WELCOME

To The Presentation On

Project Control - Overview

25 March 2014
Rehan Hamid
Project Engineering Lead-T&D

AGENDA
Introduction Basic Concepts
Project Control System Project Control Systems

Current Situation in SNC Action Plan Conclusion

Rehan Hamid
Project Engineering Lead-T&D 2

Basic Concepts
Project Control System Project Control System

Rehan Hamid
Project Engineering Lead-T&D 3

Basic Concepts - Project

Project is Unique Non-repetitive It is Temporary Endeavour Have Definite Start & Finish Consume Resources:
Manpower Materials Machineries & Plant Money

5 Project Life Cycle Stages

Initiation - Starting Planning - Preparing Execution - Doing Monitoring & Control Close Out

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Project Engineering Lead-T&D 4

Basic Concepts Project

9 Project Management Knowledge Areas
Integration Scope Time Schedule Cost Quality Human Resources Communication Risk Procurement
Rehan Hamid
Project Engineering Lead-T&D 5

(contd.)

Project Management Process Groups and Knowledge Areas Mapping

Source: PMIs PMBoK 4 e Knowledge Area (42) Project Management Process Groups (42)

Initiating (2)
Develop Project Charter

Planning (20)
Develop Project Management Plan

Executing (8)
Direct & Manage Project Execution

Monitoring & Controlling(10)

Monitor & Control Project Work Perform Integrated Change Control Verify Scope Control Scope Control Schedule

Closing (2)
Close Project or Phase

Project Integration Management (6) Project Scope Management (5) Project Time Management (6)

Collect Requirements Define Scope Create WBS Define Activities Sequence Activities Estimate Activity Resources Estimate Activity Durations Develop Schedule

Project Cost Management (3)

Project Quality Management (3) Project Human Resources Management (4) Project Communication Management (5) Project Risk Management (6)
Identify Stakeholders

Estimate Costs Determine Budget

Plan Quality Perform Quality Assurance Acquire Project Team Develop Project Team Manage Project Team Distribute Information Manage Stakeholders Expectations

Control Costs

Perform Quality Control

Develop Human Resource Plan

Plan Communications

Report Performance

Plan Risk Management Identify Risks Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis Plan Risk Responses Plan Procurements Conduct Procurements

Monitor & Control risks

Project Procurement Management (4)

Administer Procurements

Close Procurements

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Project Engineering Lead-T&D 6

Project Management Processes & Major Activities

Rehan Hamid
Project Engineering Lead-T&D

Basic Concepts Control System

Desired requirements Budget, Time, Profits etc

Inputs Operations Processing

Outputs & Forecasts

Comparison
Measure Variances

Deliverables

Feedback, Changes & Corrective Actions

Integrated Control System Objective of Integrated Control System is to integrate various processes & stages with main focus on minimize negative variances and improve positive performances
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Project Engineering Lead-T&D 8

Basic Concepts Control System

(contd.)

Control is one of the managerial functions like planning, organizing, staffing and directing. It helps to check the errors and to take the corrective action so that deviation from standards are minimized and stated goals of the organization are achieved in desired manner.

Control in Management means:

Setting performance standards like Budget, Productivity Norms, etc.

Measurement of actual performance. Comparing actual performance with standards. Analysing deviations. Correcting deviations.

Characteristics of Control :
Control is a continuous process Control is a management process Control is embedded in each level of organizational hierarchy Control is forward looking Control is closely linked with planning Control is a tool for achieving organizational activities, Objectives & Performance

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Project Engineering Lead-T&D 9

Basic Concepts Project Control Systems

What is Project Control System?

Project Constraints

System to control & Improve overall Project performance.

Project Control System keep balance of constraints of

Scope Time or Schedule.

Cost . Quality. Risk Resources

Scope Time Cost

Any Change in one of the above constraint will result on change on atleast one other constraints which affect the equilibrium. Hence, while evaluating any change overall balanced view should be taken before approving the change

Integrated Controls

Risk
Resources

Quality

There is Need for integrated controls

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Project Engineering Lead-T&D 10

Basic Concepts Project Control Systems Contd.

Benefit diminishes over time

Initiation Stage (Tendering) Mobilisation Stage (On award Manpower, Equipments /Issue of LOIs/LPOs/WOs) Execution Stage (periodic progress MPRs, Receipts & Payments, Technical Submissions) Close out stage (Handing Over Final Accounts)
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Project Engineering Lead-T&D 11

Benefits

Project Control Systems applies at various Stages of Project:

Time

Basic Concepts Project Control Systems Contd.

Initiation Stage (Tendering)
Review Tender Documents (details of BOQ, Tender documents, & Tender drawings, Addendums issued by Client during tendering process. Suggested
that Tender dept shall provide copy of such documents immediately on receipt to PMC Dept at HO.

