Advance Project Management

Major Infrastructure projects in India

at a Glance
https://www.youtube.com/watch?v=k0aSlqYICUY
https://www.youtube.com/watch?v=vkZnnC1tf_k
Delhi, Mumbai, Hyderabad and Bengaluru airports.
Ultra-mega power projects at Sasan (Madhya Pradesh), Mudra
(Gujarat), Krishnapatnam (Andhra Pradesh), and Tilaiya (
Jharkhand).
Container terminals at Mumbai, Chennai, and
Tuticorin ports.
15 concessions for operations of container trains. Jhajjar
power transmission project in Haryana.
298 national and state highway projects.

2
 Project Management in India
Insights from Six Key Sectors
Real Estate
Automobile
IT-IES
Power
Defence
Infra

Source FICCI & PMI

 High
Six Sectors on two dimensions

IT/ITES
Project Delivery Performance

Automobile

Energy

Real Estate

Defence
Low

Infrastructure

Low High

Adoption of Project Management Best Practices

Source FICCI & PMI
 Some Facts
Technological advancement in construction industry
May 2016, the first 3D printed functional office was unveiled in Dubai.
The 2700 sq.ft. office completed in just 17 days, amazed the world and
turned another leaf of technological advancement...
Real Estate Sector Outlook - 2017
As compared to last year the real estate industry will show signs of
revival in the year 2017.
By introducing regulations like RERA (Real estate regulatory act),
Benami Transaction Prohibition, REITS (Real estate investment trusts),
GST there is a long-term industrial growth and it also impacts on ease
of business by transparency at work.
In the year 2017 a lot is expected out of the Govt. to offer some relief
for the sector and its stakeholders
Source : New Building Material
& Construction World
 Some Facts
Aviation Industry
Rapid urbanization and higher income have resulted in increase of
middle class. This has turned India into one of the world's fastest
growing domestic aviation markets. Number of Air Passengers is
expected to increase by more than 75% in the next six years and it is
estimated to exceed 217 million.
Smaller cities will drive this growth. According to industry analysts
CAPA-Centre for Aviation, the number of people flying from these
cities has shot up nearly by 17% a year since 2009, compared with
7.6% from larger cities.
India has 125 airports, including 11 international airports
The dramatic increase in air traffic for both passengers and
cargo in recent years has placed a heavy strain on the country's
major airports

Source : New Building Material

& Construction World
 Some Facts
India Transport Sector
Railways : Indian Railways is one of the largest
railways under single management.
The railways play a leading role in carrying passengers and
cargo across India's vast territory. However, most of its major
corridors have capacity constraint requiring capacity
enhancement plans.
Roads: Roads are the dominant mode of
transportation in India today.
They carry almost 90 percent of the countrys passenger
traffic and 65 percent of its freight.
Ports : India has 12 major and 187 minor and
intermediate ports along its more than 7500 km long
coastline.
 Assessing Project Delivery
Sector Delivery Scenario in
Initial Scope
Automobile 60% of projects are in scope across
OEM and component Manufacturer
Defence Difficult to ascertain initial scope at
initiation leading to concurrent
planning and Execution
Energy 2 out of 5 are able to complete 80%
of projects in scope
Infrastructure 75% agree scope creep is a major
cause for cost over-run
IT-ITES 3 out of 5 organizations complete
only about 50% of the project in
scope
Real Estate 80% in scope as project is well
defined
Delivery Scenario
on Initial Schedule
New product development is
a key imperative for the sector
driving more than 60% of the
projects on schedule
Delays caused due to strategic
procurement and technology
obsolescence
Delays in more than 60%of
the project
More than 80% of the
projects have time over-runs
3 out of 5 organisations
complete 80% of the project
on time
50-90% of projects in various
metro cities suffer from a
delay of 7-8months
Delivery Scenario
within Initial
Budget
More than 80% of the
projects are within the
budget. OEM and component
industry is highly competitive
About 60% projects within
initial budget. Scope and
schedule varies over a period
of time
More than 22% of the
projects are cost over run
More than 33% of the project
are cost overrun
3 out of 5 organisations
deliver 80% of the projects
within initial budget. Scope
revision is a general practice
Delays lead to cost escalations
Source FICCI & PMI
 Adoption of Best Practices in India
Sr No Focus Area Tools and Methodologies

