NICMAR – SODE

PGP-CM-MODULE-12
ASSIGNMENT NO: 01
COURSE TITLE:

PROJECT
MANAGEMENT
SYSTEMS AND
TECHNIQUES

SUBJECT CODE – PGCM21

DATE OF DISPATCH: 30/11/2016

LAST DATE OF RECEIPT: 31/11/2016

PREPARED AND SUBMITTED BY:

NAME: MOHAMMED NOMAN
REG NO: 215-06-11-50423-2171
 PROJECT
MANAGEMENT
SYSTEMS AND
TECHNIQUES
 ASSIGNMENT
A new international cricket facility is to be constructed outside a mega city
over a piece of land. Facility to include:

i. Capacity of spectators : 80,000

ii. Day/ night play facility
iii. TV camera platform in six directions
iv. Safety of players from spectators
v. Pavilion for VIPs to sit 300
vi. 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 Rs. 100/-. Approximately 4
matches per year. Submit the project report covering:

i. Identification of project
ii. Stages in development of project
iii. Work break down structure to undertake the project
iv. Milestones & CPM chart for corporate control
v. Cost of project
1) Project Identification:
The primary thing about any project is its necessity as well as its feasibility.
The necessity of the project – 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

a) Where the stadium can be located?

b) What is present and future cost of resources?
c) The sources of financing?
d) Will there be enough raw materials as well as skilled labour available in
that particular area or can they be created?
e) Availability of electricity and communication facilities available?
f) The economical, environmental and sociological factors in the vicinity
of the stadium?

The project can be defined as Organization and performance of resources

such as men, machinery, money, material, space and technology into logical
sequence of activities. A project will have to be dealt with resources like
time, money, equipment, technology, space usage, material and workforces.
The main task is to organize these resources and platform activities in their
logical sequence to complete the project.

Projects are usually a part of an overall strategic programme. A programme

at the micro level comprise one or more projects. A programme is managed
in a coordinated way to achieve its overall objectives through the
implementation of its projects.

Project Report:

It is a basis for communicating what has been planned for the project.

- Feasibility of the project is to the calculations

- Internal money of the state would remain within the limits

2) Project Development Process:

Project conceptualization to implementation the stages in the development
of construction projects fall consistent patterns but in timing and degree of
emphasis each project takes on its own a unique character.
Conceptualization:
Most projects start with 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 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. 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 phases of engineering and
design

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 subcontractors make arrangements or supply for 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 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.

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 the components will function 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. Whenever the project
is handed over to the owner to either 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 planning and control:

Planning is the basic function of the management. Planning is concerned

with how and when to achieve the predetermined objectives. Planning sets
all the other functions of management. The main objectives of planning are
listed below

i. Analysis
ii. Anticipation
iii. Scheduling process
iv. Co-ordination and control
v. 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 and
what resources will be necessary. The basic project document is the project
plan. The project lives and breathes and change as the project progresses or
fails.

The basic components of the project are

Project objectives – project strategies – project methods and project

resources- project tools

Control of progress on site:

Without control, planning loses much of its value. It must be applied

continuously to update the plans and to enable the 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.

3) Project Work Breakdown:

Work has to be done in each phase to identify the events or tasks and their
associated subtasks. WBS is defined to “Define everything that needs to be
done.”

WBS WBS level WBS element

1 Feasibility study
1.1 Trend analysis
1.2 Fund allocation

2 Planning & Design

2.1 Design activities
2.1.1 Substructure
2.1.2 Superstructure
2.1.3 Electrical design and arrangement
3 Mobilization
3.1 Employees
3.2 Machineries
3.3 Other resources
4 Construction – substructure
4.1 Site
4.2 Footing
4.3 R.R Masonry
5 Construction – superstructure
5.1 Columns & beams
5.2 Walls
5.3 Roofs
6 Finishing works
6.1 Fencing
6.2 Flooring
6.3 Electric works
6.4 Carpentry works
 6.5 Plumbing works
6.6 Painting works
6.7 Seating arrangement
6.8 Emergency arrangements
7 Playground making
7.1 Pitch construction
7.2 Landscape ( Lawn)
7.3 Boundary line arrangement
8 Project completion

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 the
estimator on the basis of available data. According to the American Association
of cost engineer, cost engineering is defined as that area of engineering practice
where engineering judgement 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 relate to the
initial establishment of the facility:
- Land acquisition, including assembling, 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

