Project managment

Submitted to Mrs.Anshu Banwari

Setting up of a new store for Saint Gobain

Glasses India Ltd.

Submitted to Mrs.Anshu Banwari

2014

Abhas Vijayvargiya (9911102153)

Aditya Gahlaut (9911102157)

Mehul Garg (9911102255)

Rachit Gupta (9911102290)

Rajat Agrawal (9911102292)

Siddharth (9911102336)

A Project Report on

Saint Gobain Glasses India Ltd.

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TABLE OF CONTENTS

1. Project Objective.....(2)

2. Life Cycle Of a Store Setup Project ........................... (4)

3. Project Planning (5)

4. Responsibility Matrix... .. (8)

5. Work Breakdown Structure............... ............................................................... (11)

6. Resource Requirements for the Project ....................................................... (12)

7. Scheduling.......................................................... ....................................................... (13)

8. AON diagram........................................................ .....................................................(14)

9. Calculation of probability of meeting the deadline...................................(15)

10. Crashing of Activities................................................... ..........................................(16)

11. Budgeting and Cost Estimation................................ .........................................(19)

12. Project Monitoring And Controlling................................................................(21)


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PROJECT OBJECTIVES

Objective of the chosen project is the establishment of a new store for a major

manufacturer of glass Saint Gobain Glasses India Ltd. In Noida. For this project we

need to apply principles of construction project management.

Construction Project Managementis the planning, control and coordination of a project from conception to completion (including commissioning) on behalf of a client. It is concerned with the identification of the clients objectives in terms of utility, function, quality, time and cost, and the establishment of relationships between resources. Cost: Rs. 47.5 Lacs Time: Project deadline of 47 weeks Performance:

The key performance indicators are: Owners satisfaction Construction Cost Construction Time Safety

Project Life Cycle: If we focus on construction of store, projects are intricate, time-consuming undertakings. The total Development of a project normally consists of several phases requiring a diverse range of specialized services. In progressing from initial planning to project completion, the typical job passes through successive and distinct stages that demand input from such disparate areas as financial organizations, governmental agencies, engineers, architects, lawyers, insurance andsurety companies, contractors, material manufacturers and suppliers, builders, etc. During the construction process of the store itself, even a modest structure involves many skills, materials, and literally hundreds of different operations. The main stages in setting up of the store are:

Buy Franchise: The aim of this stage is to buy franchise from Saint Gobain

Glasses India Ltd., in order to get the products (i.e. glass) to sell in the shop at

company rate. Also, franchise will allow the store to purchase the products on

credit, since we may be tight on initial budget.

Market Demands or Perceived Needs-The aim of this stage is to define project

objective and scope. Once the owner has identified the need for a new facility, the

owner must define the requirements and delineate the budgetary constraints. It

involves establishing broad project characteristics such as location, performance

criteria, size, configuration, layout, equipment, services and other owner

requirements needed to establish the general aspects of the projects.


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Conceptual planning and Feasibility Study-Conceptual Planning stop short of

the detailed design, although a considerable amount of preliminary architectural

or engineering work may be required. The definition of the work is basically the

responsibility of the owner, although a design professional may be called in to

provide technical assistance and advice.

Design & Engineering- The objective of this stage are Construction plans and

specifications. This phase involves the architectural and engineering design of

the entire project. It culminates in the final drawings and specifications for the

total store establishment program. In practice design, procurement, and

construction often overlap, procurement and construction beginning on certain

segments as soon as the design is completed and drawings and specifications

become available.

Procurement and Construction- Procurement refers to the ordering,

expediting and delivering of key project equipment and materials, especially

those that may involve long delivery periods. This function may or may not be

handled separately from the construction process itself. Construction is, of

course, the process of physically erecting the project and putting the materials

and equipment into place and this involves providing the manpower,

construction equipment, supplies, supervision, and management which are

necessary to accomplish the work.

Start-up of the Store- After the construction is completed there usually is a brief

period of the start up of the facility. When the legal permit is issued and the store

has been setup completely, then the start up is allowed.