1 Scope Scope Statement, Change Request, Requirement Analysis, WBS, SOW, Activity list,
Baseline Plan, Re-Baselining, Product Breakdown Structure, Value Analysis
2 Schedule Task scheduling and Monitoring, Multi project scheduling/levelling, Gantt Chart,
Milestone Planning, Critical Path Method, Network Diagram, Critical Chain Method,
learning curve
3 Communication Progress report, PMO structure, EV, Trend Chart, S Curves, Milestone Gate
Meetings
4 Quality Metrics Definition, SLA, Quality Inspection, Quality Plan, Control Charts, 7 QC tools,
3rd party inspections, Adoption of quality standards
5 Cost Top Down Estimation, CBA, Bottom-Up-Estimation, Parametric Estimation,

6 Risk Contingency plan, Risk Metrics, Risk Monitoring and Control

7 Procurement Bid Documents, Contract Management, Bid Seller Evaluations

8 Integration Project Charter, Responsibility Assignment Matrix, Stakeholder Analysis, Quality

function deployment, System integration
9 HR Resource scheduling, Training, Allocations, Releases, Resource Leveling

10 Learning Lessons Learnt, Customer Satisfaction, Knowledge Base creation

Source FICCI & PMI

 Scope of Single Project
Identify Project/System/Content Objectives and Business Case
Clearly define the scope
Clearly define SLA
Define Project Roles and Responsibilities
Give people ownership within the project
Set up domains of responsibility
Provide Communication and Education
Give users the ability to learn about the project/system/content
Create two-way communications and prove it means something

10
10
 Project Management
(Now)
Project Management Leadership
Project Management Training and Education

Predictable sustainable Results

Coaching & Mentoring
Project Portfolio
Fundamentals of PM

PMO

Project Management Maturity

 Need for Advance project
Management
To deliver global projects that spans across the
boundaries involving multi culture, multi
language
To map strategy of the organisation with
objectives of project
To handle Complex projects
Public-Private- Partnership
High / New Technology Projects
Projects with High Net Worth
Involving multiple stakeholder
 Project Management
Growth of Project Management in India
Enablers
Understanding Project Management from strategic
perspective
Overcoming resistance to change
Matured Project Management Life Cycle
Excellence in Project Management
Move towards Project Governance
 Success, Maturity and Excellence
Modern definition of Success
To deliver project for business objectives
To deliver project to create new opportunities in future
To deliver project for customer satisfaction
Project Maturity Model
CSF in Project Management
Top Management Involvement
Mature Project Management Methodology
Definition of Excellence
Best Practices
A structured approach
A Sustainable project governance
Project Governance & Project
Management
 Strategic Planning for Excellence in
Project
Identify Critical Success Factor in Strategic Planning
Identifying strategic resources
Continuous Improvement
Sustainable Project Management Maturity Model
 Nothing is changed in Project
Management Methodology

What is changed is way of project

execution
1. More Customer Intervention
2. Better Execution and Control
3. Better communication models
Various Project Management Methodologies

Organizing

Reporting Planning

Managing
Various Project Management
Methodologies

Plan

Act Do

Check
 Project Management Methodologies

Project Project
Detail
Idea Generation Selection Manager Execution
Planning
Criteria Selection

General Motor Powertrain

 Project Management Methodology

Benefit
Vision Initiation Execution Closure Realization
Planning

Swiss-Re
 Project Management Methodology

Define &
Initiate

Close Start
Project Project Project
Management

Monitor & Control

CIGNA
22 Project Management
 5 process group in Project

Monitoring &
Identification Development Procurement Closing
Control
 From Project Management to Program
Management and to Portfolio Management
using Advance Project Management
 Different types of organisations
Functional
Matrix
Weak Matrix
Balanced
Matrix
Strong Matrix
Project Based
Organisation
 Definition of PBO
Project Based Organization
Focus on new product or service
Focus on new set of stakeholders every time
Focus on paralleling of resources
Focus on Project management as short term but
its benefits as a long term
PBO Structure

Project
Portfolio

Programs

Projects
Project Success A multidimensional Strategic Concept
Aaron J. Shenhar, Dov Dvir, Ofer Levy, Alan C. Maltz

What does project success mean?

