PGCM 21 - Assignment R.0

NATIONAL INSTITUE OF CONTRUCTION
MANAGEMENT AND RESEARCH, PUNE
SCHOOL OF DISTANCE EDUCATION

Post Graduate Programme in Construction Management (PGP CM)

Module : 12
Course No. : PGCM 21
Course Title : PROJECT MANAGEMENT SYSTEMS & TECHNIQUES
Assignment No : 1
Registration No: 217-06-11-50971-2191
Submitted by
SRINATH SRINIVASAN

SRINATH SRINIVASAN 1 217-06-11-50971-2191

ASSIGNMENT

A New International cricket facility is to be constructed outside a mega city over a
piece of land. Facility to include:
1. Capacity of Spectators: 80,000
2. Day/Night play facility
3. TV Camera platform in six directions
4. Safety of players from spectators
5. Pavilion for VIPs to sit: 300 seat
6. 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 100/‐. Approximate 4 matches per year.
Submit the Project Report:
1. Identification of Project
2. Stages in development of Project
3. Work break down structure to undertake the project
4. Milestone & CPM chart for corporate control
5. Cost of project.


PROJECT IDENTIFICATION & FEASIBILITY:-
The primary thing about the any project is its necessity as well as its feasibility. Now
the necessity of the project like a cricket stadium is created by the people of the city
as well as a mega city demands a cricket stadium in its vicinity. The feasibility demands
a deep thought like for a location of stadium i.e.
 Where can the plant be located?
 What is the present and future projected cost of resources?
 The sources for Financing of the project?
 Are there enough raw materials as well as skilled and productive labour
available in the area or can be created?
 Are there adequate electricity and communication facilities available?
 What political or institutional factors may cease or impede the development
and operation of the facility?
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


FEASIBILITY STUDY OF THE PROPOSED STADIUM
It is abundantly clear that the stage of conceptualization and initial planning is when
there is maximum flexibility and that this flexibility must be utilized to the fullest to
achieve maximum benefits in terms of cost saving s and quality. The feasibility study
would broadly consist of:
 Identifying and the need for a Stadium
 The projected cost and long term financial viability of the Stadium
The need for the stadium is obvious and clear. The popularity of the sport and the level
of matches will ensure high patronage at all times. The stadium should not present
any real pollution related or other political & economic problems at the outset.
However, traffic studies should be undertaken to validate the selection of the site for
the stadium. Thus, the project needs to be defined only in terms of financial viability.
The projected earnings are as follows:
1. Stadium Capacity ‐ 80,000 (100% attendance is the norm)
2. Assuming 95% Capacity ‐ 76,000
3. Average price of attendance ‐ INR 100
4. Income from tickets per match ‐ INR 7,600,000
5. @4 matches per year ‐ INR 30,400,000
6. For 5 years ‐ INR 15,20,00,000

It is clear from the above that the revenue from tickets alone will not be sufficient to
fund and sustain the stadium. Additional sources of income will have to be utilized and
some of the options are as follows:
1. Advertising/sponsorship revenue @ 50 lakhs per match
2. Grants from BCCI & State Cricket Assoc. @ 30 lakhs per match
3. Income from lending out ancillary Grounds / halls for gatherings
@ 10 lakhs per year
4. Income from cricket coaching clinics @ 05 lakhs per year
5. Income from club house @ 10 lakhs per year
6. Therefore income from above would be 3.45 crores per year.
7. Over a 5 year period these earnings would be 17.25 crores
Therefore the stadium can generate approximately 32.5 crores over a 5 year period.
Additionally, it is common practice for the BCCI to give out additional grants for
construction of such stadiums. The state cricket association (SCA) and the Ministry of
Sports and Youth affairs could also be approached for additional funds. Local corporate
bodies could also be approached for funds.
The comparative cost of constructing a world‐class facility is US$ 50 to 60 million.
Therefore it can be assessed that the project is a commercially viable one and will be
able to recover the investment over a period of 5 years.


