Setting up of any project involves initiation, planning, execution, monitoring and finally closing, and

apparel manufacturing facility set up is no different either. Existing practice is to appoint a civil
contractor/architect to take care of the civil structure and take help from machinery equipment
suppliers to decide on machinery mix and prepare a plant layout and so on. As the goal of any
turnkey factory set up project is to choose the right plant and machinery, it is equally important that
the project is completed in Scheduled Time and within Estimated Budget.

We, therefore, want to address the important issue of setting up of garment manufacturing facility
from project management viewpoint.

Project Management

There are specialized consultants available to offer solutions for the Greenfield or technology
upgradation project. However the expertise available is mainly in the areas of technology of
manufacturing garments and associated civil/electrical/utilities. Currently no solutions available as
Project Solution Support considering both Management as well as Technical aspects to set up
factories by applying the globally accepted Standard Project Management Approach.

The goal of each manufacturing facility is a continuous improvement in Productivity, Efficiency &
Quality. Before going for any Manufacturing venture, all Projects should be managed in a more
coordinated and systematic way to get desired output when they come at Operation stage. A good
Project Management always leads to Productive and Efficient Operation Management and therefore
a Project Success always leads to Operation Success.

Project Management Approach

In the Projects, the standard Project Management Principles are governed through the proper
application and integration of different Project Management Processes, viz;
1. Initiation,
2. Planning,
3. Execution,
4. Monitoring and Controlling, and
5. Closing.

Managing any Project typically includes Identifying requirements, Addressing the various needs,
 concerns and expectations of the stakeholders as the Project will be carried out, andbalancing
the Project Constraints, such as Scope,Quality,Schedule,Budget,Resources, andRisks.The
relationship among these constraints is such that if any one factor changes, then at least one
other factor is likely to be effected. For example, if the schedule is shortened, often the budget
needs to be increased to add additional resources to complete the same amount of work in less
time. If the budget cannot be increased, then scope or quality may be reduced to deliver a
product in less time for the same budget. Changing the project requirements may create
additional risks. The project team must be able to assess the situation and balance the
demands in order to deliver a successful project.

Carrying out the

Starting Organizing Closing the
project work
the Project and preparing Project
Cost and Staffing Level

Project Project Project Accepted Archieved

Charter Project
Management Management Plan
Time Deliverable
Document
Outputs
R
Typical Cost and Staffing Levels across the Project Life Cycle
Source : PMBOK Fourth edition

PROJECT INITIATION –Prior to commencing a project, the Project is initiated by developing a Project
Charter, which give a brief Overview of the Project.Key stakeholders who will impact on the project
are identified. Project Purpose and Justification are described, andhigh-level requirements, feasibility
reports, and clear descriptions of the project objectives are documented.

The idea is to document everything from project inception through project closure, so that the main
idea or the objectives of the project can be reviewed any time during the project. In case of any
changeover, the new successor can also conceive the same idea of the project and continue the
project, if everything is documented earlier.
Project Initiation consists of mainly two processes, developing project charter and identifying
stakeholders.
1) Develop Project Charter – the very first thing needs to be done is the development of Project
Charter. This is the document that formally authorizes the project and also, authorizes the
assigned Project Manager to utilize the resources (like team members, equipment, and materials)
for the work that will be done in the project. But the Project Manager may not be always involved in
developing it; rather the same is given to the Project Manager by the Project Sponsor. The Project
Sponsor is a person (or people) responsible for paying for the project and is involved in all
important project decisions; typically, is a part of Senior Management. Generally, the Sponsor pays
for the project, while Project Manager manages the project. The Project Charter may include:

a) Project Statement of Work (SOW) comprises all of the high level deliverable that the
project management team needs to produce.
b) Project Purpose and Justification
c) High-level Requirements
d) High-level Risks
e) Summary of Milestone Schedule – the top level schedule for any dates that the project
must meet in order to be successful.
f) Summer Budget – Self-explanatory
g) Assigned Project Manager’s Responsibility and Authority level
h) Name and Authority of the Sponsor or other person (s) authorizing the Project Charter

2) Identify Stakeholders – is the process of identifying all people or organizations impacted by the
project, and documenting relevant information regarding their involvement and impact on project
success. For example – to set up a Green Field Apparel Manufacturing Facility Project we need
people or organization from:
a) Domain Consultant (Garment Manufacturing),
b) Plant and Machinery and other Equipment Supplier
c) Architectural / Structural,
d) Electrical,
e) Mechanical / HVAC / Plumbing,
f) Interior Architectural and Furniture,
g) Factory Compliance,
h) Utilities, etc.
PROJECT PLANNING – before the project team gets into the Execution mode, a Project
Management Plan development process become paramount. Here, the Project Manager visualizes
what needs to be done during the project duration, and attempts to draw out a plan to completing the
project effectively and efficiently with as few deviations as possible. There are 20 Planning Processes
from 9 Knowledge Areas develop the Project Management Plan and other Project Documents that will
be used to carry out the project.
Project Time Management

