ASSIGNMENT

National Institute of Construction Management and Research

SODE OFFICE

NAME - Punyadeep Roy

REG. No. - 216-01-11-50558-2172

Course No. - PGCM 21

Course Title - Project Management Systems and

Techniques

Assignment No. - 1

Date of Dispatch -

Last date of receipt -

Of Assignment at SODE office

Reg no-216-01-11-50558-2172 Page 1 of 29

 ASSIGNMENT

A New International cricket facility is to be constructed outside a mega city

over a piece of land. Facility to include:

1. Capacity of Spectators: 80,000

2. Day/Night play facility
3. TV Camera platform in six directions
4. Safety of players from spectators
5. Pavilion for VIPs to sit: 300 seat
6. Parking (adequate space for all above)

Time available is 16 months including monsoon. Cost of construction need to

be recovered in 5 years. Average cost of Ticket is 100/-.
Approximate 4 matches per year.
Submit the Project Report:

1. Identification of Project

2. Stages in development of Project

3. Work break down structure to undertake the project

4. Milestone and CPM chart for corporate control

5. Cost of project.

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 INDEX

Topics Page Nos.

1. Project Identification 4

2. Project Development Process 8

3. Project Work Breakdown 19

4. CPM Network Analysis 23

5. Conclusion 28

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What is a PROJECT?
The project can be defined as, “Organization and performance of resources
such as men, machinery, money, materials, space and technology into
logical sequence of activities.” Project is a mission, undertaken to create a
unique facility, product or service within the specified scope, quality, time
and costs. Project can also be defined as organization and performance of
resources such as men, money, machinery, materials, space and
technology into logical sequence of activities.

PROJECT IDENTIFICATION & FEASIBILITY

The primary thing about the any project is its necessity as well as its
feasibility. Now the necessity of the project like a cricket stadium is
created by the people of the city as well as a mega city demands a cricket
stadium in its vicinity. The feasibility demands a deep thought like for a
location of stadium i.e.
(a) Where can the plant be located?
(b) What is the present and future projected cost of resources?
(c) The sources for Financing of the project?
(d) Are there enough raw materials as well as skilled and productive
labour available in the area or can be created?
(e) Are there adequate electricity and communication facilities
available?
(f) What political or institutional factors may cease or impede the
development and operation of the facility?
(g) What will be the sociological, economical and environmental impact of
entire project on community, like mushrooming of good hotels and
restaurant in the vicinity of the stadium?
So one thing must be clear in one’s mind that whether it is to construct a
small house or to construct a cricket stadium costing several crores of
rupees or any other multi crores project of construction of Dam etc. the
general pattern remains same.

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 Projects are usually a part of an overall strategic programme. A programme at
the micro level comprises one or more projects. A programme is managed in a
co-coordinated way to achieve its overall objectives through the implementation
of its projects.
Most projects start with a need to have a new facility long before designers start
designs and drawing of the projects and certainly before field construction work
can commence. Elements of this phase include:

 Conceptual analysis
 Technical and feasibility studies and
 Environmental impact reports

Here, our project is to build a cricket stadium outside a mega city

over a piece of land in 16 months.

Hockey is our national game but cricket is more popular. Day by day
craze for cricket is soaring not only in old aged or middle aged people but
youngsters and teenagers, boys and girls-everybody is taking keen interest
to watch cricket either to watch on TV screen or at cricket stadium.
5 Days test cricket is the oldest form of the game. So many people
like to watch this sort of game because it is said that test cricket is real
“test’’ for cricketers. Due to its long time (5 days) few people would like
to go to the stadium to enjoy it.
Then came more exciting cricket called ‘’ one days’’ or limited over
matches. It became popular very quickly because of its short time and
more excitement and uncertainties till the last ball of the game.

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Feasibility Study of the Proposed Stadium
It is abundantly clear that the stage of conceptualization and initial
planning is when there is maximum flexibility and that this flexibility must
be utilized to the fullest to achieve maximum benefits in terms of cost
saving s and quality. The feasibility study would broadly consist of:
 Identifying and the need for a Stadium
 The projected cost and long term financial viability of the Stadium

The need for the stadium is obvious and clear. The popularity of the
sport and the level of matches will ensure high patronage at all times. The
stadium should not present any real pollution related or other socio-
political-economic problems at the outset. However, traffic studies should
be undertaken to validate the selection of the site for the stadium. Thus, the
project needs to be defined only in terms of financial viability.

