REPORT ON PROJECT MANAGEMENT

TOPIC: PROJECT PROCUREMENT & MATERIAL

MANAGEMENT

SUBMITTED BY: CHANDRIKA RAJARAM

5TH YEAR ‘A’

ROLL NO. - 14
 CHAPTER – 1 INTRODUCTION
1.1 AIM:
To study the Project Procurement and Material Management for a particular project.

1.2 OBJECTIVES:

1. To study the principles of Project Management.

2. To study the Project Procurement Management in detail.
3. To study the Material, Labour and Equipment management in the procurement management.
4. To study the Material Management in detail.
5. To study and analyze the main materials in terms of cost, quality and the brand that is supplied
on the site in detail.

1.3 ABOUT THE TOPIC:

Project Management is a system of procedures, practices, technologies and how that

enables the planning, organizing, staffing, directing and controlling of project activities to
successfully manage a project. The overall planning, coordination and control of a project from
inception to completion aimed at meeting a client’s requirements in order to produce a
functionally viable and sustainable project that will be completed safely, on time, within
authorized cost and to the required quality standards.

1.3.1 Need for project management:

a. To invest large investment opportunities in different emerging sectors.

b. Projects of increasingly complex sizes.
c. Aggressive competition.
d. Turbulent business environment.
e. Greater focus for operational effectiveness and efficiency.
f. Downsizing.
1.3.2 Benefits of project management:
a. Clear description of work to be performed.
b. Responsibilities and assessment of tasks.
c. Time limit for task completion
d. Measurement of accomplishment against plan is possible.
e. Problems are exposed in advanced following corrective action.
f. Objectives that cannot be met are identified early.

1.4 SCOPE:

1.5 LIMITATION:

1.6 STUDY METHOD:

 CHAPTER – 2 METHODOLOGY

2.1 WATERFALL MANAGEMENT:

The waterfall technique imitates the usual workflow technique in any production or
construction project as it is a method in regular succession. Each level occurs in a solitary
manner, and as the standard is being completed, the group moves directly to the next level in
sequential order.

The method here is a clear indication of compliance, allowing the process to grow in the
future. From the offset, the client may have a clear view of what will come about in part to
implement the project. They will approximately know the cost of the project, and the duration
is given to execute the plan and will have a good understanding of the project.

2.1.1 Shortcomings:
There is no making of alteration once a level in the process has been completed without
scrapping the entire project and starting again. The whole method relies on basic methods; if
those are wrong, then the task is likely to fail right from the beginning. The product is

evolved in tiers and only tested thoroughly at the end, which means bugs can be so ingrained in
the long run product that they're not possible to put off.

2.1.2 Flowchart:
2.2 AGILE MANAGEMENT:

Agile has become one of the times spoken of in response to the many challenges in managing
the waterfall project. Instead of following a series of isolated methods, this approach is pointed
to a viable way of sending the plan. Project projects begin with the right idea of where they are
going, after which to work on smart modes of short 'sprints.' At the end of each sprint, modules
are reviewed to discover any bugs or mistakes and customer comments that are collected before
the next race occurs.

2.2.1 Advantages:

After the original plans have been developed, alterations can be made to such programs, in
truth structural modifications are expected. As a result, it is less challenging to perform the
tasks and to revise the refinements within the industry, even if the project is submitted. Regular
debugging guarantees misappropriation earlier which implies that the product may be ready to
dilute and may be more likely to be a good product.

2.2.2 Limitations:
This method is suitable for maintaining things on target and balance our creativity with project
transport necessities. Due to the disruption of the project's real plan, the final product usually
occurs differently from the first one.

2.2.3 Flowchart:
2. Principles of project management:

There are 12 principles of project management on the basis of which it is carried out.
These principles shall be studied in detail.

2.1 Formal structure:

It is important for projects to have a formalized structure, including processes,

procedures and tools. A project should have both a project charter and project plan, as well as a
designated project team. Once created, the project plan is approved by stakeholders and/or
sponsors and then it is monitored and tracked through a change log as the project progresses.
This helps ensure it is prioritized and managed successfully.

2.2 Project sponsor:

An effective project sponsor is critical to the success of a project. Sponsors are the
people who champion a project and also act as a spokesperson for it with other executives. A
strong sponsor can help overcome roadblocks such as the loss of a key source. Having an
engaged sponsor makes it easier to communicate progress, escalate issues and guide
stakeholders through decision-making processes.

2.3 Goals and outcomes:

The most common factor behind failed projects is a lack of clear goals. Project
requirements and approval criteria should all be determined and documented at the beginning
of the project. It is important to ensure these are reviewed and approved by all key
stakeholders, including the sponsor and the customers.

