INTRODUCTION TO PROJECT MANAGEMENT

Abhijeet S. Gandage
Lecturer
Department of Civil Engineering
MAEERs
Prof. Abhijeet S.of
Gandage
MIT
Maharashtra Institute
Technology,
Pune.
Pune

WHAT DO YOU MEAN BY CONSTRUCTION?

Construction is a traditional science which deals with modern methods of

sound construction incorporating appropriate use of materials, sufficient
strength and permanence, maximum utility and good proportioning and grace.
FEATURES OF CONSTRUCTION PROJECTS

1. Age old profession.

2. Matured from small scale localized activity to large scale globalized industry.
3. Present day construction projects are complex and complicated on account of
size, magnitude, use of scarce resources, increase in number of project
participants, use of state of art technology and influences of liberalized and
globalized economy.
Prof. Abhijeet S. Gandage MIT
Pune

OVERVIEW OF CONSTRUCTION SECTOR

On the basis of costs Construction Projects in India can be classified as
Mega Projects costs over Rs. 1000 crores
Major Projects costs between Rs. 100 crores to Rs. 1000 crores
Medium Projects costs between Rs. 20 crores to Rs. 100 crores

On the basis of magnitude and size Construction Projects can be classified

as
Infrastructure Projects
Real Estate Projects
Prof. Abhijeet S. Gandage MIT
Pune

Civil Engineering Projects in India fall in two categories

Public Sector

Private Sector

Prof. Abhijeet S. Gandage MIT

Pune

Main Features of Public Sector Works are:

Service to nation is main objective.
Owned & Managed by Government.
Accounts for 90% of total expenditure in Construction Sector.
Includes works carried out by CPWD, PWD, NHAI, MES, Irrigation Dept. Railways
etc.
Emphasis on Roads, Dams, Tunnels, Power Plants, Railway lines, Docks &
Harbours, Bridges, Airports etc.
Large Employment potential.
Technical know how provided by Departmental Engineers.
Funds used are Public Funds (Taxes) & used for welfare of public at large.
Public Notice of Tender is mandatory.
Administrative Approval & Technical Sanction is necessary for any project.
Prof. Abhijeet S. Gandage MIT
Pune

Main Features of Private Sector Works are:

Earning profit is the main objective
Owned & Managed by Private Entrepreneurs
Accounts for 10% of total expenditure in Construction Sector
Emphasis primarily on Building Construction, Hotels, Multiplexes etc.
Technical know how provided by Contractors, Architects, Structural Designers
etc.
Funds used are Private Funds.
Public Notice of Tender is not mandatory.
Administrative Approval given by Client across the table.
Technical Sanction is given by Municipal Corporation and/or Town Planning
Department.
Tough Market competition.
Prof. Abhijeet S. Gandage MIT
Pune

LIFE CYCLE OF CIVIL ENGINEERING PROJECTS

OPERATION &
MAINTENANCE

CONCEPT

ANALYSIS & FEASIBILITY

COMMISSIONING

DESIGN

CONSTRUCTION
CONTRACT &
PROCUREMENT
Prof. Abhijeet S. Gandage MIT
Pune

OVERVIEW OF CONSTRUCTION SECTOR

Construction is the second largest economic activity in India related to
construction of built environment.
It contributes 5.2% of GDP and around 40% of total investments.
Expected annual growth rate of Construction Sector is 7% to 8%.
Current worth of construction sector is $50 billion which will be $180 billion by
2020.
Worth of assets created by Indian Construction Industry is Rs. 22,000 crores.
Globally the worth of Construction Industry is $4 trillion.
Turnover of Indian Construction Companies in 1999-2000 was Rs. 30,000
crores which increased to Rs. 60,000 crores in 2004-2005.
Prof. Abhijeet S. Gandage MIT
Pune

OVERVIEW OF CONSTRUCTION SECTOR

Construction activity is an integral part of countrys infrastructure and
industrial development.
Construction industry generates substantial; employment and provides
growth impetus to other sectors through forward and backward linkages.
The main advantage of Construction sector is that 1. absorbs rural labour and unskilled workforce
2. provides opportunity for seasonal employment thus supplementing
income to the poor farmers
3. permits large scale participation of women workers
4. provides sustainance to Agriculture and Manufacturing sectors
Prof. Abhijeet S. Gandage MIT
Pune

OVERVIEW OF CONSTRUCTION SECTOR

Important characteristics of Indian Construction Projects are
1. Details of work are not precisely defined.
2. Scope of work gets modified frequently during execution.
3. Nature of work varies from job to job.
4. Site of works are located in remote areas.
5. Places of work are spread out.
6. Resource requirements and organisation of works differ with each task.
7. Investments involved are large and decisions entails risk.
8. Performance is sensitive to unexplored site geology, uncertain weather, unforeseen natural
calamities.
9. Engineering failures due to ill defined scope of work, inadequate field investigations, faulty
designs, absence of quality consciousness, lack of construction experience leads to delay and
increase in costs.
10. Rapidly changing technology, fast
moving
economic
conditions
and susceptible environments,
Prof.
Abhijeet
S. Gandage
MIT
Pune
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add new dimension to modern day construction
projects.

