AR6012- Construction & project management

UNIT - I
INTRODUCTION TO PROJECT MANAGEMENT

Syllabus

 Project management concepts-objectives, planning, scheduling

Controlling and

 Role of decision in project management.

Traditional management system, Gantt’s approach, Load chart.

Progress Chart,

 Development of bar chat, Merits and Demerits.

 Project management concepts

What is a Project? ―A project is a one-shot, time-limited, goal-

directed, major undertaking, requiring the commitment of varied skills
and resources.

A project is a temporary endeavour undertaken to create a unique

product or service. A project is temporary in that there is a defined start
(the decision to proceed) and a defined end (the achievement of the
goals and objectives).

Projects usually include constraints and risks regarding cost, schedule

or performance outcome.
 Project management concepts

Project management triangle

The three constraints in a project management triangle are time, cost and
scope.
Time:
A project's activities can either take shorter or longer amount of time to
complete.

Completion of tasks depends on a number of factors such as the

number of people working on the project, experience, skills, etc.
 Project management concepts

Project management triangle

Cost:

It's imperative for both the project manager and the organization to have an
estimated cost when undertaking a project. Budgets will ensure that project is
developed or implemented below a certain cost.

Sometimes, project managers have to allocate additional resources in order

to meet the deadlines with a penalty of additional project costs.

Scope:
Scope looks at the outcome of the project undertaken. This consists of a list
of deliverables, which need to be addressed by the project team.

A successful project manager will know to manage both the scope of the
project and any change in scope which impacts time and cost.
 Project management concepts

Project management triangle

Quality:

Quality is not a part of the project management triangle, but it is the

ultimate objective of every delivery. Hence, the project management
triangle represents implies quality.
 Project planning and project scheduling & controlling

 Each project big or small has certain objectives:

 Completed within the stipulated time.

 Efficient use of available manpower and other resources as sparingly as possible

 Complete the project with minimum capital investment

For all these to happen and achieve project success , a project should undergo following
Three stages

1. Planning

2. Scheduling

3. Controlling
 DEFINE

Planning
ESTABLISH
• It involves defining objectives of
the project.
DEVELOP
• Listing out tasks or activities that

Steps in planning
must be performed
EVALUATE
• Determining requirements for
men,
• material and machinery.
DETERMINE
• Estimation of costs and activity
duration.
TEST

CHOOSE

DECIDE
Scheduling CALCULATE

Steps in scheduling
• Scheduling is the allocation of
resources. ASSIGN

• Assigning the starting and

completion dates for each GIVE
activity

• Calculating manpower and

ALLOCATE
material requirements at each
stage of project
Controlling ESTABLISH

• Reviewing the difference

Steps in controlling
between the schedule and actual MEASURE
perfomance.

• Replan and reschedule the IDENTIFY

activites if any deviations

• Monitor resource cost and SUGGEST

quality AND SELECT
 Role of decision in project management
IDENTIFY

Steps in decision making

 At each stage of project such as planning, scheduling, DEVELOP
controlling involves taking decisions

How to go about the project ANALYSE

What ways to use to achieve the goals etc..

MAKE

 The success or failure of project is based on decisions we take.

 A poor or erroneous decision may lead to failure of project.

 A good decision at right time will lead to benefit for the team members
as well for the project.
 Methods of planning and programming

 When a planning of a project is undertaken a host of question arises?

How should work be accomplished ?

What resources will be needed?

How long it will take?

How much it will cost?

 The answer to all these questions can be found by using modern project
management techniques

Bar Chart and milestone chart

Network Diagram
 Development of bar chart
Bar /Gantt chart

 Bar chart were invented by Henry Gantt

around 1900..

 Bar charts represent pictorial

representation in two dimensions
of project by breaking it into
manageable activities in one axis and
duration in other.
 Development of bar chart

Development of bar chart involves the following important stages.

• Breakdown : Breakdown the project into various activities or jobs

or operations, each representing manageable unit
for planning and control.

• Decide : The method to be employed in execution of the

project, as well as for each activity or operation
or task; also decide above the sequence in which
the activites are to be completed.