2.4 Roles and responsibilities:

There are two forms that should be used for documenting and defining the roles and
responsibilities of everyone involved with a project. For project team members rasci is used to
define responsibilities and expectations. Here, rasci stands for r = responsible, a = accountable,
 s = sign-off authority, c = consulted, i = involved. This helps in documenting who the
stakeholders are, as well as important information such as the following:

− Communication preferences (type and frequency)

− Contact information
− Level of influence on the project
− Engagement level with the project
− Their role within the company
− Other relevant information or notes

2.5 Feasibility:

this is a factor which depicts whether the event is possible or not. Also, it can be
planned and staged within time frames. Key aspects of feasibility relate to:

− Financial and infrastructure requirements

− Venue requirements and capabilities
− Skill needs of managers, employees and volunteers
− Economic and environmental impact
− Legal requirements and potential legal problems
− Political support and opposition

2.6 Scope:

Scope is defined as the parameters of the events of what needs to be done, by whom and
in how much time and also, who is responsible for that. In scope, care needs to be taken that
‘scope creep’ does not occur. Scope creep is:

− A gradual expansion of the amount of work involved with planning and staging the event.
− Occurs when the scope increases in an unplanned or uncontrolled manner.

2.7 Management of project changes:

 A project needs to have a well-defined scope to ensure the outcome meets the customer
expectations, as discussed in the goal’s selection above. Without strong change management, a
project could suffer from scope creep, which is when the scope of a project gradually grows
beyond the initial project guidelines.

2.8 Work breakdown structure:

The WBS (work breakdown structure), as the name suggests, breaks a complex project
into more manageable tasks. It is done in two levels of categorization. The first level of
categorization is how the task is initially broken down into functions. The second level of
categorization is what needs to happen to complete those functions.

2.9 Value delivery capabilities:

Value delivery capabilities are simply your project tools, processes and procedures that
help deliver value to the customers. This can include project systems, such as scheduling
software. It may also include processes such as using an agile project methodology. The more
mature the processes and procedures are, the more likely the project will be a success.

2.10 Performance management baseline:

Projects typically have three basic components: cost, schedule and scope. Each of these
components should have a baseline or plan that a performance can be measured against. When
these baselines are integrated, it is called a performance management baseline. This means that
if there is a change in one component, it’s impact will be reflected in the other two components.

2.11 Communication:

The success of a project requires communication of project activities, risks, issues and
status, both within the project team and with other stakeholders. Communication is important
for a variety of reasons, including the following:

− Keeping stakeholders engaged

− Coordinating tasks and schedules
− Decision-making and problem-solving
− Identifying and resolving the conflicts
− Escalating issues and risks

2.12 Risk management:

A risk is simply an unexpected event that impacts a project. It can be good or bad, and it
can affect the resources, technology or processes. In order to minimize or eliminate the impact
that risks will have on projects, it is important to manage risk. It includes identifying,
evaluating and monitoring the risks, as well as deciding upon action plans to implement if risk
occurs.

3. Difference between construction and project management

Parameters Construction management Project management

Definition The management and control of the The management and control of a
construction phase of a project. single project during all phases of
development.

Purpose Ensure all aspects of construction Ensure all aspects of project delivery
are executed for the owner, safely, are executed for the owner, safely, on
on time, on budget and conforming time, on budget and conforming to all
to all standards and guidelines. standards and guidelines. This
includes design, construction,
procurement, and closeout/turnover.

Responsibilities− Quality assurance/quality control. − Track/monitor project schedule,

− Environmental, health, and safety. funding/cost and budget.
− Cost management. − Packaging and sequencing of
− Schedule analysis. contracts.
− Document control. − Contracts interface review.
− Change management. − A/e selection.
 − Contract compliance. − Contractor pre-qualification.
− Claims avoidance. − Design and constructability review.
− Inspections. − Value engineering
permitting/compliance.
− Contract submittal review.
− Scope creep review.

Focus − All aspects of construction – − Understand the entire delivery cycle.

schedule and budget. − Maintain interface across all
− Systems to maintain safety and processes.
quality. − Cost and schedule become key
− Interfaces with design: drivers.
constructability.
− Change management.

Impact − Aim is to deliver the project. − Deliver the project at best value to
− Minimal long-term impacts outside the owner.
the project.

Risk − Typically known. − Typically known.

− Quantifiable. − Quantifiable.
− Established mechanisms to mitigate.− Risks expand to include design and
handover/operations and
maintenance.

