Punjab Engineering College

(Deemed to be University)

ASSIGNMENT

Submitted to: Submitted By:

Dr. R R Singh 19202008
(Professor) Chhatresh Kumar

DEPARTMENT OF CIVIL ENGINEERING

 ASSIGNMENT-1
CEM-5034
MANAGEMENT OF TRANSPORT INFRASTRUCTURE PROJECTS

Question1: Write notes on:

(a) BOT (b) BOOT © BORT (d) BOLT
Answer:
(a)BOT
Definition: In the BOT approach, a private party or concessionaire retains a concession for a
fixed period from a public party, called principal (client), for the development and operation of a
public facility. The development consists of the financing, design and construction of the facility,
managing and maintaining the facility adequately, and making it sufficiently profitable. The
concessionaire secures return of investment by operating the facility and, during the concession
period, the concessionaire acts as owner. At the end of the concession period, the concessionaire
transfers the ownership of the facility free of liens to the principal at no cost .
BOT projects include a wide array of public facilities with the primary function to serve public
needs, to provide social services and promote economic activity in the private sector. The most
common examples are roads, bridges, water and sewer systems, airports, ports and public
buildings. Figure 1 shows stages of BOT projects.

Major Participants in BOT Projects

Five major participants are identified in every BOT project.
1. Principal 2. Concessionaire 3. Investors 4. Contractor 5. Operator
Advantages: The most important advantages of BOT are: utilization of private sector's
investment instead of public sector's, transferring all the risk to private sector, transferring
technical knowledge is one of the most important benefits of this method for developing
countries, political resistance in using private sector is less than other methods because project
will owned by the government finally .
Disadvantages: these kinds of projects are very complicated from the viewpoint of technical and
financial issues and need high level experts and consultants, increasing expenditures of users in
operation time, contrast between benefits of private sector with public sector.
(b) BOOT
Definition: Build-Own-Operate-Transfer is a founding model and a form of concession in which
a public authority makes an agreement with a private company (concessionaire) to Design Build,
Own and Operate a specific piece of an infrastructure such as power, transport, water, and
telecom industries, within receiving the right to achieve income from the facility under a period
of time (concession period approximately 15-25 years), and later transferring it back into public
ownership through a single organization or consortium (BOOT provider)
The objectives of BOOT’s participants including Government, Special Purpose Company (SPC),
the Contractor, the Lenders, the Operator, and the Sponsors are reducing the capital expenses and
government’s role in build, operation and maintenance of infrastructures, making new jobs for
unemployed citizens and accountable atmosphere for a reliable and appropriate quality,
providing opportunities for a comparative or competitive climate and a sympathetic cost benefit
for both parties, introducing innovative and alternative technology.

Advantages: This method of founding includes could be beneficial for public and private sectors
such as: strong financial incentives for the BOOT operator, transferring construction and long-
term operating risks onto the BOOT provider, risk mitigation through the involvement of
multiple participants, increase the project certainty and early interest recovering through
involving a BOOT operator, encouraging maximum innovation allowing to have the most
efficient designs, high accountability for the asset design, construction and service delivery due
to recover the expenditures and, enhancing BOOT operators and project’s management
knowledge through experience, minimal costs of company structuring matters.
Disadvantages: Moreover the defects of this model are described as: higher cost for the end user
due to the BOOT provider accountability of 100 percent financing and on-going maintenance,
negative reaction of community to private sector involvement, not realizable full benefits of
economic development a sole sourced BOOT provider, time consuming and resource hungry
management and monitoring of the operating contract with the BOOT operators, requirement of
a rigorous selection process in selecting a BOOT partner .
© BROT
Build-Rehabilitate-Operate-Transfer (BROT) is a variant of the BOT arrangement. Under the
Build-Rehabilitate-Operate-Transfer arrangement, a private developer builds an add-on to an existing
facility or completes a partially built facility and rehabilitates existing assets, then operates and
maintains the facility at its own risk for the contract period. BROT is a popular form of PPP in the water
sector. Many BROT water sector projects have been implemented in China, Indonesia and Thailand

