PGPM 22: PROJECT PLANNING & CONTROL NCP 26/ CBCM 4/IDM 21: CONSTRUCTION PROJECT MANAGEMENT TECHNIQUES

Prof. Sanjay Bhoyar Faculty, NICMAR,Pune

Project: Meaning

A non-routine non-repetitive work undertaken to create an unique product/ service/ structure, within stipulated cost and time. A project is temporary, yet unique

Definite Objective Definite Timeframe

Has time, cost & other resources constraints

Project Life-Cycle:
Concept & feasibility Engg & Design

Operating & Maintenance

Procurement

Commissioning Construction & Start-up

Need for Project Management: Complexity in projects

Timely completion of projects Resources limitations Cost of capital Price escalation Increased outlay Longer spans Risks have increased Financers require workable plan Setting targets against which performance can be measured

Project Management:

Application of knowledge, skills, tools & techniques of management to project activities, to achieve the project objectives with the available resources Major functions:

Planning Organizing Controlling

Cost Quality & Performance Project scope

Time

Project Planning:

Defining the scope of the project Identifying major project activities

Design Procurement Construction

Integration of project activities Project team Project schedules Estimating project costs Financial planning Site planning

Project Management Systems:

The systems around which the managerial functions like planning, organizing & control are structured

a WBS an OBS, & Responsibility matrix Project Schedules Cost accounts for cost aggregation & control Budgets PMIS

Work Breakdown Structure (WBS):

A systematic division of a project into

work packages, sub-work packages & activities Overall scope of the project Project deliverables

Project

Project:

Work packages:

Work packages

Sub-work packages:

Sub Work packages

Sub-division of deliverables Discrete work steps

Activities

Activities:

Construction & development of a Residential complex

Preliminary works

Buildings

Amenities

Service facilities

Bldg A

Bldg B

Club house

Swimming pool

Drainage

Sub-structure -Setting out -Excavation -PCC -RCC footing -RCC for PB -Plinth filling SANJAY BHOYAR

Super-structure -RCC column -RCC slab & beams -Brickwork -Plastering -Plumbing -Flooring -Doors & windows -Electrification -Painting

NICMAR, PUNE

Road Project

Road

Major Bridges

Minor Bridges/ c/d works

Subways/ Underpasses

Earthwork

Pavement

Drainage

Lighting

Sub-grade

Base Metalling Compacting

Sub-base

Wearing surface

Hydropower Project
1. 2. 3. 4. 5. 6. 7. 8. 9.

Dam HRT (Transfer Tunnel) U/S Surge Shaft Penstock Shaft Power House TRT Sub-station Workshop Operations Building Transmission Line

1.

Dam
1.1 Diversions 1.2 Dam wall construction 1.3 Spillway section 1.4 Gates 1.5 D/s works 1.6 Delivery tunnel

2.

HRT
2.1 ADIT 2.2 Tunnel construction 2.2.1 Survey & profile marking 2.2.2 Drilling & blasting 2.2.3 Defuming & mucking 2.2.4 Bottom cleaning 2.2.5 Rock bolting 2.2.6 Rib erection, legging & backfill concrete 2.2.7 Shotcrete

3. 4.

U/S Surge Shaft Penstock Shaft

5. Power house 5.1 Civil Works 5.1.1ADIT 5.1.2 Underground cavern 5.1.3 Main access tunnel 5.1.4 Transformer chamber 5.1.5 Penstock valve chamber 5.1.6 Access tunnel 5.1.7 D/S surge chamber 5.2 Turbines & Valves 5.2.1 Turbines 5.2.2 Penstock guard valve 5.2.3 Turbine inlet valve 5.2.4 Bypass valve 5.3 Electrical Works 5.3.1 Generators 5.3.2 Switch gear 5.3.3 Power transformer 6. TRT 7. Sub-station Workshop 8. Operations Building 9. Transmission Line

NICMAR, PUNE

SANJAY BHOYAR

Project Scheduling:

Part of Planning Determining the sequence & timings of activities of a project Time-frame for the project Effective utilization of resources Time-cost relationship

Steps in Project Scheduling: Identifying the activities

Estimating the work content Estimating durations of activities Establishing the logic Drawing the schedule Analysis of schedule Updating the schedule