4. Parameters affecting project management:

There are different parameters affecting the project management. These parameters are
discussed below.
 4.1 Type of project: the project type includes on 4 types of projects: domestic, overseas,
foreign, global. There are few issues in managing the types of projects, viz,

− Environmental factors affecting the project.

− Global expansion considerations.
− Challenges of working in foreign cultures.
− Selection and training of overseas manager.

4.2 Scale of project:

Every project is unique. Some projects are relatively straightforward and predictable.
Others are highly complex and risky. Each requires a different approach when it comes to how
the project should be managed. Applying the same amount of project management rigor to
every project is wasteful. Despite this, many organizations and project managers apply project
management dogma without deviation instead of tailoring their efforts appropriately. The
project manager along with the project management team should tailor the project management
approach to fit the business environment, the risks, and the complexity of the project. Project
managers along with their project teams must identify among the numerous project
management processes and practices those that are most appropriate for each project. Each
project management process should be carefully considered to determine if it is applicable to
the project. 

5. Roles and responsibilities of project manager:

The role of the project manager encompasses many activities including:

 Planning and defining scope

 Activity planning and sequencing

 Resource planning

 Developing schedules

 Time estimating
 Cost estimating

 Developing a budget

 Documentation

 Creating charts and schedules

 Risk analysis

 Managing risks and issues

 Monitoring and reporting progress

 Team leadership

 Strategic influencing

 Business partnering

 Working with vendors

 Scalability, interoperability and portability analysis

 Controlling quality

 Benefits realization

Project procurement and material management

1. Introduction:
1.1 Project procurement management:
Project procurement management is needed to acquire material, goods and services outside
performing organization to meet project scope. Functions of project procurement department
are:
− Know and maintain records showing the materials, and their possible substitute, sources of
supply, quantities available and prices.
− Review specifications for possible simplifications and standardization of materials for
unreasonable requirements.
− Negotiate with suppliers for possible extension of credit.
− Gather and analyze price quotations and fluctuations
− Place order with suppliers
− Follow up purchase orders for delivery as specified
− Audit invoices to check compliance with agreed terms and conditions.
− Maintain records of all purchases
− Coordinate with other areas on all matters pertaining to procurement.
1.2 Labor, Material and Equipment:
Good project management in construction must vigorously pursue the efficient
utilization of labor, material and equipment. Material handling which include procurement,
inventory, shop fabrication and field servicing requires special attention for cost reduction.
Ultimately, decisions for actions not plans will dictate future outcomes.
1. Labor:
The aggregate of all human physical and mental effort used in creation of goods and
services. Labor is a primary factor of production. The size of a nation's labor force is
determined by the size of its adult population, and the extent to which the adults are either
working or are prepared to offer their labor for wages.
2. Material:
Article, item, material, or supply consumed or used in a construction project and
incorporated in the constructed building or structure.
3. Equipments:
Quantities of construction-related objects include many types of equipment, vehicles,
and supporting structures used during the construction phase of a structure or module.
1.3 Material Management:
Materials management is an important element in project planning and control.
Materials represent a major expense in construction, so minimizing procurement or purchase
costs presents important opportunities for reducing costs. Poor materials management can also
result in large and avoidable costs during construction. First, if materials are purchased early,
capital may be tied up and interest charges incurred on the excess inventory of materials.
Accordingly, ensuring a timely flow of material is an important concern of project managers.
Materials management is not just a concern during the monitoring stage in which
construction is taking place. Decisions about material procurement may also be required during
the initial planning and scheduling stages. Materials management is also a problem at the
organization level if central purchasing and inventory control is used for standard items.

TOPIC: PROJECT PROCUREMENT AND MATERIAL MANAGEMENT

CASE STUDY: BRAHMA SKY UZURI

ABOUT THE SITE:

The site is of a commercial complex with the status of under-construction. The

construction is completed till the basement level of two blocks and the first block has
completed till 7th floor which is the maximum limit of this structure. The site is located on the
Mumbai-Pune Highway, opposite to the Pimpri-Chinchwad Municipal Corporation (PCMC).
The site has three blocks interconnected with each other.

As discussing about the Project Procurement and Material Management, the site has
storage and inventory for materials, labor camps and equipment storage. All these parameters
shall be discussed in detail.

MATERIAL MANAGEMENT:

The material management on site includes the supply of materials, their storage,
inspection and usage of the supplied materials in time. The materials are supplied on site based
their requirements and calculation of a particular task to be carried out.

The list of material used currently are:

1. Concrete (which is manufactured from RMC)

2. Fly-Ash Bricks

3. Cement for Interior work and patchwork

4. Tiles