• Assign : The above information in the bar chart, indicating

the relative positions of the each activity.
 Merits and demerits of bar chart

Merits of bar chart :

It is easy to understand

It gives clarity of dates
It enables time management
It brings efficiency
It ensures accountability in terms of timeline
It expects coordination among stakeholders in order to
deliver things as per Gantt timeline

Demerits of bar chart :

Tedious if one need to keep it updating regularly

Can become for detailed project plan
Unclear amount of work expected
Not easy to view everything on a single paper
 Progress chart

A bar chart does not show the progress of work and hence it can not be used
To review the progress.

For a proper control of the project, information of the progress made at a particular
Instant of time should be available.

 This can be done by showing the progress of each activity , by hatched lines
along the corresponding bar of the activity.
Network Diagram

 A network diagram is a sequence of

steps (activities), commonly
represented by blocks or circles, that
are linked together in the logical
sequence they need to be carried
out.
Milestone Chart

 This graphical representation shows

1. Milestone dates

2. Identify key points in project life span.

 In between the bars are necessarily visible.

 Work break down structure (WBS)

 A complex project is made manageable by first

breaking down into individual components in a
hierarchical structure known as work break down
structure.

 Such a structure defines a task that can be completed

independently of other tasks, facilitating resource
allocation, assignment of responsibilities, and
measurement and control of project.
 Disadvantages of traditional management system

Absence of central authority:

• The major disadvantages are associated to the lack of a well-built central power for the
project.
• Conflicts occur between functional groups as they struggle for power.

No customer focal point

• The response to customer's need become a slow and aggravating process in traditional
approach due to lack of customers' centre of attention.

Time management

• Traditional projects require very large lead time so it has a tendency to fall behind the
timetable.

Good ideas are held back

In the traditional method the specialist constructors, who deliver the project are involved in
the project after the design is substantially complete so they miss the opportunity to
contribute their ideas in design phase
 Disadvantages of traditional management system

Restricted Communication:

 Traditional management establishes a clear separation between the management

and employee levels within a company.

 This goes against more open communication between managers and employees.
Life cycle of construction project
 Life cycle of construction project

Pre Project Phase

Idea or initiation phase Project concept phase Feasibility Phase

Idea or initiation phase:

The pre project phase aims to identify all possible projects based on examination of needs and possible o

Project Concept Phase:

The facilitator and project manager work together to develop concepts for the project such as
•The description of the project (new building, renovation, move)
• Justification (need, urgency)
• Scope (programs, size)
• Cost Range (preliminary budget, source of funds)
• Schedule (time and activity milestones)
Feasibility Phase:
The purpose of feasibility studies is to:

Establish whether the project is viable.

Help identify feasible options.

The assessments carried out should be presented in a structured way so the client can decide
whether or not to proceed to the next stage.

They tend to be carried out when a project is large or complex, or where there is some doubt or
controversy regarding the proposed development.
 Project Phase:

Basic design phase Detailed design phase Tendering phase Execution phase

Basic design phase:

• The activity in this phase is carried out by engineering firm or architect. Closure phase
• Preparing design drawings, specifications.
• Preparing tender documents.

Detailed design phase:

• Preparing detailed drawings for item rate contract.

 Project Phase:

Basic design phase Detailed design phase Tendering phase Execution phase

Tendering Phase:

• Tenders are issued if it is decided to execute the project through contracting.

• Preparation of clear and precise documents tender documents. Closure phase
• Preparation of BOQ, Specifications, agreement conditions, estimating contract value.
• Issuing tender documents , receiving bids, evaluating them, recommendations of contractors
and award of contract.

Execution Phase:

• The contractor starts the actual construction after signing the contract document.
• Establishing and enforcing quality assurance programe.
• Conducting regular site visits.
• Establishing the acceptance criteria.
 Post Project Phase:

Utilization phase Close down phase

• This phase is also known as turnover phase.

• During this phase the responsibility of materalized deliverable Is transferred from engineer/ Architect to client.

Utilization Phase:
•Client or end user make use of the facility.
• The performance of constructed facility is monitored at regular intervals and maintenance
is performed

Close down Phase:

• Once the project has reached its intended life, it is dismanteled and disposed off
 UNIT - 2
PROJECT PROGRAMMING AND CRITICAL PATH METHOD

Project Network-Events Activity, Dummy, Network Rules, Graphical

Guidelines for Network,

Numbering the events, Cycles, Development of Network-planning for

Network Construction, Models of Network construction,

Steps in development of Network. Work Break Down Structure,

hierarchies.