Scheduling Techniques:

Non-Network techniques

Bar chart/ Gantt chart Linear scheduling

Time- chainage diagram Line of balance (LOB) technique

Network scheduling techniques

CPM PERT

Network scheduling:

Series of nodes & arrows

AOA / AD / ADM AON / ND / PDM

Activity:

A discrete work step required for project completion Consumes time & resources An instantaneous occurrence during the progress of work Signifies specific occurrence/ substantial completion of work Does not require resources or time

Event:

Activity-on-Arrow network (AOA):

Suitable for both, event oriented as well as activity oriented network scheduling techniques (PERT & CPM)
Activity i 2 D B 3 E 5 G C 4 duration j

Project start 1

Project finish 6

Activity-on-Node network (AON):

Suitable for activity oriented scheduling technique (CPM)

A C

START

FINISH

CPM Problem
Activity A B C D E F G H K L M N P Preceding activity B A C C C,D E E,H K F,G L,N Succeeding activity E D H,F,G H K,L N N L M P P Duration 3 5 6 4 7 6 9 4 7 2 5 3 8

A-O-A Network
2 A 3 B 5 6 C 4 9 G 7 3 D 4 d1 F 6 d3 10 6 E 7 5 d2 H 4 9 L 2 N 3 11 K 7 8 5 M P 8

12

A-O-N Network
A E K M

START

FINISH

Critical Path Method (CPM):

Adequate knowledge & information about the work Certainty about

The scope & nature of work, Work content Productivity of resources

Similar works carried out in the past Time & cost estimates are fairly accurate Deterministic & activity oriented scheduling

Scheduling by CPM:

Both, A-O-A & A-O-N can be used Determination of activity times & floats Identification of critical activities & critical path

CPM analysis (using A-O-N): Activity times:

EST = [EFTprec] max EFT = EST + t LFT = [LSTsucc] min LST = LFT - t
prec Act succ

CPM analysis

Float:

Excess time available for an activity Indicates the criticality of an activity Float = Time available time required

Total float:

TF = LST EST or LFT - EFT

prec Act succ

Free float:

FF = ESTsucc - EFT

CPM analysis

Critical activity:

Lesser the float, more critical the activity Normally, activities with zero total float

Critical path:

The longest path in the network Determines the Project Duration Comprises of critical activities only

0 A 3 4 3 7 4 0 0 START 0 0 B 5 3 5 8 3 0 5 D 9 8 4 12 3 0

3 E 10 7 7 14 4 0

10 K 17 14 7 21 4 0

17 M 22 21 5 26 4 4 26 FINISH 26

9 H 13 12 4 16 3 0

13 L 15 16 2 18 3 3

18 P 26 18 8 26 0 0

0 C 6 0 6 6 0 0

6 F 12 9 6 15 3 3

15 N 18 15 3 18 0 0 Description ES Act EF

CP: C-G-N-P PD = 26

6 G 15 6 9 15 0 0

LS TF

LF FF

A-O-N PDM

Precedence Relationships:

-3

Finish to start (FS) Start to start (SS)

A +5

B +3 +4

Start to finish (SF) Finish to finish (FF)

A

PDM problem:Activity
K L M N P Q R S T U V

Duration 10 6 9 5 8 7 4 12 10 9 7

Predecessor K K K L M N N T P Q R S T U

Relationship with lead/ lag time SS + 2 FS FS FS - 2 SS + 5 FS FS SF + 5 FS FS FS FS FS FF +2

Determine the critical path & project duration

0
START

0 K 10 0 10 10 0

10 M 19 11 9 20 1

15 Q 22 16 7 23 1 15 R 19 19 4 23 4 15 S 27 15 12 27 0 5 14 T 24 17 10 27 3 22 U 31 23 9 32 1 2 27 V 34 27 7 34 0 34
FINISH

5 2 2 5 3 10 N 15 10 5 15 0

L 8 6 11 -2

34

Description ES Act EF LS TF t LF

6 9 3

P 14 8 17

CP: K-N-S-V PD = 34

Program Evaluation & Review Technique ( PERT):