Types of Acrony Mode of Operation Investmen Ultimate Market Duratio

PPP m Entry and t Ownershi Risk n (years)
Maintenanc p
e
Build, BROT Concessio Private Private Public Privat 20-30
Rehabilitate n e
, Operate
and
Transfer

(d) BOLT
Build-Operate-Lease-Transfer (BOLT): In this approach, the government gives a concession to a private
entity to build a facility (and possibly design it as well), own the facility, lease the facility to the public
sector and then at the end of the lease period transfer the ownership of the facility to the government.

MODES / Asset PPP Capital Private partner Private Features, relevance

FEATURES ownership duration investment revenue risk partner in India & examples
during focus & and roles
contract responsibilit compensation
y terms
Build Lease Private Medium Greenfield Low-medium Capex Involves building a
Transfer (Leased to (e.g. 10- Private Pre-set lease facility, leasing it to
(BLT) or the 15yrs) from the the Govt. and
Build-Own- government) government. transferring the
Lease- facility after recovery
Transfer of investment.
(BOLT) Primarily taken up
for railway projects
such as gauge
conversion in India in
the past, with limited
success.
Question 2: What are the 10 knowledge areas of project management?
Answer: PMBOK Knowledge Areas – 10 PM Knowledge Areas
In project life cycle there are five process groups: The initiating process group, the planning
process group, the executing process group, the monitoring & controlling process group and
lastly the project closing process group. All project management processes belong to these
process groups. But also, there are 10 project management knowledge areas which are also
known as PMBOK knowledge areas or PMP knowledge areas as well. And the processes belong
to these PMBOK project management knowledge areas as well. Each of the PMBOK knowledge
areas has several processes and these processes belong to one of the process groups
There are 10 PMBOK knowledge areas.

1. Integration PMBOK Knowledge Area:

This is the only project management knowledge area that has processes in each five process
groups. These processes are developing the project charter, developing the project management
plan, directing and managing the project work, monitoring and controlling the project work,
performing integrated change control and closing the project or phase. The main purpose of the
integration management PMBOK knowledge area processes is the execution and delivery of the
project work end-to-end successfully.

2. Scope Management PMBOK Knowledge Area:

This project management knowledge area has six processes. Four of them belong to planning.
These are planning the scope management, collecting requirements, defining the scope and
creating WBS. Two processes belong to the monitoring and controlling process group. These are
validating the scope and controlling the scope. Scope management PMP Knowledge area
processes aim to control scope in a project and protects scope creep.

3. Schedule Management PMBOK Knowledge Area:

This project management knowledge area has seven processes, six of them are in the planning
phase and only one process belongs to the monitoring and controlling process group. These are:
planning the schedule management, defining activities, sequencing activities, estimating activity
resources, estimating activity durations, developing the schedule and controlling the schedule.
The main objective of the schedule management processes is completing a project on time
without variance.

4.Cost Management PMP Knowledge Area:

This PMP knowledge area has four processes. These are planning cost management, estimating
costs, determining the budget and controlling costs. Cost management processes aim to complete
the project under a planned budget.
5. Quality Management PMBOK Knowledge Area:
This PMBOK knowledge area has three processes. Planning the quality management process
belongs to the planning step, performing the quality assurance process belongs to the executing
and controlling the quality process belongs to the monitoring and controlling. Quality
management processes ensure to meet the projects’ quality objectives.
6. Resource Management Knowledge Area:
This project management knowledge area has four processes. Planning the resource management
process belongs to planning phase and three other processes belong to the executing process
group. These are: acquiring the project team, developing the project team and managing the
project team. Project activities are performed by project team members. Resource management
processes mainly aim to people management of project resources.

7. Communications Management Knowledge Area:

This PMBOK knowledge area has three processes. These are planning the communications
management which belongs to planning phase, managing communications which belong to
executing phase and controlling communications which belong to the monitoring and
controlling. A certain amount of communication will take place in a project internally and
externally. Management of information dissemination is done with the help of communication
management processes.