Project success has not been typically linked to
competitive advantage and winning in the market-
place
Different people still perceive project success in
different ways.
There are still no accepted frameworks for
assessing project success
 Project Success A multidimensional
Strategic Concept
One of the most common approaches to
project success has been to consider a project
successful when it has met its time and
budget goals.
Quite often, what seemed to be a troubled
project, with extensive delays and overruns,
turned out later to be a great business success
E.g. Sydney Opera House, Microsoft launch of first
version of windows
 Project Success A multidimensional
Strategic Concept
What does project success really meanhow can
it be best defined to serve organizational
interests most appropriately when projects are
part of the strategic management in
organizations
Project goals must be set in advance to better help the
organization meet its short- and long-term objectives
Project framework
To align top management objectives to strategy
Project Managers to see different values during project
execution
 Project Success A multidimensional
Strategic Concept
Paradigm shift
From operational focus of completing the project on time within
budget and with quality to align project to the business vision
Move from on time, ,in full to customer satisfaction (DeCotiis
and Dyer)
The level of satisfaction to consider four different stakeholders:
the customer, the developer, the project team, and the end-user
(d Baker, Murphy, and Fisher)
Success means different things to different people.
An architect may consider success in terms of aesthetic appearance,
an engineer in terms of technical competence, an accountant in terms
of dollars spent under budget, a human resources manager in terms
of employee satisfaction. Chief executive officers rate their success in
the stock market.
 Project Success A multidimensional
Strategic Concept
Introduction of multi-dimensional framework
The first dimension: meeting time, budget, and
requirements goals
The second dimension: benefit to the customer
The third dimension: benefit to the performing
organization
The emergence of a fourth dimension: preparing
the future
 Project Success A multidimensional Strategic
Concept
Success dimension Measures
1. Project efficiency
Meeting schedule goal
Meeting budget goal
2. Impact on the customer
Meeting functional performance
Meeting technical specifications
Fulfilling customer needs Solving a customers problem
The customer is using the product
Customer satisfaction
3. Business success
Commercial success
Creating a large market share
4. Preparing for the future
Creating a new market
Creating a new product line
Developing a new technology
 Strategy Execution Framework
Organisational Project Management

Organisational
Project
Management

Program Portfolio
Project (Similar projects (Projects execution
(Individual Project) executed in co- in line with
ordinated manner) business objectives)
Gartners view on Project, Program
and Portfolio
 Portfolio-Program-Project
Management Maturity Model
 Portfolio-Program-Project
Management Maturity Model
 PMBOK Program Management
Knowledge Areas
Project Human Project
Resource Integration
Management Management

Project Project Scope

Communication Management
Management

Project Project Time

Project Risk Knowledge areas Management
Management

Project Project Cost

Procurement Management
Management

Project Project Quality

Management
Stakeholder
Management
Knowledge Areas
 Program Management Methodology
Prepare a business case
Alignment to business strategy
Define Business Goals
Prepare Program plan with vision,
Set up Program Board Strategy Alignment mission
Provide Necessary funding
Project Execution
Governance meeting structure

Program
Benefits
Governance Lifecycle Management
Management

Benefit Identification
Priorities benefit / Matrix
Stakeholder Benefit realization plan
Engagement Benefit delivery
Identify major stakeholder Benefit transfer
Stakeholder engagement structure
Stakeholder engagement plan
 Advance skills required for program
management
Technical Skills
Advance stakeholder management
Advance scope and change management
Performance Measurement
Advance Risk Management
Leadership Skills
Developing clarity
Inspiring and Motivating
Communicating Effectively
Building Relationship
Developing Others
Managing stress on projects
 Module 2
Global scenario of construction
Industry
While the global economy continues to integrate and grow, security
concerns and lack of trust afflict relationships between both nations and
businesses.
With companies from the BRIC countries establishing a strong global
presence, and investors in capital projects having a speculative and short-
term mindset, the Engineering &Construction market is in a fiercely
competitive race.
Amid international tensions and economic difficulties, globalization stalls.
As societies look inwards, visionary leaders emerge at the head of
aspirational communities who see E&C as strategically important for local
socio-economic development. They catalyse collaboration between
businesses and academia to find innovative solutions to local
infrastructure needs caused by environmental and social change.