Estimate Activity
Define activities
Resources

Project Scope
Management Sequence Estimate Activity Project Cost
Activities Durations Management
Collect
Requirements
Develop Project Estimate Cost
Schedule

Define Scope
Determine
Budget

Define Scope

Project Integration Management

Project Procurement Project Quality
Management Management
Develop Project
Plan Management Plan Quality
Procurement Plan

Project Risk Management

Project Human Resource
Plan Risk Qualitative Risk Management
Management Analysis
Develop Human
Resource Plan
Project Communication
Quantitative Risk
Identify Risks Management
Analysis
Plan
The dashed circular arrow indicate that the
Communication
Plan Risk process is part of the Project Integration
Responses Management. This coordinates and unifies the
processes from the other Management Area

Planning Process Groups

R
Source : PMBOK Fourth edition

The planning process are:

1) Develop Project Management Plan – which gives the outline of the project and how everything
will be implemented in the project. The total Scope of the Efforts, all Objectives and a Course of
Action are defined to obtain Project output. All Technical Reports and Plans, Lay-outs, Drawings
and other necessary details are prepared and documented in the Project Management Plan.
2) Collect Requirements - is the process of defining and documenting stakeholders’ needs to meet
 the project objectives. Requirement includes needs and expectations of the Sponsor, Customer
and other Stakeholders; and it becomes the foundation for the Project Scope, Cost, Schedule and
Quality. It is necessary to define Product Scope and Project Scope separately. Product
Scopeincludes the features and functions that characterize the product to be manufacture during
the operation stage. Project Scope includes all the work that needs to be accomplished to deliver
the product with define features and functions
3) Define scope – is the process of developing a detailed description of the project. The preparation
of a detailed Project Scope Statement is critical to project success and builds upon the major
project Deliverables, Assumptions, and Constraints that are documented during Project Initiation.
Defining Project Scope influences the project’s overall success. This is because if the scope is
not completely defined or is not in accordance with the stakeholders’ expectations and
requirements, it will require rework at a later stage. In case the scope contains more than what is
required, it will take more time and delay the project schedule without any benefit to the customer
and the other stakeholders. Poor scope definition may lead to cost overrun, schedule delays,
rework, and poor team morale. Hence defining the Project Scope is crucial for the project
success.
4) Create WBS (Work Breakdown Structure) – is the process of subdividing the project work into
more manageable components. It is a hierarchical description of all of the work that must be done
by the project team to accomplish project objectives and create the required deliverables. It is a
result oriented tree structure that displays the all of the work to be done in an organized way. The
number of levels in a WBS is dependent on the size and complexity of the project, and the level of
detail required for planning and managing it. The upper level of WBS helps in assessing
performance as well as measuring cost and schedule performance. The lower levels of WBS aid
in Scope, Cost, and schedule development. The lowest assignable level of WBS that cannot be
broken down further is referred to as Work Packages and these can be estimated for cost and
time and cannot be further logically subdivided.
 Green Field Apparel
Manufacturing Factory set up
Project

Phase – 1 Phase – 2 Phase-3 Phase-4 Phase-5

(Land (Building Installation of Interior Plant & Machinery and
Procurement) Construction) Utilities Architecture set up Production Line set up

Building Plan
Electricals Mechanical Deliverable- Deliverable-
approval
Deliverables 3.1 Deliverables 3.2 4.1 5.1
Deliverable 2.1

Work Work
Work Package Deliverable-
Deliverable- Deliverable- Deliverable- Package Package
4.1.1 5.1.1
2.1.1 2.1.2 2.1.3 3.1.1 3.1.1

Work Work
Work Package Deliverable-
Package Package
Foundation Ground Floor Mezzanine Floor 4.1.2 5.1.2
3.1.2 3.1.2
Work Deliverable Deliverable
Deliverable 2.1.2.1 2.1.3.1 Work Work
2.1.1.1 Work Package Deliverable-
Package Package
4.1.3 5.1.3
Work Work Work 3.1.3 3.1.3
Package Package Package
2.1.1.1.1 2.1.2.1.1 2.1.3.1.1
Work Package
Work Work Work 5.1.3.1
Package Package Package
2.1.1.1.2 2.1.2.1.2 2.1.3.1.2
Work Package
Work Work Work 5.1.3.2
Package Package Package
2.1.1.1.3 2.1.2.1.3 2.1.3.1.3
Work Package
5.1.3.3