8. Risk Management Knowledge Area:

Since risks are evaluated mainly in the planning phase, five out of six processes belong to the
planning phase. These are planning the risk management, identifying risks, performing
qualitative risk analysis, performing quantitative risk analysis and planning risk responses. And
one process that belongs to monitoring phase is controlling risks. Risk management processes
mainly aim to reduce the impacts of risks to the project once they occur.

9. Procurement Management Knowledge Area:

This PMP knowledge area has four processes. Planning procurement management belongs to
planning, conducting procurements belong to executing phase, controlling procurements belong
to monitoring and controlling phase and closing procurements belong to project closure. The
main purpose of procurement processes is management and coordination of purchasing activities
in a project.

10. Stakeholder Management Knowledge Area:

This PMBOK knowledge area has four processes. These are: identifying stakeholders, planning
stakeholder management, managing stakeholder management and controlling stakeholder
management. Stakeholder management processes help to manage expectations of project
stakeholders during the project.

Question 3: How do you manage a successful project?

Answer: A project can be successfully managed by keeping the following points:
1. Pin down project details.
Ensure that project is based on a solid foundation and fully supported by its key stakeholders.
Making sure that we create a plan that outlines everything that the team needs to know such as
their roles and responsibilities as well as the regular milestones. It is important that the goals and
their key elements are closely aligned.

2. Prepare your team.

A strong plan needs an effective team. Once we have assembled your team, organize the
available resources and integrate their individual skills and personalities. Their talents and skills
should be aligned with the project’s needs. Ensuring clarity about their tasks so that they will be
efficient in doing them.

3. Set realistic expectations.

Establish measurable criteria for success. For endeavors that are long term, there must be
milestones to determine if everybody is staying on track and ensuring that they don’t stray away
from the project’s goals.

4. Embrace the roles of a project leader.

Managing a project team is not only about assigning tasks and noting down project details. It is
also about cultivating good and positive team dynamics.

5. Practice effective time management.

Among the keys to managing successful projects is to manage our time wisely. Creating a to-do
list to focus our self on the achievement of objectives. Defining critical project milestones and
perform a real evaluation at the end of each phase.

6. Keep the communication lines open.

Listening and engaging with our team members. Be a team player and optimize our members’
expertise. Check on the tools we need such as a collaborative project management software.
Effective project management entails learning about the people who are essential in the success
of the project.

7. Maintain pertinent documentation.

Starting from the initiation until the milestones and going toward the end of the project, always
keep relevant documents that ensuring our project team has covered the expectations and
deliverables.

8. Manage project risks.

Successful project management entails risk management. Foreseeing imminent risk is important
so that corrective action can be taken. Identifying project risks at the start of the project and
controlling them before they get out of hand.
9. Manage scope creep.
One of the best project management best practices is avoiding scope creep. These are the new
elements added to an approved project but without consideration in terms of budget increase.

10. Evaluate the project when complete.

Evaluating the project management process can help assess the overall performance so that the
team learns from it in the next venture.

ASSIGNMENT-2
CEM-5034
MANAGEMENT OF TRANSPORT INFRASTRUCTURE PROJECTS
 Question 1: What is product development process and what are the various stages in the new
product development process?
Answer: The product development process encompasses all steps needed to take a product from
concept to market availability. This includes identifying a market need, researching the
competitive landscape, conceptualizing a solution, developing a product roadmap, building a
minimum viable product, etc.
The term new product includes an original product, an improved product with new features and
quality, a modified product and a new brand.
The companies need to make continues endeavor towards product development to cope up with
rapid changes in consumer tastes, technology and competition. The first step towards product
development understands the nature of market, the competitors and needs and wants of the
consumer.
A new product is the result of a series of steps taken by a company, beginning with the
conception of a new idea to its successful commercial exploitation. If the idea is commercially
viable, the production and marketing of the product on a full scale are undertaken.

