Construction Project management

Project Management
CONTRUCTION PROJECT MANAGEMENT 1

Construction Project Management
Project : Converting Vision or Need to reality.
A project is composed of activities or tasks that are
related to one another in some manner and all these
should be completed in order to complete the
project.
Project management: Is the application of
knowledge, skills, tools, and techniques to project
activities to meet the project requirements.
Aim: Completion of the project on time within the
budget without compromising the quality.

Project Manager
Project managers have the responsibility of the
planning, procurement and execution of a project.
Project managers are the first point of contact for any
issues or discrepancies arising from within the heads
of various departments in an organization before the
problem escalates to higher authorities.

Why do we need Project Management?
▪Advancing technology and increased size and complexity of projects need effective planning
▪For effective Planning of project and to control cost and time over run
▪To plan the project in detail. i.e. identifying the logical sequence of occurrence of the activity
and inter-dependency and inter-relationship between them.
▪To have proper control over project during unfavourable circumstances. (Plan –B)

Project Management Triangle
Each side represents a constraint of the project
Time constraint: Amount of time available to complete a project
Cost constraint: Amount budgeted for the project
Scope constraint: What must be done to produce the project's end result
Competing constraints
Increased scope  Increased time and increased cost,
Tight time constraint  Increased costs and reduced scope,
Tight budget  Increased time and reduced scope..
One side of the triangle cannot be changed without affecting the others
*A further refinement of the constraints separates product "quality" or
"performance" from scope, and turns quality into a fourth constraint
Triple Constraint or the Iron Triangle

Project Management Phases
1. Definition
2. Planning
3. Execution
4. Control
5. Closure

Detailed planning of the project
Listing all the activities and their logical sequence.
Determining overall requirement of resources and their quantities .
Development of schedule
Working out time estimates for various activities based on available resources.
Preparing time schedule and calculate total project cost.
Periodic review of progress of work
Comparing the work progress with planned target whether work is as per schedule or not.
Identify corrective action to meet the lapses to achieve the target.
Ensure optimum use of resources such as men material money and machinery.
Objectives of Project Management

Tools of Planning and Scheduling
Conventional
Methods
Bar Chart
Milestone
Flow
Chart
Network
Methods
CPM
PERT

Gantt or Bar Chart
Project is divided in to different activities represented by Horizontal bars on the Time scale
The beginning and the end of the bar represent the time of start and completion of the activity
Length of the bar represents the total time required to complete the activity.
Reviewing progress
The bars are shaded to indicate the portion of the work completed.
Helps to identify particular activity is behind schedule, ahead of schedule or on time.

Partition wall
Wood work
Electrical work
Furniture procurement
Painting
Flooring
False ceiling
Art work procurement
1/08/15 15/09/15 15/10/15 1/12/15 10/01/16 30/02/16

Limitation of Gantt or Bar chart
Does not indicate the inter-relationship between various activities.
Does not indicate the effect of the activity on the overall completion of the activity.
Does not indicate which activity is critical and which has spare time.
Difficult to optimise the use of resources.
Bar charts for complex projects are complicated and not practical.

Tools of Planning and Scheduling
Conventional
Methods
Bar Chart
Milestone
Flow
Chart
Network
Methods
CPM
PERT

Elements of Network
The network is a graphic plan showing jobs or activities that must be completed to achieve completion of a project.
OR
A network is also defined as an arrow diagram obtained by connecting all the activities of the project in logical sequence.
Activity: Jobs that required to
be performed in executing a
project.
Event: is a Point in time
representing start and
completion of one or more
activities.
Dummy Activity: It is a zero
time activity and
consumes no resources.
Introduced when two or more
activities start and end at the
same nodes
1 3
2

Network Method
CPM –Critical Path Method
Network are generally used for planning, scheduling and controlling of repetitive
type of the projects where one can make fairly accurate assessment of the time
for completion of each activity.
PERT-Program Evaluation and Review Technique
Network are generally used in research and development type of project which
are non- repetitive in nature.
Also employed for the projects where it is difficult to allot definite time for
performing each and every activity for want of information regarding past
experience of handling similar projects

Development of Network
Steps to be followed for developing a network:
a) Note down all the activities which are required to be
performed for completing the project
b) Arrange the activities in their correct logical sequence.
Logical sequence means:
Which activity must be completed before particular activity can
be started?
Which activity can be started concurrently with other activity?
Which activity must immediately follow this activity?
a) Consider possibilities of sub-dividing different activities in
phases or sections to introduce the concept of performing
jobs simultaneously or concurrently. This helps in reducing
overall time of completion of the project.
Network Diagram

Identify the Critical path
The critical path is path along the network which requires the longest time for
the project from start to its completion and thus decides the time of completion
of the project.
Event slack/Float is the free time available up to which occurrence of an event
can be delayed without causing any delay in the completion date of the project
Zero slack  event is on schedule.
Positive slack  event is ahead of schedule
Negative slack  event is behind schedule.