Concepts: critical path method-process, activity time estimate, Earliest

Event time, Latest allowable Occurrence time,

Start and finish time of activity, float, critical activity and critical path-
problems.
 Network-Events Activity, Dummy,

Activity : An activity represents an action and consumption of

resources (time, money,
energy) required to complete a portion of a project. Activity is
represented by an arrow,

Event : An event will always occur at beginning or end of

activity.

The i th event and j th event are tail event and head event
respectively
 Merge events and burst events
 One or more activites can start and end simultaneously at an event.

Dummy activity
 An imaginery activity which does not consume any resource and time is
called dummy activity.

 Dummy activity are simply used to represent a connection between events

in order to maintain logic in network.

 It is represented by dotted line in network.

 Network Rules

1.No single activity can be represented more than once in a network.

The length of an arrow has no significance.

2. The event numbered 1 is the start event and an event with highest
number is the end event. Before an activity can be undertaken, all
activities preceding it must be completed. That is, the activities must
follow a logical sequence (or – inter- relationship) between activities.

3. In assigning numbers to events, there should not be any

duplication of event numbers in a network.

 4. Dummy activities must be used only if it is necessary to reduce

the complexity of a network.

5. A network should have only one start event and one end event.
 Graphical guidelines for Network

Looping error should not be formed in network, as it represents perfomance of

activites repeatedly in a cyclic manner

In a network , there should be only one start and one ending event.
 Network Rules

The direction of arrows should flow from left to right avoiding mixing of
direction .

Some conventions of
Network diagram
 Numbering of events using Fulkerson's rule

Step1 : Number the start or initial event as 1.

Step2 : From event 1, strike off all outgoing activities. This would have
made one or more events as initial events (event which do not have
incoming activities). Number that event as 2.

Step3 : Repeat step 2 for event 2, event 3 and till the end event. The end
event must have the highest number.

Example
 Development of Network
Example 1:

Explanation:
The network diagram shows the procedure relationship between the
activities. Activity A (preparation of house plan), has a start event 1 as well as
an ending event 2. Activity B (Construction of house) begins at event 2 and
ends at event 3. The activity B cannot start until activity A has been
completed. Activities C and D cannot begin until activity B has been
completed, but they can be performed simultaneously. Similarly, activities E
and F can start only after completion of activities C and D respectively. Both
activities E and F finish at the end of event 6.
 Development of Network
Example 2:

Explanation
The activities C and D have
a common predecessor A.
The network representation
shown in Figure 8.12 (a), (b)
violates the rule that no two
activities can begin and end
at the same events. It
appears as if activity B is a
predecessor of activity C,
which is not the case. To
construct the network in a
logical order, it is necessary
to dummy activity .
 Development of Network
Example 3:
 Planning for network construction

Networks can be constructed either by forward planning or by

backward planning or combination of both .

1. Forward Planning
In this method the planner starts from initial event and builds up the events
And activites logically and sequentially until the end event is reached.

A planner asks himself the following questions:

What events comes next?
What are dependent events?
What events can take place concurrently?

2. Backward Planning
In this method, the planner starts with end event, and arranges the
Events and activities until the initial event is reached.

The planner asks himself if we want to achieve this, what events should
Have taken place.
 Planning for network construction

Networks can be constructed either by forward planning or by

backward planning or combination of both .

3. Combined Planning:

A combination of both forward planning and backward planning

Is followed.

At any stage the planner may need traverse the network back and
Forth several times until it is found to be satisfactory.

A planner must as himself

1. What events must be completed before particular event can start?

2. What event or events follow this?
3. What activities can be accomplished simultaneously?
Models of Network construction

There are two types

1. Activity on node (AON)

2. Activity n arrow (AOA)

Models of Network construction
Models of Network construction
 Steps in development of Network

The following steps are useful in development of a network

1. Objective : Set down in words.

2. Plan break down : Depending upon management level of use,

activites and events identified and listed.

3. Sequencing : The activites and events thus prepared.

4. Development : of predecessor and sucessor relationship in

events.

