Project Monitoring & Control

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Project Management and Appraisal by Sitangshu Khatua
 Project Monitoring & Control

The effectiveness of project control program is mainly dependent on the

reliability of the following information and guidance like:
Estimating project schedules

Man-power planning

Determining productivity level

Developing cost schedule

Trend analysis

Evaluating performance of the work

Identifying scope of the work

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Project Management and Appraisal by Sitangshu Khatua
EPC (Engineering, Procurement and Construction) Project

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Project Management and Appraisal by Sitangshu Khatua
 Trapezoidal technique

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Project Management and Appraisal by Sitangshu Khatua
 Labour density - Example

For a foundry unit let,

Plot area = 300ft220ft = 66,000 sq.ft
Scope (direct higher) = 6,00,000 man-hours
Allowance for indirect labour in area + 10% = 50,000 man-hours
Estimating allowance + 15% = 70,000 man-hours
Total scope for evaluation = 7,20,000 man-hours
Assumptions:
1. Due to criticality, use density of 300 sqft per man.
2. Allow 15% absenteeism for effective man-hours.
3. Build up duration from standard schedule.
4. Consider the case for sub-contract labour instead of direct hired labour
because it has been observed that local sub-contractors are more
productive than prime contractors or direct hires.

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Project Management and Appraisal by Sitangshu Khatua
 Solution

Scope = 7,20,000 man-hours for direct hire less 10% productivity adjustment for local sub-
contractor labour
-72,000
= 648,000 man-hours

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Project Management and Appraisal by Sitangshu Khatua
 Solution

Labour availability: no constraints

Peak density level = 250sq.ft per man
Peak man power = plot area / peak density = 66,000 sq.ft / 250 sq.ft per man = 264 men
Effective man hour per man-month = 2685%8 = 177 hours.
Build up (by judgment) = 2+3+5 = 10 months.
Run down (by judgment) = 7 months.
Therefore, putting all the values in equation we get:

Therefore total construction duration (Sub contract labour) = 10 + 6 + 7 = 23 months.

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Project Management and Appraisal by Sitangshu Khatua
 Cost Reduction Analysis

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Project Management and Appraisal by Sitangshu Khatua
 Termination of a Project
A project, like any other event must have a full stop. An end of a project can be either
planned or can be abrupt and sudden. It is not always necessary that an abrupt or before time
end of a project indicates failure of the project. A successful project can too have a
premature end.

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Project Management and Appraisal by Sitangshu Khatua
 Types of project termination

Normal
Advanced
Everlasting
Failed project
Change priority

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Project Management and Appraisal by Sitangshu Khatua
 Symptoms for Early Project Termination

Task Difficulties

Planning Absurd concept, poor decision making, wrong information, alteration in

methods or systems

Scheduling Tight schedule, unable to reach fixed schedules.

Organizing Lack of responsibility or accountability, inefficient project manager,

interfere of top management

Staffing Insufficient man-power, high attrition rate, poor man-power

Directing Inefficient leadership and coordination, low commitment and involvement.

Controlling Poor feedback and monitoring system, absence of problem identification

and strong control mechanism.

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Project Management and Appraisal by Sitangshu Khatua
 Project Audit

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Project Management and Appraisal by Sitangshu Khatua
 Project Audit

A periodic check up has become a general routine, whether for an

individual or for a highly complex operation for the sake of the
well being or diagnosis of a physical problem that might occur.

It is also equally applicable for the management of a project as a

periodic inspection is very much necessary to assure safe and
proper performance of the project and to ensure that the
organization is running in a good health as well as meeting all its
objectives.

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Project Management and Appraisal by Sitangshu Khatua
Pro forma of an audit plan for a project

An audit plan will be prepared in the following format:

Purpose
Scope
Approach for Conduct

a) Team Assignment
b) Schedule/Itinerary

Audit Areas
Interview Questions by Area

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Project Management and Appraisal by Sitangshu Khatua
 Proforma of an audit plan for a project

Audit areas for a project

a) Organization
b) Policies and procedures
c) Master planning and control
d) Work authorization
e) Contract administration
f) Engineering
g) Manufacturing
h) Quality control
i) Test
j) Logistic support
k) Customer requirements
l) Vendor support
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Project Management and Appraisal by Sitangshu Khatua