION TECHNOLOGY

Proce

photograph management (Site)

Weekly

afety management tatu (Site)

Proce

photograph & lide how (Site)

Main

creen (Site)

Monthly bu ine

performance (Headquarter )

Project Management Information Sy tem Project Management Information Sy tem The application of IT in the con truction ector ha hown con iderable ucce in admini trative proce e uch a financing and accounting; however, while con truction i a field-oriented indu try, the y tem implementation for collaborat ion among bu ine entitie to upport engineer in ite i till in it early tage. PMIS implement bu ine management y tem to overcome hortcoming of head quarter-oriented ERP y tem uch a in ufficiencie in field monitoring, report ing y tem between headquarter and ite, difficultie of drawing tran fer or re cycling by e tabli hing y tematic proce of reporting and communication, coope rating with haring of related information and knowledge among field bu ine en titie . Flow Diagram PMIS upport information haring and cooperative work among variou bu ine en titie (headquarter/field, cu tomer/architect/ upervi or/con tructor/affiliate ) and provide management information to manager during project . The knowledge management y tem i upported by managing re ult after the completion. Conceptual De ign The PMIS erver re ide at headquarter office while each ite acce e the erve r to proce the ta k of each ite. The variou output or report are tored i n the erver, and the e will be u ed for management information. Employee at ea ch ite can download the drawing from the erver for immediate u e, o that inf ormation haring i available among headquarter/ ite/affiliate/cu tomer. Information for manager HR/Payroll Financial Statement ERP ERP ERP Information HR/Payroll ERP manager Bu ine Management Rental Finance/ Acco unting Material Management Con tru tion Management ERP management information Management Site report

Strategy Site manager Integrated UI Site information Drawing / document Drawing management Specification management Received/ Sent document management Conference Record PMIS(Con truction) Con tru tion management Proce photo Schedule management Quality management Co n tructio tatu Headquarter proce e Con truction tatu report Bu ine perfo rmance report Bill collection report Withdrawal project report Integrated DB

PMIS i ideal y tem for all companie which intend to implement bu ine manage ment y tem prior to introduction of ERP a well a the con truction company who need comprehen ive management of information and output within the entire lif ecycle from beginning to end of the con truction ite and a bu ine management y tem enabled by IT prior to ERP implementation.

Site report, Project management information uch a

Site tatu , problem , profi

Headquarter

HR/Payroll Financial management Bu ine

management

HR Co t

Community Board Headquarter mail Site mail Electronic approval Site Data managem ent with integrated DB PMIS(Con truction related) Site information Drawing/document Management Con truction management Headquarter Work management Re ource management Quality/Safety/Environment Community Architect Con truction Overview Bird eye view Organization Chart Site Monitoring - Drawing di tribution - Sent/Received document - Work report Work Report - Field information

Site Con truction Statu Report - Work report - Safety/Quality management - Proce m anagement - Con truction Drawing/Specification - Video conferencing, cctv - Te t running - Document tran fer - Managing information - Technique/Method - Defect/Repair Internet Supervi or Drawing/Document Management y tem Headquarter Per onnel EKP Affiliate Electronic Approval E-mail Knowledge management Provide optimized function for e ach ite: - Per onalization of ite ta k

PMIS Affiliate Additional function Option e - Contracting Electronic tax invoice Work per onnel management Web camera,CCT V Videoconferencing Con truction ite

Machine ite Electricity ite

Architecture

ite

Headquarter

- Completion re ult - Drawing /Document tion

(Sent/Received) - Ba ic project informa

- Bu ine

performance - Billing Information - Progre

Bu ine

expen e/ Project information Cu tomer

t/lo

Admini trator of Bu ine

divi ion EKP Project monitoring & control

report

Sy tem Menu (Headquarter ) Cu tomer Cooperation & Community - Sending/Receiving ocument - Schedule management - Docu ment/Drawing management - Proce photography management Affiliate management Daily work report - Work in truction - e-Contracting - Achievement management SMS Mail Sy tem Management Sy tem Menu (Site) Con truction Management Sy tem Management Information