PROJECT REPORT
Project report is a basis for communicating what has been planned for the project. In
this project I have assumed the site in Madurai as there is no other such type of facility
is available yet. The city is developing very fast in respect to the social as well as
economical aspects. The city is well planned and itself is an attractive place with its
rich cultural heritages.
CONCLUSION: After going through all these aspects we can conclude that building a
cricket stadium outside the megacity will be beneficial project not to the cricket lovers
only but as a profit making business also.
PROJECT DEVELOPMENT PROCESS
From conceptualization to implementation the stages in the development of
construction project 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

Conceptualization
Most projects start with a need to have a new facility long before designers start
preparing designs and drawings of the projects and certainly before field
construction work can commence. Considerable thought goes into broad scale
planning. Elements of this phase include
a. Conceptual analysis
b. Technical and feasibility studies
c. Environmental impact reports
Engineering and Design
Architects and design engineers primarily handle these phases. Increasingly, however,
the client operation and utilization of Knowledge and field constructors’ experience
are more strongly injected at this stage through direct participation and stringent
review procedures. There are two phase of engineering and design:
(i) Preliminary engineering and design
(ii) Detailed engineering and design
PROJECT MANAGEMENT ORGANIZATION
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. 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:

 Specification of project objectives and plans including delineation of scope,
budgeting, scheduling, setting performance requirements, and selecting project
participants.
 Maximization of efficient resource utilization through procurement of labor,
materials and equipment according to the prescribed schedule and plan
 Implementation of various operations through proper coordination and control
of planning, design, estimating, contracting and construction in the entire
process
 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
PROJECT PLANNING & 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:
 Analysis
 Anticipation
 Scheduling resources
 Co‐ordination and control
 Production of data
The basic components of the project, according to Hallows, are laid out in the figure
below.

1. Planning is the creative and demanding mental activity of working out what has
to be done, how, by when, by whom and with what – doing the job in the mind.
Plans are not just pieces of paper. Plans represent the result of careful though,
comprehensive discussions, decisions and actions, and commitments made
between people and contractual parties.
2. Planning techniques form the planner’s toolbox. They assist in the analysis of
the plan, organizing the information, and have a crucial effect on the way in
which the plan is communicated to others. Taken together, these two elements
of planning produce “the plan” a strategy and tactics for the execution of the
project. In terms of activities, time quantities, resources and perhaps costs and
values, now the point is how and by whom this planning and planning
techniques use to convert all these theories of planning and planning techniques
in to a practical shape.

CONTROL
Planning can be described as a process of thinking in advance. It is based on
experience, sound judgment and some quantitative techniques. It deals with the
future and as such there are bound to be uncertainties, which may cause deviations
from the target proposed to be achieved. So, one should not hope that everything will
be fine, because plans and schedules do not work by themselves. It is rightly said that
we must plan the work first and then work the plan. So for working the plans and
schedules effective controlling is necessary. “Planning is looking forward while
controlling is looking back.”
PROJECT CONTROL COVERS
While doing original planning and scheduling activity duration might have been over
estimated or under estimated.
1. Some activities are delayed due to reasons beyond control like change in foundation
condition, bad weather, monsoon as in this case, non‐availability of certain resources,
labor strike, break down of equipment etc. So covering these risks the total time
allotted to complete the cricket stadium is 16 months.
2. Natural calamities like floods, earthquakes, epidemic etc., festivals etc.
3. Addition deletion or major modification in the work by client.
4. Introduction of new material, equipment or construction techniques. It is necessary
to review the actual progress against the predetermined targets.

UPDATING NETWORK
It consists of review of the planning and scheduling at regular intervals. But for that
updating, the information required will be, period at which review is taken either in
terms of days or weeks. List of activities completed and partially completed with the
period required to complete the balance of the activity etc. Now after getting the
required updating should be done at regular intervals, which depends upon magnitude
of work, rate of progress etc. At short intervals as the scope of absorbing delays is
limited as the period advances, for small projects. At certain stages such as foundation
level, plinth level, sub structure and super structure etc. Whenever new techniques or
equipment are available , when work has stopped for a long period for some reasons
the updating of a project also helps in rescheduling of the activities which are delayed
or lagging behind so that the project can be completed within the stipulated time.
Calendaring the Network
While preparing the network we consider the working days while on work sits there
will be holidays such as weekly of day, festivals etc. these holidays have therefore to
be incorporated in calendaring the network.
Cost control
Project control must be linked up with the cost. The objectives of the cost control are
the method must give the program of expenditure so that requirements of fund can

be assessed. At the time of review we should have a clear picture of actual expenditure
incurred (vs) program expenditure and actual expenditure (vs) the expected returns.
In case deviations, what are the reasons and what will be the estimated cost of
remaining portion of the work. Improper Cost estimation & Controlling can bring a
project to a standstill, if the project is under budgeted the project will be stopped mid‐
way, similarly proper planning is to be done stage wise requirement of the funds for
the various stages of the project & the sources for the same. 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.
PROJECT WORK BREAKDOWN
The project work breakdown process involves splitting of the project works into its
manageable constituents arranged in a hierarchical order till the desired level. The
work‐breakdown levels are categorized into sub‐projects, tasks, work packages,
activities and operations. These levels depend upon the plan type, the nature and
complexity of the project and the expected degree of control. The work‐breakdown
levels for various types of plans are given in the figure below. It may be noted that the
levels classification is a broad concept and, at times, overlapping of levels may become
unavoidable.
These activities are also called as levels, which can be classified very well. For
instance the activities of the cricket stadium are:

