Dr. B. B. Das, NITK Surathkal

Dr. B. B.
Das
NITK, Surathkal
Dr. B. B. Das, NITK Surathkal

 Project management basic Concepts- What is Project
Management? What Constitutes a project, Purpose of a project,
Project as a business, Project management triangle, Project
Planning, WBS, OBS.
 Bar Charts and CPM -Estimating duration, Drawing a Bar Chart,
features, Activity on Arrow, Time computations, critical path, floats,
Solve examples.
 Network Analysis - Network Development, Dummies, Three Time
estimate, difference between CPM & PERT, Probability of
completing the projects, Solve examples
 Precedence Network Diagram - Activity on Nodes, Links, Lags,
Comparative study of CPM & PND, Convert network to a Bar Chart
& vice versa, Solve examples
 Work on an on-going construction site - and develop a network
with its complete analysis, Put different constraints and logical
sequence of the activities. Suspend and resume few activities.

 Presentation from students on the above topic as assignment with
discussion
 Work Breakdown Structure - Detailed Analysis of WBS, also
Organisation Breakdown Structure, Merger of WBS & OBS,
Notation, codification system leading to ease of computation and
data collection for project management, Allocation of
responsibilities,Solve examples
 Crashing Projects and Time Control - The necessity of crashing,
ways and means of crashing, methodology of crashing using least
cost slopes, cost of crashing, Time Monitoring, What-if
Analysis,Solve examples
 Resource Planning, scheduling, Leveling - Types of Resources,
Productivity control, identifying time waster of a project team and
taking corrective action, use of bar charts to use a manual method
to solve problems.
 Computer Applications , benefits and limitations. Communications,
“S” curves, Earned Value, Cost Control - Drawing “S” curve from
WBS, Calculations of earned value.

 Chitkara K.K., “Construction Project Management – Planning,
Scheduling and Controlling”, Tata McGraw Hill, New Delhi, 2000.
 Ahuja H.N., “ Project Management”, John Wiley, New York, 1999.
 O’brein James, “CPM in Construction Management”, Mc Graw Hill,
New York, 1999.
 Harris Robert B., “Precedence and Arrow Networking Techniques
for Construction”, John Wiley & Sons, New York, 1999.
 Antil J.M. and Woodhead R.W., “Critical Path Methods in
Construction Practice”, John Wiley, Canada, 1999.
 Antil H.N. and Walsh N.A., “Successful Methods in Cost
Engineering”, John Wiley, New York, 1993.
 Levy Sidney, “Project Management in Construction”, McGraw Hill
Professional, New York, 2000.

• Project is a PROCESS of carrying out work to
achieve a RESULT (facility, product or services).
It has several characteristics :

• Well defined objectives
• Complex, unique
• Defined timescale / cost / resource
• Multi disciplinary
• Quality and safety

• Project is an endeavor in
which human, material
and financial resources
are organized in a novel
way to undertake a Scope Purpose
unique scope of work of
given specification,
within constraints of
cost, and time, so as to Organized
achieve unitary,
beneficial change,
through the delivery of Time Qlty
quantitative and
Cost
qualitative objectives.
• ISO10006:1997E—The planning, organizing, monitoring and
controlling of all aspects of the project in a continuous process
to achieve its objective.
• PMI–The application of knowledge, skills, tools and

techniques to project activities in order to meet or exceed
stakeholder needs and expectations from a project.
• ISO 9000:2000–Unique process, consisting of a set of co-

ordinated and controlled activities with start and finish dates,
undertaken to achieve an objective confirming to specific
requirements including the constraints of time, cost and
resources.

ISO 9000:2000, Quality Management Systems
-Fundamentals and Vocabulary
1. An individual project may form part of a larger project structure.
2. In some projects the objectives and scope are updated and the
product characteristics defined progressively as the project proceeds.
3. The project's product is generally defined in the project scope. It
may be one or several units of product and may be tangible or
intangible.
4. The project's organization is normally temporary and established
for the lifetime of the project.
5. The complexity of the interactions among project activities is not
necessarily related to project
Dr. B. B. Das, NITKsize.
Surathkal
1. Project Management is thus principally concerned with the
introduction and management of change.
2. All projects are unique in some respect or other and may differ from the
usual business for which the parent company exists.
3. The project organisation, often referred to as the project team - though
this in itself is but a small part of the total project organisation - is set up
to achieve a particular objective: the project product.
4. Teams which remain together at the conclusion of a project and take
over the next project are common in some industries but less so in
others, particularly manufacturing.
1. The project product can take many forms, from the wholly physical
- the creation of a new town or the building of a new locomotive, to
the virtually abstract - a procedure for dealing with a possible
emergency.
2. Between these two extremes there is a diversity of products each

with its own particular requirements, which in turn may require
variations in the management of the project.
3. This diversity, spread over companies and industries, has impeded

the recognition that there are common elements to all projects.

