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NCP 26 Construction Project Management Techniques

ASSIGNMENT
NICMAR / SODE OFFICE

Course

- NCP 26

Course Title

- Construction Project Management Techniques

Assignment No.

- One

Last date of receipt

- 30.11.2014

Of Assignment at SODE office


Module No.:- 12

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 : 80,000

ii.

Day/Night play facility

iii.

TV camera platform in six directions

iv.

Safety of players from spectators

v.

Pavilion for VIPs to sit 300

vi.

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 project

ii.

Stages in development of Project


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NCP 26 Construction Project Management Techniques

iii.

Work breakdown Structure to undertake the project

iv.

Milestone and CPM chart for corporate control

v.

Cost of Project

1.

PROJECT IDENTIFICATION AND FEASIBILITY

A project is a temporary endeavor with a defined beginning and end (usually timeconstrained, and often constrained by funds and deliverables), under taken to meet unique
goals and objectives, typically to bring about beneficial change or added value. It is achieved
within the specified scope, quality, time and costs. Project can also be defined as organization
and performance of resources such as men, money, machinery, materials, space and
technology into logical sequence of activities.
Most projects start with a need to have a new facility long before designers start designs and
drawing of the projects and certainly before field construction work can commence.
Elements of this phase include:
-

Conceptual analysis

Technical and feasibility studies and

Environmental impact reports.

Here, our project is to build a cricket stadium outside a mega city over a piece of land in 16
months.
In India cricket is not just a game, but it is followed like a religion. Though its not our
National Sport, the craze for cricket is always at the peak. It is watched aggressively not only
by old aged or middle aged people but youngsters and teenagers, boys and girls-everybody is
taking keen interest to watch cricket either to watch on TV screen or at cricket stadium.
The trend of cricket is changing nowadays. People go crazy to watch a fast and furious 20
20s rather than a boring 5 days test match. The launch of 20 20s increased the heat of
cricket lovers. In only few overs batsmen hit lot of runs. Showering fours and sixes tense the
bowlers nerves but beat the heart throbs of the cricket lover spectators. Commercialization
of the game is also eye catching. . Indian Cricket League (ICL) and Indian Premiere League
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NCP 26 Construction Project Management Techniques

(IPL) are new tournaments which are becoming more and more popular. It comes with the
concept of more money and more fun.
Meanwhile technology was improving and become part of the game. Before there was only
TV and newspapers, but now we have internet. We have digital cameras with extra zoom,
stump vision cameras, speedometers to check the speed of the ball thrown by the bowlers,
digital sound systems, graphics systems, all the necessary data of the past cricket comes on
the screen within a few seconds. The International Cricket Association (ICC) is also then and
there introducing new rules which increase the tempo of the game. These all aspects
strengthen the idea that cricket will live and it is part of our lives.
Stadium is to be built near the mega city. Resources will be available easily. Machinery and
manpower will be available at ease. Infrastructure facilities are there so the roads and
transportation, electricity, water, and materials will be available easily. Air Port and Harbor
will make it easy for importing needs goods from outside and for the transportation of
international players and officials.
Market is highly competitive and we are living in the era of Advertising and marketing. So
many companies would like to sponsor matches. Lot of money can be generated through
giving rights to the television channels for broadcasting of the matches. Not only this,
sponsors are ready to pay money for their logos on the uniform of the cricketers. Money can
be generated through the advertising hoardings on the ground boundary. There is no doubt
that commercialization and glamour will draw more and more cricket spectators to the
stadium to watch their favorite cricketers in action as well as beautiful girls or cheer leaders.
CONCLUSION: After going through all these aspects we can conclude that building a
cricket stadium outside the mega city will be beneficial project not to the cricket lovers only
but as a profit making business also. Cricket Stadium construction in India is a good business
focus to fetch more profit.

2.

PROJECT DEVELOPMENT PROCESS

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NCP 26 Construction Project Management Techniques

From conceptualization to implementation the stages in the development of construction


project (here cricket stadium) fall into broadly consistent patterns but time and degree of
emphasis each project takes on its own a unique character.
An idea of a project passes through six phases before it become a reality:
-

Conceptualization

Engineering and design

Procurement

Construction

Commissioning

Operation and maintenance

2.1 PROJECT MANAGEMENT ORGANIZATION


Generally, project management is distinguished from the general management of
corporations by the mission-oriented nature of a project. A project organization will generally
be terminated when the mission is accomplished. 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.
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.
The basic ingredients for a project management framework may be represented
schematically in Figure -1. A working knowledge of general management and familiarity
with the special knowledge domain related to the project are indispensable. Supporting
disciplines such as computer science and decision science may also play an important role.

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NCP 26 Construction Project Management Techniques

The representation in Figure -1 reflects only the sources from which the project management
framework evolves.

Figure 1: Basic Ingredients in 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.

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NCP 26 Construction Project Management Techniques

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 the basic function of the management. Planning is concerned with how and
when to achieve the predetermined objectives. Planning sets all other functions of
management viz. organizing, staffing, directing, motivating, coordinating etc. The main
objectives of planning are listed below:
i.

Analysis

ii.

Anticipation

iii.

Scheduling resources

iv.

Co-ordination and control

v.