World Economic forum Engineering & Construction Scenario 2020

 Top 10 Construction Companies
L & T Engineering
Tata Projects Ltd
IRCON International
Jaypee Group
Punj Llyod
Military Eng. Services
Gammon India Ltd
ESSAR Group
Hindustan Construction
Nagarjuna Constructions

http://www.cidc.in/new/ (Construction industry development

council)
 Public Private Partnership
The term publicprivate partnership
describes a range of possible relationships
among public and private entities in the
context of infrastructure and other services.
Other terms used for this type of activity
include private sector participation (PSP) and
privatization.
 Public-Private Partnership
PPPs present a framework thatwhile
engaging the private sectoracknowledge
and structure the role for government in
ensuring that social obligations are met and
successful sector reforms and public
investments achieved.
 Public Private Partnership
A strong PPP allocates the tasks, obligations, and risks
among the public and private partners in an optimal way.
The public partners in a PPP are government entities,
including ministries, departments, municipalities, or state-
owned enterprises.
The private partners can be local or international and may
include businesses or investors with technical or financial
expertise relevant to the project.
Increasingly, PPPs may also include nongovernment
organizations (NGOs) and/or community-based
organizations (CBOs) who represent stakeholders directly
affected by the project.
 Special Purpose Vehicle
A Special Purpose/Project Vehicle (SPV)
Is a legal entity that undertakes a project. All contractual agreements
between the various parties are negotiated between themselves and
the SPV.
An SPV is a commercial company established under the relevant Act of
a country through an agreement (also known as memorandum of
association) between the shareholders or sponsors.
The shareholders agreement sets out the basis on which a company is
established, giving such details as its name, ownership structure,
management control and corporate matters, authorized share capital
and the extent of the liabilities of its members.
 Different Modes of Contracting

Responsibilities/ Mode of Contract Item Rate Lumpsum Fixed Price EPC BOT/BOOT
Private Sector Partner
Design of the Project Government (PSP) PSP PSP
Detailed costing of the Project Government Government PSP PSP
Overall Construction Responsibility PSP PSP PSP PSP
Risk of Construction cost overrun Government PSP PSP PSP
Project Management Government Government PSP PSP
Financing of the Project Government Government Government PSP
Operations of the Project Government Government Government PSP
 Stakeholders in complex project
Internal Stakeholders External Stakeholders
Demand Side Supply Side Private Public
Client Architects Local residents Local government
Financiers Engineers Local landowners Regulatory Agencies
Principal National
Clients employees Environmentalists
contractors Government
Clients customers Trade contractors Conservationists
Materials
Clients tenants Archaeologists
contractors
Clients suppliers

The formal QP, QA and QC becomes very blurred in construction industry since
there are many overlapping and intersecting areas of interest with their own agendas
and control systems
 Project Governance and role of PMO
Evaluation of new projects
Cost reduction and maintaining project
standards
Train project professionals
Assessing ongoing projects
Benefits tracking
 Types of PMOs
Organizational Unit PMO/Business Unit
PMO/Divisional PMO/Departmental PMO
Project-Specific PMO/Project Office/Program Office
Project Support/Services/Controls Office or PMO
Enterprise/Organization-
wide/Strategic/Corporate/Portfolio/Global PMO
Center of Excellence/Center of Competency
 During the PMO lifecycle, nine functions will help ensure success of
the various implementation and transformation initiatives
High-Level LTO PMO Functions

1. Progress Tracking and Reporting: Track milestones and deliverables

Continuous Program Management Functions
for each project:
Reject project plans if they do not conform with PMO standards
and required level of details
Business
Alignment Identify and coordinate program critical path changes throughout
Change telework projects
Management Technology 2. Communication Management: Communicate relevant messages to
8 Alignment all key interested parties
7 3. Resource Management: Identify potential resource bottlenecks,
9
unique requirements, contingencies and plan accordingly
Quality
Assurance 6 Progress 4. Issue Management: Establish and maintain standards for issue
Program 1 Tracking & categorization and resolution according to issue severity and facilitate
Management Reporting resolution
5 5. Risk Management: Pro-actively identify and quantify potential risks
Risk 2 (e.g., financial, resource, technical)
Management Communication Establish and maintain quality assurance standards, procedures and
4 3 Management schedule compliance / assurance reviews

Issue 6. Quality Assurance: Provide criteria in selecting contractors during

Management Resource
the RFP process
Management
7. Change Management: Establish and maintain a standard process for
receiving, testing and approving changes to program scope

8. Business Alignment: Assess the fit and identify gaps between

business needs and processes with the proposed solution
9. Technology Alignment: Assess the fit of proposed technologies with
current or planned environment / infrastructure
Role of PMO