5. Drawing : Activites by connecting pair of events with arrows.

6. Check: Network diagram a) In respect to content, sequence and

sense b) For degree of detail.

7. Redraw: Network diagram to eliminate errors and attain style.

8. Introduce : Events of identification.

 Critical path method (CPM)

Introduction

• The critical path method (CPM) was created by Du Pont and Spery Rand
corporation in 1957. For applications to industrial situations like
construction, manufacturing, maintenance etc.

• CPM networks are generally used for repetitive type of projects, for these
projects for which fairly accurate estimate of time for completion of each
activity can be made for which cost estimate can be made with fair
degree of accuracy.

• However it is not suitable for research based projects.

• CPM follows deterministic approach to calculate activity times.

 Critical path method (CPM)

SCHEDULING OF ACTIVITES

Definitions
Earliest event time:
The earliest event time (TE) is the earliest time at which an event can occur.

It is the time by which all the activites discharging into the event under
consideration are completed.

Latest allowable occurrence time:

Latest allowable occurrence time (TL) is the latest time by which an event
Must occur to keep the project on schedule.

Before the critical path in a network is determined, it is

necessary to find the earliest and latest time of each event to
know the earliest expected time (T ) at which the activities E
originating from the event can be started and to know the latest
allowable time (T ) at L which activities terminating at the event
can be completed.
 Critical path method (CPM)

SCHEDULING OF ACTIVITES

Forward Pass Computations (to calculate Earliest, Time T ) E

Procedure Step 1 : Begin from the start event and move towards the end
event.

Step 2 : Put T = 0 for the start event.E

Step 3: Go to the next event (i.e node 2) if there is an incoming activity

for event 2, add calculate T of previous event (i.e event 1) and activity
time.

Step 4 : Repeat the same procedure from step 3 till the end event.
 Critical path method (CPM)

SCHEDULING OF ACTIVITES

Backward Pass Computations (to calculate Latest Time T ) L Procedure

Step 1 : Begin from end event and move towards the start event.
Assume that the direction of arrows is reversed.

Step 2 : Latest Time T for the last event is the earliest time. T of the
last event. L E

Step 3 : Go to the next event, if there is an incoming activity,

subtract the value of TL of previous event from the activity duration
time. The arrived value is TL for that event. If there are more than
one incoming activities, take the minimum TE value.

Step 4 : Repeat the same procedure from step 2 till the start event.
 Critical path method (CPM)

DETERMINATION OF FLOAT AND SLACK TIMES

The non – critical activities have some slack or float.

The float of an activity is the amount of time available by which

it is possible to delay its completion time without extending the
overall project completion time.
 Critical path method (CPM)

DETERMINATION OF FLOAT AND SLACK TIMES

 Critical path method (CPM)
EXAMPLE:
 Critical path method (CPM)
EXAMPLE:
 UNIT - 3
ANALYSIS

Cost model-Project cost, direct cost, indirect cost, slope

curve, Total project cost, optimum duration contracting the
network for cost optimization.

Steps in cost optimization,

Updating,

Resource allocation-

Resource smoothing,

Resource leveling.
 Cost analysis

Introduction

The two important components of any activity are the cost and time.
Cost is directly proportional to time and vice versa.

For example, in constructing a shopping complex, the expected

time of completion can be calculated using be time estimates of
various activities. But if the construction has to the finished earlier,
it requires additional cost to Network Model complete the project.

We need to arrive at a time / cost trade-off between total cost

of project and total time required to complete it.
 Cost analysis

We have two types of costs and two types of time estimates

Normal time(tn) : Normal time is the standard time that an estimator would
Usually allow for an activity.

Crash time( tc) : Crash time is the minimum possible time which an activity
Can be completed by employing extra resources.
Crash time is that time, beyond which the activity cannot be shortened by any
Amount of increase in resources.

Normal cost( Cn) : This is direct cost required to complete the activity in
Normal time duration.

