ASSIGNMENT -2

Principle of Management
HSM-433
Submitted By:
Ishieta Aggarwal
SID: 17104092

Objective: To create Project Management Plan to set up a plant for automobile

manufacturing facility.
Project Management Plan is document used to guide both project execution and project control
The objective of a project plan is to define the approach to be used by the project team to deliver the
intended project management scope of the project.
At a minimum, project plan answers basic questions about the project i.e. Why? What? Who? When?
The project plan typically covers topics used in the project execution system and includes the following
main aspects:

 Scope management plan

 Time management plan
 Cost management plan
 Quality management plan
 Human Resource management plan
 Communications management plan
 Risk management plan
 Procurement management plan

Quality Human Resource

management plan management plan

Cost management Communications

plan management plan

Time Risk management

management plan plan

Project
Scope Procurement
management plan Management Plan management plan
Project Definition:
To set up a Hyundai Motor Vehicle Assembly plant in Irungattukottai, Tamil Nadu

Scope Management Plan:

The new plant will be built according to the Hyundai Motor Company latest and best available
technologies as defined for the vehicle industry
Proposed Plant Location
The project will be located at Plot No H 1, Sipcot Industrial Estate, Sriperumbudur Taluk,
Kanchipuram District, Irrungattukottai, Tamil Nadu on an area of around 60 acres. It is connected
throughout through AH-45 Motorway to network of other Motorways, Expressways and National
Highways.
Plant Capacity
Annual Production capacity of the proposed Plant is given in Table 1:
Table 1: Annual Installed Capacity (units)

Year 2022 2023 2024 2025 2026 2027

Installed Capacity 6,500 11,000 25,000 25,000 25,000 30,000

Expected capacity utilization during the next five years (%) is given in Table 2:
Table 2: Expected Capacity Utilization

Year 2022 2023 2024 2025 2026 2027

Installed Capacity 59% 100% 60% 100% 83% 100%

Models to be Assembled
Hyundai Nishat Motor Limited is planning to start assembly operation with H-100 as the first CKD
model. This model has been huge success in the history when it was sold under the brand name of
Hyundai Shehzore where it captured >90% of the porter car market. This is anticipated to be the
volume leader again in the light commercial transport segment with the introduction of 3rd generation
engine technoloy by Hyundai.

Subsequent models to follow under CKD condition are Tucson, Kona and Elanta.
Table 3: Details of the models to be assembled at plant.
Furthermore, two to three flagship dealers will be established by the companies own investment in
Tamil Nadu, Chennai and Karnataka which shall be operational in 2022, the Company targets to have
20-23 franchised dealerships apart from above flagship dealers.
Total volume of model wise production is as below:
Table 4: Production Plan (units)

Model 2022 2023 2024 2025 2026 2027

H100 4,500 6,000 7,000 8,000 10,000 15,000
Tucson 2,000 2,000 3,000 5,000 5,000 5,000
Kona - 1,000 2,000 4,000 4,000 4,000
Elantra - 2,000 3,000 6,000 6,000 6,000
Total 6,500 11,000 15,000 23,000 25,000 30,000

Assembly Plant Layout

The Assembly Plant mainly consists of body shop, paint shop and assembly shop with inspection line,
test course, motor pool, warehouses and utilities, etc.
Proposed layout of the assembly plant is shown in Figure 1:

Figure 1 Assembly plant layout

Time Management Plan
Activity Definition
Various Activities involved in construction of Automobile plant are:
1. Pre-Establishment Clearances
 Application for Land/ Plot Allotment
 Application for new connection LT/ HT line – non domestic/ industrial
 Application for Water Connection
 Application for building plan approval
 Application for Pre-Establishment Fire NOC (National Building Code, 2005)

2. Construction Period
 Levelling of land for construction
 Erection of building
 Installation of Body shop
 Installation of Paint shop
 Installation of Assembly Shop
 Performance & Inspection Testing Facilities will be establishment along side production once
plant start operation.
Table – 5: Equipment List of Main Manufacturing Facilities