The projected earnings are as follows:

Stadium Capacity 80,000 (100% attendance is the norm)

Assuming 95% attendance, Capacity 76,000

Average price of attendance INR 100
Income from tickets per match INR 7,600,000
@4 matches per year INR 30,400,000
For 5 years INR 152,000,000 (15.2 Crores)

It is clear from the above that the revenue from tickets alone will not be
sufficient to fund and sustain the stadium. Additional sources of income
will have to be utilized and some of the options are as follows:

Advertising/sponsorship revenue @ 50 lakhs per match

Grants from BCCI & State Cricket Assoc. @ 30 lakhs per match

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Income from lending out ancillary
grounds / halls for gatherings @ 10 lakhs per year
Income from cricket coaching clinics @ 05 lakhs per year
Income from club house @ 10 lakhs per year

Therefore income from above would be 3.45 crores per year.

Over a 5 year period these earnings would be 17.25 crores

Therefore the stadium can generate approximately 32.5 crores over a 5
year period.

Additionally, it is common practice for the BCCI to give out additional

grants for construction of such stadiums. The state cricket association (SCA)
and the Ministry of Sports and Youth affairs could also be approached for
additional funds. Local corporate bodies could also be approached for funds.

The comparative cost of constructing a world-class facility is US$ 50 to 60

million. Therefore it can be assessed that the project is a commercially viable
one and will be able to recover the investment over a period of 5 years.

The construction time is 16 months and the project would have to be funded
during that time from capital raised by way of institutional grants and loans.
Servicing those loans would be possible immediately upon completion of the
project

Project Report
Project report is a basis for communicating what has been planned for the
project. In this project I have assumed the site in Bhubaneswar as there is
no other such type of facility is available yet. The city is developing very
fast in respect to the social as well as economical aspects. The city is well
planned and itself is an attractive place with its rich cultural heritages.

CONCLUSION: After going through all these aspects we can conclude that building
a cricket stadium outside the megacity will be beneficial project not to the cricket
lovers only but as a profit making business also.

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PROJECT DEVELOPMENT PROCESS
From conceptualization to implementation the stages in the
development of construction project (here cricket stadium) fall into
broadly consistent patterns but time and degree of emphasis each project
takes on its own a unique character.
An idea of a project passes through six phases before it become a reality:

 Conceptualization

 Engineering and design

 Procurement

 Construction

 Commissioning

 Operation and maintenance

Conceptualization
Most projects start with a need to have a new facility long before designers start preparing
designs and drawings of the projects and certainly before field construction work can
commence. Considerable thought goes into broad scale planning. Elements of this phase
include
(a) Conceptual analysis
(b) Technical and feasibility studies
(c) Environmental impact reports

Engineering and design

Architects and design engineers primarily handle these phases. Increasingly, however,
the client operation and utilization of Knowledge and field constructors’ experience are
more strongly injected at this stage through direct participation and stringent review
procedures. There are two phase of engineering and design:

(i) Preliminary engineering and design

(ii) Detailed engineering and design

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 (i) Preliminary engineering and design stages

(a) Architectural concepts, like form of the stadium, capacity of the stadium, functions
fully filled state of the all art facilities etc.
(b) Evaluation of alternatives in regard to the ecological process, size and capacity.
(c) Economic feasibility studies: For instance of a high – rise building, the owner
specifies the area he would like to utilize. So, Architect will make preliminary
planning of floor of the building required, taking into consideration all the prevailing
laws of the area. He will also go through requirement of general functional areas such
as parking and service areas and also overall design approach. Similar is the case of
cricket stadium, here architect will make preliminary planning for general site lay –
out , form of the stadium keeping in mind the sitting facility , day- night facility with
proper camera platform , proper entrances and exits for the manual as well as
vehicular traffic with adequate parking facilities etc.

(ii) Detailed Engineering and Design

The process involves successively breaking down, of the project in to the parts that is
the different type engineering requirements such as structural design, HVAC,
Electrical plumbing & other services for analyzing and designing the structure in to its
elements so that it complies with all the recognized standards of safety and
performance. This is most important for a project like stadium where people are very
large in number and secondly due to the structure of the stadium which should be
column free and light weight as well as sound in aesthetic sense. So, a set of drawing
and specifications are prepared for use by the constructors covering civil, electrical,
mechanical, interior drawings etc. as the case may be.