Lack of knowledge & information about the work Uncertainty about

The scope & nature of work Work content Working conditions Productivity of resources

No accurate estimates of time & cost Suitable for non-repetitive type of projects Probabilistic & event oriented scheduling technique

Scheduling by PERT:

Only A-O-A network can be used Determination of event times & slack Identification of critical events & critical path Determination of probability of project completion (an event) by given date

PERT analysis: Activity time estimates

Three time estimates

Optimistic time (to) Pessimistic time (tp) Most likely time (tm) Beta distribution

Expected/ mean duration of an activity Variance of an activity

te =

to + 4.t m + t p 6

2

to t p = 6

PERT analysis Project completion (event) time:

Governed by Longest (Critical) path Normal probability distribution Average Expected project duration

Te = EOT of the last event Var proj = var along Longest (Critical) Path

Variance & standard deviation of project duration

proj = varproj

PERT analysis Probability calculations:

Normal value

z = (Ts Te)/ proj

Area under cumulative normal distribution curve gives the probability of completing the project on or before the target time Ts

PERT Problem Activity A B C D E F G H K L M N P Q Preceding activity A A B C D B,G B,G H E,F,K M,N L to (weeks) 2 3 6 5 3 1 7 3 5 2 4 1 3 8 tm (weeks) 3 5 7 7 4 2 10 5 8 4 6 3 6 9 tp (weeks) 5 7 9 9 7 3 13 8 9 6 8 4 8 10

Determine the critical path & the expected project duration What is the probability of completing the project within 30 weeks? What is the probability of completing the project within 35 weeks? What is the project duration for 90 % certainty of on-time project completion?

Activity A B C D E F G H K L M N P Q

Preceding activity A A B C D B,G B,G H E,F,K M,N L

to 2 3 6 5 3 1 7 3 5 2 4 1 3 8

tm 3 5 7 7 4 2 10 5 8 4 6 3 6 9

tp 5 7 9 9 7 3 13 8 9 6 8 4 8 10

te 3.17 5 7.16 7 4.33 2 10 5.16 7.67 4 6 2.83 5.83 9

0.25 0.44 0.25 0.44 0.44 0.11 1 0.69 0.44 0.44 0.44 0.25 0.69 0.11

PERT Network
3.17 20 9.50 3.17 B 5 C 7.16 7.16 40 7.16 G 10 5 30 17.16 D 7

10.17 50 16.50 E 4.33 F 2

H 5.16

15.33 70 21.67 6

M 27.67 100 27.67

A 0 10 0

24.83 80 24.83 7.67

N 2.83

P 5.83

K 17.16 60 17.16 L

Q 21.16 90 24.50 9

33.50 110 33.50

Average expected project duration, Te = 33.50 CP: 10-40-60-80-100-110 (C-G-K-N-P) Var proj = 2.63 ; proj = 1.62 EOT i LOT Act te EOT j LOT

Probability of completing project in 30 weeks

Te = 33.50 weeks; proj = 1.62; Ts=30 weeks z = (Ts Te)/ proj Z = (30-33.50)/1.62 = -2.16 Corresponding, p = 0.0154 = 1.54% Te = 33.50 weeks; proj = 1.62; Ts=35 weeks z = (Ts Te)/ proj Z = (35-33.50)/1.62 = 0.93 Corresponding, p = 0.8238 = 82.38% For, p = 0.90 => Z = 1.28 z = (Ts Te)/ proj 1.28 = (Ts 33.50)/ 1.62 Ts = 35.57 weeks

Probability of completing project in 35 weeks

Duration for 90% certainty

Project costs:

Direct costs

Attributed to a particular activity Cannot be attributed to an activity Project overheads

Indirect costs

Penalties / incentives Time-cost trade-off

Determining the minimum possible total cost for a particular project duration.