 Site consolidation
 Line out and marking
 Foundation Works
 Erecting Super Structure
 Erecting ancillary structures
 Services – Electrification, Illumination, Plumbing, HVAC, Fire Fighting
 Finishing Works
 Pitch development
 Parking layout and demarcation
 Clearance, Testing and Handing Over
 Maintenance (may not be a part of main WBS but should be)
MODELING AND ANALYZING NETWORKS
The three commonly used techniques this family are Critical Path Method (CPM),
Program Evaluation and Review Techniques (PERT) and the Precedence Network
Analysis (PNA) Technique. The common features these techniques are that they make
use of network model for depicting time‐plan of project, apply critical path concept
for determining project duration and identifying critical activities, and employ network
analysis techniques for controlling project time object but each technique has a
distinct model and its field of application varies.


Network analysis procedure the modeling and analysis of a network involves following
steps:
 Defining scope of network
 Determining activities
 Developing network logic diagram
 Structuring model
 Incorporating activity durations
 Numbering events/activity
 Computing critical path
Criteria for selection of network technique Experience shows that:
 CPM is best suited for developing sub‐project/task/work package sub‐networks
having activities with deterministic single‐time duration.
 PERT is useful for work packages, tasks or sub‐projects involving uncertainties.
In such cases, probabilistic approach of three‐times (or a mathematical time‐
related function) is used for assessing activity duration.
 Precedence Network is the most commonly used technique for time planning of
construction sub‐projects and projects.

COST OF OUR PROJECT
1. Capacity of spectators = Rs. 80000
2. Time limit = 16 months
3. Average cost of ticket = Rs. 100
4. Per year matches = 04
5. Assuming One match avg spectators = Rs. 60000
6. Earning from match tickets = Rs.100 x 60000
= Rs. 6000000
7. Per year earning through matches = Rs.6000000 x 4
= Rs.24000000
8. In 5 years earning through matches = Rs.24000000 x 5
= Rs. 12,00,00,000
9. Say the built up area for the stadium = 20000 Sq. m
10.Cost of construction per Sq. m = Rs. 6000
11.Therefore, Total cost of construction = 20000 x Rs. 6000
= Rs.120,0,00,000
This cost will be covered in 5 years exactly.


CPM/ NETWORK ANALYSIS
Network is defined as the pictorial representation of the activities of a given project in
the form of arrows, which form an essential element of network. Arrow represents an
activity, task of operation of the work since activity consumes resources. Arrow has a
directional sense, which can be represented by an arrow head it is used to indicate the
general direction of flow of work. It is conventional to show arrows directing from left
to right. Tail of arrow indicates the start of the activity and it’s had indicates the
completion of the activity. Beginning of completion of an activity marks a phase or
stage of work. This is represented by a suitable geometrical figure like circle, triangle
and rectangle. This is known as event. Events naturally do not consume any resource
by itself. There is another type of activities, which do not require any resources and
which are basically imaging activities called dummy activities, these activities only
show the interdependency of the activities but doesn’t consume any resource.
Development of network
Network can be developed in two ways,
1. Preceding and following activities
some activities cannot be started unless certain activities are completed. For
e.g. excavation of foundation must be completed before foundation concrete
is poured. These types of activities are known as sequential activities

2. Concurrent activities
A few activities can be carried out concurrently. For e.g. excavation for
foundation of four walls of a room can be started simultaneously. Let us take
the case of erecting steel framework (for lightning) on cement concrete
foundation in a cricket ground, the following operations are identified in the
network.
Clearing and levelling the site, giving lineout, Procuring material for concrete,
Procuring steel for foundation, excavation, formwork foundation steel, Concreting,
Backfilling, Erection & painting of steel work, Clearing & levelling site, Preparation of
ground& pitch
These are the general activities for the development of Master Control Network
(MCN), however we can divide each activity in to sub activity to develop a sub‐ network
.e.g. concreting can be divided as conc. In foundation, in boundary wall, in
superstructure etc. the activities of excavation, formwork, concreting and backfilling
are divided in to two parts to make these activities concurrent to further reduce the
time of completion and thus cost.

