PROJECT MANAGEMENT

CASE STUDY ON ESSAR STEEL, HAZIRA

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WHAT IS PROJECT?

• A project is a one-shot,time-limited,major undertaking,requiring the commitment of various skills & resources.

• It is a combination of human and non-human resources pulled together in a temporary organization to achieve a specified purpose.

What is Project Management?

• Project Management is the process of planning, organizing, leading and controlling the efforts of the organizational members and use of other organizational resources in order achieve the stated organizational goal.

PROJECT MANAGEMENT

TIME COST QUALITY SAFETY

FUNCTION OF MANAGMENT

Control

Change

Organising

LeadershipPlanning

Organizational Goal

PROJECTS MANAGERS

• Project Expeditors: Unity of Communication

• Project Co-orinators: Unity of Control

• Matrix Managers : Unity of Direction

• Pure Project Manager : Unity of Command

• There are many different types of management activities– Proposal writing– Project costing– Project planning and scheduling– Project monitoring and reviews– Personnel selection and evaluation– Report writing and presentations

Management activities

Project planning• Probably the most time-consuming project

management activity

• Continuous activity from initial concept through to system delivery. Plans must be regularly revised as new information becomes available

• Principal project plan is concerned with identifying project activities, the resources required for these activities, activity interactions and the time required to complete activities

WHO MUST PLAN?

Everybody involved with the project. Project manager is at the heart of the

planning process. He/She must initiate the planning process, and

must create a master plan.

TYPICAL PROJECT PLANNING CYCLE

Planning

Action

Evolution of Results

Revision

Measurement of Results

PROJECT SCHEDULING

• Project scheduling is a crucial part of the planning process, since it is the basis for allocating resources, estimating costs, and tracking project performance.

• Project manager use them as Mechanism to sequences & control activities. With out them project might linger for month after month, consuming resources and missing opportunities.

Project scheduling

• Identify and define tasks and subtasks through the work break-down structure method.

• Examine the relationships between tasks.

• Create a draft schedule.

• Optimize the schedule

ACITIVITES, EVENTS & WORK PACKAGE

• A project schedules is road map

• How to get where you want to go but also indicates how much progress you made along the way.

• Mild stone Activities: major occurances, Completions or critical activity and major approval and availability of critical resources.

Cost estimation• Principally concerned with estimating the

resources required to complete a systems engineering project

• Resources include– Staff time– Target hardware i.e. the hardware in the system– Host development systems i.e. the systems used

to develop the system– Consumables and office expenses– Space costs for development team– Travel costs

Cost estimation objectives• To establish a budget for a systems engineering project

• To provide a means of controlling project costs

• To monitor progress against that budget by comparing planned with estimated costs

• To establish a cost database for future estimation

• Cost estimation and planning/scheduling are closely related activities

Costs and prices

• The cost of developing the system and the price charged to the customer are different things

• Costs must be accurately estimated to allow a price for the system to be established

• The price may be less than, equal to or more than the cost of development. Many non-technical factors are involved in setting a price for the system

Key points• Good project management is essential for project

success

• Managers have diverse roles which depend on their level of seniority. The most significant activities for project managers are planning, estimating and scheduling the project

• Planning and estimating are iterative processes which continue throughout the course of a project

• There is no simple way to estimate project costs and, generally, a variety of different techniques should be used for cost estimation

• Configuration management is concerned with managing changes to system components

• Configuration management activities include component naming, version management, change control and system building

Key points

The Hazira Complex

• Essar Steel Ltd. In hazira is one of the largest gas based Steel manufacturing plant of the world.

• With the annual capacity of 5.1 MTPA giving the daily production of 1190 tone per day.

• Essar in Hazira produces three major types of steel which includes Hot Briquette Iron (HBI), Hot Rolled Coils(HRC) and Iron Plates.

How is it Processed?

• Raw Material :- Vishakhapatnam through cargo that carries 6 MTPA.

• Raw Material changed to Hot Bricks with the dying machines consisting of rollers at the temperature of 150’C.

• Part of it is transferred to the HRC module where it is furnished to coils or plates.

• Rest is converted to DRI at a temperature of more than 650’C

Salient Features of HBI Plant

• World's largest gas based HBI plant

• Amongst the lowest per-tonne operating costs

• Consistently operating at high capacity

• Established customer base in both domestic and export markets

Current Essar Customers (CEC)

• The customers of essar are based from diversified businesses including construction, automotive, shipping etc.

• They are swaraj mazda, Hyundai, caterpillars to name a few.

• Essar also joint hands with a company for the Delhi Rail Corporation where it would provide all the steel requirements of that project

How does it schedule the Project?

• Essar has a high level of integrity and a very high level of serenity.

• It has a very lateral type of structure and hence the communication between the top management and the lower cadre is very much without any Reprimandness.

• This is believed to be the most important reason for the success of Essar Steel.

• Due to this the distribution of task (scheduling) is very much equally divided without jeopardizing anyone’s participation.

• Also the work efficiency is reported to increase when the departments follow the same policy without biasing the designation.

CONCLUSION

• Project Management in Essar Steel is not only about time, cost, quality and safety but also efficiency, employee relationship and customer satisfaction following the 5S principle helping Essar to be one of the leading project manager of its kind.