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8/12/2019 rev01projectcostcontrolpresentationtafseer-12955241348714-phpapp02

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WELCOME

To

The Presentation

On

Project Control - Overview

25 March 2014

Rehan Hamid

Project Engineering Lead-T&D


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AGENDA

Introduction

Basic ConceptsProject

Control SystemProject Control Systems

Current Situation in SNC

Action Plan

Conclusion

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Rehan Hamid



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Basic Concepts

Project

Control System

Project Control System

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Rehan Hamid



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Basic Concepts - Project

Project is UniqueNon-repetitive

It is Temporary EndeavourHave Definite Start & Finish

Consume Resources:Manpower

Materials

Machineries & Plant

Money

5 Project Life Cycle StagesInitiation - Starting

Planning - Preparing

Execution - Doing

Monitoring & Control

Close Out

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Rehan Hamid



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Basic ConceptsProject (contd.)

9 Project Management Knowledge AreasIntegration

Scope

TimeSchedule

Cost

Quality

Human Resources

Communication

RiskProcurement

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Rehan Hamid



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6

Source: PMIs PMBoK4 e Project Management Process Groups (42)

Knowledge Area (42) Initiating (2) Planning (20) Executing (8) Monitoring & Controlling(10) Closing (2)

Project Integration

Management (6)

Develop

Project Charter

Develop Project Management Plan Direct & Manage

Project Execution

Monitor & Control Project Work

Perform Integrated Change Control

Close Project or

Phase

Project Scope

Management (5)

Collect Requirements

Define Scope

Create WBS

Verify Scope

Control Scope

Project Time

Management (6)

Define Activities

Sequence Activities

Estimate Activity Resources

Estimate Activity Durations

Develop Schedule

Control Schedule

Project Cost

Management (3)

Estimate Costs

Determine Budget

Control Costs

Project QualityManagement (3)

Plan Quality Perform QualityAssurance

Perform Quality Control

Project Human

Resources

Management (4)

Develop Human Resource Plan Acquire Project Team

Develop Project Team

Manage Project Team

Project

Communication

Management (5)

Identify

Stakeholders

Plan Communications Distribute

Information

Manage Stakeholders

Expectations

Report Performance

Project Risk

Management (6)

Plan Risk Management

Identify RisksPerform Qualitative Risk Analysis

Perform Quantitative Risk Analysis

Plan Risk Responses

Monitor & Control risks

Project Procurement

Management (4)

Plan Procurements Conduct

Procurements

Administer Procurements Close

Procurements

Project Management Process Groups and Knowledge Areas Mapping

Rehan Hamid



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Project Management

Processes & Major

Activities

7Rehan HamidProject Engineering Lead-T&D


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Basic ConceptsControl System

8

InputsOperations -

Processing

Outputs &

Forecasts

Desired requirements Budget, Time, Profits etc

Comparison

Feedback, Changes & Corrective Actions

Deliverables

Objective of Integrated Control System is to integrate various

processes & stages with main focus on minimize negative

variances and improve positive performances

Measure

Variances

Integrated Control System

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Basic ConceptsControl System(contd.)

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

Control in Management means:Setting performance standardslike 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 lookingControl is closely linked with planning

Control is a tool for achieving organizational activities, Objectives & Performance

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Rehan Hamid



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Basic Concepts

Project Control SystemsWhat is Project Control System?

System to control & Improve overall Project performance.

Project Control System keep balance of constraints ofScope

Time or Schedule.

Cost .Quality.

Risk

Resources

Any Change in one of the above constraint will result onchange on atleast one other constraints which affect theequilibrium. Hence, while evaluating any change overall

balanced view should be taken before approving thechange

There is Need for integrated controls

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Time

Scope

QualityRisk

Project Constraints

CostIntegrated

Controls

Resources

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Basic Concepts

Project Control Systems Contd.

Project Control Systems applies atvarious Stages of Project:

Initiation Stage (Tendering)

Mobilisation Stage (On awardManpower, Equipments /Issue ofLOIs/LPOs/WOs)

Execution Stage (periodic progressMPRs, Receipts & Payments, TechnicalSubmissions)

Close out stage (Handing OverFinalAccounts)

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Time

Benef

its

Benefit diminishes over time

Rehan Hamid



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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. Suggestedthat 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 variousbuildings / 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, surfaceareas, perimeters, volumes to be calculated and co-related

Review Overall construction Strategy worked out for project executions alongwith workings of Estimation Dept for Overall resources requirementschedule for:

Materials

Consumables

ManpowerSubcontractors

Formwork requirements

Equipments

Staff

Mobilization

Local Authority Approvals requirements

Other site requirements

Review the Risk analysis performedespecially issues relating to Design Requirements, Consultant, Client, Local Authorities requirements, ProjectDuration 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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Rehan Hamid



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Basic Concepts

Project Control Systems Contd.Mobilisation Stage (On awardManpower, 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 Tenderproposal & control.

work out Construction BOQ based on construction drawings and make variance analysis.

work out the Overall resources requirement schedulefor:Materials

Manpower

Subcontractors

Equipments

Staff

Mobilization

Other site requirements

Work out the Master Budgetfor all resources item wise with Quantities, Rate & Amount.

Proceed for Resources Mobilisation-Manpower, Equipments, Issue of LOI/LPO/WOs in line withapproved master budgetMobilisation

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Rehan Hamid



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Basic Concepts

Project Control Systems Contd.Execution Stage (periodic progressMPRs, 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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Rehan Hamid



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Basic Concepts

Project Control Systems Contd.Close out stage (Handing OverFinal 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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Rehan Hamid



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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 RolesJob 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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Rehan Hamid



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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 RolesJob Description to be finalised & Issued to Staff

Decentralization of Common Services for Project

Higher Authority & Accountability system for Project leaders

Establishing System for Conflict resolutionCost, 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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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.

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Rehan Hamid



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THANK YOU

Q & A.

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Rehan Hamid