Contract Information Contract tatu Subcontracting tatu Affiliate information

Drawing/Document Management By project File Search

Drawing/Document Management Architectural drawing Con truction drawing Specification Received document S ent document Conference record management Document folder

Headquarter Site tatu - Contract detail - Achievement - Plan / Performance Bu ine perf ormance Bill Collection report Cancellation e timation (within 3 month ) Bu ine report data Re ource Management HR management - Plan/Statu Material management - Plan/ tatu Equipment manageme nt - Plan/ tatu Quality/Safety /Environment

Con truction Management Site photograph management Schedule management Proce emedie Schedule management Proce management Proce

tatu Shortcoming and r photograph

Site Information Bu ine Overview Organization Chart - Headquarter, Site - Cu tomer - Affliate Bird eye view Real-time ite monitoring Emergency Communication netwoork

Re ource Statu HR tatu Out ourcing tatu Material tatu

Budget / Performance tatu Budget planning Performance ummary Budget / Performance tatu

Bill collection / Receivable Depo it / Withdrawal tatu Receivable

Sale /Profit Statu Sale ummary Profit / Lo

ummary tatu Receivable management

Site Information Site Overview Organization Chart Report I ue Con truction ea ong Overcome plan

Over ea

ite

tatu Shortcoming R

 Quality training/in pection Safety training/in pection Environmental training/in pection Safety co t management Safety organization Di a ter tatu Sy tem Management WBS management OBS management Material code management Equipment code management Job code management Po ition code management Graph Hardcopie Project Management Information Sy tem Feature & Benefit Information haring and real-time bu ine available among cu tomer, upervi or, affiliate and architect by u ing ingle Web-ba ed interface Drawing and docume nt available in ite (Same a headquarter ) Knowledge Management of field accum ulated data (Defect ca e /Safety management ca e /new con truction method ) Site monitoring for proce tatu by bu ine unit (Individual ite or Grouping of con truction ite cla ified by type ) Flexible interface with other y tem (E RP etc) Empower each bu ine divi ion for it bu ine

MENG 344 Work Analy i and De ign Method Study Lotfi K. Gaafar Ba ed on Introduction to work tudy. 3rd ed. International Labor Office, Geneva, 1992. October 03 Lotfi K. Gaafar 1 Work Study Work Study i the y tematic examination of the method of carrying on activitie o a to improve the effective u e of re ource and to et up tandard of per formance for the activitie being carried out. October 03 Lotfi K. Gaafar 2 1

Method Study Method tudy examine the way a ta k (changing the clutch on a car, preparing a flower bed for planting, cleaning a hotel room) i done. The indu trial engineer ha an eye on operational efficiencie and co t , quality of proce e , ervice reliability, taff afety etc. Method tudy technique are applicable from fact ory/work hop manufacturing to cabin crew activitie on an international flight a nd office clerical work.

The Human Factor in The Application of Work Study Management Work Study Speciali t Supervi or

October 03 Lotfi K. Gaafar 4 2

Worker

A collection of technique u ed to examine work - what i done and how it i don e - o that there i y tematic analy i of all the element , factor , re ource and relation hip affecting the efficiency and effectivene of the work being tudied. October 03 Lotfi K. Gaafar 3

October 03 Lotfi K. Gaafar 5

Make them feel that it i not their fault. Make them under tand the purpo e and technique of work tudy. l October 03 Lotfi K. Gaafar 6 3

Work tudy and the Management Importance of management. How to gain the management l

upport:

Work Study and the Supervi or The importance of the upervi or: l Mo tly affected by work tudy. A per onal challenge. Re pon ibilitie are taken away. l l October 03 Lotfi K. Gaafar 7 Work Study and the Supervi or Do and Dont l Never give a direct order to a worker. Alway refer worker que tion to the upe rvi or. Never expre opinion to worker . Dont allow worker to get you to alter deci ion made by the upervi or. l l l l

l October 03 Lotfi K. Gaafar 8 4

Seek the upervi or advice whenever po ible. Alway the upervi or.

