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Pulse of Project Management Profession in India, 2010
Presented by
Hari Prasad Thapliyal
Agilest & Project Management Trainer, Coach & Consultant
(MBA, MCA, PGDOM, PGDFM, CIC, PMP, PMI-ACP, CSM, SCPO, SDC
PRINCE2-Trainer, Scrum Certified Trainer, Microsoft Certified Trainer, ZED Master Trainer)
This presentation is based on PMI’s Project Management Practices in India, March’2010.
The research is compiled and reported by Indicus Analytics and Ace Global
9. Customer Retention
10. Customer Satisfaction
11. Better efficiency and effectiveness in delivering services
12. Increased share of customer
13. Increase in market share
14. Improved competitiveness
15. Launch of new products and services
16. Staff retention and morale
17. Improved overall corporate image
Benefits of Project Management Practices
1. Project completed on time
2. Improved risk assessment and mitigation
3. Increase in quality and quantity
4. Project delivered within budgets
5. Project Objectives met
6. Project outcomes are used by intended customers
7. Cost Saving
8. Revenue Growth
Success in Pvt. Sector Projects
Project Completed within budget and
on time15%
Project Completed within time
66%
Project Completed with budget
4%
No impact on budget and time
15%
• Government• MOSPI
• Public Investment Board (under MoF)
• Planning Commission • Project Appraisal Management Division (PAMD)
• Program Outcome and Response Monitoring Division (PO&RM)
• Program Evaluation Organization (PEO)
• Planning Commission Project Preparation Facility (PCPPF)
• Department of Economic Affairs (DEA)
• Ministry of Human Resource Development
• All India Council for Technical Education (AICTE)
• Academia & Service Providers
• Industry• Transportation (Road, ports, Aviation)
• Telecommunications
• Oil & Gas
• Power Sector
• Engineering, Procurement and Construction (EPC)
• IT Sector
Stakeholders
Project Status as per MOSPI
Status of Projects Monitored by Ministry of Statistics and Program Implementation
Projected Investment During 11th Plan
Sector 2007-08 2008-09 2009-10 2010-11 2011-12 Toal 11 Plan
Electricity (incl. NCE) 81,954 1,01,553 1,26,380 1,58,027 1,98,611 6,66,525
Road and Bridges 51,822 54,789 59,200 68,370 79,971 3,14,152
Telecommunications 31,375 38,134 48,593 61,646 78,690 2,58,438
Railways (incl. MRTS) 34,225 40,964 49,525 60,393 76,701 2,61,808
Irrigation (incl. WD) 27,497 35,916 47,189 62,266 80,433 2,53,301
Water Supply and sanitation 19,298 22,781 27,323 33,266 41,063 1,43,731
Port 12,409 14,822 17,374 19,980 23,410 87,995
Airports 5,208 5,520 5,904 6,646 7,690 30,968
Storage 3,777 4,098 4,446 4,824 5,234 22,379
Gas 2,708 3,003 3,332 3,700 4,111 16,854
Total 2,70,273 3,21,580 3,89,266 4,79,118 5,95,914 20,56,151
All figures in Crore and Rupees
Source: Planning Commission of India
• Lack of supporting infrastructure facilities
• Delay in finalization of detailed engineering plans, release of drawings and delay in availability of funds
• Changes in scope/delay in finalization of the scope
• Industrial relations and law & order problems
• Delay and uncertainty in feedstock supply
• Pre-commissioning teething troubles
• Technology problems
• Geological surprises
Reasons of Time Overrun
• Time overruns
• Change in exchange rate and statutory duties
• High cost of environmental safeguards and rehabilitation measures
• Higher cost of land acquisition
• Change the scope of project
• Higher prices being quoted by vendor in certain areas
• Under estimation in original cost
• General price rise
Reasons of Cost Overrun
• Process Related• Cause of poor decision and implementation delays
• Significant time lag between grant approval and feasibility report appraisal
• Poor quality of project formulation-No fresh approval even after knowing
• Overlapping responsibilities of agencies
• Absence of Professional Project Management Approaches
• Org Issues• Lack of appropriate systems
• Inadequate target setting and evaluation
• Capacity Constraints• Lack of specialized skills in project formulation and appraisal
• Absence of professional advice on project formulation and appraisal
• Lessons learned are not documented or shared or used
• Implementation• Multiple laws governing same or similar set of issues
• Large number of approvals
• Separate approval required from different authorities on same issue
• Too many point of contact between investor and authorities
• Lack of transparency in the administration of clearances and approvals
• Large number of information to be provided to many agencies
Reasons of Overrun During Implementation
Labour Welfare• Payment of wages• Payment of bonus• Payment of Gratuity• Minimum Wages• Equal Remuneration• Maternity Benefits• Weekly Holidays• Child Labour Prohibition• Provident Fund• Industrial Disputes• Trade Unions• Worker Compensation
Infrastructure• Land acquisition• Building• Water Connection• Municipal Act• Land Use• Urban Land Ceiling• Electricity• Captive power
Corporate/Financial• Companies Act• Partnership Act• Income Tax Act• Central Excise Act• State Sales Tax Act
Safety• Explosive• Fatal Accidents• Boilers• Fire Safety• Prevention of Food• Adulteration• Dangerous Machines• Inflammable Substances• Hazardous Substances• Factories Act
Environment• Environmental• Forest• Air Act• Water Act
Project Clearance and Approval Requirements
• Environmental: From Central and State Government
• Labour Welfare: From State Government
• Safety: Explosives from Central Gov. and others from State Gov.