Review the basic working made by Estimation Dept for quantities of major work items planned to be executed in-hose - especially breaking down to various Review Overall construction Strategy worked out for project executions alongwith workings of Estimation Dept for Overall resources requirement
schedule for:
Materials Consumables Manpower Subcontractors Formwork requirements Equipments Staff Mobilization Local Authority Approvals requirements Other site requirements

buildings / phases / floor wise / heights variances upto 3.5 mt , 3.5 to 4.5 m, 4,5 to 6 mtrs, 6.0 to 9.0 m, 9.0 to 12.0 mt & above 12.0 mtrs clear height floor areas, surface areas, perimeters, volumes to be calculated and co-related

Review the Risk analysis performed especially issues relating to Design Requirements, Consultant, Client, Local Authorities requirements, Project
Duration requirements, Contract conditions for variations, escalations, various responsibilities, Site Conditions and similar other special requirements.

Have a site visit alongwith the Tender Department person during tendering. Provide feedback to Tendering Dept for any special attentions / queries to be raised to be clarified from the Client / Consultant. Participate in final negotiation process before accepting the Contract award

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Project Engineering Lead-T&D 12

Basic Concepts Project Control Systems Contd.

Mobilisation Stage (On award Manpower, Equipments /Issue of LOIs/LPOs/WOs)
Collect Final Contract Documents
- details of BOQ, Tender documents, & Tender drawings,
working of quantities, rate analysis & pricing basis considered by the estimation dept. while finalization of the Tender proposal & control.

work out Construction BOQ based on construction drawings and make variance analysis.
work out the Overall resources requirement schedule for:
Materials Manpower Subcontractors Equipments Staff Mobilization Other site requirements

Work out the Master Budget for all resources item wise with Quantities, Rate & Amount. Proceed for Resources Mobilisation-Manpower, Equipments, Issue of LOI/LPO/WOs in line with
approved master budget Mobilisation

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Project Engineering Lead-T&D 13

Basic Concepts Project Control Systems Contd.

Execution Stage (periodic progress MPRs, Receipts & Payments, Technical Submissions)
Data Collection from project sites:
Construction Drawings & Material take-off Receipt of materials Consumption of materials Reconciliations with requirements/usage Manpower utilization Equipment utilization Subcontract works and Reconciliation with Billed to Client Work progress Revise drawings/Site instruction issued by the consultant Other relevant details

Review valuations, variation/claims analysis & Contractual Correspondences & Technical Submissions. Monitor & update the resources schedules as the work progress based on actual quantities, rates etc. and Prepare cost reports and variance report on monthly basis. Arrange project review meetings Report to the Management on monthly basis for review of the following:

Project wise Profitability Cash flow Cost report Variance analysis Suggestions for Improvement

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Project Engineering Lead-T&D 14

Basic Concepts Project Control Systems Contd.

Close out stage (Handing Over Final Accounts)
Review Final Handing over documentations requirements
Prepare & Review Final Statement of Account for Client Review Final Statement of Accounts for Sub-Contractors Review As-Built Drawings Review Arrangements & requirements for Maintenance Periods Support for Final Handing Over sign off

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Project Engineering Lead-T&D 15

Current Situation in SNC

Following Points Hinder Effective Project Control at Sites:

Lack of Awareness about Project Control requirements

Lack of formal process for Project Control Lack of Clarity of Roles Job Description & Integration with others Lack of Effective Decision Making Lack of proper Planning for Resources & Utilization Lack of Proper Communication & Flow of Information Lack of Competent Manpower Lack of Proper Documentation for Project Controls required for various Stages

However, the plus point - there is Management Commitment to Implement and Support Project Control Systems

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Project Engineering Lead-T&D 16

Action Plan
However, Following Actions will help us move in proper direction:
Formal Training for Project Management & Controls Formalized process for Project Control Clarity of Roles Job Description to be finalised & Issued to Staff Decentralization of Common Services for Project Higher Authority & Accountability system for Project leaders Establishing System for Conflict resolution Cost, Time, quality & Risk Transparency in Decision Making Improving Communication & Flow of Information Keeping Proper Documentation Efforts for Continuous Improvement of Productivity & Resource Utilization Performance Linked Incentive Scheme

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Project Engineering Lead-T&D 17

Conclusion
We have a Long Way to go for Effective Project Control at Sites,
But, with Support from the Management and Project Teams, we can improve our performance on a sustainable basis for All Projects that we Execute & Deliver within Agreed Time & Budget.

Rehan Hamid
Project Engineering Lead-T&D 18

THANK YOU
Q & A.

Rehan Hamid
Project Engineering Lead-T&D 19