Procurement
Procurement involves two types of activities. One is to contract and subcontract to
several parties for different types of work activities. These contractors and subcontracts
make arrangements or supply of all men, materials and machines required to complete
the part of the work allotted to them. The other is to take responsibility to procure all
resources to complete the project.

Construction
It is the process whereby the Designer’s plans and specifications are converted into
physical structures and facilities. It involves the organization and co-ordination of all the
resources time, money, material, technology, people, equipment etc. The target will be to
complete the project on schedule and within stipulated costs complying all the standards
of quality and performance specified by the designers, as in this case the total time
allotted is 16 months including monsoon period.

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 Commission
Most structures and facilities of any significance involve commissioning phase . During
construction large amount of testing is done, so as to be sure that all components function
will individually and together as a total system. Electrical and mechanical systems are
tested, adjusted, corrected as required to bring them to a level to perform at an optimum
output, like in this case of stadium having a day/night facility all the electrical systems
are tested repeatedly and it should match the international standards.

Maintenance
This is the phase where we need maximum attention and here we lack which is the main
cause for the failure of the project. For instance PCA stadium, Mohali that is a state of
the art cricket stadium but there is no regular maintenance, but whenever there is a much
of international standards a huge amount of money is expended for its renovation like
85lakh rupees were spend for the test match between India and England, so whenever the
project is handed over to the owner either to operate or utilize where he takes services of
all production engineers, maintenance engineers, service people and people of different
trades as required to have a smooth functioning of the project over its lifetime.

PROJECT MANAGEMENT ORGANIZATION

Generally, project management is distinguished from the general
management of corporations by the mission-oriented nature of a project. A
project organization will generally be terminated when the mission is
accomplished. According to the Project Management Institute, the discipline of
project management can be defined as follows:

“Project management is the art of directing and coordinating human and

material resources throughout the life of a project by using modern management
techniques to achieve predetermined objectives of scope, cost, time, quality and
participation satisfaction’’.

By contrast, the general management of business and industrial corporations

assumes a broader outlook with greater continuity of operations. Nevertheless,
there are sufficient similarities as well as differences between the two so that
modern management techniques developed for general management may be
adapted for project management.

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 The basic ingredients for a project management framework may be
represented schematically in Figure-1. A working knowledge of general
management and familiarity with the special knowledge domain related to the
project are indispensable. Supporting disciplines such as computer science and
decision science may also play an important role. The representation in Figure-1
reflects only the sources from which the project management framework
evolves.

Figure 1: Basic Ingredients in Project Management

Specifically, project management in construction encompasses a set of

objectives which may be accomplished by implementing a series of operations
subject to resource constraints. There are potential conflicts between the stated
objectives with regard to scope, cost, time and quality, and the constraints
imposed on human material and financial resources. These conflicts should be
resolved at the onset of a project by making the necessary tradeoffs or creating
new alternatives. Subsequently, the functions of project management for
construction generally include the following:

a. Specification of project objectives and plans including delineation of

scope, budgeting, scheduling, setting performance requirements, and
selecting project participants.
b. Maximization of efficient resource utilization through procurement of
labour, materials and equipment according to the prescribed schedule and
plan

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 c. Implementation of various operations through proper coordination and
control of planning, design, estimating, contracting and construction in
the entire process
d. Development of effective communications and mechanisms for resolving
conflicts among the various participants

The Project Management Institute focuses on nine distinct areas requiring

project manager knowledge and attention:

a. Project integration management to ensure that the various project

elements are effectively coordinated.
b. Project scope management to ensure that all the work required (and only
the required work) is included.
c. Project time management to provide an effective project schedule
d. Project cost management to identify needed resources and maintain
budget control.
e. Project quality management to ensure functional requirements are met.
f. Project human resource management to development and effectively
employ project personnel.
g. Project communications management to ensure effective internal and
external communications
h. Project risk management to analyze and mitigate potential risks
i. Project procurement management to obtain necessary resources from
external sources