Time- cost trade-off:

Determining the minimum possible total cost for a particular project duration. Compression:

Reducing project duration

Compressing critical activities

Increase in Direct cost Reduction in Indirect cost

Crashing:

Ultimate stage of compression

Time - Cost trade-off:

Total Cost Cost Minimum Total Cost

Indirect Cost

Direct Cost Project duration Minimum PD Optimum PD Normal PD

Steps in compression:

Determine activity compression potential & cost slope Draw network for normal durations List all paths, with their durations Identify CP Compress activities along CP (s) Continue till at least one CP is fully compressed (crashed)

Activity A B C D E F G H K L M N

Preceding activity A A B B C D,E F G F,H K

Numerical problem: NT CT (weeks) (weeks) 6 4 9 3 7 5 4 6 3 9 5 2 4 3 5 2 4 4 4 5 2 6 3 1

NC (x Rs 1000) 64 30 54 28 70 82 47 39 27 86 55 27

CC (x Rs 1000) 76 33 74 34 91 92 47 45 30 98 65 29

Indirect cost is Rs. 10000 per week

Activity A B C D E F G H K L M N

NT 6 4 9 3 7 5 4 6 3 9 5 2

CT 4 3 5 2 4 4 4 5 2 6 3 1

NC 64 30 54 28 70 82 47 39 27 86 55 27

CC 76 33 74 34 91 92 47 45 30 98 65 29

Compression potential 2 1 4 1 3 1 0 1 1 3 2 1

Cost slope 6 3 5 6 7 10 0 6 3 4 5 2

A(6)
START

C(9) D(3)

G(4) H(6)

L(9) M(5)
FINISH

B(4) A-O-N Network (normal durations)

Paths

E(7) F(5) K(3) N(2)

Duration along path @ each stage 0 1 2 3 4

A-C-G-L A-D-H-M B-E-H-M B-F-M B-F-K-N

28* 20 22 14 14

A(6)
START

C(9) D(3)

G(4) H(6)

L(9) M(5)
FINISH

B(4) A-O-N Network (normal durations)

Paths

E(7) F(5) K(3) N(2)

Duration along path @ each stage 0 1 2 3 4

5 19 16 19 11 13

A-C-G-L A-D-H-M B-E-H-M B-F-M B-F-K-N

28* 20 22 14 14

25* 20 22 14 14

22* 20 22* 14 14

21* 20 21* 13 13

20* 18 20* 12 13

Compression table:

Stage

Act

CS

Dur of comp 3 3 1

PD

Incre ase in DC 12 15 08

DC

IC

Penal ty

TC

0 1 2 3

L C C B

4 5 5 3 6 5 6 5

28 25 22 21

609 621 636 644

280 250 220 210

889 871 856 854

NPD

OPD

A M

20

11

655

200

855

A M

19

11

666

190

856

Min PD

A(6)

C(5) D(3)

G(4) H(6)

L(6) M(5)

START

FINISH

B(3) A-O-N Network (Optimum PD) A(4)

E(7) F(5)

K(3) G(4) H(6)

N(2) L(6) M(3)

C(5) D(3)

START

FINISH

B(3) A-O-N Network (Minimum PD)

E(7) F(5)

K(3)

N(2)

Resources scheduling:

Scheduling the work for effective utilization of resources Resources allocation

Assigning the resources for each activity Daily resource requirement Time constrained scheduling Resource constrained scheduling

Resources aggregation

Resources smoothing

Resources leveling

Resource utilization factor (RUF)/ Effective force ratio (EFR):

RUF or EFR =

Total resource-days required Peak resource requirement x project duration

Idle Force ratio (IFR) = 1- EFR

Higher the RUF, more effective the resource utilization

Activities, their durations & resource requirements are given below. Schedule the work for the most effective resource Activity Preceding activity Duration (days) Resource rate utilization.
A B C D E F G H K L M N A A B B C D,E F G F,H K 6 4 9 3 7 5 4 6 3 9 5 2 5 4 6 5 4 2 6 3 2 5 7 6

C/6 A/5 B/4 F/2 K/2 N/6 D/5 E/4 H/3

G/6

L/5

M/7

Days

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

DRR (ESS)

9 11 11 17 17 17 12 12 11 15 15 9

9 13 13 12 12 12 5

293

C/6 A/5 ESS B/4 F/2 K/2 C/6 A/5 LSS B/4 E/4 N/6 D/5 E/4 H/3

G/6

L/5

M/7

G/6 D/5 H/3

L/5

M/7

F/2
Days 1 2 3 4 5 6 7 8 9

K/2

N/6

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

DRR (ESS) DRR (LSS)