New Product Development Process: Steps, Procedure and Stages

1. Idea generation
The new product development process starts with idea generation. Idea generation refers to the
systematic search for new-product ideas. Typically, a company generates hundreds of ideas,
maybe even thousands, to find a handful of good ones in the end. Two sources of new ideas can
be identified:

 Internal idea sources: the company finds new ideas internally. That means R&D, but
also contributions from employees.
 External idea sources: the company finds new ideas externally. This refers to all kinds
of external sources, e.g. distributors and suppliers, but also competitors. The most important
external source are customers, because the new product development process should focus on
creating customer value.
2. Idea screening
The next step in the new product development process is idea screening. Idea screening means
nothing else than filtering the ideas to pick out good ones. In other words, all ideas generated are
screened to spot good ones and drop poor ones as soon as possible. While the purpose of idea
generation was to create a large number of ideas, the purpose of the succeeding stages is to
reduce that number. The reason is that product development costs rise greatly in later stages.
Therefore, the company would like to go ahead only with those product ideas that will turn into
profitable products. Dropping the poor ideas as soon as possible is, consequently, of crucial
importance.

3. Concept development and Testing

To go on in the new product development process, attractive ideas must be developed into a
product concept. A product concept is a detailed version of the new-product idea stated in
meaningful consumer terms. You should distinguish
 A product idea an idea for a possible product
 A product concept à a detailed version of the idea stated in meaningful consumer terms
 A product image à the way consumers perceive an actual or potential product.
Let’s investigate the two parts of this stage in more detail.

4. Marketing strategy development

The next step in the new product development process is the marketing strategy development.
When a promising concept has been developed and tested, it is time to design an initial
marketing strategy for the new product based on the product concept for introducing this new
product to the market.

The marketing strategy statement consists of three parts and should be formulated carefully:

 A description of the target market, the planned value proposition, and the sales, market
share and profit goals for the first few years
 An outline of the product’s planned price, distribution and marketing budget for the first
year
 The planned long-term sales, profit goals and the marketing mix strategy.
5. Business analysis
Once decided upon a product concept and marketing strategy, management can evaluate the
business attractiveness of the proposed new product. The fifth step in the new product
development process involves a review of the sales, costs and profit projections for the new
product to find out whether these factors satisfy the company’s objectives. If they do, the product
can be moved on to the product development stage.

In order to estimate sales, the company could look at the sales history of similar products and
conduct market surveys. Then, it should be able to estimate minimum and maximum sales to
assess the range of risk. When the sales forecast is prepared, the firm can estimate the expected
costs and profits for a product, including marketing, R&D, operations etc. All the sales and costs
figures together can eventually be used to analyse the new product’s financial attractiveness.

6. Product development
The new product development process goes on with the actual product development. Up to this
point, for many new product concepts, there may exist only a word description, a drawing or
perhaps a rough prototype. But if the product concept passes the business test, it must be
developed into a physical product to ensure that the product idea can be turned into a workable
market offering. The problem is, though, that at this stage, R&D and engineering costs cause a
huge jump in investment.

The R&D department will develop and test one or more physical versions of the product concept.
Developing a successful prototype, however, can take days, weeks, months or even years,
depending on the product and prototype methods.

7. Test marketing – The New Product Development Process

The last stage before commercialisation in the new product development process is test
marketing. In this stage of the new product development process, the product and its proposed
marketing programme are tested in realistic market settings. Therefore, test marketing gives the
marketer experience with marketing the product before going to the great expense of full
introduction. In fact, it allows the company to test the product and its entire marketing
programme, including targeting and positioning strategy, advertising, distributions, packaging
etc. before the full investment is made.

8. Commercialisation
Test marketing has given management the information needed to make the final decision: launch
or do not launch the new product. The final stage in the new product development process is
commercialisation. Commercialisation means nothing else than introducing a new product into
the market. At this point, the highest costs are incurred: the company may need to build or rent a
manufacturing facility. Large amounts may be spent on advertising, sales promotion and other
marketing efforts in the first year.