Operation and Maintenance- Finally, the management of the store is turned

over to the owner for full operations. This stage is focussed on the use and

maintenance of the store. In this stage the possible renovations of the store are

also included.

Disposal of the facility- When the store lives out its useful life and is designated

for demolition or conversion. This stage refers to the demolition and possible

recycling of the parts of the store.


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LIFE CYCLE OF THE STORE-ESTABLISHMENT PROJECT

Buying Franchise


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PROJECT PLANNING

PROJECT TEAM

Program Construction Manager

Project Manager

Field Inspector

Administrative Specialist

Design Engineer/Architect

PROJECT MANAGER The duties of the project manager can best be summarized under five general operational areas. These are:

1. Preconstruction Services support Preparing a deliverable schedule relative to bidding practices Assisting the estimating department during plan review Preparing a preliminary establishment schedule Delineating project requirement and general conditions

2. Administration of the project

Managing the Owner's contract Communications of issues, and coordination of activities


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Document control

3. Acquisitions required for the construction of the project Refinement of scope Identifying items that have delivery dates that impact the schedule Purchasing of trades and materials

4. Management and scheduling of the project

Understanding manpower operations Materials applications Building code issues (Site logistics another important task is generally organized by the

superintendent)

5. Cost control management Issues resolution Managing and verification of subcontractor change orders Preparation of cost documents for submission and resolution Building code issues

6. Project close-out

Achieving substantial completion Submission of recoded drawings, maintenance manuals & Warranties

PROGRAM CONSTRUCTION MANAGER Specific duties during construction include the following:

Review requests for additional funding to support project completion. Serve as liaison between the project,the construction company and Saint

Gobain Glasses India Ltd. Assist the construction company in preparing agendas and conducting

Preconstruction Meeting. Determine scope of Design Engineers services during construction, and

negotiate agreement that identifies the specific tasks and budget required for Design Engineer during construction phase.

Provide specialized support to Project Construction Managers as required. Such supportmay include additional staffing, specialized equipment, or outside contract services.

FIELD INSPECTOR Field Inspector as an on site authorized representative of the construction company and will be assigned to observe and inspect the project and the materials to be used therein. Specific duties during construction include the following:

Observe Contractor and subcontractors during construction activities in accordance withcompany directives, ensuring completion of the project according to the ContractDocuments.


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Observe implementation of the Contractors Safety and Health Plan. Coordinate initial survey meeting onsite to ensure proper turnover of Design

Engineers survey data to Contractor and advise Project Construction Manager as surveying occurs.

Advise Project Construction Manager when the Design Engineer is required to witness special field tests.

Review construction progress against approved schedule and document/report variations.

Document construction activities by taking photos and preparing Daily Inspection Report.

ADMINISTRATIVE SPECIALIST Specific duties during construction include the following:

Answer the telephones. Manage Prolog for field efforts. Ensure proper maintenance of field office equipment. Word processing. Prepare the minutes of construction meetings. Date stamp incoming mail, log it in, and provide proper distribution. Oversee construction filing system. Produce monthly construction progress reports. Maintain logs.

DESIGN ENGINEER The Design-Engineer is the party or firm that designs the project i.e. the store in this case. The design-engineer is a private and independent design firm that accomplishes the design under contract with the owner.


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RESPONSIBILITY MATRIX FOR THE SETTING UP OF STORE:

P-PRIMARY

S-SECONDARY

A-AUDIT

J-JOINT PRIMARY RESPOSIBILITY

LINE FUNCTION PROGRAM CONSTRUCTION

MANAGER

PROJECT MANAGER

FIELD INSPECTOR

DESSIGN ENGINEER

1. Buying Franchise P 2 . Execute contract S 3. Resolve Claims P S 4. Maintain Onsite Project

files A P

5. Clarify Technical Issues S S P 6. Provide Technical

Certification to Contractor at site

S P P

7. Recommend Change S P S S 8. Conduct Extra Work

Negotiations S P S

9. Verify Contractor Obtained Permits

A P S

10. Secure Owner-furnished Permits

S A P

11. Monitor Contractor Survey

A P S

12. Approve Project Schedule

A P S

13. Ensure Schedule Compliance

A P P

14. Conduct Project Meetings

P S

15. Report Progress S P 16. Photograph

Documentation S P

17. Verify Contractor Maintained as-built Drawings

A P

18. Certify Progress Payment

P S

19. Process and Pay Progress

J A S

20. Review Contractor Submittals

A S P

21. Monitor Timely Review A P S 22. Approve Contractor

Submittals A A P


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23. Prepare daily Inspection reports