Production of data
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NCP 26 Construction Project Management Techniques

All effectively managed projects involve the preparation of the project plan. This is the
fundamental
document that spells out what is to be achieved, how it is to be achieved, and what resources
will
be necessary. In Projects and Trends in the 1990s and the 21st Century, author Jolyon
Hallows
says, "The basic project document is the project plan. The project lives and breathes and
changes
as the project progresses or fails." The basic components of the project, according to
Hallows, are
laid out in the figure below.

"With the plan as a road map, telling us how to get from one point to another," says Hallows,
" a
good project manager recognizes from the outset that a project plan 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 updated on-the-fly, and
something
without which the project manager cannot proceed."
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NCP 26 Construction Project Management Techniques

2.3 CONTROL OF PROGRESS ON SITE


Without control planning loses much of its value. It must be applied continuously to update
the plans and to enable reconsideration of the workload in the light of what has already taken
place.
Control involves comparing the actual achievement with the plans. If a programme is to be
really effective as a control document, it must represent time and quantity of work carried
out.
Progress can be recorded on planning charts that clearly indicate what is happening and
where corrective action needs to be taken.
Weekly and monthly meetings are invaluable in helping to control progress. The action
necessary for correcting underproduction will be considered and the best solution will then
be incorporated into the programme for the next period.
3. PROJECT WORK BREAKDOWN
Work within each phase to identify the events or tasks, and their associated subtasks. Define
everything that needs to be done; this is called the work breakdown structure.
The Work Breakdown Structure (WBS)
The WBS has become synonymous with a task list. The simplest form of WBS is the outline,
although it can also appear as a tree diagram or other chart. Sticking with the outline, the
WBS
lists each task, each associated subtask, milestones, and deliverables. The WBS can be used
to
plot assignments and schedules and to maintain focus on the budget.

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NCP 26 Construction Project Management Techniques

W B S LEVEL

W B S ELEMENT

ALL DOCUMENTATION & APPROVALS

2.1

ENABLING WORK

2.1.1

Clearing Site

2.1.2

Enabling construction activities

2.2

FOUNDATION

2.2.1

Excavation

2.2.2

Footings

2.2.3

Stab columns

2.3

STAND CONSTRUCTION

2.3.1

Columns & Beams

2.3.2

Walls

2.3.4

Roofs

2.3.5

Fencing

2.4

INTERIORS

2.4.1

Flooring

2.4.2

Electric Works

2.4.3

Carpentry Works

2.4.4

Plumbing Works

2.4.5

Painting Works
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NCP 26 Construction Project Management Techniques

2.4.6

Seating Arrangement

2.4.7

Emergency Arrangements

2.5

GROUND

2.5.1

Pitch Construction

2.5.2

Landscape (Lawn)

2.5.3

Boundary Line Arrangement

2.6

PROJECT COMPLETION

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


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NCP 26 Construction Project Management Techniques

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

The operation and maintenance cost in subsequent years over the project life cycle includes
the following expenses:

Land rent, if applicable

Operating staff

Labor and material for maintenance and repairs

Periodic renovations

Insurance and taxes

Financing costs

Utilities

Owner's other expenses

COST OF PROJECT:
Capacity of spectators

= 80000

Time limit

=16 months

Average cost of ticket

=Rs.100

Per year matches

=4

Assuming One match average spectators

= 70000

Earning from match tickets

= Rs.100 x 70000

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=Rs. 70,00,000

NCP 26 Construction Project Management Techniques

Per year earning through matches

= Rs.70,00,000 x 4

= Rs.2,80,00,000

In 5 years earning through matches

= Rs.2,80,00,000 x 5 = Rs. 14,00,00,000

Say the built up area for the stadium

= 18000 Sqm

Cost of construction per Sqm

= Rs.7700

Therefore, Total cost of construction

= 18000 x Rs. 7700

=Rs.13,86,00,000

This cost will be covered in 5 years exactly.


(Note: Other income from the broadcasting rights to the Vehicle Parking, TV channels,
hoarding advertising, fees from sponsors etc.will be different than this ticket income.)

4. The Critical Path Method


The most widely used scheduling technique is the critical path method (CPM) for scheduling,
often referred to as critical path scheduling. This method calculates the minimum completion
time for a project along with the possible start and finish times for the project activities.
Indeed, many texts and managers regard critical path scheduling as the only usable and
practical scheduling procedure. Computer programs and algorithms for critical path
scheduling are widely available and can efficiently handle projects with thousands of
activities.
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. Thus, the critical path can be defined as the longest
possible path through the "network" of project activities, as described in Chapter 9. The
duration of the critical path represents the minimum time required to complete a project. 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 require
three days would have each activity critical for a completion in three days.
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NCP 26 Construction Project Management Techniques

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 datafile, 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
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NCP 26 Construction Project Management Techniques

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 is completed, 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

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insertions

to

the

extent

possible.

NCP 26 Construction Project Management Techniques

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NCP 26 Construction Project Management Techniques

Critical Path Method by Primavera Software:

Many computer scheduling systems support only one network representation, either activityon-branch or activity-on-node. A good project manager is familiar with either representation.
CONCLUSION:
This cricket stadium will be profitable for all the parties say sponsors, spectators, cricket
association etc.

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NCP 26 Construction Project Management Techniques

BIBLIOGRAPHY / REFERENCE
1. Construction Project Management Techniques, Published by NICMAR, August 2011

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