be introduced to worker by

Work Study and the Worker Work tudy improve indu trial relation : l l l l Worker feel that the management care for them. Worker di cover that there are manager who highly under tand their job. Improving the feeling of confidence. Worker are more able to carry out their job . October 03 Lotfi K. Gaafar 9

It will change their familiar work method . Many worker re ent being timed. Fea r of being fired. l l October 03 Lotfi K. Gaafar 10 5

Work tudy and the Worker Why worker re i t the work l

tudy:

Problem Solving Problem definition l l l l tatement of purpo e, goal, objective criteria of judging ucce ful olution ou tput requirement completion date con traint or pecification de cription of t he pre ent method review problem definition and criteria Lotfi K. Gaafar 11 Analy i of problem l l l October 03

identify the ba ic cau e that create problem; eliminate all unnece ary work co mbine operation or element change equence of operation implify the nece ar y operation in term of criteria and original pecification

October 03 Lotfi K. Gaafar 12 6

Evaluation of alternative l

Problem Solving Search for po ible olution l l l l l

Problem Solving Recommendation for action l l l written report to enior manager pre entation to enior manager and hop flo or employee development of oft kill , li tening, negotiating, target relevant group Lotfi K. Gaafar 13

October 03

October 03 Lotfi K. Gaafar 14 7

How do we mea ure performance? Profit Financial mea ure

Marketing recommendation l

Productivity output/input ratio Cycle time

Po ible Performance Mea ure Quality expre ed a % crap value, % return , % downtime Co t expre ed a inv entory turnover, value added to incoming material Delivery expre ed a % on tim e delivery, cycle time Flexibility a Average number of etup /day, % of common part /product Innovation a % ale from product introduced in la t 3 year October 03 Lotfi K. Gaafar 15 Method Study To Simplify the job and develop more economical method of doing it Select Record Examine Develop Evaluate Define In tall Maintain the job to be tudied by collecting data or by direct ob ervation by Challenging purpo e, place, eque nce, and method of work new method drawing on contribution of tho e concerned re ult of different alternative olution new method and pre ent it new method and train per on in applying it and e tabl i h control procedure 16 October 03 Lotfi K. Gaafar 8

Select Where to Look October 03 Poor u e of re ource Bad layout Bottleneck Incon i tent quality High fatiguing work Exce ive overtime Employee complaint Lotfi K. Gaafar Select Record Examine Develop Evaluate Define In tall Maintain 17

October 03 Key profit- generating operation Key co tly operation Repetitive work Long tra vel Exce ive overtime Lotfi K. Gaafar Examine Develop Evaluate Define In tall Maintain 18 9

Select Economic Con ideration Will it pay to begin, or continue, a method tudy of thi Select Record

job?

Select Technical Con ideration De ire to acquire more advanced technology Select Record Exten ive paperwork Repetitive work (automation) Hazardou work Incon i tent qua lity Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 19 Select Human Con ideration Worker ati faction/re entment Select Record

Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 20 10

Sati faction level Start with non-controver ial job

HSE

Select Limiting the Scope Setting boundarie and determining content Select Record One operation or a equence The whole operation or part Which a pect: worker, ma terial , equipment, etc. Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 21

Increa ed production rate Reduced co t Le labor, material , or equipment Impro ved quality Improved afety Reduced crap Improved tandard of cleanline Lotfi K. Gaafar Select Record Examine Develop Evaluate Define In tall Maintain 22 11

Select Po ible Re ult October 03

Select Pareto Analy i Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 23 Record- Symbol Operation (Make ready, Do, Put away) Select In pection Tran port Delay Storage October 03 Lotfi K. Gaafar Record Examine Develop Evaluate Define In tall Maintain 24 12

Record- Symbol Operation (Make ready, Do, Put away) Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 25 Record- Symbol Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 26 13

Record- Symbol Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 27 Record- Symbol Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 28 14

Record- Symbol Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 29 Record- Chart and Diagram Outline Proce Chart Flow Proce Chart (Worker, Material, Equipment) Two-Hande d Proce Chart Procedure Chart Simultaneou motion Cycle Chart Multiple Activit y Chart Flow Diagram String Diagram Cyclegraph Chronocyclegraph Travel Chart October 03 Lotfi K. Gaafar Select Record Examine Develop Evaluate Define In tall Maintain 30 15