Activity Activities Duration Preceding Following Concurrent
no description
activity activity Activity
Site clearing & 30

A B C
leveling
B Layout 15 B D C
Procurement of 180
C V
material
Excavation for 45
D B E,L
foundation
E Foundation work 60 D F,H,I,J L
F Waterproofing 21 E G H,I,J,M
G backfilling 15 F X
Construction of 90
H E S F,I,J
boundary walls
Construction of 150 K,N,P,R,T,

I E F,H,J
super structure U
Construction of 60
J E Q
toilets
Services work 90 G,N,P,R,T,U,

K I V
Q
Foundation for 25
L D M E
light structure

Activity Activities Duration Preceding Following Concurrent
no description
activity activity Activity
Fabrication of 90
structure for
M L V F,H,I,J
lights for d/n
facility
Construction of 100 G,K,P,R,T,U,

N I O
drains Q
Construction of 120
O N S V
Roads
Construction of 90 G,K,N,R,T,U,
P I S
parking area Q
Finishing works 50 G,K,N,R,T,U,

Q J S
in toilets P
M/S railing works 60 G,K,N,R,T,U,

R I S
P
Painting work 90 H,K,N,P,R,T,

S V O
U,Q
Structure of 60
welded wire
G,KN,P,R,U,
T mesh around the I S
Q
Ground for
safety of players
Preparation of 150
U I X G,KN,P,R,T,Q
Ground and pitch
Installation of 15
V S,C W
Gadgets
Commissioning 20
W V X
of Services
X Handing over 5 W

ANALYSIS PROCEDURE
The project can be analyzed in a no. of ways, through precedence network and
PERT/CPM networks. Precedence network is the way of representing the project
through the activity‐on‐node approach. In precedence network, an activity is shown
on the node, which is represented by a box. The precedence diagram is shown as a
straight line, called connectors, if an activity a is followed by another activity B, it is
known as
Sequential Activity
Sequential activity and it will be represented in CPM/PERT network as in the figure
given below. However if the some activity A is followed by another activity B, then it
will be represented in precedence diagram as:
Sequential Activity
Precedence network is easier to understand than arrow networks to draw as well as
to understand. It is also easier to explain to a non‐technical person who does not have
much knowledge about a network.

Now time analysis in both the networks (precedence and PERT/CPM) is done on the
same lines. Every event is associated with two timings,
Earliest occurrence (ET) and Latest occurrence (LT) Similarly each activity is associated
with four times:
1. Earliest start time (EST) = Earliest time by which an activity can start.
2. Latest start time (LST) = Latest time by which an activity must start.
3. Earliest finish time (EFT) = Earliest time by which an activity can be finished.
4. Latest finished time (LFT) = Earliest time by which an activity must be finished.
So, activities have to be planned and schedule in such a way as to satisfy these
constraints without extending the project duration: however if the constraints are of
critical nature even project duration has to be altered to satisfy them. In the end let us
give a look at step –by – step procedure for large network,
1. Prepare project network.
2. Calculate event timings, activity timings & Floats
3. Prepare a bar chart to suitable scale. List the activities in a proper scale.
a. The activities should be listed in increasing tail event number.
b. If there are more activities with the same tail event number they should be
so arranged that head event numbers in increasing numbers
4. First schedule all activities at EST and work out resource requirements. If the
distribution is not satisfactory find out sum of the squares.
5. Reschedule the activities. Start with the last activity. It should be shifted towards
LST stage by stage

6. Next activity is then taken up and same procedure is followed till we finish all
the activities.
7. While scheduling activity from whose head event more than one activity is
emanating, care is necessary. The latter are rescheduled; hence the preceding
activity must be over by the earliest time worked out by rescheduling. Of
subsequent activities.
CPM NETWORK
Essentially it was a problem concerned with obtaining tradeoff between completion
time of work and the cost. The method known as critical path method is therefore
based on the assumption that the time required by various activities is known. It is
deterministic in nature and is not concerned with uncertainties. CPM is more suitable
in construction situation where some experience in handling similar activities in the
past is available.
Critical Path Method is capable of serving on the basis of an integrated company‐
worldwide management, ranging from pre bid feasibility studies though estimating,
planning, cost accounting, progress control and financial control.
Critical Path Method is the path of events having longest duration i.e. A‐B‐D‐E‐I‐N‐O‐
V‐W‐X having duration 482 days=16 months, which is required completion time.


