Lecture-2 (CM-Management & Planning)
Lecture-2 (CM-Management & Planning)
AND
PLANNING
[LECTURE-2]
DATE: JULY 7, 2022 [THURSDAY]
MANAGEMENT
• What is management (in general)?
• Definition:- Act of coordinating the efforts of people to accomplish desired goals
and objectives using available resources efficiently and effectively.
• Management comprises planning, organizing, staffing, leading or directing,
and controlling an organization/ Project (a group of one or more people or entities) or efforts
for the purpose of accomplishing a goal). Resourcing encompasses the deployment and
manipulation of human resources, financial resources, technological resources, and natural
resources.
• In short and in simple colloquial language "management is getting things done through
others“ which means management is the process of getting activities completed
efficiently and effectively with and through other people to achieve the project
goal / objective.
MANAGEMENT
• Management – Art or Science? : - Different thoughts are :
• Management is a science because it uses systematic approach or objective study of the problems
about which decision are to be taken. It uses scientific, mathematical, statistical tools (like
operations research with mathematical modelling, linear programming, probability, etc.) to arrive
at many decisions.
• Management is neither a science nor an art. But science and art are inter-involved with each
other. Management uses or contains principles of both.
MANAGEMENT
• Project Management (Definition): - Project management is the planning, organizing,
directing and monitoring of all aspects of the project and motivation of all involved to achieve
project objective safely and within a defined time, cost and performance.
Also, David I Cleland has defined “Project Management as series of activities embodied in a process
of getting things done by working with members of the project team and other in order to reach the
project schedule, cost and technical performance objectives.”
Monitoring and Control (M & E) to keep the plan under constant review and take action when necessary
to correct the situation
Planning for Construction project is very important as it is complex, one -time job, time bound and unlike
‘steady state’ organization/companies (i.e. that runs continuously to produces products of services) difficult
to manage
PLANNING
What to plan for Construction Project?
1. Personnel/ manpower planning (Man):
• Estimating the size of man power of particular skill needed.
• Grouping of man power of suitable functional team [departmentalization].
• Provision of suitable working environment and incentives for better productivity.
2. Equipment Planning (Machine):
• Machines are inevitable for mass excavation, trenching compacting, grading, hoisting,
concreting, drilling, material handling etc.
• Modern equipment improve productivity and can reduce cost.
• But these equipments are very costly and should be optimally utilized.
• Selecting right equipment is important in planning equipment.
• Whether to hire or own an equipment.
PLANNING
3. Material Planning (Materials):-
• Identification of required materials,
• Estimation of required material, specifications and
• Forecasting material requirement and their sources.
• Material Procurement plan (process or method).
• Inventory cost management.
4. Finance Planning (Money):- [The construction project requires huge investments]
• All the money is also not required in one point of time. Thus, cash flow for the project is calculated
and planned.
• Sources are planned and ensured so that the owner and contractor may know what amount of
money is needed at when in future (Cashflow).
5. Time Planning (Minutes):-
• most important factors in construction planning. Project has to be finished in stipulated time limit.
• To complete projects in time and to avoid cost-over runs, time over-run and different penalties,
PLANNING
• Planning techniques and process:
• Project planning process implies systematic way of doing project tasks it consists of:
c. Prepare work breakdown structure (WBS) - Breaking down the Project/ work into smaller elements
with hierarchical order and which must be accomplished to complete a project.
For a building, breakdown would be:
• Civil works (RCC, B/W), Electrical, Sanitary, HVAC, Acoustic, Interior, Landscaping etc.
[Note: we will study about WBS in bit detail in next lecture]
PLANNING
d. Determine logical sequences of activities - These logical sequences of the activities are
determined. For examples, which activity is carried out first and what activities follow the first. Some
independent activities can be carried out independently. While some are dependent on some activities,
for example foundation work cannot be carried out unless trench excavation is completed.
e. Estimate time and resources requirements - Accuracy in estimate of time, cost and other
resources is important for the project planning which can be taken from historical data,
experience of professional experts can be helpful. Project cost can be:
e.1 Time: time can be calculated by the quantities of works to be done divided be the
productivity and numbers of equipment or men.
Q (Quantity of works)
Time duration = ----------------------------------------------------------
R (No. of Resource allocated) x P (Productivity of on resource)
PLANNING
• e.2 Required materials: Required materials and equipment are estimated from the drawings,
specifications or BOQ.
• e.3 Costs: Total cost can be found out as follows
Capital costs: - It can be for land, building, plants, machinery, vehicle, fixtures, electrical
and other assets.
Working capital costs: It can be for raw materials, semi-finished products and finished
products.[Total costs and cash flow estimates (what amount is needed and when?)
throughout project period is desirable]
f. Allocate responsibilities for each activity - Each activity of the project needs to be owned by an
individual or department in the project. Responsibilities are carefully allocated.
•
g. Finalize project plan - The project schedule is optimized for the sequenced activities of all the stage
of the project where resources are allocated to each activity and the project plan is finalized.
END OF LECTURE-2