In all of these steps of the new product development process, the most important focus is on
creating superior customer value. Only then, the product can become a success in the market.
Only very few products actually get the chance to become a success. The risks and costs are
simply too high to allow every product to pass every stage of the new product development
process.

Question 2: What are the factors which should be considered before the product is
commercialized?
Answer: Commercialization is the process of introducing a new product or production
method into commerce—making it available on the market.
Factors which is need to be considered are:

 When to launch: Factors such as potential cannibalization of the sales of a vendor's other
products, any requirement for further improvement of the proposed new product, or
unfavorable market conditions may operate to delay a product launch.
 Where to launch: A potential vendor can start marketing in a single location, in one or
several regions, or in a national or international market. Existing resources (in terms of
capital, and operational capacities) and the degree of managerial confidence may strongly
influence the proposed launch-mode. Smaller vendors usually launch in attractive cities
or regions, while larger companies may enter a national market at once.
Global roll-outs generally remain the preserve of multinational conglomerates, since they
have the necessary size and make use of international distribution systems
(e.g., Unilever, Procter & Gamble). Other multinationals may use a "lead-
country" strategy: introducing the new product in one country/region at a time
(e.g. Colgate-Palmolive).
 Whom to target: Research- and test-marketing may identify a primary consumer group.
The ideal primary consumer group should consist of innovators, early adopters, heavy
users and/or opinion leaders. This will encourage adoption by other buyers in the market
during the product-growth period
 How to launch: Prospective vendors should decide on an action plan for introducing a
proposed product - a plan shaped by addressing the questions above. The vendor has to
develop a viable marketing-mix and to structure a corresponding marketing-budget.

ASSIGNMENT-3
CEM-5034
MANAGEMENT OF TRANSPORT INFRASTRUCTURE PROJECTS
Question 1: Write down the concept of PMIS?
Answer: Project Management Information System (PMIS) are system tools and techniques used
in project management to deliver information. Project managers use the techniques and tools to
collect, combine and distribute information through electronic and manual means. Project
Management Information System (PMIS) is used by upper and lower management to
communicate with each other.
Project Management Information System (PMIS) help plan, execute and close
project management goals. During the planning process, project managers use PMIS
for budget framework such as estimating costs. The Project Management Information System is
also used to create a specific schedule and define the scope baseline. At the execution of the
project management goals, the project management team collects information into one database.
The PMIS is used to compare the baseline with the actual accomplishment of each activity,
manage materials, collect financial data, and keep a record for reporting purposes. During the
close of the project, the Project Management Information System is used to review the goals to
check if the tasks were accomplished. Then, it is used to create a final report of the project close.
To conclude, the project management information system (PMIS) is used to plan schedules,
budget and execute work to be accomplished in project management.
Question 2: Write the three phases involved in project management?
Answer: Three Phases of Project Management are

1. Planning
 Goal setting, Project definition and team organization.

Steps in project planning

a. Establishing objectives
b. Defining project
c. Creating work breakdown structure
d. Determining resources
e. Forming organization

Work Breakdown Structure

a. Project
b. Major task in the project
c. Subtest in the major task
d. Activities the work packages to be completed.
2. Scheduling
 Relating people, money and supplies to specific activities and activities to one and other.

Project Scheduling
  Identifying precedence relationships
 Sequencing activities
 Determining activity times & costs
 Estimating materials & worker requirements
 Determining critical activity.

Purpose of Project Scheduling

 Shows the relationship of each activity to others.
 Identifies the precedence relationship.
 Encourages the setting of realistic time and cost estimates.
 Helps make better use of people, money, and materials, resources.

3. Controlling
 Monitoring, resources, cost, quality and budget; revising plans; and shifting resources to
meet time and cost demands.
Project control reports
 Detailed cost breakdown for each task
 Total program labor curves
 Cost distribution tablets
 Functional cost and hour summaries
 Raw materials and expenditure forecast.
 Variance reports.
 Time analysis reports
 Work status reports.