Switch Rotor Lotfi K. Gaafar 31 October 03 Record- Example Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 32 16

Record- Example Outline Chart Turn hank Remove chip Dimen ion Degrea ing Cadmium plating Final check Select Record Examine Develop Evaluate Fit top pin Define In tall Maintain Final check A emble and drill Face both ide Drill hole Final check Face, turn, cut Face oppo ite end Dimen ion and fini h Straddle mill four flat Remove burr Final in pection of machining Degrea ing Cadmium plating Final check

Record- Example Outline Chart Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 33 Record- Example Flow Chart Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 34 17

Record- Example Flow Chart Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 35 Record- Example Flow Chart Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 36 18

Record- Example Flow Chart Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 37 Record- Example Flow Chart Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 38 19

Record- Example Multiple activity Chart Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 39 Record- Example String Diagram Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 40 20

Record- Example String Diagram Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 41 Record- Example Travel Chart Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 42 21

Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 43

With a view to: Eliminate Combine or Rearrange Simplify Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 44 22

Examine- The Que tion Purpo e: Place: Sequence: Per on: Mean : What i actually done? Why i ary? Where? Why? When? Why? Who? Why? How? Why? Select Record Examine Develop

Record- Example Two- handed proce

Chart

it nece

Examine- Secondary Que tion Purpo e: What i done? Why i it done? What el e might be done? What hould be d one? Select Record Examine Develop With a view to: Eliminate Simplify Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 45

With a view to: Combine or Rearrange Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 46 23

Examine- Secondary Que tion Place: Where i it done? Why i re hould it be done? Select Record Examine Develop

it done there ? where el e might it be done? Whe

With a view to: Combine or Rearrange Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 47

With a view to: Combine or Rearrange Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 48 24

Examine- Secondary Que tion Per on: Who doe it? Why doe that per on do it? Who el e might do it? Who d do it? Select Record Examine Develop

Examine- Secondary Que tion Sequence: When i it done? Why i ld it be done? Select Record Examine Develop

it done then? when might it be done? When hou

houl

With a view to: Simplify Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 49

Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 50 25

Simple Idea

( Spring Loaded Table)

Develop New De ign Multidi ciplinary Team Worker Involvement Quality Circle Examine Select Record

Examine- Secondary Que tion Mean : How i it done? Why i it done that way? How el e might it be done? How hould it be done? Select Record Examine Develop

Evaluate Multiple Improvement Idea Con ider co t , benefit , and drawback Report (ABC, Accurate, Brief, and Clear) Example Examine Develop Evaluate Define In tall Maintain Select Record October 03 Lotfi K. Gaafar 51

1. It record the improved method for future reference. 2. It can be u ed to exp lain the new method to management, upervi or and operative . It al o advi e a ll concerned, including the work engineer , of any new equipment required or of change needed in the layout of machine or workplace . 3. It i an aid to trai ning or retraining operative . 4. It form the ba i on which time tudie . October 03 Lotfi K. Gaafar Record Examine Develop Evaluate Define In tall Maintain 52 26

Define The written tandard practice Prepare a written tandard practice, al o known a an "operative in truction heet". Thi erve everal purpo e Select

Define The written tandard practice outline in imple term the method to be u ed by the operative. Three ort of information will normally be required: (1) The to ol and equipment to be u ed and the general operating condition . (2) A de crip tion of the method. The amount of detail required will depend on the nature of t he job and the probable volume of production. For a job which will occupy evera l operative for everal month , the written tandard practice may have to be ve ry detailed, going into finger movement . (3) A diagram of the workplace layout and, po ibly, ketche of pecial tool , jig or fixture . October 03 Lotfi K. Gaafar Select Record Examine Develop Evaluate Define In tall Maintain 53 Define Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 54 27