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PROJECT PLANNING & CONTROL
Planning is the basic function of the management. Planning is concerned
with ‘how and when’ to achieve the predetermined objectives. Planning sets all
other functions of management viz. organizing, staffing, directing, motivating,
coordinating etc...The main objectives of planning are listed below:

 Analysis

 Anticipation

 Scheduling resources

 Co-ordination and control

 Production of data

All effectively managed projects involve the preparation of the project

plan. This is the fundamental document that spells out what is to be achieved,
how it is to be achieved, and what resources will be necessary. In Projects and
Trends in the 1990s and the 21st Century, author Jolyon Hallows says, "The
basic project document is the project plan. The project lives and breathes and
changes as the project progresses or fails." The basic components of the project,
according to Hallows, are laid out in the figure below.

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 "With the plan as a road map, telling us how to get from one point to
another," says Hallows,” a good project manager recognizes from the outset that
a project plan is far more than an academic exercise or tool for appeasing upper
management. It is the blueprint for the entire scope of the project, a vital
document which is referred to frequently, often update on-the-fly, and
something without which the project manager cannot precede."

The construction planning process is stimulated through a study of project

documents. These documents include but are not limited to the available
technical and commercial studies and investigations design and drawings,
estimate of quantities, construction method statements, project planning data,
contract documents, site conditions, working regulations, market survey, local
resources, project environment and the client’s organization. The planning
process takes in to the account the strength and weakness of the organization as
well as the anticipated opportunities and risks.

(i) Planning is the creative and demanding mental activity of working out what
has to be done, how , by when, by whom and with what – ‘ doing the job in the
mind .’ plans are not just pieces of paper . Plans represent the result of careful
though, comprehensive discussions, decisions and actions, and commitments
made between people and contractual parties.

(ii) Planning techniques form the planner’s toolbox. They assist in the analysis
of the plan, organizing the information, and have a crucial effect on the way in
which the plan is communicated to others. Taken together, these to elements of
planning produce “the plan” a strategy and tactics for the execution of the
project. In terms of activities, time quantities, resources and perhaps costs and
values, now the point is how and by whom this planning and planning
techniques use to convert all these theories of planning and planning techniques
in to a practical shape. Planners cannot plan without managers. It is the
manager’s task to plan: that is to decide on strategies and tactics, to break down
the work to be done into tasks and sub-tasks and to assign the responsibility for
completing these tasks to individuals or organization. So in short, planners and
implementers should go side by side for any project and act as a team.

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CONTROL
Planning can be described as a process of thinking in advance. It is based on
experience, sound judgment and some quantitative techniques. It deals with the
future and as such there are bound to be uncertainties, which may cause
deviations from the target proposed to be achieved. So, one should not hope that
everything will be fine, because plans and schedules do not work by themselves.
It is rightly said that we must plan the work first and then work the plan. So for
working the plans and schedules effective controlling is necessary. “Planning is
looking forward while controlling is looking back.”

Project Control covers:-

(i) Deviation: Deviations occur due to following reasons

While doing original planning and scheduling activity duration might have been over
estimated or under estimated.
1. Some activities are delayed due to reasons beyond control like change in foundation
condition, bad weather, monsoon as in this case, non availability of certain resources, labour
strike, break down of equipment etc. So covering these risks the total time allotted to
complete the cricket stadium is 16 months.
2. Natural calamities like floods, earthquakes, epidemic etc., festivals etc.
3. Addition deletion or major modification in the work by client.
4. Introduction of new material, equipment or construction techniques. It is necessary to
review the actual progress against the predetermined targets. By assessing the reasons of
deviations and decide whether a new network is necessary for the remaining work. If not,
what is the effect of this deviation on the remaining portion or what remedial actions are
possible to retain the target date of completion unchanged.

Updating Network

It consists of review of the planning and scheduling at regular intervals. But for that updating,
the information required will be, period at which review is taken either in terms of days or
weeks. List of activities completed and partially completed with the period required to
complete the balance of the activity etc. Now after getting the required updating should be

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done at regular intervals, which depends upon magnitude of work, rate of progress etc. At
short intervals as the scope of absorbing delays is limited as the period advances, for small
projects. At certain stages such as foundation level, plinth level, sub structure and super
structure etc. Whenever new techniques or equipment are available , when work has stopped
for a long period for some reasons the updating of a project also helps in rescheduling of the
activities which are delayed or lagging behind so that the project can be completed within the
stipulated time.