A P

24. Provide Off-site Inspection: Performance, quality, Workmanship

A S P

25. Provide On-site Inspection: Performance, quality, Workmanship

A P S

26. Accept Material delivered Onsite/Off-site

P OFF-SITE P ON-SITE

S

27. Verify Onsite Material Deliveries

A P

28. Inspect framework of concrete placements

A P

29. Authorise concrete Placements

A P

30. Monitor concrete Placements

A P

31 Inspect Pipe-installations

A S P

32. Arrange on-site material testing

S P

33. Installation of assembly line

A P J

34. Final Inspection J J J J 35 Provide final Payment J S 36. Review and

Recommend final Payments

P S

37. Prepare Project Closeout

P S


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RESOURCE REQUIREMENTS FOR THE PROJECT

1) Land:

2) Employees and Labour:

S.No. Employee Type 1 Project Manager 2 Electrical engineer

3 Accountant 4 Program Construction Manager 5 Field Inspector

6 Administrative Specialist

7 Design Engineer/Architect

8 Civil Engineer

Moreover, a number of skilled, semi skilled and unskilled labours are required.

3) Specialised agencies:

Like waterproofing works,Sanitary and plumbing works, Assembly line

installation etc.

4) Capital:

The estimated construction cost is Rs. 47.5 Lacs

5) Other Requirement:

Cement bags, sand, bricks, Paints, Reinforcement TMT bars, glass, wood

And interior decorative items.


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SCHEDULING

ACTIVITY LIST FOR THE PROJECT

Activity Activity Description Immediate Predecessors

Estimated Duration

A Getting franchise 2 weeks B Purchasing of land A 4 weeks C Put up the rough wall B 10 weeks D Put up the roof C 6 weeks E Install the exterior plumbing C 4 weeks F Install the interior plumbing E 5 weeks G Put up the exterior siding D 7 weeks H Do the exterior painting E,G 9 weeks I Do the electrical work C 7 weeks J Put up the wallboard F,I 8 weeks K Install the flooring and the exterior

fixtures (generators etc.) J 4 weeks

L Do the interior painting J 5 weeks M Marketing of the store H 2 weeks N Install the interior fixtures(assembly line

and interior designing) K,L 6 weeks

AON Diagram:


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SCHEDULING THE PROJECT WITH PERT/CPM All the possible paths from start to finish are:

PATH LENGTH START _A_B_C_D_G_H_M_ FINISH 2 + 4 + 10 + 6 + 7 + 9 + 2= 40 weeks START _A_B_C_E_H_M_ FINISH 2 + 4 + 10 + 4 + 9 + 2 = 31 weeks START _A_B_C_E_F_J_K_N_ FINISH 2 + 4 + 10 + 4 + 5 + 8 + 4 + 6 = 43 weeks START _A_B_C_E_F_J_L_N_ FINISH 2 + 4 + 10 + 4 + 5 + 8 + 5 + 6 = 44 weeks START _A_B_C_I_J_K_N_ FINISH 2 + 4 + 10 + 7 + 8 + 4 + 6 = 41 weeks START _A_B_C_I_J_L_N_ FINISH 2 + 4 + 10 + 7 + 8 + 5 + 6 = 42 weeks

Critical Path: START>A->B->C->E->F->J->L->N->FINISH

(ESTIMATED) Project Duration: 44 weeks

If no delays occur, the total time required to complete the project should be about 44

weeks. Furthermore, the activities on this critical path are the critical bottleneck

activities where any delays in their completion must be avoided to prevent delaying

project completion. This is valuable information for the project manager, since he now

knows that he should focus most of his attention on keeping these particular activities

on schedule in striving to keep the overall project on schedule. Furthermore, if he

decides to reduce the duration of the project, these are the main activities where

changes should be made to reduce their durations.