Manufacturing Facility Equipment

Body Shop a) Welding Jigs
b) Welding Guns
c) Welding Transformer
d) Hoists
e) Necessary Tools with Mig Welder
Paint Shop a) Booth for
i) Pre-treatment & ED Coat
ii) Primer Coat
iii) Top Coat
b) Baking Ovens
Assembly Shop a) Trim Line
i) Sealer Pumps
ii) Conveyors
iii) Pneumatic Tools
iv) Torque Wrenches
b) Chassis Line
i) Central Lifter
ii) Engine Docking Machine
iii) Axle Lifting Machine
iv) Wheel Subassembly
v) Wheel Balancing
vi) Pneumatic Tools
c) Final Line
i) Coolant Feeder
ii) (ii) Brake Bleeding Machine
Performance a) Alignment Tester
& Inspection Testing Facilities b) Side Slip Tester
c) Brake Tester
d) Turning Radius
e) Headlight Aiming Tester
f) Shower Tester
g) Rolling Tester
3. Pre-Operational Clearances
 Application for Completion cum Occupancy Certificate
 Consent to Establish under Water (Prevention and Control of Pollution) Act, 1974
 Consent to Establish under Air (Prevention and Control of Pollution) Act, 1981
 Consolidated Consent & Authorization under Water Act, 1974, Air Act, 1981 &
Authorization under The Hazardous and Other Wastes (Management and Transboundary
Movement) Rules, 2016
 Application for Pre-Operational Fire NOC (National Building Code, 2005)
 Site Plan Approval under Factories Act, 1948
 Registration of Factories under Factories Act, 1948
 License under Contract Labour Act, (Regulation and Abolition),1970
 Registration under GST

Activity Sequencing and Duration Estimation

Using Techniques like PERT (Program Evaluation Review Technique) probabilistic time required for
completion of various activities is calculated.
Flow Chart in Figure 2 gives sequence of various activities involved in plant construction and their
estimated duration.

Pre-
Establishment •2 months
Clearances

Levelling of
land for•1 month
construction

Erection of
building•6 months

Installation of
Body shop•1 month

Installation of
Paint shop•1month

Installation of
Assembly•1 month
shop

Pre-
•2 months
Operational
Clearances

Figure 2 Activity Sequencing and Duration

Schedule Development
Time Dec,20- Feb- Mar- Sept- Oct- Nov- Dec,21-
Feb,21 Mar,2021 Sept,2021 Oct,2021 Nov,2021 Dec,2021 Feb,22
Activity Pre- Levelling of Erection of Installation Installation Installation Pre-
Establishment land for building of Body of Paint of Operational
Clearances construction shop shop Assembly Clearances
shop

Cost Management Plan

Resource Planning
Fuel, Energy and Water Requirement: Detailed utilities consumption for various capacity utilization
phases is presented in Table 6 and Table 7.
Where Different phases are:

 Initial Primary Construction of Body Shop, Paint Shop, TCF Shop.

 Second phase initiate construction of Office and Canteen for employees.
 Next phase is construction of Warehouse and Utility Building.
Table 6 Electricity, Air and Water for various capacity utilisation phases

Table 7 Fuel for various capacity utilisation phases

Plant Equipments
The new plant will be built according to the applicable Best Available Technologies (BAT) defined
for similar industry.

Construction Technology and Materials

The proposed project site is not exposed to any natural hazards. In this respect, concrete construction
will be applied in the foundation. A thorough investigation of construction technology options will
therefore depend on sound engineering design as well as field investigations (such as weather,
climate, soil bearing capacity, the availability of construction materials locally and local labour skills).
During the design phase, the Project Contractor will choose the construction technology which best
meets project schedule, safety, and quality as well as the economic benefit to the local community

Cost Estimation and Budgeting

Estimated cost of the project comes out to be 7,000 million rupees.
Various methods like IRR (Internal Rate of Return),NPV(Net Present Value) etc were used to come to
this conclusion.
Various factors considered for estimating cost for budget preparation are

 Construction Period
 Cost of Land
 Cost of Building & Civil Work
 Cost of Plant & Machinery
 Inflation (Assumption) 3%
 Operational Costs (including Transportation, Electricity, Water, Fuel)
 Employee and Workers Cost

Quality Management Plan

Plant Equipments
The technology being offered by Hyundai Motor Company is considered to be ‘state of the art’ in
terms of being environment friendly, energy efficiency and modern plant & process design for similar
capacity vehicle assembly plants. The new plant will be built according to the applicable Best
Available Technologies (BAT) defined for similar industry.

