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PGPM 32 Nicmar Assignments
PGPM 32 Nicmar Assignments
ASSIGNMENT
NICMAR/CODE OFFICE
1. Course No.
PGPM 32
2. Course title
3. Assignment No.
10
4. Date of Dispatch
07-08-2012
15-08-2012
ASSIGNMENT
You are a project manager on a construction of Hydel-Power project comprising of four
main works viz. Main Dam, Weir, Electric Power Station and Tunnel. The requirement of ten
construction materials including cement, steel (six sizes), sand, aggregate etc. need to be monitored
daily. Construction, requirements, resources on site and in depot needs to be checked every day.
Design an M.I.S. for efficient working. Assume suitable data
SCOPE OF WORK
The work involves four main works i.e. Main Dam, weir, Electric power station and Tunnel.
The above work involves Supply, transportation, unloading, fabrication, erection, testing and
commissioning of balance ventilation ducts and equipments as per technical specifications.
Benefits of Hydro Power:
Energy has become a symbol of growth and instrument for development. Electric power
particularly the hydro power is a renewable, economically attractive, environment friendly, nonpolluting and environmentally benign source of energy. Moreover, the Hydro Power is submergence
free and has short gestation period. These benefits of HP have now been sufficiently recognized.
The need of the project comes from the benefits of HP and utilization of resources.
Management information system provides predefined types of information to the
management for relatively structured type of decisions.
Management Information System (M.I.S) design for Hydel-Power Project is very much limited
to a specific area as all the material and data is to be managed on the site for the given requirement.
Now the requirements for the hydel project are entirely different from general construction sites.
The height of the control room shall be higher as compared, so as to take care of the heat
generated from the electrical panels and the control of all the panels can be made on the
mezzanine level which saves the space and offers the wider view of the area underneath.
The substation part has to be made in the open area and the wiring of the towers is taken
care by the R.C.C. Trenches made under the floor.
From the reservoirs the water is brought through a tunnel for the generation of the
electricity. i.e. In itself a very technical and specific requirement for the construction of the
project.
As far as the scope of the hydel projects is concerned it is not as limited because of the fact that
our country is facing shortage of electricity. In future we shall need more of hydel projects to meet
the requisite demands of the power sector and of course to facilitate the people staying in the
remotest areas of the country. This is the reason in the recent years even World Bank has offered to
finance the hydel projects in states like Himachala Pradesh, utaranchal, Assam & jammu Kashmir.
Here I take the example of a hydel project of 5MW capacity. Requirement for the project is as
follows:
Control Room with a covered area of 14,000sqft.
o Outer walls in brick
o Frame work of RCC Columns and Beams
o Asbestos sheets as roofing
o Concrete floor with separators
o Steel windows and doors
o Tie beams at the regular intervals to prevent Earthquake.
66KVA grid station in the open area
Office Spaces
Site Offices as temporary structures
Material Storage Areas
Water Reservoir
Accommodation for staff
Material requirement for the project:
Cement
Steel
40 Tonnes approx.
Aggregate
Sand
Bricks
1,80,000 no.
3500 CFT
Aggregate:
2500 cft.
Steel:
Bricks:
2500 CFT
Aggregate:
3500 cft.
Steel:
Bricks:
3000 CFT
Aggregate:
5000 cft.
Steel:
Bricks:
EOQ:
Economic order quantity (also known as the Wilson EOQ Model or simply the EOQ Model)
is a model that defines the optimal quantity to order that minimizes total variable costs required to
order and hold inventory.
It is based on the assumptions:
1) The demand over the period of cycle (normally a year) is constant and is known in advance.
2) Consumption of the material occurs at the uniform rate.
3) The price of the material is independent of the order. Quantity discount is not allowed
4) There is no lead time in the replenishment.
We should know Ordering cost and Carrying cost
A) Ordering Cost: consists of
i) Requisitioning
ii) Order processing
iii) Order placing, and
iv) Receiving, inspection, checking etc.
B) Carrying Cost:
i) Interest on Capital invested
ii) Storage, handling and warehousing such as rent, Insurances and taxes, Lighting, and
other maintenance costs
Right purchase quantity should ensure that overall cost of acquisition and possession is
minimum, while holding the optimum quantity of an item in inventory. It will have to be
appreciated that a point of minimum cost is reached at which the ordering cost will be just equal to
the carrying cost such that neither excess material is ordered nor too many orders are frequently
placed for the same material during a time period, for which demand pattern is more or less known.