In tall In tallation can be divided into five tage , namely: (1) Gaining acceptance of the change by management. (2) Gaining acceptance of departmental upervi ion. th e change by the Select Record Examine Develop Evaluate Define There i no point in trying to go any further if thi approval and acceptance ha ve not been obtained. (3) Gaining acceptance of the change by the worker and th eir repre entative . (4) Preparing to make the change . (5) Controlling the chan geover. October 03 Lotfi K. Gaafar In tall Maintain 55 In tall Training May u e film to demon trate the old and the new method . Film are par ticularly valuable when retraining. Develop the habit of doing the job in the co rrect way. Train to follow a numbered equence illu trated on a chart. Learning curve In the fir t tage of learning, re t between period of practice hould be longer than the period of practice them elve . When the operative ha begun to gra p the new method and to pick up peed, re t period can be very much ho rter. Nur ing the new method. October 03 Lotfi K. Gaafar 56 Select Record Examine Develop Evaluate Define In tall Maintain 28

In tall Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 57 Maintain worker hould not be permitted to lip back into old method , or introduce elem ent not allowed for, unle there i very good rea on for doing o. To be maint ained, a method mu t fir t be very clearly defined and pecified. A ign a peci ali t permanently. Formal review. Select Record Examine Develop Evaluate Define In tall Maintain October 03 Lotfi K. Gaafar 58 29

Method Study in the Office Office u e re ource , mu t be u ed efficiently. Percentage of worker in office continue to increa e. Admini trative co t (overhead ) mu t be controlled. In troduction of advanced technology (machinery). In mo t office , mo t of the work i routine. Look for area or activitie that: Account for a ignificant propor tion of office labor co t . Are producing large number of error or eriou err or . Are creating high level of di ati faction. Need to change in re pon e to ome external change. Quality circle. October 03 Lotfi K. Gaafar 59

October 03 Lotfi K. Gaafar 60 30

Method Study in the Office Mo t office work can be placed on a hierarchy which include , activitie and method .

y tem , procedure

October 03 Lotfi K. Gaafar 61 Method Study in the Office De ign of form Naturally, a document or form hould be examined together with the procedure in which it i u ed. Changing a y tem or procedure may have automatic implication for form u ed. Form them elve hould be examined when the procedure it elf h a been examined and improved or validated. Examination of a form follow the ba ic critical examination proce , a king: Why i the form nece ary? What inform ation doe it convey? Who u e it? When do they u e it? Where i it u ed? How i it u ed? (I the form produced by a computer, are entrie typed on to the form, i it filled in manually, etc.?) Then examining and evaluating alternative . October 03 Lotfi K. Gaafar 62 31

Method Study in the Office U e the columnar chart form in which each column repre ent one department or ction of the organization (figure 60).

Method Study in the Office De ign of form When de igning form we are trying to make the form: compatible with it intended u e ea y to complete ea y to u e Con ideration mu t be given t o: paper ize; paper weight; hape; color; maintaining any hou e tyle or corpor ate identity; and balancing the e with the co t involved. October 03 Lotfi K. Gaafar 63 Method Study in the Office Detail that affect de ign are: the filing/retrieval proce ; the routing of the form throughout the organizatio n the degree to which additional entrie are made on the form at ub equent tag e ); the nature of data entered on the form and the degree to which they can be grouped. October 03 Lotfi K. Gaafar 64 32

Method Study in the Office Control of form The mo t important part of controlling form i to undertake re gular audit to di cover if each form i till nece ary to erve a particular b u ine function (MAINTAIN). Where the purpo e of the form i till valid, que t ion mu t be a ked about the environment in which the form operate and whether change here, for example, in technology or filing method require change to be made to the form. October 03 Lotfi K. Gaafar 65

October 03 Lotfi K. Gaafar 66 33

Method Study in the Office Control of form Other item to be con idered are: The production method: How i the form produced and are there now better or cheaper way ? How much tock of e ach form i held, and where i it held? I thi appropriate to the u e of the fo rm? How are upplie to u er reordered? How i tock i ued to u er ? How i i ued tock tracked?