Construction Technology and Materials

During the design phase, the Project Contractor will choose the construction technology which best
meets project schedule, safety, and quality as well as the economic benefit to the local community

Water for Paint Shop

The plant is expected to generate 2.1 m3/hour of wastewater which will be circulated for paint shop
use.
Anticipated Characteristics of Wastewater Before Treatment
S.NO. Parameters Anticipated Values
1 pH 4–6
2 BOD at 20 degree C 650
3 COD 1100
4 OIL & GREASE 50
5 Zn 10
6 Ni 10
7 TSS 250
8 PO4 175
9 Cr total 1.5
10 Pb 0.5
Note: All values are in mg/litre except ph.
For treatment of such wastes which are varying in nature different approaches should be adopted like
oil simmered equipment for free oil, microbe decomposition for BOD component etc so that
wastewater after treatment meet the IFC EHS Guidelines for Metal, Plastic and Rubber Products
Manufacturing.
Guidelines are shown in the figure 3.

Figure 3 Guidelines for Metal, Plastic and Rubber Products Manufacturing

Human Resource Management Plan
Organisational Structure for Hyundai Motor Company plant is presented in figure 4:

Figure 4 Organogram for HMCPL (as of year 2027)

Manpower Requirement and Staff Acquisition
Requirement of manpower up to Year 2027 is given in table 7. This staff requirement will be met by
professionals from different Hyundai branch, by people with specialised experience
or by freshers for engineering and management colleges.
Table 7 Human Resource Plan (Head Count)

Type Level 2022 2023 2024 2025 2026 2027

Tamil Nadu
Chennai
Karnataka

Communication Management Plan

A communication management plan documents how the project manager manages and controls
communication. All stakeholder needs must be addressed.

Identification of Different Stakeholder

 Executives: This include Chairman, CEO, COO, CFO, General and Regional Managers, Major
Employs
 Locals: Emergency response services, Independent school districts (ISDs), Universities, Media
outlets, Local public works and transportation departments, Service organizations,
Neighbourhood associations, Special event coordinators, Transit providers
 Government Bodies: Infrastructure Department, Safety Department, Electricity Department,
Environmental Department

Communication among executives will occur according to organisation structure presented above.
Communication among different Stakeholders will happen with the help of reports.
The different types of performance reports include:

 Status Report; Reports the current performance of the process against performance measurement
baseline
 Progress Report; Describes the total work accomplished
 Trend Report; Whether performance has an upward trend or a downward trend is reported by the
trend report
 Forecasting Report; Future project status and performance is reported basis current (or
historical) data
 Variance Report; Compares actuals to baselines
 Earned Value Report; This report integrates scope, cost, and schedule measures to assess project
performance

Risk Management Plan

Using various techniques like ‘Lessons Learnt from Past’, ‘Checklist Analysis’, ‘Root Clause Analysis’
etc. Risk is Identified.
Then using Quantitative and Qualitative Analysis of Risk is done using tools and techniques like ‘Data
Gathering’, ‘EMV’ etc.
Then Risk response is created using techniques like ‘Consultation with Experts’, ‘Prioritising risk’ etc.
Tools and Techniques for Risk Identification, Risk Assessment and Risk Response are given figure 5.

Figure 5
Procurement Management Plan
 Fuel
Natural gas will be used as fuel and provided by Sui Northern Gas Pipe Line system.
 Electric Power
The requirement of electricity will be met from the M-3 Industrial City system. In addition,
for emergency, Hyundai plans to install in phases five (5) sets of diesel generators each with
an installed capacity of 1,000 KVA.
 Water Supply Hyundai plans to install tube-well at a depth 30 meters. The ground water being
brackish will be treated before its utilization in the plant. Drinking water will provided by
Irrungattukottai Industrial City and treated if deemed necessary. Hyundai is also considering
importing raw water from nearby irrigation canal
 Equipments Procurement
The new plant will be built according to the Hyundai Motor Company latest and best available
technologies as defined for the vehicle industry
Construction Technology and material Procurement
 During the design phase, the Project Contractor will choose the construction technology which
best meets project schedule, safety, and quality as well as the economic benefit to the local
community Once Decided these materials and technology will be procured through bidding
 Transportation and Logistics
Truck Traffic Following truck traffic is visualized for the Project:
 Vehicles Transporters for finished vehicles – inward and outward bound.
 Trucks for inward transportation of assembly plant input materials, oils, lubricants, etc.
 Trucks for outward transportation of waste and scrap materials.
 Vehicles & cars for transportation of Hyundai personnel.

Conclusion
Project Management Plan for setting up Hyundai Motor Vehicle Assembly plant has been obtained
above with includes of Scope, Time, Cost, Quality, Human Resource, Communications, Risk and
Procurement management plan. Combined use of this plan will help successful execution, control and
completion of project.