Report DRB

CONSTRUCTION PROJECT MANAGEMENT TECHNIQUES

COURSE NO- NCP 26/ GPcPM-14

ASSIGNMENT 4

SUBMITTTED BY: GURMEET SINGH

REG. NO. : 214-11-14-12363-2151

COURSE: GPcPM

National Institute of Construction Management and Research

School Of Distance Education, Pune

ASSIGNMENT

A new international cricket facility is to be constructed outside a mega city over a piece of land. Facility to include:i) Capacity of spectators : 80,000ii) Day/ Night play facilityiii) TV camera platform in six directionsiv) Safety of players from spectatorsv) Pavilion for VIPs to sit 300vi) Parking (adequate space for all above)

Time available is 16 months including monsoon. Cost of construction need to be recovered in 5 years. Average cost of ticket is Rs. 100/-. Approximate 4 matches per year. Submit the project report covering:

i) Identification of projectii) Stages in development of projectiii) Work breakdown structure to undertake the projectiv) Milestones & CPM chart for corporate controlv) Cost of project

Assume necessary data.

1. PROJECT IDENTIFICATION:The definition of project is a temporary endeavor to create a unique product, service or result with a definite beginning and end. The construction of international cricket facility is a temporary endeavor with a unique facility and with time line for construction, we can consider this as a project.

There are various phases during the project life cycle: A. Conceptual analysis B. Technical and feasibility studies C. Environmental Impact reportsD. PlanningE. DesignF. ExecutionG. Start Up Our project is to build a cricket stadium outside a mega city over a piece of land in 16 months.

FEASIBILITY STUDY:Cricket is the most popular game in India, inspite of hockey been our national game. There is immense popularity and interest for the game with in various sections of age and sex. The cricketing body is trying to bring up various changes in the playing pattern to ensure as well as increase the interest in the game. In addition to this they are trying to market the game in various other countries were this sport is not played. The revenue from the game is increasing day by day with various forms of cricket been played in addition to the advertisements. With the introduction of shorter games viz 20T or 20- 20 over matches excitement and interest on the game has increased considerably. The success of Indian Premier League & Indian cricket League has further helped in commercialization of the game.The requirement on construction of new state of art cricket stadium was studied. There is no cricket stadium available in this mega city with the facilities outlined because of which the city was not considered for holding international matches. A huge piece of land was available at the outskirts of the city to construct this stadium. Following areas were considered for the feasibility of this stadium:1) Land: A huge piece of land is required to construct a state of art facility cricket stadium. The required area of land was not available within the limits of the city, the also the cost of land is exorbitant which was would escalate the construction cost and in turn the ticket cost. The land currently available is sufficient enough to create stadium with facilities meeting the international standards. The cost of the land as compared is less since been constructed outside the city which will help in reducing the capital costs.

2) Accessibility:The construction cost for the stadium will reduce because of the proximity to the city. This will ensure all the required resources, machinery etc will be readily available and god bargain cost. The location of the stadium will ensure patrons, viewers are available to watch the matched because of the availability of the public transport, vehicles etc. This been mega city there is possibility of the stadium getting international matches which means the international visitors to the city as well as stadium. This will help in getting good foreign exchange and advertisement revenue.

3) Utility services:The services such as water and power will be readily available as the stadium is constructed outside the city limits. This will ensure day/ night facilities available without adding additional expense of generating power. 4) Revenue GenerationThe proximity to city will ensure revenue thru sales of ticket, advertisement boards, providing stadium of bigger meetings etc.