Method Study in the Office Control of form What i the u eful life of information on the form? Are there a ny legal con traint on di po al? How do we en ure that form are di po ed of, a fter their u eful life i ended (to relea e valuable pace)? Are there ecurity re triction on di po al ( hould form be hredded or burnt)? October 03 Lotfi K. Gaafar 67 Office Layout Office layout tudy hould con i t of the following tep : Record detail of the major y tem in u e in the office. Record detail of the clerical procedure that upport tho e y tem . Examine the working method of t ho e procedure and carry out a ba ic method tudy of each one. Carry out a capa city a e ment of each part of the procedure Analyze volume of output and que tion the enior manager to di cover likely future trend . Identify communicatio n and contact path and frequencie . De ign individual work tation ( ergonomic ) From volume and capacity data, calculate total work tation requirement . Decid e on ba ic type of layout. Identify any "external" con traint . Draw up a chema tic layout Inve tigate available hardware olution Di cu the provi ional layo ut with both the u er Modify the layout in accordance with the re ult of di cu ion and prepare the propo ed layout. October 03 Lotfi K. Gaafar 68 34

Page 1 of 3

Almo t Daily Web Log Mi cellany

Strategy & Alignment Operational Problem Solving Project Management Implementation & Change Management Top 10 Source of Project Failure Do any of the e condition exi t in your organization? Do you ee the po ible l inkage between them and poor project performance? Think about whether you are d oing anything to addre the e potential root of problem . If not, then you mig ht be tuck at current performance level 1) Failure to appreciate the impact of a multi-project environment on ingle project ucce . (More...) 1 a) Trying to put 10 pound of project through a 5-pound pipeline in a multiproject environm ent. 1 b) Wa ting of re ource through dedication to project , making them unava ilable to upport other project . 1 c) Failure of management to provide real gui dance on priority of project before they are planned and promi ed. 1 c1) A wel l a the flip ide, ignoring rational plan and promi e for perceived, but que tionable, prioritie . A an explanation of thi , IMHO, project prioritie are pa rt of the initiation pha e. Once promi ed and launched, all project have equal p riority -to complete when and how promi ed -- and de erve attention only proport ionate to the threat to that promi e. 1 c2) Another flip ide regarding priorit ie -- failure of management to kill project when their rea on for exi tence go e away. 2) Irrational promi e made due to a failure to take into account the v ariable nature of ta k performance. (More...)

I don t like the ound of all tho e li t he making - it like taking too man y note at chool; you feel you ve achieved omething when you haven t. -Dodie S mith, I Capture the Ca tle, 1948 Di cu Critical Chain An email-ba ed di cu io n group Frequently A ked Que tion about Critical Chain-ba ed project Management Related link : Check Out the Following Link for More About the TOC Approach to Project Management: Critical Chain and Ri k Management Protecting Project Value from Uncertainty -- Project management i the practice of turning uncertain eve nt into certain promi e . If o, then project management i an extended excer i e in ri k management. The core concept underlying Critical Chain-ba ed project management directly upport ri k management and are de cribed in thi paper, exp anded from one pre ented at PMI 2001 National Sympo ium. Getting Out From Betw een Parkin on Rock and Murphy Hard Place -Thi fir t link will bring up a pa per ba ed on a po ter pre entation originally given at the 1998 New Jer ey PMI C hapter annual ympo ium, honored with a "be t of the how" award by attendee , and later turned into an article publi hed in PMI PM Network magazine. http://www.focu edperformance.com/toptenpm.html 27/07/2009

What

new? Que tion ? Comment ?

Event Service

Top 10 Source

of Project Failure

Page 2 of 3 3) Irrational promi e made due to a failure to take into account the tati tica l nature of project network . (More...) 4) In ufficient identification of depend encie nece ary to deliver the project. (More...) 5) Focu on (and active manag ement of) only a portion of what hould be the full project -- a true bottom-lin e value adding outcome for the pon oring organization. (More coming...) 6) Reli ance on due-date, train- chedule, and actualagain t-budget-to-date performance t o drive project performance, re ulting in the wa ting of any afety included in the project (to account for 2 and 3 above) and in the effect of Parkin on Law -- Work will expand to fill (and exceed) the time allowed. The whole concept of "time allowed" i a major culprit. (More...) 7) Wa ting of re ource through un derutilization becau e they aren t the "be t re ource" for the job. (More coming ...) 8) Wa ting of the "be t" re ource through overutilization, multi-ta king, and burn-out. (More coming...) 9) Delivering original cope when condition /need change. Flip- ide: accepting change to cope without ufficient analy i of i mpact on the project (or on other project ). (More coming...) 10) Multi-ta king, multi-ta king, multi-ta king, multita king, and multi-ta king. Commonly thought of a a key problem in multi-project environment , where re ource are expected to addre ta k from different project in a coincident time-frame, multi-ta k ing al o impact ingle project duration (and wa te afety) when dedicated re ource are expected to wear everal hat . (More... and more... and more...)