• Infrastructure: From State Gov. and Local Bodies
• Corporate and Financial: From Central Gov. and Sales Tax from State Gov.
Level of Approval
• Amendments to the Land Acquisition Act
• Standardization of the Contract Management System
• Institution of Standing Committees
• Reforming Extant Procedures for Project Formulation, Implementation and Monitoring
Recent Initiatives by MOSPI
• The preliminary activities to be taken up before a large project is started should be properly understood
• The significance of the role of a project manager in project execution should be well appreciated
• The importance of the right work culture in success project management is essential
• The importance of managing the various stakeholders in project must be recognized
• The difficulties involved in the execution of large project in developing countries, and how these can be overcome should be well appreciated
Best Practices
Following issue stall the project therefore have effective systems to ensure the smooth progress of the project.
• Lack of funds
• Political interference
• Lack of professionalism
• Accountability
• Property disputes
• Corruption
Best Practices
• Bandra Worli Sea Link: Challenges That Led to Innovation
• MRPL (Mangalore Refinery & Petrochemical Limited)
• KGD6 Project: Reliance Industries Limited
• The Delhi Metro Project
• IFFCO Vijayapur Fertiliser Plant
Best Practices Projects in India
• Sponsor: MSRDC (Maharashtra State Road Development Corporation
• Started in 2001, project was supposed to be a Rs 300 Cr and scheduled to be completed in 2004.
• However it completed in 2009 and cost shot up to Rs. 1600 Cr.
• PIL raised by local fisherman lead to change in design, which lead to change in cost and schedule. HCC lost Rs 400 cr in this project.
• Indian Institute of Bridge Engineers (IIBE) award this project a Most outstanding bridge -national award in Mar’ 2009
Worli Sealink, Mumbai
• Capacity upgradation from 9.6mmtpa to 15mmtpa
• Engineers India Limited (EIL) is Project Management Consultant
• Started on Dec’2008, Schedule to be completed by Oct’11 with INR 7943 Cr
• Completed in Feb’13 (43% schedule overrun) with INR 12,412 Cr (50% cost overrun)
• MRPL has benefited from the delay because unprecedented volatility in crude prices provoked MRPL to reengineer the process design to make the new unit and add some more secondary processing units to upgrade residues and the entire diesel fuel quality
MRPL – Refinery Capacity Augmentation
• Mr. E Sreedharan was appointed PM and MD of DMRC in Nov'1997
• Organization culture and value system based on• Punctuality
• Honesty
• Strict adherence to deadlines
• Safety
• Active engagement of stakeholders like general public, government bodies, environmentalist.
DMRC, Delhi
• IIT, IIM
• Specialist Business School: Adani Institute of Infrastructure Management, Bharti Vidyapeeth
• National Level business federation (CII, FICCI)
• Industry Specific institution (NICMAR, NTPC Power Management Institute)
• Captive Training Institutions (NTPC, L&T)
• International Project Management Training and Certification Bodies (PMI, PRINCE2)
• Other training and consulting service firms affiliated or un-affiliated
Serious Project Management Education Providers
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