9 5

9 5

9 5

9 11 11 17 17 17 12 12 11 15 15 9 5 5

9 13 13 12 12 12 5

293 293

5 10 10 10 10 10 10 10 10 15 15 15 9 11 10 10 10 10 14 14 14 18 18

SANJAY BHOYAR

NICMAR, PUNE

C/6 A/5 ESS B/4 F/2 K/2 C/6 A/5 TRIAL1 B/4 E/4 F/2 K/2
Days 1 2 3 4 5 6 7 8 9

G/6

L/5

D/5 E/4 H/3 M/7

N/6 G/6 D/5 H/3 M/7 L/5

N/6

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

DRR (ESS) DRR (Trial 1)

9 9

9 9

9 9

9 11 11 17 17 17 12 12 11 15 15 9 9 11 11 12 12 12 12 12 13 17 17 9

9 9

9 13 13 12 12 12 5 9 9 9

5 5

5 5

293 293

8 12 12 12 12 12 5

SANJAY BHOYAR

NICMAR, PUNE

C/6 A/5 ESS B/4 F/2 K/2 C/6 A/5 TRIAL 2 B/4 E/4 F/2 D/5 N/6 D/5 E/4 H/3

G/6

L/5

M/7

G/6

L/5

H/3

M/7

K/2
Days 1 2 3 4 5 6 7 8 9

N/6

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

DRR (ESS) DRR (Trial 2)

9 9

9 9

9 9

9 11 11 17 17 17 12 12 11 15 15 9 9 9 9 12 12 12 12 12 11 11 11 9

9 9

9 13 13 12 12 12 5

293 293

9 11 11 10 12 12 12 12 12 11 11 5

SANJAY BHOYAR

NICMAR, PUNE

Resourc e Histograms

20 18 16 14 12 10 8 6 4 2 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

T i me

Time chainage diagram:

Suitable for repetitive type of projects

Same activities are sequentially repeated at regular interval/ stage/ location

Resource work continuity

Sample problem:

On a 12 km long road project, following four activities are repeated, sequentially. Prepare time-chainage schedule.
Activity Progress rate (km/day) 1.0 0.5 0.5 1.5 Duration for 12 km 12 24 24 8 Buffer Start buffer 2 2 End buffer 2 Start time 0 2 4 22 Finish time 12 26 28 30

Subgrade Sub-base Base Wearing course

2 2 2

Time-chainage Diagram
12 11 10 9

Sub-base Sub-grade Base Wearing

Chainage (km)

8 7 6 5 4 3 2 1

14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Time (days)

Project Monitoring & Control:

Monitoring:

Establishing progress of the project Periodic Review of current status Comparing the planned versus actual progress Identifying deviations & reasons for such deviations Analyzing the effect on time, cost & performance parameters of the project Corrective actions Updating plans

Control:

Project Control
Base Plan -schedule -budget -scope Actual status -schedule -budget -scope Deviations -schedule -budget -scope

Raplace Base plan

Impact on Schedule, Budget & Scope

Revised Plan -schedule -budget -scope

Corrective Actions

Project time-cost control:

S- curve

Project budget plan Actual cost of work performed Budgeted cost of work performed Planned cost allocated to the completed work EV = BCWP
EV = [Budgeted cost of activity x % activity completion]

Earned value

Project performance status: Schedule variance

SV = BCWP - BCWS

Cost variance CV = BCWP - ACWP Schedule performance index SPI = BCWP/ BCWS Cost performance index CPI = BCWP/ ACWP Project performance index = SPI x CPI Estimated cost to project completion ECPC = BCPC/ CPI Estimated time to project completion ETPC = STPC/ SPI

Sample problem:
Task Duration (weeks) Preceding task Budgeted Status by end of 5th cost week (Rs in lacs) % complete Actual expenditu re (Rs in lacs)

A B C D E F G H

3 5 3 4 2 4 3 2

A A A A C D,E B,F,G

6 20 30 24 16 16 9 18

100 40 33.33 50 50 0 0 0

8 6 12 9 7 0 0 0

Task

Duration (weeks)

Weightage s

Budgeted Status by end of 5th cost week (Rs in lacs) % % project complete Progress