Program Management -Turning Many Project into Few Prioritie with TOC -Thi lin k will lead to a paper on the key attribute of a TOC MultiProject Management en vironment. (Mo t project are performed by re ource hared with other project . It can be deadly to ignore the re ulting interaction , no matter how well you m anage ingle project .) Thi paper wa originally pre ented at PMI Global Symp o ium in Philadelphia in October of 1999 and i included in the proceeding of t hat conference. Audio tape of the pre entation are al o available from PMI. Pro ject Portfolio Management - The Fir t Cut i the Kinde t Cut One of the common p roblem faced by projectoriented organization i having too many project relat ive to their capacity. Therefore, one of the fir t thing that need to be done i to determine what can be done i to determine what hould be done . . . and w hat hould not be done . . . Con umption of Effort and Con ervation of Energy fo r Project Succe -- Thi link will lead to an e ay on the nece ity for managi ng protective capacity in multi-project environment to get the mo t organizatio nal throughput from the effort of project re ource . "Quick and Dirty" Commentary . . . Critical Chain Ba ic A Critical Chain Schedu le The Sooner You Start, The Later You Fini h Multita king Multiplie Lead Time http://www.focu edperformance.com/toptenpm.html 27/07/2009

Top 10 Source

of Project Failure

Page 3 of 3

Who i FP?

Mi cellany http://www.focu edperformance.com/toptenpm.html 27/07/2009

Web Log You can reach Focu ed Performance at: 601 Route 206, Suite 26-451, Hill borough, NJ 08844 Voice: 908-874-8664 Contact Focu ed Performance

Di cu

Critical Chain An email-ba ed di cu ion group

Top 10 Source

of Project Failure

Improper Project Scheduling Background ABC Company i a private firm with a good track record in water re ource managem ent. Mo t of the project completed by ABC were fini hed by their re pective con tracted completion date . The ucce of ABC i ba ed upon the firm philo ophy o f recruiting good per onnel and en uring complete upport from the firm head off ice admini tration to it on- ite operation . An economic boom and a ociated de mand for energy have re ulted in the firm getting more work than it had ever ex perienced before. Con equently, an adequacy in the firm human re ource ha re u lted which in it elf i a major problem. To try to olve thi problem, ABC ha tarted to recruit many young inexperienced Engineer having potential of becomi ng project Engineer for many of the firm project . Organizational Practice of ABC A project Engineer i completely re pon ible for on- ite operation . Completing a project within the e tabli hed chedule and with the de ired quality are the m ajor ta k of a project Engineer. Furthermore, a project Engineer ha to direct foremen and coordinate ub-contractor to en ure the moothne of on ite operat ion . No formal organizational procedure for quality or chedule control exi t. Mo tly, all on ite planning and control procedure or y tem depend upon the p roject Engineer in charge. Co t control i centralized. On ite management (Proj ect Engineer) i not re pon ible for material and equipment co t. Only labor bud get co t are tran ferred to the ite for control purpo e . Material and equipme nt procurement too i centralized. The Project Engineer ha to place an order to the head- office procurement department with pecified material and equipment a mount and quantitie and their required delivery date . Project Information John i a new Project Engineer with ABC and i in charge of a Flood Water Con er vation (High Dam) project. Before coming to work with ABC, he worked for three y ear with a good management con ultant firm a an on- ite Engineer for high dam con truction. John previou experience i more on the technical engineering for dam con truction uch a concrete placing procedure , oil mechanic etc. He kno w hi weakne e in the con truction management a pect of thi project and mak e an effort to talk to ABC experienced Project Engineer and learn more from th em a often a he can. Project i a turnkey type with contract duration of 2 yea r . Hydrological tudy, geo-technical tudy, urveying, de ign, drawing and deta il co ting are over. Site (excavation, piling, etc.), tructural and concreting work are now to execute by ABC. Other work item may be ubcontracted either fo r labor only or all co t depending upon the nature of the e work . John ha ev en foremen and one engineer working with him. Of the eight foremen, Bob, Neil an d Peter are highly experienced enior foremen with ABC. Scott, Tom and Michel ar e new foremen with no experience . Carl i an experienced enior foreman that Jo hn had brought along from hi former company. Dave, the Engineer, i a fre h gra duate who ha been ent by ABC to work with John. Que tion Ba ed on the provided information, what do you think about the likelihood of the project being completed on time? Plea e provide four good rea on to upport yo ur thinking.