OVERVIEW OF CONSTRUCTION SECTOR

Major Sectors covered under Construction

Housing-SEZ-Township development

Surface Transport systems Roads, Highways, Maritime Transport, Railways

Power Generation and Distribution

Aviation Structures

Core Sector Mining

Irrigation and Water Management

Defense Construction

Oil and Petrochemicals

Asset Management and Maintenance

Rural Constructions
Prof. Abhijeet S. Gandage MIT
Pune

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OVERVIEW OF CONSTRUCTION SECTOR

(Total Investment proposed for 11th Five Year Plan 2007 2012)

Sr. No.

Sector

Investment in Rs. Crores

Construction

14,50,000

1.

Private investment in roads

34,000

2.

Expressway Development

220,000

3.

Railways (Public)

180,000

4.

Railways (Private)

120,000

5.

Civil Aviation

40,000

6.

Ports

50,000

7.

Freight Corridor

22,000

8.

Power Generation

420,000

9.

JNNURM

60,000

10.

Housing

150,000

11.

Others

160,000

Prof. Abhijeet S. Gandage MIT

Pune

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OVERVIEW OF CONSTRUCTION SECTOR

Important Resources used in Construction Sector are

Men

Machines

Materials

Success or failure of any construction organisation depends on effective combination and

use of these resources

Time

Money
Prof. Abhijeet S. Gandage MIT
Pune

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OVERVIEW OF CONSTRUCTION SECTOR

Sector wise Break up of Costs of Major Resources

Prof. Abhijeet S. Gandage MIT

Pune

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OVERVIEW OF CONSTRUCTION SECTOR

(Total Requirement of Resources for 11th Five Year Plan 2007 2012)

1.

Total Investment

Rs. 14,50,000 crores

2.

Additional Investment

Rs. 900,000 crores

3.

Value of Construction Materials

Rs. 495,000 crores

4.

Value of Construction Equipments

Rs. 180,000 crores

5.

Value of Manpower

Rs. 108,000 crores

6.

Cement Requirement

381 million tons

7.

Steel Requirement

150 million tons

8.

Manpower Requirement

92 million man years

8.a.

Engineers

3.72 million man years

8.b.

Technicians

4.32 million man years

8.c.

Support Staff

3.65million man years

8.d.

Skilled Workers

23.35 million man years

8.e.

Semiskilled-Unskilled workers

56.96 million man years

Prof. Abhijeet S. Gandage MIT

Pune

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INTRODUCTION TO PROJECT MANAGEMENT

With large investments it is imperative that Construction projects and the entire system
gets professionally managed.

Concept of Project and Project Management

Project
A unique set of activities that are meant to produce a defined outcome, with a specific
start and finish date, and specific allocation of resources
Project Management
Project Management is a process of developing a substantive, systematic data about each
parameter for effective decision making process
Prof. Abhijeet S. Gandage MIT
Pune

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INTRODUCTION TO PROJECT MANAGEMENT

Project Management Functions

Planning
Organizing
Procuring
Directing and Leading
Controlling

Prof. Abhijeet S. Gandage MIT

Pune

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INTRODUCTION TO PROJECT MANAGEMENT

Important processes under Planning
1. Crystallising objectives.
2. Collection and synthesis of information.
3. Developing alternate course of action within specified constraints.
4. Comparing alternatives from point of view of feasibility and impact.
5. Selecting and scheduling optimum course of action.
6. Establishing procedures, policies, methods, schedules, programmes, systems,
standards and budgets for accomplishing project objectives.

Prof. Abhijeet S. Gandage MIT

Pune

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INTRODUCTION TO PROJECT MANAGEMENT

Important steps in Planning
1. Proper and systematic analysis and design of each project component.
2. Proper identification and procurement of relevant, essential and workable
resources.
3. Plan, design and implement proper welfare schemes for various personnel
employed on site.
4. Plan, design and implement fair and just incentive scheme for site personnel.
5. Plan, design and implement appropriate measures to ensure occupational health
and safety.
6. Plan, design and implement relevant cost effective and practical project
monitoring, tracking and

Prof. Abhijeet S. Gandage MIT

Pune
control system
for successful

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implementation of project.

INTRODUCTION TO PROJECT MANAGEMENT

Important processes under Organising
Dividing work into component activities.
Designing job structures.
Defining performance targets and responsibilities.
Allocating resources.
Delegating authority commensurate to the responsibility.
Establishing structural relationships to secure coordination.
Prof. Abhijeet S. Gandage MIT
Pune

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INTRODUCTION TO PROJECT MANAGEMENT

Important processes under Procuring
1. Preparing resource procurement schedules.
2. Developing specifications for required resources.
3. Deciding appropriate sources of procurement.
4. Budgeting resources and arranging approvals and purchases.
5. Preventing wastage during resource holding at site.
6. Supplying on time required quality and quantity of resources to project
construction sites.

Prof. Abhijeet S. Gandage MIT

Pune

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INTRODUCTION TO PROJECT MANAGEMENT

Important processes under Directing
1. Providing effective leadership.
2. Motivating participant behaviour.
3. Communicating instructions and orders,
4. Providing a suitable climate for subordinates development.

