Stages in Setting up of a Project

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Work breakdown structure : The total project work is broken down according to the various component and will establish the connection between various component is termed as work breakdown structure. The project work is divided into logical series of smaller tasks. This facilitate efficient planning and execution of project as well as exercise of project cost control. In the work breakdown structure the project work is divided into individual systems and in turn into sub systems. The lower level of the broken down structure are called end item.

 The cost is accumulation starts from end items and accumulated progressively upwards for each subsystem and individual system The development of work breakdown structure consist of (a)defining the project to be performed and establishing the interrelationship to project end items and project objectives. (b)establishing the framework for integrated cost, schedule planning and control. (c) establishing a framework for summarizing the cost and schedule of the project for progressively higher level of management.

Brown field project

Term brown field project is used in many industries, including software development, to mean to start a project based on prior work or to rebuild (engineer) a product from an existing one. A project implemented in the precincts of a working plant/ working facility is known as brown field project. Revamping, rehabilitation, renovation, modernization projects comes under this category of BFP. The most common BFP is the modernization/ partial renovation of a running plant.

 Mgmt of a BFP within the precincts of an operating plant calls for much more imagination, detailed planning, meticulous schedule control and an integrated team work from all the concerned department like maintenance, engineering, civil, construction departments etc.

Resource leveling
Resource leveling is usage of resources during the project duration with minimum variation in source requirement without extending the project completion time. The central idea of resources leveling is about the rescheduling of activities within the limits available slack(float)to achieve better distribution of resource usage. The slack available in each acttivity is determined from the basic scheduling computation without consideration of resources requriement or availabilities, during the rescheduling project duration is not allowed to increase.

 Project execution plan

PEP refers to that exercise of matching the project hardware and software with the executing agencies through a viable work system Sub plan (a)Contracting plan (b) Work packaging plan (c) Organization plan (d) Systems and procedure plan The execution plan which consist of the first three sub plans will be reduce to a project procedure manual. PEP is a strategic plan it does not deal with the operational details of building a project.

SCHEDULE
Scheduling : Organising a production line to produce products in time efficiently with maximum utilisation of resources. Approaches of Time Scheduling: 1. CAT Schedule 2. RAT Schedule

LINE OF BALANCE
LOB: It is a technique has been used successfully & control upstream processing steps in a variety of production systems producing goods & services. Critical dates are established for various major activities. LOB concept is used with advantage for performance control.

It is more detailed management oriented charting technique for monitoring progress.

VALUE ENGINEERING REVIEW

It is the application of the concept of value analysis at the design or premature stage of the component part with a view to cut down the unnecessary costs, without impairing the function or utility of the product. Steps of Value Engineering Review: 1. State a case for action. 2. Identify the process of engineering review. 3. Evaluate enablers for engineering review 4. Understanding the current process. 5. Create a new process design. 6. Implement the engineering review process.

RISK AWARE CULTURE

The concept of risk & uncertainty is involved in every project. The management should be aware of known, unknown & unforeseen risk.

The awareness of risk is an important technique in sucessful completion of the project.

The risk awareness culture is to be developed at all levels of project management team to fight against any adversaries occur in implementation of the project.

Project Procedure Manual

Required to coordinate the various subsystems. Interacting agencies Preparation of manual commences with each subsystem. A system analysis is carried out with each subsystem to identify the need for procedure write-ups. In doing analysis, subsystem need to achieve a complete picture about the system is available. Manual meet day to day transaction need it may not be an end itself. Procedures-taken as guidelines & not laws.

Time & Cost Trade-off

Project-completed within its schedule of implementation & within the estimated cost. Necessary-before due date--time saving in implementation additional cost. Project manager-familiar--different time savings and additional cost involved with it. If money is constraint--allowed extra time for completion. If time is constraint--mgt should incur additional project cost.

 There are three time-cost options available:

I. Most Efficient Plan: Network plan- meet the technical plan requirements - available resources. No constraint of funds and time. Least amount of technical risk. Scheduled Plan: Scheduled dates-fixed up-network plan. Technical requirements of project are met by scheduled dates. Shortest duration Plan: Technical requirements-met within shortest possible time-original time frame of different activities. May require additional fund to complete project in a shorter time than the scheduled plan.

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Monitoring of Capital Expenditure

The accumulation, monitoring and control of capital expenditure of big project consists of the following steps:
I. Budget: Ascertainment of project cost should be divided into various components. While finalizing the items of expenditure, proper care & control should be taken which is dictated by normal commercial procedures and practice. II. Allocation of Job Order No./Capex No. : Items of expenses should be segregated as far as practicableseparate capex number should be allocated to each item.

III. Collection of cost against each Capex No. : Normal manner within the account system by booking relevant expenses against the correct capex no and thereafter accumulating the same. To ensure that proper capex numbers are shown in the purchase orders, vouchers, job order cards etc. from which the expenses will be accumulated through the accounting system.
IIV. Proper Reporting: proper reporting of collected information at monthly interval might be considered reasonably.

V. Control of Costs: Cost of accumulated against each capex no is to be compared with the budgeted expenditure. It is important to take note of capital commitments , so that there is no overun ultimately.

THANKS