However, they all have a:
• specification for the product;
• project plan;
• time frame;
• budget;
• cost plan;
• statement of quality required;
• identification of any areas of uncertainty;
• evaluation of possible risks and the appropriate responses.
•Systems must be set up to collect, in real time, the data concerning

progress and costs.
•Facilities must be available to analyse the data and distribute the
results of that analysis.
Projects come in many sizes, from the very small to the very large. They
may be simple or complex, although size and complexity are not
necessarily related. It is, however, convenient to divide them into two
categories:
• Revenue projects are those for which the expenditure is treated as an

expense arising during a defined accounting period.
• Capital projects are those for which expenditure is capitalised, that is

it is included on the balance sheet. Investment projects should enhance
the organisation's assets.

The main characteristics of a project which differentiate it from
conventional operations are:
• Its uniqueness.
• Its defined start and finish.
Even with these characteristics it is sometimes difficult to decide

whether a group of activities is a project or not.
For example, the design, launch and initial production of a new

product is a project, while the subsequent bulk production of the
product is not. Dr. B. B. Das, NITK Surathkal
All projects pass through at least four identifiable phases.
Termination
Realisation
Development
Conception

• The capability of the organisation to provide the product in the time
required.
• The final price for the product.
• The costs involved.
• The budget required for the project.
• The outline specification of the product, including the quality and
reliability requirements.
• The ability of the organisation to support the capital outlay.
• The availability of any items or services to be procured from outside
the organisation.
• The acceptability of any geographical requirements on procurement
or ecology which are specified in the project enquiry.
• The acceptability of any contract conditions which are specified in the
enquiry.
Assuming that the proposed new product is acceptable to the
organisation, the product has to be designed or specified in such detail
as is necessary to allow it to be created within the limits set in the
conception phase.
Since the organisation is now committed to the project, its manager

should be appointed and he or she will work closely with the customer
in this and subsequent phases.
Consideration should also be given to assembling at least the senior

members of the project team.
A first phase Project Management Plan (PMP), as the major element

in the developing documentation for the project, must be drawn up
under the direction ofDr.the project manager.
B. B. Das, NITK Surathkal
This is how document
flow in a project

1. The Project Management Plan is, or should be, alive document
which is in effect, the project 'Text Book'.
2. It is not of itself a time schedule but it contains all the time based
and other plans for the project. It sets out the ‘What', 'Why',
‘When‘, ‘Who', ‘Where', ‘How' and often the ‘How much' of the
project.
3. The majority of the information it contains is available to the

project team and the customer, but some information, such as costs
and commercial information, may be restricted to named people.

Once designed or specified, the project team has to turn the
development into reality.
An appropriate reporting system has to be provided as part of the

project plan to keep the team, top management and the customer
informed about:
• project progress.
• expenditure.
• costs.
• foreseen possible adverse or beneficial events as documented in the
project risk register.

An analysis of the project reports will provide invaluable information
which can be helpful in other projects.
This will include:

• success of methods used.
• performance of team members.
• reliability of suppliers.

Any group which comes together to make a product, be it hardware or
software or to provide a service, must form itself into an organisation
with a structure.
This structure will affect the way the organisation can respond to
change and the introduction of projects.

The majority of industrial organisations which have been set up to
manufacture products or provide a service, develop a common form of
organisation, the conventional hierarchical functional structure.

100% 0%
Relative
Relative Authority
Project
Authority
Relative
Functional
Authority
100%
0%
Functional with very Project with very
Matrix authority
Limited Project authority Limited Functional authority
Functional Matrix Project

Structure Structure
Structure
Construction Quality
Project Level Corporate Level

(Quality Plans, Quality Assurance, (Total Quality management
Quality Control) Systems)
Product Service
Constructed Facility Contract Planning Culture
(Received by End-user) (Received by Owner) Quality Systems
(Received by Client/ Society)
Product Dimensions Service Dimensions