It must be remembered, however, that while the former varies with the number of orders placed, the
latter is linearly and directly related to the quantity carried into the inventory.
EOQ MODEL
ROL:
The two factors that determine the appropriate order point are the procurement or delivery
time stock which is the Inventory needed during the lead time (i.e., the difference between the order
date and the receipt of the inventory ordered) and the safety stock which is the minimum level of
inventory that is held as a protection against shortages.
Reorder Point = Normal consumption during lead-time + Safety Stock.
Several factors determine how much delivery time stock and safety stock should be held. In
summary, the efficiency of a replenishment system affects how much delivery time is needed. Since
the delivery time stock is the expected inventory usage between ordering and receiving inventory,
efficient replenishment of inventory would reduce the need for delivery time stock. And the
determination of level of safety stock involves a basic trade-off between the risk of stock-out,
resulting in possible customer dissatisfaction and lost sales, and the increased costs associated with
carrying additional inventory
REORDER POINT FORMULA:
Reorder point = S x L + F ( S x Rx L)
Where
S = Usage in units
L = Lead time in days
R = Average number of units per order
F = Stock out acceptance factor
Reporting:
Scheduled Reports: I would make the scheduled reports which would be issued fortnightly.
The reports would be containing the details of production, monthly cash flow etc. for further use in
planning and control processes.
Error Reports: I would make these reports to correct the invalid customer names, incorrect
totals and missing data during transaction.
Control Reports: Control reports would be maintained in the form of payroll register, a
journal, a cash register etc. giving detailed listing to describe each transaction occurring during a
specific time period.
Provision for Exception reports & Demand reports would be there.
Work done by
own staff
different applications
Billing for
various activities
Work done by
outside staff
Integration of related files of various activities:
for the separate jobs to be done in a stipulated period and the manpower involved.
Relationship between different entities:
One to one
One to many
Many to many
In the management system of hydel project we shall create files showing one specific
activity is to be done by one agency e.g. the completion of superstructure shall be done by a
construction agency. This construction agency shall be assigned more than one job. Here One
to many type of relationship between different entities shall be helpful.
DATA PROCESSING:
Activity
Agency
Duration
Cost
Civil work
P1
2yrs 3 Months
..Lacs
Finishing
P2
6Months
..Lacs
FLOW CHARTING:
Flow charts of the various jobs/activities shall be made on the weekly basis, checking the
commitment by the agency for that specific job. If any activity is not completed in the specified
time it will have to be overlapped in the second week assuming it to be the responsibility of the
concerned agency. After the 6th week if the same situation prevails for the delayed activity penalty
clause will be applicable as per the agreement. The employer and the outside agency shall sign this
agreement. This flowchart shall be made using the P.C. software MRPII System(Material Resource
Planning) and shall make it very easy to maintain the records of agencies hired and the jobs done by
them.
Activity
A1
A2
A3
1st week
2nd week
3rd week
4th week
5th week
COMPUTER APPLICATIONS
Data Communication, file design:
As per the data file enclosed below.
System design specifications:
The MIS specifications were designed with 40GB hard disc, 512Mb RAM, P4 & MS-Office
as software.
System analysis and design:
As I have already discussed the MIS design for the hydel project with the system design
specifications already mentioned. The whole project has been divided into construction segments.
The data file for the different activities has already been attached with. As per my design all the
activities e.g. requirement of the materials, their consumption, the duration of the activities, the
manpower required has been segregated so as to avoid all confusions regarding the cost factor and
consumption of materials. I have designed the specifications for the contractors and other outside
agencies as well e.g. the time schedule of the work they will handle and the penalty clauses, if
applicable.
I have designed my specifications of the materials stage wise. This will avoid any type of
pilferage during the construction tenure of the project. To the maximum I have tried in my design
not to have excess storage of the materials as this leads to the wastage of materials like cement
(because of its setting action), steel (rusting of steel) after the handing over of the project. In totality
I conclude that my MIS design for the project is completely successful.