Project Goals ● Identifying the location with good connectivity and water

resource availability.
● Land acquisition and competitive construction rates
● Optimised layout approval
● Plant construction
● All the resource inspection
● Getting competitive prices for machines to be ordered
● Installation of machines on production lines
● Hand over the plant to ABC Pvt. Ltd.

Project Scope ● Finalising the plant at the desired location

● Finalising competitive builder and constructors
● Ordering machines at affordable prices
● Installation of machines
● Get the plant running in full flow

Project Business ● To improve the sales by upto 25% and enter into premium
Case segment cars
● Better service
● Spare part availability increase by 35%

Constraints ● The tender bidding should arrive on time

● Weather interruptions should be minimum

Project ● Covered area as per government norms

Deliverables ● NOC from Pollution Control Board
● Green area fulfillment
● Marketing and sales department
● On time delivery

Key Cost areas ● Land area cost

● Plant construction cost
● Machines cost
● Water and electricity bill

Project ● Project Manager- Mr. Rajat Goyal

Stakeholders ● Sponsor- ABC Pvt. Ltd.
● Construction Firm

Risks ● Upcoming elections

● Weather interruptions
● Government laws and policies change

Assumptions ● There is no strike of worker unions during the project period

● All the machines delivery and construction is done on time
Project Scope

Project scope is a part of the project planning process that documents specific goals,
deliverables, features etc .

● Scope Planning consists of all the things that are to be focussed on and not to be
focussed on. Scope planning is very important for project initiation. So for that I would
like to define in-scope and out-of-scope for this project.

In-Scope Out-of-Scope

Finding land with ease of transportation Electricity cost per unit as per industrial
and availability of water resources. area

Competitive construction cost Machinery requirement and

specifications

Optimised layout Cost of the industrial plot

Regular inspection Manufacturing processes

● Scope Definition The description of the project's main scope, i.e. ,” Find an
industrial plot and set-up a manufacturing unit for ABC Pvt. Ltd. to start the
production in 40 weeks. The layout of the plant should be optimised for higher
efficiency’.

● Scope Verification It is the process of finalising acceptance of the project scope by

the stakeholders and the affiliating company. It is a process of verification of the
scope by stakeholders. It would be done by formal acceptance from stakeholders
and ABC Pvt. Ltd. to approve the scope of the project.

● Scope change control describes the process of change in the scope after
verification if during the project execution stage if there is a need to change the
scope. It includes approval of the necessary changes from different levels of the
organization depending upon the type and level of the scope. It also defines the
control of the scope which is needed to initiate the process of scope change. The
scope change is a necessary step to undertake the changes while the project is
going on to continuously develop the scope of the project.
Time Management

Time management is defined as the formation of a schedule or timeline to set the dates for
achieving various milestones in order to complete the project on or before deadline. It
includes these steps:

1. Activity Definition
2. Activity Scheduling
3. Activity Duration Estimating
4. Schedule development
5. Schedule control

● Timeline

Task Estimated Completion

Finding a location, buying land and all government Week 2

approvals and layout approval

Getting construction quotes Week 3

Finalising the builder Week 4

Raw material selection and ordering to start the Week 6

construction

Tender formation for the machines required Week 15

Getting Quotes for tender formed Week 18

Finalising the tender and placing order Week 20

Plant inspection and construction progress check Week 21

Second inspection and layout check Week 25

Machinery arrival and inspection Week 26

Moving the machinery at desired locations Week 28

Unpacking the machinery to begin the assembly Week 32

Machinery assembly completion Week 40

Inspection with stakeholders Week 45

Completion of construction Week 50

First test run of the plant and final inspection with Week 51
stakeholders and ABC Pvt. Ltd. representatives

Plant fully operational and manufacturing starts Week 52

Cost Management

It is a major aspect of project management where an estimation of all the resources required
and cost estimation is prepared. The overall cost estimation is optimised in order to
purchase the resources, construction equipment, machines for production and machines &
equipment for material handling.

● Cost Estimation the estimation of resources and cost to complete the project the
resources are industrial plot, manpower (construction cost), raw material, power
supply, machinery.

Resources Unit Cost Total Cost

Industrial Plot (70 acre) ~1.3 crore/acre 91 Cr.

Construction cost ● 12 manufacturing lines ~49 Cr(covered

(material+labour) 40000sq.ft. each, area)+5Cr(boundar
covered area 4,80,000 y wall)+11.9
sq. ft (material Cr(miscellaneous)
@1000/sq ft) =65.9Cr.
● Office area 10,000 sq ft.
(material @Rs 1000/sq
ft)
● Brickwork boundary wall
7ft high (material @Rs
100/sq ft)
● Miscellaneous charges
(architecture,
supervision, NOC, CLU)
@17,00,000/acre

Electricity cost ~4000unit/week @5Rs/unit 1.2 Cr.

Machines and other 12 manufacturing lines with 40 288 Cr.

equipments different types of machines at
each line ~@0.6cr/ machine

Total 446.1 Cr.

*This cost is just an estimate actual rates may vary

● Cost Budgeting: getting an estimated cost quote in advance from the builder,
material and machine suppliers and then finding sponsors or share investors
according to the estimation provided. In order to track the budget keep a regular track
of the expenses of the company and sponsors for the project and define the overall
budget of the project according to the required quality of the resources.