Sample Work Breakdown Structure with Some Branches

Decomposed Down Through Work Packages

WBS is commonly used at the beginning of a project for defining Project Scope, organizing Gantt
Schedules, and estimating Costs. It is a very important tool for Project Manager and is graphically
illustrates all the work elements that define project deliverables and serve as a basis for the
planning activities to be done henceforth. While constructing a building for Apparel Factory, larger
activities like (a) Excavate foundation work, (b)Erect steel columns, (c) Pour mezzanine floor slab, (d) Set
elevator equipment in the shaft, etc. are broken down to smaller components and up to the lowest levels
called Work Packages. For example ‘Prepare and pour concrete’ will be the work package for ‘excavate
foundation work’, and‘Test and align doors and elevator equipment’ will be the work package for ‘set
elevator equipment’, ‘Approve Master Layout’ will be the work package for ‘draw plant layout’.and‘Mark
Yellow Lines on the Production Floor’ will be one of the work package for Install Plant & Machinery
Activity.'Work package 2.1.2.1.1', 'work package 3.1.3' etc. are indicating the levels of WBS. In Project
Management Software, WBS are clearly seen in the Project Schedule.
5) Define Activities – is the process of identifying the specific actions to be performed to produce
the project deliverables. This process defines the schedule activities from the Work Packages,
which are the deliverables at the lowest level in the Work Breakdown Structure (WBS). One of the
 important outputs in this process is the Milestone list. Milestones are major accomplishment in
the project and define the completion of an event or deliverable of the project.
6) Sequence Activities – is the process of identifying and documenting relationships among the
project activities. Once the activities have been defined, the next step is to arrange the activities
logically to show the interdependence with leads and lags, when applicable.
The Project Plan in the Project-Management Software give a clear picture of precisely what
to do and what's going on in the Project — time after time. With help of this PM Software, we
are able to Track our Project with Planned Dates versus Actual Dates, Forecast the effects of
changes to the Project Schedule and can take necessary steps in case of any variance.
Moreover, Project Management Software also gives various Status Reports, Graphs and other
information’s about the project which are difficult to get manually.
Company XYZ
Current Date 30-08-2012
Title Project Sample
Project Start Date 30-08-2012
Project Finish Date 29-10-2012

Project Sample in PM Software

7) Estimate ActivityResources – is the process of estimating the type and quantities of material,
people, equipment, or supplies required to perform each activity.
It is also important to determine when these resources will be required during the course of the
project, and the quantity of these resources.
8) Estimate Activity Durations – is the process of approximating the number of work periods
needed to complete individual activities with estimated resources.
 Activity duration estimates don’t come from the project manager; rather they should ideally come
from the people completing the work, Contractors, Suppliers, etc.
9) Develop Project Schedule – is the process of developing a Project Schedule, preferably in
Project Management Software like Microsoft Project or Primavera. The Project Schedule is the
Planned or Baseline Scheduleagainst which the project progress can be tracked. Schedule
development continues throughout the project as the work continues. Changes in the Project
Management Plan, risks, etc. may impact the schedule as well.
10) Estimate Costs – is the process of developing an approximation of the monetary resources
needed to complete the project activities. To estimate the project cost, it is essential to consider
the cost for all the resources, viz. labor, materials, machines, facilities, contingency costs, etc.
used during the course of the project.
The accuracy of the cost estimate increases as the project progress through the project lifecycle.
During Project Initiation, a project can have a Rough Order of Magnitude (ROM) in the range of
(+_50%); while in the later stages, the estimates could go narrow to a range of (+_100%).
11) Determine Budget – is the process of aggregating the estimated costs of individual activities to
establish an authorized Cost Performance Baseline. Project Budget constitutes the funds
authorized to execute the project.
Cost Performance Baseline is an authorized time phased Budget at Completion (BAC) used to
measure, monitor and control overall cost performance on the project. Cost Performance
Baseline is displayed in the form of an S-curve as shown below.

