MANAGEMENT CONTROL OF PROJECTS
What is a project A PROJECT IS A
• COMPLEX
• NON-ROUTINE
• ONE-TIME EFFORT
IT IS LIMITED BY
• TIME
• BUDGET
• RESOURCES
• PERFORMANCE SPECIFICATIONS
MAJOR CHARACTERISTICS OF PROJECTS ARE
• DEFINED OBJECTIVES
• LIFE SPAN WITH BEGINNING AND END
• INVOLVES SEVERAL DEPARTMENTS AND PROFESSIONALS
• IT HAVEN’T BEEN DONE BEFORE
• HAS SPECIFIC TIME, COST AND PERFORMANCE REQUIREMENTS
MANAGEMENT CONTROL OF PROJECTS
PROJECTS – A SET OF ACTIVITIES, WHICH ARE CARRIED OUT WITH A DESIRED END RESULT.
PROJECT GOES THROUGH PHASES OF
PLANNING
IMPLEMENTING
EVALUATION
IT FOLLOWS A SET OF BUDGETED ACTIVITIES WHICH ARE SCHEMATICALLY SCHEDULED.
MANAGEMENT CONTROL OF PROJECTS
AN UNCONTROLLED PROJECT WOULD RESULT IN LOSS OF RESOURCES BOTH IN TERMS OF TIME AND MONEY
COSTS INCREASE EXPONENTIALLY WITH A LINEAR INCREASE IN THE DEGREE OF CONTROL.
KEY ISSUES IN CONTROL OF A PROJECT ARE
TIME, COST AND QUALITY OF WORK
MANAGEMENT CONTROL OF PROJECTS
OPTIMIUM TIME OF A PROJECT – IT SHOULD ENSURE
THAT THE BEST POSSIBLE WORK IS CARRIED OUT IN
THE SPECIFIED TIME.
THE WAY CONTROL IS EXERCISED SHOULD GENERATE,
POSITIVE PARTICIPATION
GOAL SEEKING
PROCESS CONTROL IN PROJECTS
CONTROL OF PHYSICAL ASSETS – INVOLVES THE SCHEDULING,
MAINTENANCE AND REAPIR OF PHYSICAL ASSETS (BOTH PREVENTIVE
AND CORRECTIVE CONTROL).
CONTROL OF HUMAN RESOURCES – HUMAN RESOURCE ACCOUNTING.
CONTROL OF FINANCIAL RESOURCES – INVOLVES
WORKING CAPITAL MANAGEMENT
BUDGETING
CAPITAL INVESTMENT DECISIONS AND CONTROLS
PHASES OF PROJECT CONTROL
PROJECT PLANNING – THE PROCESS OF DEVELOPING THE BASIS OF
MANAGING THE PROJECT INCLUDING THE PLANNING OBJECTIVES,
PROCEDURES, ORGANISATION, ROUTINES, FINANCE AND OTHER ACTIVITIES.
TECHNICAL LEVEL
OPERATIONAL LEVEL
THE FINAL PLAN – CONSISTS OF,
SCOPE
SCHEDULE
COST (TEC+OPC)
CPM – REDUCES PROJECT DURATION AT AN INCREASED COST.
PERT – PROBLEM OF UNCERTAIN ACTIVITY TIMES.
PHASES OF PROJECT CONTROL
PROJECT EXECUTION
TROUBLE REPORTS – EMPHASISE THE PROBLEMS THAT HAVE ALREADY
OCCURRED OR ANTICIPATED TO OCCUR. CRITICAL PROBLEMS ARE IDENTIFIED
AND HIGHLIGHTED.
PROGRESS REPORTS – INVOLVES THE COMPARISON OF ACTUAL AND
PLANNED SCHEDULES AND COSTS FOR THE WORK CARRIED OUT, ALSO
CONTAIN OVERHEAD ACTIVITIES THAT ARE NOT DIRECTLY RELATED TO
WORK.
FINANCIAL REPORTS – IT PROJECTS COST ACCURATELY WHERE COST
REIMBURSEMENTS ARE MADE, IT GIVES A CLEAR PICTURE OF HOW THE
FINANCIAL RESOURCES ARE BEING SPENT.
Diversification of GMR group Ferro-alloy manufacturing (1991-92)
Sugar production (1995)
Breweries (1998)
A 200-megawatt (MW) power project in Chennai (mid-1990s)
A barge-mounted power plant, the world’s first and largest, in Mangalore in late 2001.
Highways and Urban Infrastructure.
Airports
Manufacturing (agri-business, mainly sugar)
Net revenue of INR 45.67 billion in 2009-10 as compared to INR10.62 billion in 2005-06
Growth rate (CAGR) of 44 per cent.
Company’s assets were valued at INR149.34 billion in 2010.
BUSINESS PROFILE:
GMR Holdings Pvt. Ltd. Is the holding company with 2 subsidiary companies- GMR
Infrastructure Ltd. & GMR Industries (Airports) Ltd
Ownership structures has remained consistent with equity proposed to be distributed
equally among Rao, his sons and his son-in-law.
Decision making Council – Rao, Raju, Kiran, S.B & 2 independent non-family
executives.
Due to the rapid expansion of the group, Rao in 2006 hired strategy consultants
Mckinsey & Company, so as to assign roles and responsibilities to each family member.
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