Actual expenditu re (Rs in lacs)

A B C D E F G H

3 5 3 4 2 4 3 2

11.54 19.24 11.54 15.38 7.69 15.38 11.54 7.69 100

6 20 30 24 16 16 9 18

100 40 33.33 50 50 0 0 0

11.54 7.70 3.85 7.70 3.85 0 0 0 34.64

8 6 12 9 7 0 0 0

NICMAR, PUNE

SANJAY BHOYAR

B/4 ESS A/2 C/10 D/6 E/8 F/4 G/3 H/9

Weeks

10

11

12

Weekly progress (%) % progress (ESS) Weekly cost (ESS) Cumulative cost (ESS)

3.85 3.85 2 2

3.85 7.70 2 4

3.85

15.38 15.38 11.54 11.54 11.54 7.70 7.70 42.3 28 62

3.85

3.85 100 9 139

11.54 26.92 2 6 28 34

53.85 65.38 76.92 84.62 92.31 96.15 20 82 14 96 11 107 7 114 7 121 9 130

NICMAR, PUNE

SANJAY BHOYAR

Status of progress:
of 5th week
Task Durat ion Budgeted cost (BC) 6 20 30 24 16 16 9 18 Sched uled Start 0 3 3 3 3 6 7 10 Schedu led Finish 3 8 6 7 5 10 10 12 % completion Sched Actual uled (WP) (WS) 100 40 66.67 50 100 0 0 0 100 40 33.33 50 50 0 0 0

At end
Actual (ACWP) 8 6 12 9 7 0 0 0 42 Earned value (BCWP) 6 8 10 12 8 0 0 0 44

Cost Schedul ed (BCWS) 6 8 20 12 16 0 0 0 62

A B C D E F G H

3 5 3 4 2 4 3 2

Review date: 5 weeks from start WS = 42.3 % WP = 34.64 % BCWS = 62 ACWP = 42 BCWP = 44 = EARNED VALUE CV = BCWP ACWP = 44 42 = +2 (cost savings) SV = BCWP BCWS = 44 62 = -18 (behind schedule) CPI = BCWP/ACWP = 44/42 = 1.05 SPI = BCWP/BCWS = 44/62 = 0.71 Project performance index = SPI x CPI = 0.7455 ECPC = BCPC / CPI = 139/1.05 = 132.68 lacs ETPC = STPC / SPI = 12/0.71 = 16.91 weeks

NICMAR, PUNE

SANJAY BHOYAR

Numerical Problem

Table below gives the budgeted monthly cashflow requirement for a construction project. At end of Oct 06, the actual project expenditure is Rs 114 lakhs & the progress is 50%

Draw s curve, & calculate project performance indices. Estimate the delay in project completion.
May 06 8.5 Jun 06 11.5 Jul 06 13.5 Aug 06 15.5 Sep 06 30.5 Oct 06 27.0 Nov 06 22.5 Dec 06 20.0 Jan 07 20.0 Feb 07 12.5 Mar 07 2.5

Month Cashflow Cumm CF

8.5

20

33.5

49

79.5

106.5

129

149

169

181.5

184

cost 100 120 140 160 180 200 20 40 60 80 0

M ay ,06 jun ,0 6 jul , 06 au g,0 6 se p, 06 oc t, 06

S curve

time
m

no v,0 6 de c,0 6 jan ,0 6 fe b, 0 6 ar ,0 6

Review date: Oct 06 ACWP = 114 WS = (6/11)x 100 = 54.54 % WP = 50 % BCWP = (79.5+106.5) / 2 = 93 = EARNED VALUE BCWS = 106.5 CV = BCWP ACWP = -21 SV = BCWP BCWS = -13.5 CPI = BCWP/ACWP = 0.8158 SPI = BCWP/BCWS = 0.8732 ECPC = BCPC / CPI = 225.55 ETPC = STPC / SPI = 12.6 months Delay in project completion = ETPC STPC = 1.6

Thank You

Contact NICMAR:

www.nicmar.ac.in 020-27291342 Prof. Sanjay Bhoyar sanbhoyar@nicmar.ac.in 9552546301; 020-66859116