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 reapirs
 - Periodic renovations
- Insurance and taxes
- Utilities
- Owner’s other expenses

Cost of the project:

1. Construction cost
From the data provide, it is assumed that construction of new
stadium cost Rs. 10000/- per spectators. Including all facilities

Hence, the project costs,

1=> 80000Nos * 25000 Rs = 20000 lakhs

2. Operating costs

Sr.no. category Cost per annum

1 Staff expenses 100 lakhs
2 Periodic maintenance 5% 1000 lakhs
3 Insurance & taxes 10% 2000 lakhs
4 Other misc costs 1% 200 lakhs
Total expenses per annum 3300 lakhs

3. Income
Income is achieved in the mode of ticket sales, broadcasting rights,
advertising, sponsorship.
Income through ticket sales
Capacity of separators = 80,000
Average cost of ticket = Rs. 100
Per year matches =4
Assuming one match average spectators = 65000
Earnings from match tickets = Rs. 100*65000 = Rs. 65 lakhs
Per year earning through matches = 65L * 4 = Rs. 260 lakhs
Income through broadcasting rights:
It is assumed 2000 lakhs per match
One year income: = 4 matches * 2000 = 8000 lakhs
Income through sponsorship rights
It is assumed 300 lakhs per match
One year income : = 4 matches * 300 = 1200 lakhs
Income through advertisements
It is assumed 100 lakhs per match
 One year income = 4 matches * 100 = 400 lakhs
Total income per year
Income through ticket sales : 260 lakhs
Income through broadcasting rights : 8000 lakhs
Income through sponsorship rights : 1200 lakhs
Income through advertisement : 9860 lakhs

Cost summary:
Cost for construction of new stadium : 20000 lakhs
Total expenditure for 5 years : 16500 lakhs
Income expected in 5 years : 49300 lakhs
Net profit : 12800 lakhs

Hence the construction cost shall be recovered in the span of 5 years and
the project will make the profit of 12800 lakhs in 5 years.

4) CPM / Network Analysis:

The most widely used scheduling technique is the critical path method
(CPM) for scheduling often referred to as critical path scheduling. This
method calculates the minimum completion time for a project along with
the possible start and finish times for the project activities, indeed many
texts and managers regard critical path scheduling as the only usable and
practical scheduling procedure. Computer programs and algorithms for
critical path scheduling are widely available and can even handle projects
with thousands of activities. The critical path method itself represents the
set or sequence of predecessor / successor activities which will take the
longest time to complete. The duration of the critical path method is the
sum of the activities durations along the path. Thus, the critical path is the
sum of the path through the “network” of project activities. The duration of
the critical path represents the minimum time required to complete a
project. Any delays along the critical path represents the minimum time
required to complete a project. Any delays along the critical path would
imply that additional time would be required to complete the project.

There may be more than one critical path among all the project activities, so
completion of the entire project could be delayed by delaying activities
along any one of the critical paths. For example, a project consisting of two
activities performed in parallel that each require three days would have each
activity critical for a completion in three days.
 Formally, critical path scheduling assumes that a project is divided into
activities of fixed duration and well defined predecessor relationships. A
predecessor relationship implies that one activity must come before another
in the schedule. No resource constraints other than those implied by
precedence relationships are recognized in the simplest form of critical path
scheduling.
To use critical path scheduling in practice, construction planners often
represent a resource constraint by a precedence relation. A constraint is
simply a restriction on the options available to a manager, and a resource
constraint is a constraint deriving from the limited availability of some
resource of equipment, material, space or labour. Most of the critical path
scheduling algorithms impose restrictions on the activity relationships or
network geometries which are used. In essence these restrictions imply that
the construction plan can be represented by a network plan in which
activities appear as nodes in a network or designation. Two nodes are
introduced to represent the start and completion of the project itself.
The actual computer representation of the project schedule consists of a list
of activities along with their associated durations, required and predecessor
activities. Graphical network representation rather than a list are helpful for
visualization of the plan and to insure that accomplished by filling in blanks
on a screen menu, reading an existing data file, or typing directly to the
program with the identifiers for the type of information bring provided.

5) Recommendations / Conclusions:
This cricket stadium will be profitable for all the parties say spnsors,
spectators, cricket association etc.

6) Bibliography References:
NICMAR study material
Internet