TECHNO-ECONOMIC FEASIBILITY REPORT (TEFR):The proposal to construct the stadium was reviewed from the point of commercial and environmental. The land outside city is a barren and away from sea or creek. This means while constructing the stadium the damage to environment by cutting mangroves, destroying agriculture etc is not there. However there are trees which would require cutting in order to start with the construction. The earth material and construction debris shall be disposed as per the area municipal requirements. The stadium is required to plan minimum equal number of trees or more to ensure the damage by cutting the trees is reduced.Commercially the stadium stand with an advantage starting with the land costs, in addition to this the location of the stadium outside the city limits will help in reducing the construction cost. The resources will be readily available which will ensure the project will be completed within the time frame. The revenue collection from sale of tickets and marketing rights will help in recovering the cost over a period of time.

2. THE PROJECT DEVELOPMENT PROCESS:The project goes thru various phases from inception to completion, the five main process includes: Initiation Planning Execution Monitoring and Controlling ClosingThe following diagram shows how the project management process group fits together. The construction of the stadium will generally fall under the following phases: Conceptualization Engineering and design Procurement Construction Commissioning Hand over2.1. PROJECT MANAGEMENT ORGANIZATION The project management is the application of knowledge, skills, tools and techniques to meet the project requirements. The projects do not operate in vacuum, they are impacted by the cultural norms, management policies, procedures and organizational structure. According to the Project Management Institute, the discipline of project management can be defined as follows: Project management is the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality and participation satisfaction. The organization structure will guide who the project manager shall approach for resources, how the communications will be done and other aspects of project management. A project manager shall be appointed once the project is awarded. The authority of the project manager shall be determined during establishing the project management organization. The success of the project depends on the authority provided to the project manager. He will then be responsible to go thru the scope of work, identify anomalies if any, set the project charter and identify the team. By contrast, the general management of business and industrial corporations assumes a broader outlook with greater continuity of operations. Nevertheless, there are sufficient similarities as well as differences between the two so that modern management techniques developed for general management may be adapted for project management. Specifically, project management in construction encompasses a set of objectives which may be accomplished by implementing a series of operations subject to resource constraints. There are potential conflicts between the stated objectives with regard to scope, cost, time and quality, and the constraints imposed on human material and financial resources. These conflicts should be resolved at the onset of a project by making the necessary tradeoffs or creating new alternatives. Subsequently, the functions of project management for construction generally include the following: 1. Specification of project objectives and plans including delineation of scope, budgeting, scheduling, setting performance requirements, and selecting project participants. 2. Maximization of efficient resource utilization through procurement of labour, materials and equipment according to the prescribed schedule and plan. 3. Implementation of various operations through proper coordination and control of planning, design, estimating, contracting and construction in the entire process. 4. Development of effective communications and mechanisms for resolving conflicts among the various participants. The Project Management Institute focuses on nine distinct areas requiring project manager knowledge and attention: 1. Project integration management to ensure that the various project elements are effectively coordinated. 2. Project scope management to ensure that all the work required (and only the required work) is included. 3. Project time management to provide an effective project schedule. 4. Project cost management to identify needed resources and maintain budget control. 5. Project quality management to ensure functional requirements are met. 6. Project human resource management to development and effectively employ project personnel. 7. Project communications management to ensure effective internal and external communications.8. Project risk management to analyze and mitigate potential risks. 9. Project procurement management to obtain necessary resources from external sources.2.2. PROJECT PLANNING AND CONTROL:Planning is important process and all projects shall be planned. The planning of the project starts with collecting the requirements of the project, scope. Once the scope is confirmed the activities are broken down to work break down structure. Once the activities are defined sequence and duration for activities are determined. The main objectives of planning are listed below: Analysis Anticipation Scheduling resources Co-ordination and control Production of data A preliminary schedule for the project is prepared and discussed with all stake holders, a formal agreement is taken on the schedule. This agreement helps in getting commitment with the personnel performing the work. The planning is an iterative process and will change during the life cycle of the project due to various reasons such as change in scope, change in sequence etc. Every time the plan is changed a meeting is to be carried out with all the stake holders for their information and formal agreement. . The monitoring and control process are means of measuring the performance of the project to the project management plan. The process helps in identifying the deficiencies, providing recommendations and preventive actions to bring the project back to the plan. This involves measuring the project against the baseline, determine the variances exercise judgment to determine recommendations or corrective actions. A good project manager recognizes from the outset that a project plan along with adequate controls is far more than an academic exercise or tool for appeasing upper management. It is the blueprint for the entire scope of the project, a vital document which is referred to frequently, often update on-the-fly, and something without which the project manager cannot proceed.3.0 PROJECT WORK BREAKDOWN:A project work breakdown structure (WBS) is a deliverable or product oriented grouping of project work elements to organize the total work scope of a project. In short WBS will provide the full scope of the work, any work not include in WBS means it is not included in the scope. Any request to carry out such work shall call for a change order. The WBS facilitates the planning and control of cost, scope, schedule and technical quality of the project outcome.

