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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)

Project management Practices In India, 2010

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Page 1: Project management Practices In India, 2010

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)

Page 2: Project management Practices In India, 2010

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

Page 3: Project management Practices In India, 2010

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

Page 4: Project management Practices In India, 2010

Scope of Project Management Study for this Presentation

Page 5: Project management Practices In India, 2010

Stock of Companies

Page 6: Project management Practices In India, 2010

Growth in Company Stock

Page 7: Project management Practices In India, 2010

GDP Growth Rate in India

Page 8: Project management Practices In India, 2010

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%

Page 9: Project management Practices In India, 2010

Perspective

Page 10: Project management Practices In India, 2010

Stakeholder Identification

Page 11: Project management Practices In India, 2010

• 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

Page 12: Project management Practices In India, 2010

Project Management Maturity – Industry wise

Page 13: Project management Practices In India, 2010

Project Status as per MOSPI

Status of Projects Monitored by Ministry of Statistics and Program Implementation

Page 14: Project management Practices In India, 2010

Annual Investment on Project Management

Page 15: Project management Practices In India, 2010

Status of Central Public Sector Projects

Page 16: Project management Practices In India, 2010

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

Page 17: Project management Practices In India, 2010

Reason of Failure & Getting Challenged

Page 18: Project management Practices In India, 2010

Reasons of Overrun

Page 19: Project management Practices In India, 2010

• 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

Page 20: Project management Practices In India, 2010

• 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

Page 21: Project management Practices In India, 2010

• 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

Page 22: Project management Practices In India, 2010

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

Page 23: Project management Practices In India, 2010

• 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

Page 24: Project management Practices In India, 2010

• 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

Page 25: Project management Practices In India, 2010

Overall Stock of Project Managers in India

Page 26: Project management Practices In India, 2010

Best Practices

Page 27: Project management Practices In India, 2010

• 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

Page 28: Project management Practices In India, 2010

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

Page 29: Project management Practices In India, 2010

• 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

Page 30: Project management Practices In India, 2010

• 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

Page 31: Project management Practices In India, 2010

• 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

Page 32: Project management Practices In India, 2010

• 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

Page 33: Project management Practices In India, 2010

State of Project Management Education in India

Page 34: Project management Practices In India, 2010

• 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

Page 35: Project management Practices In India, 2010

International Certification Bodies

Page 36: Project management Practices In India, 2010

Specialist PG Programs

Page 37: Project management Practices In India, 2010

Executive Programs by Premium Institutes

Page 38: Project management Practices In India, 2010

Distance Education in P.M.

Page 39: Project management Practices In India, 2010

Government Institutions of Excellence

Page 40: Project management Practices In India, 2010

Graduation Trend in India

Page 41: Project management Practices In India, 2010

Cost of Project Management Education in India

Page 42: Project management Practices In India, 2010

State of Project Management Education in India

Page 43: Project management Practices In India, 2010

State of Project Management Education in India

Page 44: Project management Practices In India, 2010

State of Project Management Education in India

Page 45: Project management Practices In India, 2010

State of Project Management Education in India

Page 46: Project management Practices In India, 2010

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