SCHEDULING INDIVIDUAL ACTIVITIES

The early start, early finish, late start, late finish time, slack time was calculated for

individual activity:


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The slack time for individual activity is: NODE SLACK (in weeks)

(LS - ES) ON Critical

Activity Path? A 0 YES B 0 YES C 0 YES D 4 NO E 0 YES F 0 YES G 4 NO H 4 NO I 2 NO J 0 YES K 1 NO L 0 YES M 4 NO N 0 YES

The project is having a time deadline of 47 weeks. Therefore, the project manager needs to know the probability of meeting the deadline. If this probability is not very high, he will need to consider taking costly measures (using overtime, etc.) to shorten the duration of some of the activities. THE PERT THREE-ESTIMATE APPROACH: The three estimates made for each activity are Most likely estimate (m) - estimate of the most likely value of the duration, Optimistic estimate (a) - estimate of the duration under the most favourable conditions, Pessimistic estimate (b)-estimate of the duration under the most unfavourable conditions. EXPECTED VALUE & VARIANCE OF THE DURATION OF EACH ACTIVITY IN THE PROJECT: *where a,b,m are in weeks

Activity Optimistic Estimate

a

Most Likely Estimate m

Pessimistic Estimate b

Mean =a+4m+b 6

Variance 2= (b-a)2 (6)2

A 1 2 3 2 1/9 B 2 3.5 8 4 1 C 6 9 18 10 4 D 4 5.5 10 6 1 E 1 4.5 5 4 4/9 F 4 4 10 5 1 G 5 6.5 11 7 1 H 5 8 17 9 4 I 3 7.5 9 7 1 J 3 9 9 8 1 K 4 4 4 4 0 L 1 5.5 7 5 1 M 1 2 3 2 1/9 N 5 5.5 9 6 4/9


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Calculation of p and p2: Themeanof the probability distribution of project duration is approximately p = sum of the means of the durations for the activities on the mean critical path. Thevariance of the probabilitydistribution of project duration is approximately p2= sum of the variances of the durations for the activities on the mean critical path.

Activities on Mean Critical

path

MEAN VARIANCE

A 2 1/9 B 4 1 C 10 4 E 4 4/9 F 5 1 J 8 1 L 5 1 N 6 4/9

Project duration p=44 p2

Approximating the Probability of Meeting the Deadline:

Assume that the form of the probability distributionof project duration is a normal distribution Let T =project duration (in weeks), which has a normal distribution with mean =44 and variance =9,d =deadline for the project =47 weeks. Since the standard deviation of T is p=3, the number of standard deviations by which d exceeds p is:

Therefore, using the Z-table, the probability of meeting the deadline is P=0.84i.e 84%.

TIME COST TRADE OFF(CRASHING OF ACTIVITIES) It is assumed that by finishing the project in 40 weeks,the company will gain Rs.1,50,000. Estimating the cost involved if the project duration is brought down to 40 weeks: Crashing an activity refers to taking special costly measures to reduce the duration of an activity below its normal value. These special measures might include using overtime, hiring additional temporary help, using special time-saving materials, obtaining special equipment, etc. Crashing the project refers to crashing a number of activities in order to reduce the duration of the project below its normal value.