Funding Requirement
Cumulative Values

Cost Baseline Expected Cash Flow

The difference between the

maximum funding and the
end of the cost baseline is
Management Reserve

Time

Cost Baseline, Expenditures, and Funding Requirements

Project Funding Requirements are derived from the Cost Performance Baseline, and are
permitted to exceed it by a margin to allow for cost overruns or faster progress. Funding is not
provided continuously; rather in incremental amounts.
12) Plan Quality – is the process of identifying quality requirements and/or standards for the project
 and products, and documenting how the project will demonstrate compliance. To meet quality
standards, it may be required to make alterations to cost and schedule parameters.
13) Develop Human Resource Plan – is the process of identifying and documenting project Roles,
Responsibilities, and required Skills, Reporting Relationships, and creating a Staffing
Management Plan that includes the timetable for staff acquisition and release.
It is recommended that the project team members should be assigned at an early stage of the
project as this strengthens the commitment of the team members to the project as well as
provides expertise to the planning process. The Project Management Team, which is referred to
as the core, executive and leadership team, is responsible for the Project Management activities
such as Planning, Controlling, and Closing. The Project Sponsor works in close association with
the Project Management Team, and he is responsible for funding the project.
14) Plan Communication – is the process which allows the project manager to document the
approach to communicate most efficiently and effectively with the project stakeholders. In this
vital document, the Stakeholder’s Information needs are identified and define a Reporting
System; for example, who will need what information, when they will need it, how it will be given
to them, and by whom.
15) Plan Risk Management – is the process thatdescribe an approach to identify and manage the
risks associated with the Project. The goal of Project Risk Management is to increase the
probability and impact of the positive events, and decrease the probability and impact of events
adverse to the project.
Project risk is defined as an uncertain event or condition, if it occurs, has a positive or a negative
effect on at least one of the project objectives, such as time, cost, scope, or quality.
The attitude of the organization and/or project team towards risk determines their action towards
identified risks.
Key points to consider while handling a risk are:
 Level of risk
 Impact, can be either positive or negative
 Probability, defined as how likely the vent is to occur?
 Person’s risk tolerance level
 Expected timing – when it will happen?
 Frequency – how often will it happen?
There are two types of project risks, viz. Known risks and Unknown risks. Known risks are the
risks that have been identified and analyzed, and the project risk management may help in finding
a solution for the same. Unknown risks are risks that cannot be identified, and only solution the
 project management team has is to define the contingency reserve against such risks.
16) Identify Risks – is the process that determine which risks may affect the project and
documenting their characteristics. It is an iterative process as risk can be identified at any levels
in the project. Irrespective of risks having positive or negative consequences, all risks events and
their consequences should be identified.
17) Qualitative Risk Analysis – is the process of prioritizing identified risks for further analysis by
assessing and combining their probability of occurring, and corresponding impact on the project
objectives such as Cost, Schedule, Scope, and Quality.
18) Quantitative Risk Analysis –is the process of numerically analyzing the effect of identified risks
on overall project objectives, thus presenting a quantitative approach to making decisions.
19) Plan Risk Responses – once the risks have been identified and prioritized by Qualitative Risk
Analysis and assigning numerical ratings by Quantitative Risk Analysis, the next steps are to
determine actions to enhance opportunities and reduce threats to project’s objectives. The
severity of the risk, evaluated from its probability and impact, will define the level of risk response
planning that should be performed.
Strategies for Negative Risks or Threats are:
 Avoid – risk avoidance involves changing the Project management Plan to eliminate
the threat posed by an adverse risk. Some risks that arise early in the project can be
avoided by clarifying requirements, obtaining information, improving communication,
or by hiring experts.
 Transfer – risk transference require shifting the negative impact of a threat, along
with ownership to a third party. Example of risk transfer can be a subcontract given to
a third party.
 Mitigate – taking early action to reduce the probability and/or impact of a risk
occurring on the project is often more effective than trying to repair the damage after
the risk has occurred. Adopting less complex processes, conducting more tests, or
choosing more stable supplier are examples of mitigation actions.
 Accept – strategy indicates that the project team has decided not to change the
Project Management Plan to deal with the risk, or is unable to identify any other
suitable solution. The most common acceptance strategy is to establish a
contingency reserve, including time, money, or resources to handle such risks.
Strategies for Positive Risks or Opportunitiesare:
 Exploit –This strategy seeks to eliminate the uncertainty associated with a particular
risk by making the opportunity definitely happen. Directly exploiting responses include
 assigning more talented resources to the project to reduce the time taken to
completion, or to provide better quality than originally planned.
 Share – involves allocating ownership to a third party who is best able to capture the
opportunity for the benefit of the project. Examples of sharing actions include forming
risk-sharing partnership, or Joint ventures, etc.
 Enhance – strategy is used to increase the probability and/or the positive impacts of
an opportunity. Examples of enhancing opportunities include adding more resources
to an activity to finish early.
 Accept – an opportunity is being willing to take advantage of it if it comes along, but
not actively pursuing it.
20) Plan Procurement – is the process of documenting project purchasing decisions, specifying the
approach, and identifying potential sellers. This process involves identifying and reviewing the
potential risks. It also includes reviewing the type of contracts with respect to mitigating risks and
transferring risks to the seller. Project Manager works with the Project Team; Contract/Purchasing
Department, and other key players in the project team to manage the Procurement Activities.
Project Manager’s Role in Procurement process includes:
 Identifying Procurement Needs
 Determining Contract Types
 Potential Providers
 Identify& Selecting Procurement Sources
 Assessing Quality and Completeness of the Contracts
 Verify Products & Service Acceptance, and
 Review the Procurement Process.