Fundamental

of Project Management CASE STUDY

Home A ignment 1. Choo e a project of your own convenience. Develop a Work Breakdown Structure (WBS) for the project. Note that the WBS hould have minimum three di tinct leve l . 2. A project con i t of 16 activitie having their predece or relation hip a follow : (a) A i the fir t activity of the project. (b) B, C and D follow A and can be done concurrently. (c) E and G can not begin until C i completed an d can be performed imultaneou ly.. (d) F i the immediate ucce or to activiti e B and E. (e) H and K run in parallel, and both ucceed G. (f) L ucceed F an d H. (g) I and J are immediate ucce or activitie to activity D. (h) M and N a re immediate ucce or to I and K. However, both M and N can be performed concur rently. (i) Activitie O and P are the la t activitie . Activity O i the immedi ate ucce or to N and L. activity P i the immediate ucce or to M and J. Draw the AOA network and number the event . 3. A project con i t of following activ itie with their duration and precedence relation hip a pre ented in tabular f orm below. Activity Precedence Duration A 3 B A 15 C 5 D C 20 E A 5 F A 1 G F 25 H G 10 I H, K 3 J B 5 K J 10 L B 1 M L 10 N D, E 10 O I, M, N 10 Draw AON diagr am indicating ES, EF, LS, LF and earlie t fini h time of the project. Al o find out the Critical Path and calculate the total and free float of each activity. 4. Briefly di cu the tatu and difficultie of Project Planning and Implement ation in Nepal. What are your ugge tion for improvement?

Fundamental

of Project Management

A ignment 1 1. Why do project fail in Nepal? Give your ugge tion for improvement. 2. What do you mean by Project Environment? De cribe the different type of project env ironment and explain how they influence the project. A ignment 2 1. What do you mean by Project Monitoring and Evaluation? What are the tatu an d practice of Project M& E in Nepal? 2. What i Project control? Di cu the Pr oject Control Cycle.

A ignment 4 1. What i Monitoring and Evaluation of Project? Give a brief de cription of Pro ject M& E y tem of HMG, Nepal.

A ignment 3 1. Define Optimi tic time e timate, Pe imi tic time e timate and Mo t likely time e timate. Differentiate clearly between mo t likely time e timate (tL), mean time ( tm) and expected time (tE). 2. What i a Gantt Bar Chart? A project con i t of 8 activitie A, B, C, D, E, F, G and H with their time of completion a follow : Activitie Duration (week ) A 2 B 4 C 2 D 4 E 6 F 4 G 5 H 4 The precedence rel ation hip i a follow : A and B can be performed in parallel C and D cannot ta rt until A i complete. E can not tart until half the work of activity C i com plete F can tart only after activity D i complete. G ucceed C. H i the la t activity, which hould ucceed E. Draw the bar chart. What i the total time of completion of the project? If there i increa e of 2 week in time of completio n of activity A, what will be the corre ponding increa e in the total time of th e completion of the project. 3. What are different type of Project Organization ? Give a brief de cription of the advantage and di advantage of each.

Fundamental

of Project Management