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TIME-COST TRADE-OFF DATA FOR THE ACTIVITIES OF THE PROJECT: Activi

ty Time Cost (in Rs.) Maximum

Reduction in Time

Crash Cost per Week

Saved Normal Crash Normal Crash

A 2weeks 1week 280,000 380,000 1week 100,000 B 4weeks 2weeks 420,000 520,000 2weeks 50,000 C 10weeks 7weeks 620,000 860,000 3weeks 80,000 D 6weeks 4weeks 260,000 340,000 2weeks 40,000 E 4weeks 3weeks 410,000 570,000 1week 160,000 F 5weeks 3weeks 180,000 260,000 2weeks 40,000 G 7weeks 4weeks 900,000 10,20,000 3weeks 40,000 H 9weeks 6weeks 200,000 380,000 3weeks 60,000 I 7weeks 5weeks 210,000 270,000 2weeks 30,000 J 8weeks 6weeks 430,000 490,000 2weeks 30,000 K 4weeks 3weeks 160,000 200,000 1week 40,000 L 5weeks 3weeks 250,000 350,000 2weeks 50,000 M 2weeks 1weeks 100,000 200,000 1week 100,000 N 6weeks 3weeks 330,000 510,000 3weeks 60,000

The table for performing marginal cost analysis on the project: Activity to

Crash Crash Cost

Length of Path ABCDGHM ABCEHM ABCEFJKN ABCEFJLN ABCIJKN ABCIJLN

40 31 43 44 41 42 J 30,000 40 31 42 43 40 41 J 30,000 40 31 41 42 39 40 F 40,000 40 31 40 41 39 40 F 40,000 40 31 39 40 39 40

The table above and the diagram below shows that reducing the durations of activities F and J to their crash times has led to now having three critical paths through the network.


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NETWORK DIAGRAM AFTER CRASHING:

ANALYSIS: The plan for crashing the project only provides a probability of 0.5 of actually finishing the project within 40 weeks, so the extra cost of the plan(Rs.1,40,000) is not justified. Therefore, the project manager rejects any crashing at this stage.He does note that the two activities that had been proposed for crashing (F and J) come about halfway through the project.Therefore, if the project is well ahead of schedule before reaching activity F, then implementing the crashing plan almost certainly would enablefinishing the project within 40 weeks. The extra cost of the crashing plan can be justified if it almost certainlywould earn the bonus of Rs.1,50,000 for finishing the project within 40 weeks. Therefore, the project manager will hold the plan in reserve to be implemented if the project is running well ahead of schedule before reaching activity F.


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BUDGETING AND COST ESTIMATION

The project budget:

Activity Estimated Duration

Estimated Cost (in Rs.)

Cost per Week of Its Duration (in Rs.)

A 2weeks 2,80,000 140,000 B 4weeks 4,20,000 105,000 C 10weeks 6,20,000 162,000 D 6weeks 2,60,000 143,333 E 4weeks 4,10,000 102,500 F 5weeks 1,80,000 136,000 G 7weeks 9,00,000 128,571 H 9weeks 2,00,000 122,222 I 7weeks 2,10,000 130,000 J 8weeks 4,30,000 153,750 K 4weeks 1,60,000 140,000 L 5weeks 2,50,000 150,000 M 2weeks 1,00,000 150,000 N 6weeks 3,30,000 155,000

Estimated cost for each activity and the cost per week helps the Project Manager in

preparing weekly bugdets and monitoring costs efficiently.

COST MONITORING AND CONTROLLING:

Once the project is under way, the project manager will need to carefully monitor actual costs andtake corrective action as needed to avoid serious cost overruns. One important way ofmonitoring costs is to compare actual costs to date with his budget.However, since deviations from the planned work schedule may occur, this method ofmonitoring costs is not adequate by itself. For example, suppose that individual activities have been costing more than budgeted, but delays have prevented some activities from beginningwhen scheduled. These delays might cause the total cost to date to be less than thebudgeted cumulative project cost, thereby giving the illusion that project costs are well undercontrol. Furthermore, regardless of whether the cost performance of the project as a whole seems satisfactory, Project Manager needs information about the cost performance of individualactivities in order to identify trouble spots where corrective action is needed.


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PROJECT MONITORING AND CONTROLLING

Every project should have Executive Control Points acting like closed gates which only

open following Executive Approval. At these points, the project manager presents

certain predetermined "deliverables" to the Executive that will enable them to make an

informed decision on a "go" or "no-go" basis for further work.