● Cost Control Find the ways to decrease the cost of the overall project without
compromising the quality of the plant. Regular auditing by the finance department to
monitor costs of all the departments.
Quality Management

To manage the quality of the project by regular inspections and checking the quality of the
resources to be used and maintain the quality until completion of the project.

● Quality Planning it is identifying the major quality benchmarks and products from
scope or objective of project
○ Strength of structure and material used in construction of plant
○ Efficiency of the layout
○ Quality of machinery with service quality

● Quality Assurance It is the process of checking the quality of the deliverables in

order to check whether the planned quality is achieved after project completion or
not. It is used to find the differences if any in the proposed and output quality and to
minimize those.

● Quality Control The measures used to control the quality of the project while the
project is going on in order to make the quality stand under the tolerance limit.

Human Resource Management

It is the management of manpower to allocate work equally and stepwise among employees
in different hierarchy levels of the organization.

● Organisational Planning It includes defining the level of each and every person in
the organization and giving them work and responsibilities accordingly. The project
manager would be managing finance, construction, quality control and engineering
head. The respected heads would further be managing the teams allocated to them.

● Skill Acquisition It includes the recruitment of man-force according to different

teams. Work is being distributed among them in order to complete the project on
time. It is the acquisition of talent and skilled labour so as to provide every team with
a bunch of people to do the job properly. After the selection of functional-based
organizational, and manpower requirements, the next step is to assign the correct
work to subordinates under them based on their skillset.

Communication Management

This is referred to the communication between employees, workers and heads. This is very
important to nullify the problems occurring due to miscommunication among different levels
of the organization.

● Communication Planning: Communication planning is all about keeping everyone

in loop/posted about the project progress. 90% of a project manager’s job is spent on
communication so it’s quite important to make sure everybody gets the right
message at the right time. This includes the planning to do communication during the
course of the project in order to discuss updates, problems occurring in the project
 and to make everyone understand the objectives of the project. This is done by
scheduling meetings from time to time.

● Information Distribution: The details of all the progress of various events should be
regularly updated over a common platform which is accessible by everyone in middle
and top-level management. This is done in the execution phase to tell everyone what
the project is and how everyone is supposed to work on it. It would include the
deadlines, i.e., to tell everyone when they should be finishing their work. This is done
in meetings. Information is also distributed using digital platforms like Google info, DS
dashboard, Doodle and Github.

● Performance Reporting:It involves collecting and disseminating project information,

communicating project progress, utilization of resources, and forecasting future
progress and status to various stakeholders, as decided in the communication
management plan. Meetings and reports to discuss the progress of the project in
order to tell everyone the instantaneous work going on the project. This can be done
by sharing project records, KPIs and performance reports.

Risk Management

Risk is everywhere and in every kind of work no matter how small it is; it can change the
nature of a project and nullify the progress. So, it is very important to manage the decisions
according to the risk of problems those decisions can cause.Some events like finding an
easier way to do an activity or lower prices of raw materials with the same technical
specifications can help in the project. When something of this sort happens,we call it an
opportunity but it is handled as a risk.

● Risk Identification: This process is very important to find out the probable risks on
the projects. We can prepare a potential risk checklist and update this on a regular
basis. The senior people who have worked in this kind of projects can give valuable
suggestions during the making of the checklist.

Some of the risk in setting up an automobile plant can be:

○ Upcoming elections in the state or centre
○ Demand variation in the market
○ Delivery time of all the raw materials
○ Setting up machinery
○ Seasonal changes causing the delay in construction
○ Appreciation of the prices causing budget problems.

● Risk Response Development: The identified risks can be very severe, so they need
to be worked upon in order to get ready to inculcate those risks. This step helps to be
prepared for those risks and find their solutions in advance.
○ To raise the problems or risks occurring
○ Meet to find the solution for those risk
○ Implementation of that solution
Procurement Management

It includes the company’s strategy to optimize spending power on different resources.

Procurement management follows a logical order.

● Procurement Planning: The plan is made on how to reduce the cost of the
resources without compromising with their quality.

● Source Selection: The source of the material is selected in order to find the
advantages and disadvantages from different sources and then comparing those to
find the most suitable source. It is selected by discussing the factors with different
department heads.

● Contract Administration: It is done in the execution phase to finalize the contract

details with the operations and construction head to order the material and
equipment

Integration Management

This basically means integrating all the above knowledge areas. This includes coordinating
tasks, resources, stakeholders, and any other project elements, in addition to managing
conflicts between different aspects of a project, making trade-offs between competing
requests and evaluating resources.The integration of all the knowledge areas that come
under planning is termed as ‘Product Plan Development’.

● Product Plan Development: It is the development of a plan for the project. This
includes all the works that should happen all the way from initiation to execution and
closing of the project. The plan would help the project to function smoothly by
integrating all the departments.
● Integrated Change Control: The integration of all the knowledge areas that come
under control is done over the whole project to reflect the changes in the projects
over the final goal of the project. It will include the formulation of the changes
according to the lessons learned.
.