Calendaring the Network

While preparing the network we consider the working days while on work sits there will be
holidays such as weekly of day, festivals etc. these holidays have therefore to be incorporated
in calendaring the network.

Cost control
Project control must be linked up with the cost. The objectives of the cost control are
the method must give the program of expenditure so that requirements of fund can be
assessed. At the time of review we should have a clear picture of, actual expenditure incurred
vis-à-vis program expenditure, and actual expenditure verses the expected returns. In case
deviations, what are the reasons and what will be the estimated cost of remaining portion of
the work. Improper Cost estimation & Controlling can bring a project to a standstill, if the
project is under budgeted the project will be stopped mid way, similarly proper planning is to
be done stage wise requirement of the funds for the various stages of the project & the
sources for the same. Without control planning loses much of its value. It must be applied
continuously to update the plans and to enable reconsideration of the workload in the light of
what has already taken place.

Control involves comparing the actual achievement with the plans. If a programme is
to be really effective as a control document, it must represent time and quantity of work
carried out.

Progress can be recorded on planning charts that clearly indicate what is happening
and where corrective action needs to be taken.

Weekly and monthly meetings are invaluable in helping to control progress. The
action necessary for correcting underproduction will be considered and the best solution will
then be incorporated into the programme for the next period.

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The project planning process, techniques and methods employed to develop the project plan,
are outlined in the tables below:

Planning Data Where to look for data? Studying relevant documents

Collection
What is to be done?
Defining scope of work.
What are the activities
involved? Breaking down project work into
activities.
Planning Time How it can be done?
Developing network plans.
When it is to be done?
Scheduling work
Where it is to be done?
Planning Resources

Forecasting resources requirement

Planning manpower requirement

What is needed to do it? Planning materials procurement

Planning equipment procurement

Planning Resources Budgeting costs

Designing organizational structure

Who is to do it? Allocating tasks and resources

Establishing responsibility centres

How to account Designing control system

performance?
Formulating monitoring
How to monitor
Planning Implementation methodology
performance?
Developing project Management
How to communicate
information? Information system (PMIS)

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TYPE OF PROJECT PLANS
Planning the entire project from its inception to completion requires a vast coverage, varied
skills, and different types of plans. The nature of plans encountered in a typical construction
project, are indicated below.

Types of project plans

Development stage Nature of Plan

Inception stage Project feasibility plan

Engineering stage Project preliminary plan

Project construction plan

Implementation stage

Project Planning Techniques

Stages Planning Process Techniques/methods

Work breakdown

Network analysis, Gantt

Breaking down project work
chart
Planning
Developing time network plans
Time Line of Balance technique
Scheduling work
Time limited scheduling

Resources limited scheduling

Forecasting
Forecasting resource requirements Manpower scheduling
Planning manpower requirements Materials scheduling
Planning materials requirements Equipment selection and
Planning scheduling
Planning equipment procurement
Resources
Budgeting costs Cost planning and budgeting

Designing organizational structure Organization design

Allocating tasks and resources Resource allocation

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 Stages Planning Process Techniques/methods

Resource productivity
Planning control Time control
Implemen Formulating monitoring methodology
Contribution control
tation
Budgetary Control.

PROJECT WORK BREAKDOWN

The project work breakdown process involves splitting of the project works into its
manageable constituents arranged in a hierarchical order till the desired level. The work-
breakdown levels are categorised into sub-projects, tasks, work packages, activities and
operations. These levels depend upon the plan type, the nature and complexity of the project
and the expected degree of control. The work-breakdown levels for various types of plans are
given in the figure below. It may be noted that the levels classification is a broad concept
and, at times, overlapping of levels may become unavoidable.

The breaking down of a task/work package into its constituent activities requires a study
of the methodology of execution of the work package. Generally, known by the term method
statement, this methodology is evolved by the planning engineer on the basis of his
construction experience and discussions with the respective project engineers. Construction
projects are best managed by work packages, which, in turn, are best planned and monitored
by activities. A project planner, uses activity as the common data base for planning projects.
Activity duration forms the basis for time planning and scheduling of project work. The
inputs of labour, materials and machinery needed for execution of each activity enable
preparation of resources forecasts. The activity sale price is used to determine income and
cash-flow forecasts. The activity base is vital for monitoring progress of project work.