CONCLUSIONS & RECOMMENDATIONS
 Successful pre construction planning and scheduling will go a long way in
ensuring that the product is of the desired quality and meets all expectations
with respect to cost, time and quality.
 Due to both financial and time constraints, it is essential that thorough control
be maintained throughout the duration of the project.
 A conscious effort to adopt sound quality practices must be undertaken. This is
deemed to be a world class facility. The quality objective is apparent and must
be adhered to.
 Adequate allowance for stoppage/slowing of work must be made during
monsoons.
REFERENCES
I. NICMAR Lesson Book ‐ Project Management Systems & Techniques
II. Lt. Col. K.K. Chitkara “Project Management” Tata Mc. Graw,1998

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NATIONAL INSTITUE OF CONTRUCTION

MANAGEMENT AND RESEARCH, PUNE

SCHOOL OF DISTANCE EDUCATION

Post Graduate Programme in Construction Management (PGP CM)

Course No. : PGCM 21

Course Title : PROJECT MANAGEMENT SYSTEMS & TECHNIQUES

Registration No: 217-06-11-50971-2191

SRINATH SRINIVASAN 2 217-06-11-50971-2191

SRINATH SRINIVASAN 3 217-06-11-50971-2191

2. Assuming 95% Capacity ‐ 76,000

SRINATH SRINIVASAN 4 217-06-11-50971-2191

3. Income from lending out ancillary Grounds / halls for gatherings

SRINATH SRINIVASAN 5 217-06-11-50971-2191

PROJECT DEVELOPMENT PROCESS

SRINATH SRINIVASAN 6 217-06-11-50971-2191

Engineering and Design

PROJECT MANAGEMENT ORGANIZATION

schematically in Figure‐1. A working knowledge of general management and

Specifically, project management in construction encompasses a set of objectives

SRINATH SRINIVASAN 8 217-06-11-50971-2191

 Maximization of efficient resource utilization through procurement of labor,

 Development of effective communications and mechanisms for resolving

PROJECT PLANNING & CONTROL

SRINATH SRINIVASAN 10 217-06-11-50971-2191

comprehensive discussions, decisions and actions, and commitments made

SRINATH SRINIVASAN 11 217-06-11-50971-2191

PROJECT CONTROL COVERS

allotted to complete the cricket stadium is 16 months.

Calendaring the Network

SRINATH SRINIVASAN 13 217-06-11-50971-2191

PROJECT WORK BREAKDOWN

work‐breakdown levels are categorized into sub‐projects, tasks, work packages,

MODELING AND ANALYZING NETWORKS

In such cases, probabilistic approach of three‐times (or a mathematical time‐

SRINATH SRINIVASAN 16 217-06-11-50971-2191

1. Capacity of spectators = Rs. 80000

2. Time limit = 16 months

3. Average cost of ticket = Rs. 100

4. Per year matches = 04

5. Assuming One match avg spectators = Rs. 60000

6. Earning from match tickets = Rs.100 x 60000

7. Per year earning through matches = Rs.6000000 x 4

8. In 5 years earning through matches = Rs.24000000 x 5

9. Say the built up area for the stadium = 20000 Sq. m

10.Cost of construction per Sq. m = Rs. 6000

11.Therefore, Total cost of construction = 20000 x Rs. 6000

SRINATH SRINIVASAN 17 217-06-11-50971-2191

completion of the activity. Beginning of completion of an activity marks a phase or

SRINATH SRINIVASAN 18 217-06-11-50971-2191

Procuring steel for foundation, excavation, formwork foundation steel, Concreting,

SRINATH SRINIVASAN 19 217-06-11-50971-2191

Site clearing & 30

E Foundation work 60 D F,H,I,J L

Construction of 150 K,N,P,R,T,

Services work 90 G,N,P,R,T,U,

SRINATH SRINIVASAN 20 217-06-11-50971-2191

Construction of 100 G,K,P,R,T,U,

Finishing works 50 G,K,N,R,T,U,

M/S railing works 60 G,K,N,R,T,U,

Painting work 90 H,K,N,P,R,T,

SRINATH SRINIVASAN 21 217-06-11-50971-2191

SRINATH SRINIVASAN 23 217-06-11-50971-2191

SRINATH SRINIVASAN 24 217-06-11-50971-2191

SRINATH SRINIVASAN 25 217-06-11-50971-2191

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