Performers Time Quality Culture Dimensions
Features Timeliness Leadership
Aesthetics Completeness Employee empowerment
Reliability Courtesy Partnership development
Durability Consistency Information and analysis
Conformance Accessibility and Continuous improvement
Serviceability Convenience Client focus
Perceived Quality Accuracy
Responsiveness
 To understand why defects and failures seem to be such integral
problems of the construction industry, one must realize its peculiar
nature.
 The construction industry is one of the few industries where there is

a separation in the design and manufacturing functions. Exclusion
from this is the not so commonly used “design and build” contract,
in which the contractor provides both the design and construction
for the project.
 Another distinctive feature of the construction industry is that,

unlike most other goods or products produced by other industries,
each building project is different or unique to some extent. There are
number of factors that differentiate the construction industry from
other industries and provide it with their special characteristics.
• Variable site conditions. No two building plots are identical in terms of
topography, access, subsoil, climate/exposure, available services, etc.
• Restrains such as planning control and building regulations vary in

implementation from region to region, and these change over periods of
time.
• Most construction projects take many months if not more to complete. This
time factor makes many sites susceptible to disruption and inclement
weather.
• The people involved in each construction project may change from month to
month. No two construction jobs have the same set of designers, advisors,
supervisors or operatives. This invariably leads to variations in quality. There
is, moreover, a certain lack of continuity in construction jobs often resulting
from a change in the workforce composition.
• Innovative materials or components or techniques or old materials used in

new situations are continually being tried out in building without much
knowledge of their long-term performance
Dr. B. B. Das, NITK Surathkal features.
• Much of the work is carried out in the open. Thus, a great deal of the work is not only
exposed to the elements but it also carried out in non-factory conditions. This makes
it harder to maintain a stable environment to undertake work undisturbed by wind
and rain.
•Materials and components do not necessarily come from the same sources for all
contracts. This tends to lead to greater variations in quality.
•Because of the dichotomy between the designer and contractor indicated above,
architects do not normally tell builders how to erect buildings. In other works, the
client, via the designer, tells the builder what is required – he does not tell the
contractor how to go about it, unless special site or contractual considerations are
present. This may lead to some changes in theconstruction during the contract by the
builder to suit his program.
•Quality control is not consistent from site to site. For instance, standards of
supervision by site agents and clerks of works will depend upon the respective
backgrounds of those involved, their attention to detail and the time spent on site,
etc.
•Feedback between the user or installer and designer is often slow or difficult if not
non-existent. Dr. B. B. Das, NITK Surathkal
Money
Land Materials Manpower Equipment
Management
The Project
 Incorrect Assumptions
 Incorrect Estimation
 Work More Difficult than Anticipated
 Non-availability of Equipment
 Changes in Designs, Budget, Dead line
 Land Acquisition
 Human Error
 Approvals
 Conflicts

The size and detailed structure of a project team will depend on the
technology, size and cost of a project, but even at its smallest there
must always be a project manager.
The project manager for any project should be appointed as early as

possible in the life of the project, ideally in the conception phase.
The early commitments which have to be made in many projects will

also have significant effects and the project manager, on appointment,
should carry out an audit and assessment of the project for reassurance
that it is feasible within the given terms of reference.
Project managers, to be successful, must possess capabilities which

cannot be learnt. They must be leaders, and those who are being led
must respect their honesty,
Dr. B. B. Das, integrity
NITK Surathkal and vision.
1. Technological understanding.
Since the project manager will have to evaluate, possibly without
recourse to assistance from the parent company, technical proposals
and recommendations, including an assessment of any risks involved in
the use of new or untried technologies, an adequate technological
understanding of the project is vital.
2. An understanding of project economics.
This will require a thorough understanding of the customer's total view

of the project and its subsequent operation or use. This will require
financial skills applied to the project and the use of such techniques as
life-cycle costing.
3. A knowledge of man management techniques.
This will include a knowledge of and the ability to use:
• payment and bonus systems;

• interviewing techniques;
• team building and motivation;
•industrial relations legislation and its application in the project
environment;
•the health and safety at work regulations and their application to the
project.

4. A competence in systems design and maintenance.
This includes knowledge of, and the ability to implement, appropriate

office and technological systems for both the project team and the
project.
5. A competence in planning and control.
A sound knowledge of all the techniques for planning and controlling

projects, with the ability to decide which is the most appropriate to use
as circumstances arise.