To Estimate project duration
To assess the project duration 5 steps to be followed in their sequential order.
1. Estimation of activity duration time
2. Estimation of early expected even time
3. Estimation of latest allowable event time.
4. Calculation of even slack
5. Identify the Critical path.

Process of Drawing Network
NO. Activity
A Partition wall
B Electrical work
C False Ceiling
D Flooring
E Painting
F Furniture
G Cleaning
1
2
3
4
5
6
A C
D
B
E
G
F
Network diagram –First draft

1
2
3
4
5
6
A
C
D
B
E
G
F
Timing the Network
No Activity
A Partition
wall
B Electrical
work
C False
Ceiling
D Flooring
E Painting
F Furniture
G Cleaning
8 10
5
12
8
69
8
18
30
189
0
EFT LFT
EFT LFT
To assess the project duration 5 steps to be followed in their
sequential order.

1
2
3
4
5
6
B
Project Duration-30 days
A
8
C
10
G
5
F
12E
8
D
69
8 8
18 18
30 30
18 189 12
0 0
EFT LFT
EFT LFT
0
No Activity
A Partition
wall
B Electrical
work
C False
Ceiling
D Flooring
E Painting
F Furniture
G Cleaning
To assess the project duration 5 steps to be followed in their
sequential order.
Critical Path Activity – A-C-Dummy-F

Analysing and scheduling of network
1. Calculate time estimates for each activity
2. Determine the critical path which governs the minimum project completion
3. Determine the events slack and the activity floats for Activities which are not on
critical path.
4. Examine possibility of diverting unutilized resources from noncritical activity to a
critical activity.
5. Analyse the network again after considering the redistribution of resources
6. Workout revised starting and completion dates of the activity.

Advantage of Network method
Easier to build a team and create human network for efficient handling of a multitasked project.
Takes into consideration the requirements well in advance to complete a project in the most
efficient way possible.
Easy to determine the estimate exact time and cost of the project.
Helps to monitor human resources, and the direct and indirect costs associated with the project.
Charting in a Network makes it easier to evaluate parallel activities, handle delays and judge the
outcome of a task.
Enables the managers to minimize the project length by monitoring the critical path.
Enables the project head to determine if the task is on schedule or needs boost to accelerate the
process.

Difference Between CPM and PERT
CPM PERT
CPM uses activity oriented network. PERT uses event oriented Network.
Durations of activity may be estimated with a fair degree
of accuracy.
Estimate of time for activities are not so accurate and
definite.
It is used extensively in construction projects. It is used mostly in research and development projects,
particularly projects of non-repetitive nature.
Deterministic concept is used. Probabilistic model concept is used.
CPM can control both time and cost when planning. PERT is basically a tool for planning.
In CPM, cost optimization is given prime importance. The
time for the completion of the project depends upon cost
optimization. The cost is not directly proportioned to time.
Thus, cost is the controlling factor.
In PERT, it is assumed that cost varies directly with time.
Attention is therefore given to minimize the time so that
minimum cost results. Thus in PERT, time is the controlling
factor.

Project Cost
TOTAL COST
INDIRECT COSTDIRECT COST
OVERHEADS OUTAGE LOSS

INDIRECT PROJECT COST
❖ These are those expenditures which cannot clearly allocated to the individual activities of a
project, but are assessed as whole.
❖ It includes expenditure related to administrative and establishment charges, supervision,
expenditures on central store organisation, loss of revenue, lost profit, penalty etc.
❖ Indirect cost rises with increased duration.
❖ OUTAGE LOSS : loss in profits due to inability to meet demand or penalty due to delay.

❖ Those expenditures which are directly chargeable to and can be identified
specifically with the activities of the project.
❖ These include labour cost, material cost, equipment cost etc.
TIME
C
c
tn
Normal
Duration
tc
Crash
duration
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Construction Project management

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