3.1 CLASSIFICATION OF LEVELS: The project scope is broken down to a higher level to further lower levels such as work package level where managing the work becomes easier. A work package is the last logical level of WBS. The first level is broken down prior to start of the project. The level is broken down by the team until: It can be realistically and confidently estimated It can be completed quickly It can be completed with out interruption. 3.2 WORK BREAKDOWN METHODOLOGY: As such there is no standard determined way for breaking down the scope, however if a set rules are followed even though the WBS created by different team will not look same however the basis will be same. Decomposition of the total project work in to work packages generally involves following activities: The WBS shall be created by a team The entire project is included in the first level Identify and analyze the deliverable related to work Structuring and organizing the WBS Decomposing these upper levels in to lower level detailed components. Developing and assigning identification codes to the WBS components Verifying the degree of decomposition of the work is necessary and sufficient

3.3 ASSESSING DURATION: Once the scope is broken down to work package level, it becomes easy to estimate the resource and duration of the activity. During this process the amount of work effort required to complete the activity is estimated and the amount of resources to be applied to complete the activity is estimated. The past historical data and assumptions support the estimation of the activity duration.

3.4 COSTING ACTIVITY:Cost estimating is one of the most important steps in project management. A cost estimate establishes the base line of the project cost at different stages of development of the project. A cost estimate at a given stage of project development represents a prediction provided by the cost engineer or estimator on the basis of available data. According to the American Association of Cost Engineers, cost engineering is defined as that area of engineering practice where engineering judgment and experience are utilized in the application of scientific principles and techniques to the problem of cost estimation, cost control and profitability. The costs of a constructed facility to the owner include both the initial capital cost and the subsequent operation and maintenance costs. Each of these major cost categories consists of a number of cost components. The capital cost for a construction project includes the expenses related to the initial establishment of the facility: Land acquisition, including assembly, holding and improvement Planning and feasibility studies Architectural and engineering design Construction, including materials, equipment and labor Field supervision of construction Construction financing Insurance and taxes during construction Owner's general office overhead Equipment and furnishings not included in construction Inspection and testing 4.0 THE CRITICAL PATH METHODThe critical path method is one of the common scheduling technique used in todays project environment. This CPM is the longest path through a network diagram and determines the shortest time it would take to complete the project. The critical path itself represents the set or sequence of predecessor/successor activities which will take the longest time to complete. The duration of the critical path is the sum of the activities' durations along the path. Any delays along the critical path would imply that additional time would be required to complete the project.There may be more than one critical path among all the project activities, so completion of the entire project could be delayed by delaying activities along any one of the critical paths. For example, a project consisting of two activities performed in parallel that each requires three days would have each activity critical for a completion in three days.Formally, critical path scheduling assumes that a project has been divided into activities of fixed duration and well defined predecessor relationships. A predecessor relationship implies that one activity must come before another in the schedule. No resource constraints other than those implied by precedence relationships are recognized in the simplest form of critical path scheduling.To use critical path scheduling in practice, construction planners often represent a resource constraint by a precedence relation. A constraint is simply a restriction on the options available to a manager, and a resource constraint is a constraint deriving from the limited availability of some resource of equipment, material, space or labor. For example, one of two activities requiring the same piece of equipment might be arbitrarily assumed to precede the other activity. This artificial precedence constraint insures that the two activities requiring the same resource will not be scheduled at the same time. Also, most critical path scheduling algorithms impose restrictions on the generality of the activity relationships or network geometries which are used. In essence, these restrictions imply that the construction plan can be represented by a network plan in which activities appear as nodes in a network, as in Figure 9-6. Nodes are numbered, and no two nodes can have the same number or designation. Two nodes are introduced to represent the start and completion of the project itself. The actual computer representation of the project schedule generally consists of a list of activities along with their associated durations, required resources and predecessor activities. Graphical network representations rather than a list are helpful for visualization of the plan and to insure that mathematical requirements are met. The actual input of the data to a computer program may be accomplished by filling in blanks on a screen menu, reading an existing data file, or typing data directly to the program with identifiers for the type of information being provided.With an activity-on-branch network, dummy activities may be introduced for the purposes of providing unique activity designations and maintaining the correct sequence of activities. A dummy activity is assumed to have no time duration and can be graphically represented by a dashed line in a network. Several cases in which dummy activities are useful are illustrated in Fig. 10-1. In Fig. 10-1(a), the elimination of activity C would mean that both activities B and D would be identified as being between nodes 1 and 3. However, if a dummy activity X is introduced, as shown in part (b) of the figure, the unique designations for activity B (node 1 to 2) and D (node 1 to 3) will be preserved. Furthermore, if the problem in part (a) is changed so that activity E cannot start until both C and D are completed but that F can start after D alone iscompleted, the order in the new sequence can be indicated by the addition of a dummy activity Y, as shown in part (c). In general, dummy activities may be necessary to meet the requirements of specific computer scheduling algorithms, but it is important to limit the number of such dummy link insertions to the extent possible.