These activities are also called as levels, which can be classified very well. For instance the
activities of the cricket stadium are:

 Site consolidation
 Line out and marking
 Foundation Works
 Erecting Super Structure
 Erecting ancillary structures
 Services – Electrification, Illumination, Plumbing, HVAC, Fire Fighting
 Finishing Works
 Pitch development
 Parking layout and demarcation
 Clearance, Testing and Handing Over
 Maintenance (may not be a part of main WBS but should be)

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 Single item of schedule can be split up into various operations for example, excavation
for foundation for a building can be split up and excavation for foundation of each wall can
be considered as an operation by itself. Like-wise RCC work can be split up into: Erection of
formwork, cutting, bending and placing reinforcement and pouring concrete. Each sub item
can be an independent operation.

Modeling and Analyzing Networks

With the advancement of technology and the speed of construction, the traditional charts
planning approach has become inadequate to tackle the modern complex construct projects.
The bar charts provide very little information about the inter-relationship of voluminous
interdependent tasks. This traditional bar charts approach carries risk of schedule slippage's,
time over-runs, improper decisions and contractual complications. The network analysis
techniques developed in sixties, is being effectively used a management tool for planning and
then scheduling of complex projects involving interlink activities. Project Networks analysis
is a generic term that covers all network techniques used planning scheduling and controlling
of projects. The three commonly used techniques this family are Critical Path Method
(CPM), Program Evaluation and Review Techniques (PERT) and the Precedence Network
Analysis (PNA) Technique. The common features these techniques are that they make use of
network model for depicting time-plan of project, apply critical path concept for determining
project duration and identifying critical activities, and employ network analysis techniques
for controlling project time object But each technique has a distinct model and its field of
application varies.

Network analysis procedure The modeling and analysis of a network involves following
steps:

• Defining scope of network

• Determining activities

• Developing network logic diagram

• Structuring model

• Incorporating activity durations

• Numbering events/activity

• Computing critical path

• Validating Network

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Criteria for selection of network technique Experience shows that:

• CPM is best suited for developing sub-project/task/work package sub-networks having

activities with deterministic single-time duration.

• PERT is useful for work packages, tasks or sub-projects involving uncertainties. In

such cases, probabilistic approach of three-times (or a mathematical time-related
function) is used for assessing activity duration.

• Precedence Network is the most commonly used technique for time planning of
construction sub-projects and projects.

• Networks containing 200 to 300 activities/work packages are manageable, and those
having activities/work packages greater than 300 are difficult to comprehend. A project
schedule can be depicted by a bar chart, time-scale network or other pictorial displays.

Costing activity

Cost estimating is one of the most important steps in project management. A cost
estimate establishes the base line of the project cost at different stages of development of the
project. A cost estimate at a given stage of project development represents a prediction
provided by the cost engineer or estimator on the basis of available data. According to the
American Association of Cost Engineers, cost engineering is defined as that area of
engineering practice where engineering judgment and experience are utilized in the
application of scientific principles and techniques to the problem of cost estimation, cost
control and profitability.

The costs of a constructed facility to the owner include both the initial capital cost and
the subsequent operation and maintenance costs. Each of these major cost categories consists
of a number of cost components.

The capital cost for a construction project includes the expenses related to the initial
establishment of the facility:

 Land acquisition, including assembly, holding and improvement

 Planning and feasibility studies
 Architectural and engineering design
 Construction, including materials, equipment and labour
 Field supervision of construction
 Construction financing
 Insurance and taxes during construction
 Owner's general office overhead
 Equipment and furnishings not included in construction
 Inspection and testing

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The operation and maintenance cost in subsequent years over the project life cycle includes
the following expenses:

 Land rent, if applicable

 Operating staff
 Labour and material for maintenance and repairs
 Periodic renovations
 Insurance and taxes
 Financing costs
 Utilities
 Owner's other expenses

COST OF OUR PROJECT:

Capacity of spectators = 80000

Time limit =16 months

Average cost of ticket =Rs.100

Per year matches = 04

Assuming One match average spectators = 60000

Earning from match tickets = Rs.100 x 60000 =Rs. 6000000

Per year earning through matches = Rs.6000000 x 4 = Rs.24000000

In 5 years earning through matches = Rs.24000000 x 5 = Rs. 120000000

Say the built up area for the stadium = 20000 Sqm

Cost of construction per Sqm = Rs.6000

Therefore, Total cost of construction = 20000 x Rs. 6000 =Rs.120000000

This cost will be covered in 5 years exactly.