Prof. Abhijeet S. Gandage MIT

Pune

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INTRODUCTION TO PROJECT MANAGEMENT

Important processes under Controlling
1. Specifying factors to be controlled.
2. Stating the methods of measuring control factors.
3. Evolving systems for generating performance data.
4. Monitoring data received and formulating corrective options.
5. Applying corrective measures to put a plan on scheduled path
6. Replanning if necessary.

Prof. Abhijeet S. Gandage MIT

Pune

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STRUCTURE OF CONSTRUCTION PROJECT MANAGEMENT

Construction Project Management

To interpret
Contract
documents

To interpret
drawings
Correlation
between drgs.
And contract
conditions

To plan, organize, control

progress of work

General and
Special
conditions

Plan WBS

Organise by
Systems concept

Bar chart tech.

Labour laws
Specifications

Network tech.
CPM and PERT

To inspect and
control quality

Control on
safety, cost and
progress

Site org., Job

layout,
Communications,
Leadership and
HR aspects.

Prof. Abhijeet S. Gandage MIT

Pune

Inspection and
Quality Control,
Norms,
Standards,
Checklists,
Statistical
measures.

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IMPORTANT CHALLENGES FOR FUTURE PROJECTS

1. Adherence to Advanced Technology.
2. Measures for Energy Conservation and reduced Environmental Pollution.
3. High Productivity at Low prices/cost.
4. Rapid automation and mechanisation.
5. Focus on R & D and development of indigenous technologies.
6. Projects should aim at alleviating poverty, have great employment potential, lead
to overall improvement in standard of living of the community.

Prof. Abhijeet S. Gandage MIT

Pune

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IMPORTANT CHALLENGES FOR FUTURE PROJECT MANAGERS

The main mission of Modern Day Project Managers are

Managing

With

By

Organisational Resources
Time and Progress
Cost and cash flow
Quality and Performance
Organisational Behaviour

Planning Resources
Scheduling Resources
Organising Resources
Directing Resources
Monitoring Resources
Controlling Resources

Prof. Abhijeet S. Gandage MIT

Pune

Within

Quality Constraints
Time Constraints
Cost Constraints
Environmental Constraints

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IMPORTANT PARTICIPANTS IN A PROJECT

Client or Business
Promoter
Architect

P. H. E. Designer,
Contractor and Misc.

Designer

Civil Contractor

Consultant
Prof. Abhijeet S. Gandage MIT
Pune

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IMPORTANT PARTICIPANTS IN A PROJECT

1. Construction Business Promoters Govt. Agencies, Private and Public
Enterprises etc.
2. Construction Project Management Consultants.
3. Architect Engineering Associates.
4. Construction Manpower Recruitment and Training Agencies.
5. Construction Materials Developers, Stockists, Suppliers, Transporters.
6. Construction Machinery - Developers, Stockists, Suppliers, Transporters.
7. Banking and Finance Institutions.
8. Risk, Insurance and Legal Firms.
Abhijeet S. Gandage MIT
9. Construction Quality and R &Prof.
D Related
Organisations.
Pune

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PROJECT OBJECTIVES

Six Main Parameters that define a Construction Project Objective are

Size, Complexity, Quality, Productivity, Completion Time and Cost.
Size number of tasks to be completed and their quantities.
Complexity nature and variety of tasks.
Quality Standard specifications available.
Productivity ratio of planned effort to actual effort.
Completion time speed at which activities are being completed.
Cost expenditure the client has agreed to commit.
Prof. Abhijeet S. Gandage MIT
Pune

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PROJECT OBJECTIVES INTERACTION

TIME

TOTAL QUALITY
MANAGEMENT
RESOURCES

COST

Prof. Abhijeet S. Gandage MIT

Pune

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SUMMARY OF PROJECT MANAGEMENT

PROJECT MANAGEMENT

PROJECT PLANNING
Definition of work
requirements.
Definition of quantity of
work.
Definition of resources
required.

PROJECT MONITORING
Tracking progress.
Comparing actual and
predicted.
Analysing impact.
Making adjustments.

Prof. Abhijeet S. Gandage MIT

Pune

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POTENTIAL BENEFITS FROM PROJECT MANAGEMENT

Identification of function responsibilities to ensure that all activities
are accounted for regardless of personnel turnover.
Minimizing need for continuous reporting.
Identification of time limits for scheduling.
Identification of methodology of trade off analysis.
Measurement of accomplishments against plans.
Early identification of problems so that corrective action may follow.
Improved estimating of capability of future planning.
Prof. Abhijeet S. Gandage MIT
Pune

Knowing when objectives cannot be met or will be exceeded.

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POTENTIAL OBSTACLES FOR SUCCESSFUL PROJECT MGT.

1. Project Complexity.
2. Customers special requirements.
3. Organisational restructuring.
4. Project risks.
5. Changes in technology.
6. Forward planning and pricing.

Prof. Abhijeet S. Gandage MIT

Pune

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Prof. Abhijeet S. Gandage MIT

Pune

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