Figure : Critical Path Method IMPROTANT NETWORK TERMS IN CPM:a) CRITICAL ACTIVITY: The activities having same Early start time and late start time as well as early finish time and later finish. This means any delay in these activities will lead to delay in the project.b) NEAR CRITICAL PATH: The path in close duration to the critical pathc) TOTAL FLOAT: Total float is the amount of time activity can be delayed without delaying the end date of project.d) FREE FLOAT: This is the amount of time an activity can be delayed without delaying the early start date of its successor.e) PROJECT FLOAT: The amount of time the project can be delayed without delaying he externally imposed completion date.

5. THE PROJECT COST:5.1 CALCULATION OF AVERAGE EARNINGS:Sl. NoCapacity of spectators Average Cost of Tickets In `No. Of Matches Per YearAverage No. Of Spectators Per MatchEarnings from the Match Tickets In `Per Year Earnings from matchEarnings from the Match Tickets in 5 Years

180000.00100.004.0060000.006000000.0024000000.00120000000.00

Table 1: Calculation of Average Earnings.

5.2 CALCULATION OF CONSTRUCTION COST:Sl.NoTotal Area Of Development in SqmAverage Construction Cost Per Sqm in`.Total Construction Cost `.

120000.006000.00120000000.00

Table 2: Calculation of Construction Cost.This cost will be covered in 5 years exactly. (Note: Other income from the broadcasting rights to the TV channels, hoarding advertising, fees from sponsors etc.will is different than this ticket income.)

6. RECCOMENDATIONS/ CONCLUSION: Based on the feasibility study and break even study, it is recommended to construct the stadium. Below additional recommendations shall be considered: Plantation of trees near the vicinity to save the environment Source environment friendly material such as solar power street lights. The construction debris shall be dumped in prescribed locations.

7. BILIOGRAPHY / READINGS:1. Construction Project Management Techniques, Published by NICMAR.2. Project management Institute manual3. PMP Book by Rita MulcahyPage 2 of 13