(Note: Other income from the broadcasting rights to the TV channels, hoarding advertising,

and fees from sponsor’s etc...will be different than this ticket income.)

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CPM/ NETWORK ANALYSIS
Network elements
Network is defined as the pictorial representation of the activities of a given project in the
form of arrows, which form an essential element of network. Arrow represents an activity,
task of operation of the work since activity consumes resources. Arrow has a directional
sense, which can be represented by an arrow head it is used to indicate the general direction
of flow of work. It is conventional to show arrows directing from left to right. Tail of arrow
indicates the start of the activity and its had indicates the completion of the activity.
Beginning of completion of an activity marks a phase or stage of work. This is represented by
a suitable geometrical figure like circle, triangle and rectangle. This is known as event.
Events naturally do not consume any resource by itself. There is another type of activities,
which do not require any resources and which are basically imaging activities called dummy
activities, these activities only show the interdependency of the activities but doesn’t
consume any resource.

Development of network:
Network can be developed in two ways,

(i) Preceding and following activities:

Some activities cannot be started unless certain activities are completed. For e.g. excavation
of foundation must be completed before foundation concrete is poured. These types of
activities are known as sequential activities

(ii) Concurrent activities:

a few activities can be carried out concurrently. For e.g. excavation for foundation of four
walls of a room can be started simultaneously. Let us take the case of erecting steel
framework (for lightning) on cement concrete foundation in a cricket ground, the following
operations are identified in the network:

 Clearing and levelling the site.

 Giving lineout.
 Procuring material for concrete.
 Procuring steel for foundation.
 Excavation-1
 Excavation-2
 Formwork foundation steel -1
 Formwork foundation steel -2
 Concreting-1
 Concreting-2
 Backfilling-1
 Backfilling-2
 Erection & painting of steel work
 Clearing & levelling site
 Preparation of ground& pitch

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These are the general activities for the development of Master Control Network (MCN),
however we can divide each activity in to sub activity to develop a sub- network .e.g.
concreting can be divided as conc. In foundation, in boundary wall, in superstructure etc. the
activities of excavation, formwork, concreting and backfilling are divided in to two parts to
make these activities concurrent to further reduce the time o completion and thus cost.

The logic table is as shown below:

Activity Activities Duration Preceding Following Concurrent

no description
activity activity Activity

Site clearing & 30

A B C
leveling

B Layout 15 B D C

Procurement of 180
C V
material

Excavation for 45
D B E,L
foundation

Foundation 60
E D F,H,I,J L
work

F Waterproofing 21 E G H,I,J,M

G backfilling 15 F X

Construction of 90
H E S F,I,J
boundary walls

Construction of 150 K,N,P,R,T,

I E F,H,J
super structure U

Construction of 60
J E Q
toilets

Services 90
work(electrificat G,N,P,R,T,U,
K I V
ion, AC, Q
plumbing)

Foundation for 25
L D M E
light structure

Reg no-216-01-11-50558-2172 Page 24 of 29

Activity Activities Duration Preceding Following Concurrent
no description
activity activity Activity

Fabrication of 90
structure for
M L V F,H,I,J
lights for d/n
facility

Construction of 100 G,K,P,R,T,U,

N I O
drains Q

Construction of 120
O N S V
Roads

Construction of 90 G,K,N,R,T,U
P I S
parking area ,Q

Finishing works 50 G,K,N,R,T,U

Q J S
in toilets ,P

M/S railing 60 G,K,N,R,T,U

R I S
works ,P

Painting work 90 H,K,N,P,R,T

S V O
,U,Q

Structure of 60
welded wire
G,KN,P,R,U,
T mesh around I S
Q
the Ground for
safety of players

Preparation of 150
G,KN,P,R,T,
U Ground and I X
Q
pitch

Installation of 15
V S,C W
Gadgets

Commissioning 20
W V X
of Services

X Handing over 5 W

Reg no-216-01-11-50558-2172 Page 25 of 29

Analysis Procedure
The project can be analyzed in a no. of ways, through precedence network and PERT/CPM
networks. Precedence network is the way of representing the project through the activity-on-
node approach. In precedence network, an activity is shown on the node, which is represented
by a box. The precedence diagram is shown as a straight line, called connectors, if an activity
a is followed by another activity B, it is known as