6. Financial competence.
The ability to read and understand company accounts, together with an

understanding of the various financial accounting techniques including:
• setting and controlling budgets;
• cost control;
• variance analysis;
• cash flow statements and earned value;
• discounted cash flow methods (DCF);
• net present value (NPV);
• credit control;
• loan and interest repayment systems;
• risk analysis (financial);
• lifecycle costing. Dr. B. B. Das, NITK Surathkal
7. A competence in procurement.
This will include knowledge of:
• contract law;
• techniques for the procurement of goods and services;
• costs of holding stock;
• expediting;
• materials control.
8. Good personal communication abilities.

The project manager will often be called upon to address meetings,
both business and public, on a variety of matters concerning the
project. Additionally, there will be the need to teach project and
customer's staff on the use of techniques and methods and to assess
training needs and courses.
Even small projects can be complex and require careful planning to
resolve the interactions between the various jobs or activities which
make up the work in the project.
Present decisions affect both present and future actions and, if

immediate, short-term decisions are not made within the framework of
long-term plans, then the short-term decisions may effectively impose
some long-term actions which are undesirable but inescapable.

• strategic plans - which are those made to ‘serve the needs of
generalship’.
(Long-Term Plan)
• tactical plans - which are those made 'when in contact with the
enemy'.
(Short-Term Plan)
Ideally, of course, strategic plans are made before the start of an

operation and, by following them, the operation is successfully
concluded. Inevitably, however, tactical decisions will have to be made
and these can only be successful if they are made within the context of
the strategic plan. Dr. B. B. Das, NITK Surathkal
• Defining the objectives
• Developing WBS
• Determining the Quantity of individual work
elements

 A Work Breakdown Structure (WBS) is an organized, hierarchical
representation of all work — broken out in sufficient detail — to
support a project’s planning, assignment of roles and
responsibilities, and ongoing monitoring and control.

The different WBS levels have had many different names. The very top
element is typically a project and the lowest level of detail is typically a
work package.
However, the levels in between have been called phases, subprojects,

work assignments, tasks, subtasks, deliverables, and sub deliverables.
The top-level box is a project, the lowest level of detail is a work

package, and all other levels are Level 1, Level 2 and so forth.

 Scope of the project work is broken down into manageable parts
arranged in a hierarchical order.
 Each descending level signifies an increasingly detailed description

of the elements in the preceding project level.
 An activity is the lowest level, which is usually a part of work

package.
 In WBS deliverables are tangible measurable parts of the project.
 Non deliverables are financing, pre contract development,

designing, reworking, testing, handing over and close-up.
Level Description Main criteria
1 Sub project level An independent deliverable end product requiring
process of multitasks having large volume of
work.
2 Task level An identifiable and deliverable major work

containing one or more work package.
3 Work package A sizeable, identifiable, measure and cost able

work item.
level
4 Activity level Identifiable lower level job, operation, or process,

which consumes time and possibly resources.
5 Operation level A lowest level day to day operation (Part of an

activity).
Housing
project
Sub project level Residential Public Educational
Foundation
Super
structure
Finishing Task level
Base Raft Plinth wall
construction construction construction Work package level
Shuttering Reinforcement Concreting Curing Activity level

Ask three questions and do numbering
• Can you accurately estimate the resources you’ll need?
(Resources include personnel, equipment, raw materials, money,
facilities, information, and so on.)
• Can you accurately estimate how long the activity will take?
• If you have to assign the activity to someone else, are you confident
that he’ll understand exactly what to do?

 Construction projects are best organized by tasks, best controlled
by work package, and best programmed for day work by using
operational level and best planned and monitored by activity.
 Activity duration forms the basis of time planning and scheduling.
 Detailed information of the resources needed for execution of each

activity enables the preparation of resource forecast.
 The activity contract value is used to determine income and cash

flow forecast.
 The activity actual cost is used to determine Earned Value Analysis

for monitoring. Dr. B. B. Das, NITK Surathkal
1. Determining the precedence relationship
2. Determining the extend of inter dependency
3. Scheduling the flow path of activities

• Identifying the types of resources
• Quantity of resources
• Duration of Activity

• Evaluating Progress
• Degree of fulfillment of the objectives
• Analyzing the status of the project
• Remedial measures/re plan

 PRISM
 HPM
 Success Planned
 Construction Manager
 Yojana
 Microsoft Project MSP
 Primavera P3

 Scheduling for Resources.
 Plan Work Breakdown Structure
 Monitoring the Project Progress
 Controlling Time and Cost Estimates
 Documentation

 Activity Details
 List, Duration, Links, Type, Constraints.
 Calendars.
 WBS.
 Resources and cost.

THANK YOU

Dr. B. B. Das, NITK Surathkal

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