Crash cost (Cc) : This is the direct cost corresponding to the completion of
Activity within crash time.
 Cost analysis

Cost Slope: Cost slope is the increase in cost per unit of time saved by
crashing. A linear cost curve is shown in Figure
Project Crashing
Example:

If the indirect cost is Rs. 20 per day, crash the activities to

find the minimum duration of the project and the project cost
associated.
Solution:

From the diagram, we observe that the critical path is 1-2-5 with project duration of
14 days The cost slope for all activities and their rank is calculated
Solution:
Solution:
Updating
Updating
Updating Process
Data required for updating
Steps in process of updating
Steps in process of updating
Updating Cycle
When to update…
 Resource Allocation

Resource planning
A resource may be defined as the machine or person who will perform the scope
Of work.

Resource planning is forecasting the resources required to perform the scope of

work within the time plan.

Resource Estimating:
The resource estimates is linked directly to scope of work and bill of materials.

The scope of work may be expressed as so many tons of steel or so many

Sq.m of wall paint.
 Resource Allocation

Resource Loading:

• The resource forecast is now compared with resource available.

• The ideal situation is achieved when resource requirement equals

Resource available.

• Unfortunately in project management this seldom happens, because it

is not always possible to adjust supply with demand, so some form
of compromise is essential.

• A resource overload is when resource forecast exceeds the available

resource , while resource under load will under utilize the company
resources which could have determinable effect on company profitability.
Resource Allocation
 Resource Smoothing

Resource smoothing is the process of moving activites

to improve the resource loading profile.

The first step is to select the resource to be smoothed. To

Decide which resource to smooth consider:

a) The resource that is most overloaded.

b) The resource that is most used on the project.
c) The least flexible resource-This could be the resource
that comes from overseas, is difficult to get hold of
or least available.
d) The most expensive resource to hire.
Example:
 Resource Levelling

• In resource leveling process, the activites are so rescheduled that the maximum
Or peak resources requirement does not cross the limit of available resources.

• The available resources should however not be less than maximum number or
quantity required for any activity of the project.

• In rescheduling , the available floats are first used. If by doing so, the resource
demand is more than available resources, the duration of some activities is increased
so that resource requirement for these activity is decreased.
Resource Leveling
Resource Leveling
Resource Leveling
Resource Leveling
 UNIT - 4
POGRAMMING EVALUATION REVIEW TECHNIQUE(PERT)

PERT network, introduction to the theory of probability and

statistics.

Probabilistic time estimation for the activities for the

activities of PERT Network.
 Introduction

 In critical path , the time estimates are known with certainity.

 In certain projects like research and development, it is difficult to estimate the

the time of various activites.

 Hence PERT is used for such projects with a probabilistic method using three
time estimates rather than single estimate.
Example :

An R & D project has a list of tasks to be performed whose time estimates are
given in the, as follows.
 UNIT - 5
COMPUTARIZED PROJECT MANAGEMENT

Introduction: Creating a New project, building task. Creating

resources and assiging costs,

Refining your project. Project Tracking-Understanding tracking,

recording actual.

Reporting on progress.

Analyzing financial progress.

 Standard toolbar
Formatting toolbar
Project guide
toolbar

Time scale
View bar

Table Gantt chart

The Standard toolbar- shortcut commands for opening, closing and
printing a project plan

The Formatting toolbar- frequently used formatting tools

The Project Guide toolbar- links to navigate through a project plan

The entry bar- enter and edit project tasks

The Table- information about tasks, resources and assignments

The Gantt Chart- displays graphic duration of tasks

The Timescale- time period indicator at top of Gantt Chart

The View bar- buttons for commonly used views

Creating new project
Creating new project
Creating new project
Building task
Building task
Building task
Building task
Building task
Creating resources
 Assigning Costs

Click View Tab → Gantt Chart View → Task Name column.

Double-click the Task Name. Task Information dialog box opens. Click the Resources tab.

Click the cell below the Resource Name column. Select the resource from the dropdown list.

In the following example below,

let’s choose “Travel” as cost resource and enter the cost at $800.
We can also assign other material resources to the same task.
 Assigning Costs

After assigning resources to tasks you can view the cost, duration and work
required for the plan to complete.
 Assigning Costs

Click View tab → Data group → Tables → Cost.

Cost for each task gets rolled up into summary tasks, and then ultimately to project
summary task.
 Project Tracking.
STEP 1: Setting up baselines
Tracking and recording actual.
Reporting on actual.
Analyzing financial progress.