Sequential Activity

Sequential activity and it will be represented in CPM/PERT network as in the figure given
below. However if the some activity A is followed by another activity B, then it will be
represented in precedence diagram as:

Sequential Activity

Precedence network is easier to understand than arrow networks to draw as well as to

understand. It is also easier to explain to a non technical person who does not have much
knowledge about a network. Now time analysis in both the networks (precedence and
PERT/CPM) is done on the same lines. Every event is associated with two timings,

Earliest occurrence (ET) and Latest occurrence (LT) Similarly each activity is associated with
four times:
Earliest start time (EST)= The earliest time by which an activity can start.
Latest start time (LST) = The latest time by which an activity must start.
Earliest finish time (EFT) = The earliest time by which an activity can be finished.
Latest finished time (LFT) = The earliest time by which an activity must be finished.

So far the networks were discussed with respect to only time and it is assumed that resources
required for carrying out various activities are as and when needed. But such a situation is
rarely possible and even if possible is neither desirable nor it will be economical. So, the aim
should be to use the resources in the optimum manner and at uniform rate as is possible.

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But at times there are constraints on availability of some resources such as some equipment
or some special type of labour. So, activities have to be planned and schedule in such a way
as to satisfy these constraints without extending the project duration: however if the
constraints are of critical nature even project duration has to be altered to satisfy them. In the
end let us give a look at step –by – step procedure for large network,

(i)Prepare project network.

(ii)Calculate event timings, activity timings & Floats
(iii) Prepare a bar chart to suitable scale. List the activities in a proper scale.
(a) The activities should be listed in increasing tail event number
(b) If there are more activities with the same tail event number they should be so arranged
that head event numbers in increasing numbers
(iv) First schedule all activities at EST and work out resource requirements. If the distribution
is not satisfactory find out sum of the squares.
(v) Reschedule the activities. Start with the last activity. It should be shifted towards LST
stage by stage
(vi) Next activity is then taken up and same procedure is followed till we finish all the
activities.
(vii)While scheduling activity from whose head event more than one activity is emanating,
care is necessary. The latter are rescheduled; hence the preceding activity must be over by the
earliest time worked out by rescheduling. Of subsequent activities.

CPM Network:
Essentially it was a problem concerned with obtaining trade off between completion time of
work and the cost. The method known as critical path method is therefore based on the
assumption that the time required by various activities is known. It is deterministic in nature
and is not concerned with uncertainties. CPM is more suitable in construction situation where
some experience in handling similar activities in the past is available.
Once a commitment to CPM is made the implementation should be thoroughly planned in
advance, with frank and open discussions and involvement if success is required. It must be
understood that no amount of good office planning will cover up lack of production and
efficiency in the field. Critical Path Method is capable of serving on the basis of an integrated
company-worldwide management, ranging from pre bid feasibility studies though estimating,
planning, cost accounting, progress control and financial control.
Critical Path Method is the path of events having longest duration i.e. A-B-D-E-I-N-O-V-W-
X having duration 482 days=16 months, which is required completion time. This means that
any delay in completion of any activity in critical path is not having Float.

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CONCLUSIONS & RECOMMENDATIONS

 Successful pre construction planning and scheduling will go a long way in

ensuring that the product is of the desired quality and meets all expectations
with respect to cost, time and quality.
 Due to both financial and time constraints, it is essential that thorough
control be maintained throughout the duration of the project.
 The utilization of network techniques must be inherent to the management
strategy.
 A conscious effort to adopt sound quality practices must be undertaken. This
is deemed to be a world class facility. The quality objective is apparent and
must be adhered to.
 Adequate allowance for stoppage/slowing of work must be made during
monsoons.
 A successful Project MIS will go a long way in developing sound planning,
scheduling and control of the project.

Reg no-216-01-11-50558-2172 Page 28 of 29

REFERENCES

 Nicmar Study Materials

 Lt. Col. K.K.Chitkara “Project Management” Tata Mc.

Graw,1998

 www.google.com

 www.scribd.com

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